IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v162y2023ics0148296323002357.html
   My bibliography  Save this article

Impact of socioeconomic values collaboration on performance in franchising

Author

Listed:
  • Dubey, Vivek K.
  • Matthes, Joseph M.
  • Saini, Amit

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.

Suggested Citation

  • Dubey, Vivek K. & Matthes, Joseph M. & Saini, Amit, 2023. "Impact of socioeconomic values collaboration on performance in franchising," Journal of Business Research, Elsevier, vol. 162(C).
    • Handle: RePEc:eee:jbrese:v:162:y:2023:i:c:s0148296323002357
    DOI: 10.1016/j.jbusres.2023.113877
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296323002357
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2023.113877?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kremez, Zhanna & Frazer, Lorelle & Thaichon, Park, 2019. "The effects of e-commerce on franchising: Practical implications and models," Australasian marketing journal, Elsevier, vol. 27(3), pages 158-168.
    2. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
    3. M. Bensaou & Erin Anderson, 1999. "Buyer-Supplier Relations in Industrial Markets: When Do Buyers Risk Making Idiosyncratic Investments?," Organization Science, INFORMS, vol. 10(4), pages 460-481, August.
    4. Esfandiar, Kourosh & Sharifi-Tehrani, Mohamad & Pratt, Stephen & Altinay, Levent, 2019. "Understanding entrepreneurial intentions: A developed integrated structural model approach," Journal of Business Research, Elsevier, vol. 94(C), pages 172-182.
    5. Farhad Sadeh & Manish Kacker, 2018. "Quality signaling through ex-ante voluntary information disclosure in entrepreneurial networks: evidence from franchising," Small Business Economics, Springer, vol. 50(4), pages 729-748, April.
    6. Steven C. Michael & James G. Combs, 2008. "Entrepreneurial Failure: The Case of Franchisees," Journal of Small Business Management, Taylor & Francis Journals, vol. 46(1), pages 73-90, January.
    7. Amit Saini & Rajdeep Grewal & Jean Johnson, 2010. "Putting market-facing technology to work: Organizational drivers of CRM performance," Marketing Letters, Springer, vol. 21(4), pages 365-383, December.
    8. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    9. Iglesias, Oriol & Markovic, Stefan & Rialp, Josep, 2019. "How does sensory brand experience influence brand equity? Considering the roles of customer satisfaction, customer affective commitment, and employee empathy," Journal of Business Research, Elsevier, vol. 96(C), pages 343-354.
    10. Dant, Rajiv P. & Grünhagen, Marko & Windsperger, Josef, 2011. "Franchising Research Frontiers for the Twenty-First Century," Journal of Retailing, Elsevier, vol. 87(3), pages 253-268.
    11. Lafontaine, Francine, 1993. "Contractual Arrangements as Signaling Devices: Evidence from Franchising," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 9(2), pages 256-289, October.
    12. Shampy Kamboj & Mayank Yadav & Zillur Rahman, 2018. "Impact of social media and customer-centric technology on performance outcomes: the mediating role of social CRM capabilities," International Journal of Electronic Marketing and Retailing, Inderscience Enterprises Ltd, vol. 9(2), pages 109-125.
    13. Merrilees, Bill & Frazer, Lorelle, 2013. "Internal branding: Franchisor leadership as a critical determinant," Journal of Business Research, Elsevier, vol. 66(2), pages 158-164.
    14. Arturs Kalnins, 2018. "Multicollinearity: How common factors cause Type 1 errors in multivariate regression," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2362-2385, August.
    15. Lawrence, Benjamin & Kaufmann, Patrick J., 2011. "Identity in Franchise Systems: The Role of Franchisee Associations," Journal of Retailing, Elsevier, vol. 87(3), pages 285-305.
    16. Trainor, Kevin J. & Andzulis, James (Mick) & Rapp, Adam & Agnihotri, Raj, 2014. "Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM," Journal of Business Research, Elsevier, vol. 67(6), pages 1201-1208.
