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What to Expect After the Honeymoon: Testing a Lifecycle Theory of Franchise Relationships

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  • Blut, Markus
  • Backhaus, Christof
  • Heussler, Tobias
  • Woisetschläger, David M.
  • Evanschitzky, Heiner
  • Ahlert, Dieter

Abstract

This research examines the evolution of interorganizational relationships in a franchising context. Using U-curve theory, we develop three hypotheses and contrast them with traditional lifecycle theory. Three groups of constructs are affected by lifecycle: cooperation variables, dependence variables, and relationship variables. Four distinct stages emerge, with highest levels of variables in the honeymoon stage, lower levels in routine and crossroad stages, and increasing levels in the stabilization stage. Franchisors should strive for “stability on high levels” before operational realities influence the franchisees. Franchisees’ intermediate lifecycle phases are most critical for the system, since opportunistic behavior and switching are most likely.

Suggested Citation

  • Blut, Markus & Backhaus, Christof & Heussler, Tobias & Woisetschläger, David M. & Evanschitzky, Heiner & Ahlert, Dieter, 2011. "What to Expect After the Honeymoon: Testing a Lifecycle Theory of Franchise Relationships," Journal of Retailing, Elsevier, vol. 87(3), pages 306-319.
    • Handle: RePEc:eee:jouret:v:87:y:2011:i:3:p:306-319
    DOI: 10.1016/j.jretai.2010.06.003
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    7. Rosado-Serrano, Alexander & Paul, Justin & Dikova, Desislava, 2018. "International franchising: A literature review and research agenda," Journal of Business Research, Elsevier, vol. 85(C), pages 238-257.
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    10. Ommen, Nils O. & Blut, Markus & Backhaus, Christof & Woisetschläger, David M., 2016. "Toward a better understanding of stakeholder participation in the service innovation process: More than one path to success," Journal of Business Research, Elsevier, vol. 69(7), pages 2409-2416.
    11. Vivian Zheng, Xu & Jenny Ji, Li & Su, Chenting, 2020. "Mitigating the Negative Effects of Regional Clustering in Franchising: The Roles of Governance Mechanisms," Journal of Retailing, Elsevier, vol. 96(3), pages 434-444.
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    14. Perrigot, Rozenn & López-Fernández, Begoña & Basset, Guy, 2020. "“Conflict-performance assumption†or “performance-conflict assumption†: Insights from franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
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