Commitment in Franchising: The Role of Collaborative Communication and a Franchisee's Propensity to Leave

Abstract

Social exchange theory provides the basis for developing a model where collaborative communication from the franchisor relates positively to commitment, and commitment relates negatively to franchisees' propensity to leave the relationship. We analyze data from a unique dataset of 200 franchisees and find partial support for this model; franchisor communication positively relates to one dimension of franchisee commitment, and one dimension of commitment negatively relates to propensity to leave. The study expands franchising theory by examining the franchising relationship from a social exchange perspective and by empirically demonstrating the important role commitment plays in the franchising context.

Conference proceedings

“…In contrast to other researchers Meek et al found out that the propensity to leave the franchise depends mostly on continuance commitment. Nevertheless, researchers agree to the point that communication on a frequent, rational, and reciprocal basis triggers emotions of belonging (Meek et al, 2011). These finding are simple to relate to since all our lives are paved with relationships, some more intensive than others, however personal experience in everyday life confirms these theories.…”

“…Three dimensions of commitment have been found: affective (emotions), normative (obligations), and continuance (recognition of cost when leaving network). Linking these commitments with social exchange theory, it implies that these dimensions explain the existence or non-existence of a franchise partnership (Meek, Davis-Sramek, Baucus and Germain, 2011). Commitment, as described in these dimensions, classifies whether the franchisee has a strong will to stay, the need to stay, or the obligation to stay.…”

Antecedents of early terminations in franchising: franchisor versus franchisee cancelations

“…We interpret that these requirements increase the franchisees' economic and affective commitment to the chain, thus lowering the incidence of franchisees' terminations (Mignonac et al 2015;Frazer and Winzar 2005;Meek et al 2011). On the one hand, initial investments may bind the franchisees to the franchise relationship, delaying their exit decisions (i.e., early terminations) by raising the costs of dissolving the relationship (Kang and Jindal 2015).…”

“…When the benefits (both economic and affective) of an enduring relationship are greater, this fact may generate commitment of the partners, thus reducing early terminations (Meek et al 2011;Kang and Jindal 2015;Mignonac et al 2015). We consider two sources of commitment that may play a role in reducing terminations initiated by franchisees and by franchisors: initial investment requirements and franchise training programs.…”

Examining the Relationship between Organizational Identification and Learning Organization Dimensions: A Study of a U.S. Franchise

“…Although the benefit of identification was explored previously, limited use of the theory was applied to the franchise network, which leads to an opportunity to further investigate. Meek, Davis-Sramek, Baucus, and Germain (2011) utilized the social exchange theory to study the role of collaborative communication and commitment on franchisees' propensity to leave the network. However, they concluded that "the future of franchising research is ripe with opportunity to examine the franchisor-franchisee relationship by grounding it in theoretical frameworks offered in both marketing and organizational behavior" (p. 575).…”