The relationship between franchise and franchisor: A study of the Vietnamese retail franchising
Main Article Content
Abstract
Abstract. Decades saw the fast growth and high success of franchising in global market but the very early stage of franchising in Vietnam market. Previous researches about franchising have considerably contributed to better understanding of relationships between franchisor and franchise. However, the franchisor-franchise relationship has yet to be fully explored, knowledge of the factors that produce a high quality relationship between franchisor and franchise are critical to the advancement of knowledge in the retail industry. Leader-Member Exchange (LMX) theory is offered of an effective theoretical model of antecedents that can predict the effectiveness the franchisor-franchise relationship. The model proposed has been tested with 500 franchises operating in the retail (fashion, food and beverage) in the Vietnamese franchised distribution system. The results of this study generally support the hypothesized model and strongly support for the idea that the quality of the relationship will lead to higher level of franchise’s job satisfaction, performance business, trust and commitment. This study also confirms the importance of the franchisor’s support and mediating role of trust and commitment to the success of franchising relationship. Finally, this study provides franchisors with valuable information for establishing an effective management to improve the relationship between franchisor and franchise and thus improves the rate of success of both franchise and franchisor.
References
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Wayne, S. J. & Graen, S. A. (1993). The effects of leader-member exchange on employee citizenship and impression management behavior. Human Relations, 46.
[2] Andaleeb, S. S. (1996). An experimental investigation of satisfaction and commitment in marketing channels: the role of trust and dependence. Journal of Retailing.
[3] Anderson, E. & Weitz, B. (1992). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, XXIX (February).
[4] Arbuckle,J.L., (2007). Amos Users’ Guide Version 16.0. Small Waters Corporation, Chicago.
[5] Baron, R. M. & Kenny, D. A. (1986). The Moderator-Mediator variable distinction in Social Psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology.
[6] Blankenburg, D., Eriksson K. & Johanson, J. (1996). Business network and cooperation in international business relationships. Journal of International Business Studies, 27 (5) (special issue).
[7] Bordonaba-Juste, M. V. & Polo-Redondo, Y. (2004). Relationships in Franchised Distribution System: the Case of the Spanish Market. International Review of Retail, Distribution & Consumer Research, Vol. 14 Issue 1.
[8] Brown, J., Lusch, R. & Nicholson, C. (1995). Power and relationship commitment: their impact on marketing channel member performance. Journal of Retailing, 71(4).
[9] Byrne, B. M. (2001). Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming. Lawrence Erlbaum Associates, New Jersey.
[10] Carmines, E. G. & Zeller, R. A. (1988). Reliability and Validity Assessment. Beverly Hills: Sage.
[11] Dahlstrom, R. & Nygaard, A. (1999). An empirical investigation of expost transaction costs in franchised distribution channels. Journal of Marketing Research, 36(2).
[12] Dansereau, F., Graen, G. B. & Haga, W. J. (1975). A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role making process. Organizational Behavior and Human Performance.
[13] Duarte, N. T., Goodson, J. R. & Klich, N. R. (1994). Effects of Dyadic Quality and Duration on Performance Appraisal. Academy of Management Journal.
[14] Dunn, S. C., Seaker, R.F. & Waller, M. A. (1994). Latent variables in business logistics research: Scale development and validation. Journal Business Logistics 15 (2).
[15] Dwyer, F., Schurr, P. & Oh, S. (1987). Developing buyer-seller relationships. Journal of Marketing, 51(April).
[16] Flint, D. J., Woodruff, R. B. & Gardial, S. F. (1997). Customer Value Change in Industrial Marketing Relationships: A Call for New Strategies and Research. Industrial Marketing Management, 26.
[17] Fullerton, G. (2005). How commitment both enables and undermines marketing relationships. European Journal of Marketing, Vol. 39 Issue 11/12.
[18] Garbarino, E. & Johnson, M. (1999). The different roles of satisfaction, trust and commitment in customer relationships. Journal of Marketing, 63(April).
[19] Geykens, I., Steenkamp, J. B. & Kumar, N. (1999). A meta- analysis of satisfaction in marketing channel relationship. Journal of Marketing Research, XXXVI (May).