    17. Guo, Huiling & Xu, Hangjun & Tang, Chuanyi & Liu-Thompkins, Yuping & Guo, Zhaoyang & Dong, Baobao, 2018. "Comparing the impact of different marketing capabilities: Empirical evidence from B2B firms in China," Journal of Business Research, Elsevier, vol. 93(C), pages 79-89.
    18. Hsu, Liwu & Kaufmann, Patrick & Srinivasan, Shuba, 2017. "How Do Franchise Ownership Structure and Strategic Investment Emphasis Influence Stock Returns and Risks?," Journal of Retailing, Elsevier, vol. 93(3), pages 350-368.
    19. MacKenzie, Scott B. & Podsakoff, Philip M., 2012. "Common Method Bias in Marketing: Causes, Mechanisms, and Procedural Remedies," Journal of Retailing, Elsevier, vol. 88(4), pages 542-555.
    20. Crosno, Jody L. & Tong, Pui Ying, 2018. "Just going through the motions? An empirical investigation of control, compliance, and performance in franchisor-franchisee relationships," Journal of Business Research, Elsevier, vol. 92(C), pages 360-373.
    21. Grace, Debra & Weaven, Scott & Frazer, Lorelle & Giddings, Jeff, 2013. "Examining the Role of Franchisee Normative Expectations in Relationship Evaluation," Journal of Retailing, Elsevier, vol. 89(2), pages 219-230.
    22. 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.
    23. Wu, Chih-Wen, 2015. "Antecedents of franchise strategy and performance," Journal of Business Research, Elsevier, vol. 68(7), pages 1581-1588.
    24. John Hulland & Hans Baumgartner & Keith Marion Smith, 2018. "Marketing survey research best practices: evidence and recommendations from a review of JAMS articles," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 92-108, January.
    25. James G. Combs & David J. Ketchen Jr & Jeremy C. Short, 2011. "Franchising Research: Major Milestones, New Directions, and its Future within Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 35(3), pages 413-425, May.
    26. Nyadzayo, Munyaradzi W. & Matanda, Margaret J. & Rajaguru, Rajesh, 2018. "The determinants of franchise brand loyalty in B2B markets: An emerging market perspective," Journal of Business Research, Elsevier, vol. 86(C), pages 435-445.
    27. Nyadzayo, Munyaradzi W. & Matanda, Margaret J. & Ewing, Michael T., 2015. "The impact of franchisor support, brand commitment, brand citizenship behavior, and franchisee experience on franchisee-perceived brand image," Journal of Business Research, Elsevier, vol. 68(9), pages 1886-1894.
    28. Fuller, Christie M. & Simmering, Marcia J. & Atinc, Guclu & Atinc, Yasemin & Babin, Barry J., 2016. "Common methods variance detection in business research," Journal of Business Research, Elsevier, vol. 69(8), pages 3192-3198.
    29. Sharma, Rajat & Jha, Mithileshwar, 2017. "Values influencing sustainable consumption behaviour: Exploring the contextual relationship," Journal of Business Research, Elsevier, vol. 76(C), pages 77-88.
    30. Jambulingam, Thani & Nevin, John R., 1999. "Influence of franchisee selection criteria on outcomes desired by the franchisor," Journal of Business Venturing, Elsevier, vol. 14(4), pages 363-395, July.
    31. Kashyap, Vishal & Sivadas, Eugene, 2012. "An exploratory examination of shared values in channel relationships," Journal of Business Research, Elsevier, vol. 65(5), pages 586-593.
    32. Gassenheimer, Jule B. & Baucus, David B. & Baucus, Melissa S., 1996. "Cooperative arrangements among entrepreneurs: An analysis of opportunism and communication in franchise structures," Journal of Business Research, Elsevier, vol. 36(1), pages 67-79, May.
    33. 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.
    34. Rubin, Paul H, 1978. "The Theory of the Firm and the Structure of the Franchise Contract," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 223-233, April.
    35. Nyadzayo, Munyaradzi W. & Khajehzadeh, Saman, 2016. "The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 262-270.
    36. Steven C. Michael, 2009. "Entrepreneurial signaling to attract resources: the case of franchising," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 405-422.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Nyadzayo, Munyaradzi W. & Matanda, Margaret J. & Rajaguru, Rajesh, 2018. "The determinants of franchise brand loyalty in B2B markets: An emerging market perspective," Journal of Business Research, Elsevier, vol. 86(C), pages 435-445.
