Opportunism in an emerging market – franchisee perspective

Abstract

Purpose Although multiple forms of governance mechanisms have been studied to address the opportunistic behavior in franchising, research has not shed light on franchise systems operating in emerging markets despite exponential growth in these markets. To address this gap, this study aims to test the direct effects of different governance mechanisms on franchisee’s opportunism and moderating effects of franchisee’s relationship satisfaction on the relationship between different governance mechanisms and franchisee’s opportunism. Design/methodology/approach Survey data from 151 franchise owners were used to test the conceptual model and research hypotheses. The confirmatory factor model and structural equation model were tested by using AMOS. Findings Findings suggest that formalization and solidarity in franchising relationships negatively affect franchise opportunism. By contrast, franchisees, who are otherwise satisfied with their franchisor, find centralization and formalization oppressive and, therefore, engage in opportunistic activities. Research limitations/implications The study makes important contributions related to franchising in emerging markets. It addresses opportunistic behavior by franchisees in emerging markets and the role played by different governance mechanisms in curbing such behavior. The study has some limitations related to its cross-sectional design and its focus on a single emerging country, among others. Originality/value This study is among the first to examine the role of governance mechanisms to address franchisee’s opportunism in an emerging market context. The study’s findings have important theoretical and practical implications for governance design in business-to-business relationships in emerging markets.

Analysis on the impact of dynamic innovation investment strategy of green supply chain enabled by blockchain

“…The synergy of big data collection, analytics, and insights capabilities is crucial for achieving high levels of green process innovation. Academic research on innovation has been largely empirical in recent years, with both the business community and academics showing great interest in the topic ( Luu et al, 2023 ; Panda et al, 2023 ; Sørensen et al, 2023 ; Shah & Saqib, 2023 ; Jell-Ojobor, Alon & Windsperger, 2022 ; Hsu & Jang, 2009 ; Sadovnikova, Kacker & Mishra, 2023 ). Paparoidamis et al (2019) found that the degree of innovation in eco-friendly attributes positively affects consumers’ perception of a product’s eco-friendliness and willingness to adopt it.…”