Risk sources and the effectiveness of the control system in the franchisor's risk perception management

Ramírez-García, Carolina; Ramón-Jerónimo, María Ángeles; García-Álvarez de Perea, Juan; Vélez-Elorza, Maria Luisa

doi:10.1016/j.indmarman.2023.12.024

Cited by 4 publications

(1 citation statement)

References 147 publications

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“…The last factor, investment risk, is an essential factor to consider when investing in the capital market [87]. Short-term, medium-term, and long-term investors may accept high, medium, and little investment risk.…”

Section: Discussionmentioning

confidence: 99%

Conceptual Models of Franchisee Behaviors in the Dietary Supplements and Cosmetics to Imply the Business Investments

Suttidharm,

Leelasantitham

2024

Sustainability

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Franchise businesses have demonstrated resilience before, through, and after the circumstances of COVID-19. This can be attributed to the inherent appeal of rapid success and risk mitigation for investors. Therefore, investors are attached to engaging in a franchise business model. Fierce competition exists among franchise businesses, with numerous brands within the same industry, especially the cosmetic and dietary supplement franchise category, which has garnered significant popularity in Southeast Asia, particularly Thailand. The expansion of this franchise category has accelerated, surpassing the growth rates observed in other countries. Investment decisions across various investor levels are influenced by diverse factors, including intense competition, contributing to the rapid expansion. Therefore, a comprehensive study and understanding of the investment behavior of cosmetic and dietary supplement franchise businesses has become imperative. The success of a franchise business hinges on different factors encompassing decisions made before, during, and after investments. This study delves into the decision-making behaviors preceding and following investments across different investor levels in the cosmetics and dietary supplement franchise industry, utilizing fundamental aspects derived from rational choice theory (RCT) and additional variables. The researcher gathered responses through questionnaires from 490 respondents with investment experience in the cosmetics and dietary supplement franchise business. The study revealed that factors postulated in this study significantly influenced investment choices within cosmetics and dietary supplement franchises. When segmented based on investor levels, distinct considerations emerged for each group. Furthermore, there is a compelling need for cosmetic and dietary supplement franchise owners to implement enhancements in services to uphold and expand investor bases, representing an intense challenge in the cosmetics and dietary supplement franchise business nowadays. This study is intended only for individuals with prior investment experience in the cosmetics and dietary supplement franchise industry. It focuses on examining the factors that influence investment decisions both before and after the initial investment, particularly with regard to dietary supplement and cosmetics franchises.

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Section: Discussionmentioning

confidence: 99%

Conceptual Models of Franchisee Behaviors in the Dietary Supplements and Cosmetics to Imply the Business Investments

Suttidharm,

Leelasantitham

2024

Sustainability

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Franchisee well-being: The roles of entrepreneurial identity, autonomy perceptions, and franchisor management practices

Watson,

Backhaus,

El Akremi

et al. 2024

Industrial Marketing Management

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Whistleblowing intensity and distributor compliance in marketing channel networks

Jiang,

Shen,

Zhang

et al. 2024

EJM

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Purpose This paper aims to examine how channel whistleblowing intensity affects a distributor’s compliance to the manufacturer’s request and how that impact is influenced by institutional environments. Design/methodology/approach Based on paired survey data, which was collected from an automobile manufacturer in China and its 211 distributors, combined with secondary data, this study used hierarchical regression analyses to test the hypotheses. Findings The study finds that channel whistleblowing intensity has an inverted U-shaped effect on distributor compliance. In addition, this curvilinear effect is stronger in regions with more effective legal systems and higher social trust, but the authors do not find perceived vertical control moderating the effect of whistleblowing intensity on distributor compliance. Research limitations/implications First, this study enriches the marketing literature by highlighting the significance of whistleblowing and especially its downside in marketing channel management. Second, moving beyond prior marketing studies’ focus on bilateral controls, it recognizes channel whistleblowing as a peer-enforced control mechanism. Third, it identifies environmental factors as shift parameters that alter the impact of channel whistleblowing, attesting to the importance of “discriminating alignment.” Practical implications The findings caution channel managers against the double-edged effects of whistleblowing and inform the conditions that amplify this impact. Originality/value This work highlights the bright and dark sides of channel whistleblowing and uncovers situations in which it works or fails to promote distributor compliance.

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Risk sources and the effectiveness of the control system in the franchisor's risk perception management

Cited by 4 publications

References 147 publications

Conceptual Models of Franchisee Behaviors in the Dietary Supplements and Cosmetics to Imply the Business Investments

Conceptual Models of Franchisee Behaviors in the Dietary Supplements and Cosmetics to Imply the Business Investments

Franchisee well-being: The roles of entrepreneurial identity, autonomy perceptions, and franchisor management practices

Whistleblowing intensity and distributor compliance in marketing channel networks

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