Factors Influencing the Decision to Join Non-Retail Franchise Business with an Application to Ready-Mixed Concrete Industry in Thailand

Abstract

There are limited academic papers studied on the factors influencing the decision to join franchise network for non-retail franchise business comparing to retail franchise business. The lesson learned from ready-mixed concrete franchise business model in Thailand is chosen to be the case study because special characteristic along the supply chain from upstream to downstream of ready-mixed concrete business can be determined as a non-retail business (Tommelein and Li, 1999). The ready-mixed franchise business in Thailand is the business format franchise which was defined by Bruno (1984). For potential franchisee in the decision phase, they considers whether to join or not to join the franchise network, two key factors influencing the decision are identified namely PUSH factors and PULL factors. PUSH factors are negative factors pushing potential franchisees to join the franchise network aiming for being competitive. PULL factors are positive factors attracting potential franchisees to join to increase competitiveness through the franchisor expertise. From the analysis result, both factors have influence in the decision to join ready-mixed concrete franchise network. The result shows PULL factors have higher influence hence the franchisor of ready-mixed concrete franchise network because PULL factors are under franchisor control.