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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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    4. 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).
    5. Chao-Chin Huang & Chung-Yuan Tsay & Shih-Chieh Fang & Shyh-Ming Huang, 2023. "A Contingency Model in Establishing Brand Loyalty: Relationship Age as a Moderator," Corporate Reputation Review, Palgrave Macmillan, vol. 26(1), pages 19-32, February.
    6. Wesley James Johnston & Angelina Nhat Hanh Le & Julian Ming-Sung Cheng, 2018. "A meta-analytic review of influence strategies in marketing channel relationships," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 674-702, July.
    7. 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.
    8. 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).
    9. 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).
    10. 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.
    11. 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.
    12. Evelien Croonen & Hans van Der Bij & Rozenn Perrigot & Assaad El Akremi & Olivier Herrbach, 2022. "Who wants to be a franchisee? Explaining individual intentions to become franchisees," Post-Print hal-03281669, HAL.
    13. 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.
    14. 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.
    15. Guilherme Luz Tortorella & Flavio S. Fogliatto & Michel J. Anzanello & Alejandro Mac Cawley Vergara & Roberto Vassolo & Jose Arturo Garza-Reyes, 2023. "Modeling the impact of industry 4.0 base technologies on the development of organizational learning capabilities," Operations Management Research, Springer, vol. 16(3), pages 1091-1104, September.
    16. 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.

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