Franchising Performance from Franchisee Perspective: Case in Education Franchising in Indonesia

Abstract

This article assesses the impact of transactional, relational, entrepreneur orientation on satisfaction and performance from the viewpoint of franchisee. The methodology includes an empirical study that was conducted in education franchising in Indonesia. The results show that the quality of relational relation is important in improving franchisee performance results. Meanwhile, entrepreneur orientation as a moderator variable gives an effect towards the improvement of franchisee performance. From the four indicators of entrepreneur orientation, in education franchise context in Indonesia, the most required indicator is the courage to take risks. This quality is required by franchisee in increasing franchisee performance because without courage to try new things and find creative ideas, franchisee performance will not improve. This article also discusses managerial implications, research limitation and future research.

Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businesses

“…Along the business progresses, the franchise businesses might and surely will encounter any disputes that can lead to failures. The conflict between partners generally related to moral hazard and path dependency (Gant & Buchan, 2019), lack of entrepreneurial orientation (Botha & Prawlall, 2018), the next is loan issue (Alon et al, 2015), and trust (Dada et al, 2012;Sanny et al, 2017). Previous studies in the franchising area were in the western context, so there is a need to develop a study to examine determinants that influence franchise business survivability in Indonesia.…”