Franchisor-Franchisee Relationship Quality: Time of Relationship and Performance

Abstract

Franchise literature disputes how the relationship between franchisors and franchisees develops over time. Traditional lifecycle theory views relationships following an ascendant curve, in which relationship quality and performance strengthen over time. Another perspective better reflects the peculiarities of the franchisor-franchisee relationship, indicating that relationship quality in franchise systems follows a U-shaped curve. There is also limited research on the moderating effect of time on the relationship between relational variables and outcomes. This study sheds light on the influence of relationship duration on relationship quality and financial performance in the franchisee-franchisor relationship. Using a self-report survey from a sample of 342 franchisees, mean and regression analyses are conducted to test relationships. Results confirm the time effect on franchisor-franchisee relationship quality and performance, but the hypothesized shape of relationship phases is only partially confirmed. Moreover, time has a positive moderating effect on the impact of relationship quality on financial performance.

Training as an internal marketing tool within the franchise system

“…In addition, franchisors must develop trust with the franchisees to ensure that policies and system standards are met (Croonen and Brand, 2015), to avoid reducing the performance of individual franchisees as well as the entire franchise system (Davies et al, 2011). In fact, the need for continual training has been established, extending beyond the initial stage of the franchisor-franchisee relationship, in order to improve franchisee capabilities, favouring an ongoing basis whereby high quality of the relationship and financial performance can be maintained (Chiou et al, 2004;Altinay et al, 2014a;Varotto and Parente, 2016). In summary, by utilising the franchisor's training programmes, franchisees can acquire valuable know-how and management skills to operate their businesses successfully, and thus improve customer satisfaction (Choo and Bowley, 2007;Chien, 2014).…”

“…The internal exchange between franchisor and franchisee has been characterised as complex, difficult to manage, continuous and long-lasting, which must be cared for as it is crucial to the success of the franchise system (Watson and Johnson, 2010;Varotto and Parente, 2016;Kalargyrou et al, 2018). When franchisees are not happy with the relationship, the results of the system worsen, increasing their tendency to display opportunistic behaviour (Roh and Yoon, 2009;Watson and Johnson, 2010).…”

Desempenho E Satisfação De Empresas Franqueadas

“…Existem diversos impulsionadores da performance interorganizacional (VAROTTO; PARENTE, 2016). O desempenho é um dos construtos mais importantes da literatura gerencial e essencial para o sucesso e sobrevivência de todo e qualquer negócio (RICHARD et al, 2009).…”

“…Em revisão da literatura, esses autores constaram que existem inúmeras possibilidades de mensurar o desempenho organizacional, geralmente relacionadas aos usuários da informação, situações do mercado e tempo de retorno. A avaliação das franquias afeta sua satisfação e insatisfação, sendo que a satisfação está normalmente ligada à continuidade de relacionamentos de longo prazo (VAROTTO; PARENTE, 2016 (5); bebidas, cafés, doces, salgados e sorvetes (5); vestuário (3); cosméticos e perfumaria (2); decoração e presentes (1); farmácias e produtos naturais (1). Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Assim como Wu (2015), para avaliar o desempenho do franchising, utilizou-se de um construto multidimensional, em vista de uma das principais críticas de Richard et al (2009) As evidências do estudo contribuem para o entendimento do fenômeno franchising.…”

O Papel Moderador Da Inteligência Cultural Na Relação Das Características Dos Gerentes De Projeto E O Sucesso Dos Projetos

“…O argumento pauta que estas organizações semiautônomas, reforçando o achado de Wangrow et al (2015), podem influenciar os resultados da organização matriz (Sengul & Gimeno, 2013). Exemplos podem incluir equipes semiautônomas, como amoeba management (Urban, 2017), as filiais e unidades internacionais das corporações (Menz, Kunisch, & Collis, 2015), as franquias (Varotto & Parente, 2016), ou os projetos estratégicos ,como organizações provisórias e de impacto semipermanente (Eskerod et al, 2015).…”