Opportunistic behaviour in hospitality franchise agreements

Abstract

This paper combines agency and social exchange theoretic perspectives to examine opportunistic behaviour in hospitality franchise agreements. It identifies and analyses the opportunistic behaviour of both franchisors and franchisees through a qualitative study of Turkish hospitality franchisees. A model of opportunistic behaviour and social exchange is developed from the study for further empirical testing. The model depicts different categories of franchisee behaviour, how franchisee behaviour is influenced by the behaviour of franchisors, the relevant characteristics of social exchanges between franchisors and franchisees, and the outcomes of those exchanges. As such, the study provides a complementary perspective of franchise opportunism and exchange relationships. A number of implications for hospitality franchise stakeholders are identified as a result.