[20] Graen, G. B., Liden, R. C. & Hoel, W. (1982). The Role of Leadership in Employee Withdrawal Process. Journal of Applied Psychology, 67.
[21] Graen, G. B., Novak, M. A. & Sommerkamp, P. (1982). The Effects of Leader-Member Exchange and Job Design on Productivity and satisfaction: Testing a Dual Attachment Model. Organizational Behavior and Human Performance, 30 (August).
[22] Gundlach, G., Achrol, R. & Mentzer, J. (1995). The structure of commitment in exchange. Journal of Marketing, 59 (January).
[23] Hair, J. F., Anderson, R. E., Tatham, R.L., & Black, W. C. (1995). Electronic data interchange and small organizations: Adoption and impact of technology. MIS Quarterly.
[24] Hewett, K. & Bearden, W. (2001). Dependence, trust, and relational behavior on the part of foreign subsidiary marketing operations: implications for managing global marketing operations. Journal of Marketing, 65 (October).
[25] Hewett, K., Money, B. & Sharma, S. (2002). An exploration of the moderating role of buyer corporate culture in industrial buyer-seller relationships. Journal of the Academy of Marketing Science, 30 (3).
[26] Holmbeck, G. N. (1997). Toward terminological, conceptual, and statistical clarity in the study of mediators and moderators: Examples from the child-clinical and pediatric psychology literatures. Journal of Consulting & Clinical Psychology, 65.
[27] Jap, S. & Ganesan, S. (2000). Control mechanisms and the relationship life cycle: implications for safeguarding specific investments and developing commitment. Journal of Marketing Research, XXXVII (May).
[28] Judd, C.M. and D.A. Kenny (1981). Estimating the Effects of Social Interventions . New York: Cambridge Univ. Press.
[29] Khan, M. A. (1992). Restaurant Franchising. New York, NY, Van Nostrand Reinhold.
[30] Kline, R.B. (2005). Principles and practice of structural equation modeling. New York: Guilford Press.
[31] Koufteros, X. A. (1999). Testing a model of pull production: A paradigm for manufacturing research using structural equation modeling. Journal of Operations Management 17
[32] Kumar, N., Scheer, L. & Steenkamp, J. (1995a). The effects of supplier fairness on vulnerable resellers. Journal of Marketing Research, XXXII (February),
[33] Locke, E. A. (1976). The Nature and Consequences of Job satisfaction, in Handbook of Industrial and Organizational Psychology, M.D. Dunnette, ed., Chicago: Rand McNally Publishing Company.
[34] Meyer, J. P., & Allen, N. J. (1984). Testing the “side-bet theory” of organizational commitment: Some methodological considerations. Journal of Applied Psychology, 69.
[35] Mohr, J. & Spekman, R. (1994). Characteristics of partnership success: partnership attributes, communications behavior and conflict resolution techniques. Strategic Management Journal, 15 (2).
[36] Moorman, C., Zaltman, G. & Deshpande, R. (1992). Relationships between providers and users of market research: The dynamics of trust within and between organizations. Journal of Marketing Research, 29(August).
[37] Morgan, R. & Hunt, S. (1994). The commitment – trust theory of relationship marketing. Journal of Marketing, 58(July).
[38] Morrison, K. A. (1997). How franchise job satisfaction and personality affects performance, organizational commitment, franchisor relation, and commitment to remain. Journal of Small Business Management, 35 (July).
[39] Nes, E. & Solberg, C. (2002). Precursors of commitment and trust in exporter-distributor relations and the effects on export performance. Proceedings of the Multicultural Marketing Conference, June 26-29.
[40] Scandura, T. A. & Graen, G. B. (1984). Moderating Effects of Initial Leader-Member Exchange Status on the Effects of Leadership Intervention. Journal of Applied Psychology, 69 (3),
[41] Shane, S. & Spell, C. (1998). Factors for New Franchise Success. Sloan Management Review, 39 (3).
[42] Siguaw, J., Simpson, P. & Baker, T. (1998). Effects of supplier market orientation on distributor market orientation and the channel relationship: the distributor perspective. Journal of Marketing, 62 (July).
Wayne, S. J. & Graen, S. A. (1993). The effects of leader-member exchange on employee citizenship and impression management behavior. Human Relations, 46.