Abstract
In this study, we develop and examine the network of relationships explaining perceived conflict in franchise relationships from a franchisee perspective. Our research contributes to the current knowledge of asymmetric exchange relationships through demonstrating the importance of a franchisee's expectations confirmation, relational trust and relationship satisfaction in franchisee assessments of network conflict. The goal of this paper is to empirically examine (1) the relationship between franchisee perceptions of information quality (information dissemination and information search) and the confirmation of franchisee performance expectations, (2) franchisee characterizations of their relationships with their franchisors in terms of relational sentiments such as trust and relational satisfaction, communication and conflict management, (3) the relationship between franchisee satisfaction and perceived conflict, and (4) the moderating effect of franchisee experience on the relationship between franchisee satisfaction and franchisee perceptions of conflict. Empirical results, utilizing a sample of 345 franchisees in Australia, present strong evidence for the support of nine of the ten hypotheses drawn from the conceptual model. Specifically, data reveal that in an effort to cultivate a network of cooperative and satisfied franchisees, franchisors should adopt strategies that promote the timely dissemination of relevant and meaningful pre- and post-entry information, open communication exchange, transparent conflict management systems and personalized support in accommodating individual franchisee needs.
Highlights
Franchising represents a unique and efficient form of business ownership, with success being reliant upon the ongoing collaboration between independent entrepreneurs (Baucus et al 1996; Dant et al 2013a)
It appears that franchisees extract relational value from different sources and satisfaction is influenced by franchisee perceptions of the nature of the franchising relationship
Franchising is a dominant form of retailing throughout the world (Dant et al 2013b), to date, there has been limited research investigating how the motives and actions of franchisors influence levels of conflict and relationship satisfaction in franchising arrangements
Summary
Franchising represents a unique and efficient form of business ownership, with success being reliant upon the ongoing collaboration between independent entrepreneurs (Baucus et al 1996; Dant et al 2013a). The paper seeks to examine: (1) the relationship between franchisee perceptions of information quality (information dissemination and information search) and the confirmation of franchisee performance expectations, (2) franchisee characterizations of their relationships with their franchisors in terms of relational sentiments such as trust and relational satisfaction, and perceived conflict, (3) the relationship between franchisee satisfaction and perceived conflict, and (4) the moderating effect of franchisee age in the system on the relationship between franchisee satisfaction and franchisee perceptions of conflict within the system
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