Dependence as a Moderator in the Relationship Between Franchisors and Franchisees

Abstract

This study examines the franchisor-franchisee relationship under different distribution channel dependence structures. Specifically, its basic objective is to analyse if the effect that the variables communication, perceived cooperation and conflict exert on the franchisee's satisfaction (social and economic) is moderated by the degree of existent dependence between the partners. The results obtained from the realisation of a series of detailed interviews held in franchise relationships permit us to conclude that such a moderating effect is especially important in the case of economic satisfaction.

Performance in Franchise Systems : The Franchisee Perspective

“…Like other topics in franchising, most of the studies in the marketing perspective have been conducted from the franchisor's point of view (Doherty and Alexander, 2004), and only a few has taken the franchisees' perspective (BordonabaJuste and Polo-Redondo, 2004). In recent years, however, due to the significant role of franchisees, it has received considerable attention, and several researchers such as (Davies et al, 2011, Croonen and Brand, 2013, Rodríguez et al, 2006 have studied the franchising from the franchisee's perspective. Following these articles, and the need for more empirical evidence (Rodríguez et al, 2006), this part of research aims to examine the effect of relationship factors on the franchisee's performance from the marketing perspective.…”

“…In recent years, however, due to the significant role of franchisees, it has received considerable attention, and several researchers such as (Davies et al, 2011, Croonen and Brand, 2013, Rodríguez et al, 2006 have studied the franchising from the franchisee's perspective. Following these articles, and the need for more empirical evidence (Rodríguez et al, 2006), this part of research aims to examine the effect of relationship factors on the franchisee's performance from the marketing perspective.…”

“…The level of satisfaction stems from the inter-organizational relationship, and plays a crucial role in analyzing the quality of relationships (Rodríguez et al, 2006). It is based upon the partner evaluation of all the aspects of a working relationship, including economic satisfaction and social satisfaction with another partner (Rodríguez et al, 2006).…”

“…Kaufmann and Stern (1988) refer to franchising as the prototype relational exchange wherein, parties' attitude and the transaction between entities are important in the firms' outcome (Spinelli and Birley, 1996). Although in a franchise agreement, there is a formal contract to govern the relationship between a franchisor and a franchisee, the informal relationship has a significant role in a franchise system (Rodríguez et al, 2006, Gassenheimer et al, 1996. Since in business format franchising, parties attempt to achieve sustainable profitability, relational exchange bounded by 28 informal agreement plays a critical role in this interdependent relationship (Harmon and Griffiths, 2008).…”

“…In fact, in a relationship in a franchising system, the franchisees' perception of the franchisor's characteristics affects the satisfaction and behavior (Spinelli and Birley, 1996). Since the participants have their own objectives (Rodríguez et al, 2006), the franchisor's behavior in the long term, and unexpected contingencies in daily relationships of exchange make some special situation. Franchisee's perception of the relationship could be destructive or constructive and affect the franchisee's behavior and performance outcome (Şengün and Wasti, 2011).…”