Impact of Socioeconomic Values Collaboration on Performance in Franchising

Document Type

Article

Publication Date

7-2023

Publisher

Elsevier

Source Publication

Journal of Business Research

Source ISSN

0148-2963

Original Item ID

DOI: 10.1016/j.jbusres.2023.113877

Abstract

Franchises exist within cultures and societies that establish distinct socioeconomic beliefs, values, opportunities, and threats, all of which can affect firms’ operational success. Disagreements between franchisees and franchisors about such social or economic issues potentially disrupt their cooperative equilibrium, whereas collaborations that prioritize shared socioeconomic values may facilitate successful long-term relationships. Using primary data, gathered through a survey of U.S. franchisees, the authors test a proposed model of franchisee performance. The structural equation modeling results reveal that socioeconomic values–based collaborations indirectly enhance performance, through their effects on customer relationship management cooperation and franchisor idiosyncratic investment. Control of local marketing mix decisions by the franchisee provides positive moderating effects.

Comments

Journal of Business Research, Vol. 162 (July 2023). DOI.

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