    3. Gillis, William E. & Combs, James G. & Yin, Xiaoli, 2020. "Franchise management capabilities and franchisor performance under alternative franchise ownership strategies," Journal of Business Venturing, Elsevier, vol. 35(1).
    4. Grace, Debra & Weaven, Scott & Frazer, Lorelle & Giddings, Jeff, 2013. "Examining the Role of Franchisee Normative Expectations in Relationship Evaluation," Journal of Retailing, Elsevier, vol. 89(2), pages 219-230.
    5. López-Fernández, Begoña & Perrigot, Rozenn, 2018. "Using Websites to Recruit Franchisee Candidates," Journal of Interactive Marketing, Elsevier, vol. 42(C), pages 80-94.
    6. Lanchimba, Cintya & Welsh, Dianne H.B. & Fadairo, Muriel & Silva, Vivian-Lara D.S., 2021. "The impact of franchisor signaling on entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 131(C), pages 337-348.
    7. Navarro Sanfelix, Guillermo & Puig, Francisco, 2017. "New challenges in franchisor-franchisee relationship. An analysis from agency theory perspective," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    8. Grünhagen, Marko & Zheng, Xu (Vivian) & Wang, Jeff Jianfeng, 2017. "When the Music Stops Playing: Post-litigation Relationship Dissolution in Franchising," Journal of Retailing, Elsevier, vol. 93(2), pages 138-153.
    9. Boulay, Jacques & Caemmerer, Barbara & Evanschitzky, Heiner & Duniach, Krista, 2020. "Multi-unit franchising from franchisor and franchisee perspectives: Antecedents, performance outcomes, and the optimal mini-chain size," Journal of Business Research, Elsevier, vol. 113(C), pages 49-58.
    10. 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).
    11. Nyadzayo, Munyaradzi W. & Matanda, Margaret J. & Ewing, Michael T., 2015. "The impact of franchisor support, brand commitment, brand citizenship behavior, and franchisee experience on franchisee-perceived brand image," Journal of Business Research, Elsevier, vol. 68(9), pages 1886-1894.
    12. Christian Homburg & Dominik M. Wielgos, 2022. "The value relevance of digital marketing capabilities to firm performance," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 666-688, July.
    13. Karim Mignonac & Christian Vandenberghe & Rozenn Perrigot & Assâad El Akremi & Olivier Herrbach, 2015. "A Multi–Study Investigation of Outcomes of Franchisees’ Affective Commitment to Their Franchise Organization," Entrepreneurship Theory and Practice, , vol. 39(3), pages 461-488, May.
    14. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    15. Sikandar Ali Qalati & Dragana Ostic & Gu Shuibin & Fan Mingyue, 2022. "A mediated–moderated model for social media adoption and small and medium‐sized enterprise performance in emerging countries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 846-861, April.
    16. Kretinin, Andrey & Anokhin, Sergey & Wincent, Joakim, 2020. "Exploring the antecedents of franchise internationalization," Journal of Business Research, Elsevier, vol. 112(C), pages 422-430.
    17. Griessmair, Michele & Hussain, Dildar & Windsperger, Josef, 2014. "Trust and the tendency towards multi-unit franchising: A relational governance view," Journal of Business Research, Elsevier, vol. 67(11), pages 2337-2345.
    18. Maduku, Daniel K. & Mpinganjira, Mercy & Rana, Nripendra P. & Thusi, Philile & Ledikwe, Aobakwe & Mkhize, Njabulo Happy-boy, 2023. "Assessing customer passion, commitment, and word-of-mouth intentions in digital assistant usage: The moderating role of technology anxiety," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    19. Tsui-Yii Shih & Rumintha Wickramasekera & Dan Li, 2023. "Export development of Taiwanese food and beverage processing SMEs: A test of a DOI model," Asia Pacific Journal of Management, Springer, vol. 40(4), pages 1393-1428, December.
    20. Augusto, Mário & Godinho, Pedro & Torres, Pedro, 2019. "Building customers’ resilience to negative information in the airline industry," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 235-248.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:162:y:2023:i:c:s0148296323002357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.