Franchisees’ perceptions of relationship development in franchise partnerships

Abstract

Purpose – This paper aims to evaluate the antecedents of franchise relationship development from the perspective of a sample of Chinese and Turkish franchisees. Design/methodology/approach – This study explores relationship development through semi-structured interviews with Chinese and Turkish franchisees. Findings – The findings of the study demonstrated that both the culturally adapted role performance of franchisors and communication geared towards knowledge transfer contribute to relationship development with franchisees. Research limitations/implications – This exploratory study evaluated the influence of role performance and communication as factors influencing relationship development. Further research could explore other factors in other countries and industries. Practical implications – To build and develop long-term relationships with franchisees, franchisors need to invest in continuously improving their franchise infrastructures and enhancing their brand reputations. Communication and knowledge transfer between the franchisors and the franchisees are crucial for the management of dynamic relationships. Originality/value – This paper advances franchising literature by offering a combined and complementary theoretical perspective to our understanding of the influence of power and social investments in relationship development between franchisees and franchisors. In particular, the study identifies role performance of franchisor and communication with franchisees as the key antecedents of relationship development.

Knowledge transfer and isomorphism in franchise networks

“…Franchisees in both sectors reported joining a network because of their lack of prior industrial or business experience, a finding consistent previous research (Altinay et al, 2014b).…”

The Use of Importance-Performance Analysis to Measure the Satisfaction of Travel Agency Franchisees

“…The role of the franchisor (brand reputation, marketing, training and assistance) contributes to the relationship development through the creation of trust, and demonstration of commitment, both at the pre and post stages of franchising partnerships (Altinay et al, 2014).…”

“…Many entrepreneurs do not have previous work experience to be successful businessmen; therefore, they prefer appealing to franchisors to receive help and training to start their own business (Lim & Frazer, 2004). Consequently, franchisors need to be responsive and attend franchisees' needs, particularly during the early stages of the partnership (Altinay, Brookes, Yeung, & Aktas, 2014).…”

New challenges in franchisor-franchisee relationship. An analysis from agency theory perspective

“…For example, the theory of resources and capabilities (Fladmoe-Lindquist 1996;Juste et al 2006;Alon et al 2012;Michael 2014), scarcity resource theory (Combs et al 2011a;2011b;Hua and Dalbor 2013), transaction costs theory and the theory of the firm (Rubin 1973 and1978;Michael and Moore 1995;Baena 2010), social exchange theory (Altinay et al 2014), structural inertia theory (Winter et al 2012), and game theory (Desai 1997;Sigué and Chintagunta 2009).…”