An Empirical Analysis of Franchisee Value-in-Use, Investment Risk and Relational Satisfaction

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Title An Empirical Analysis of Franchisee Value-in-Use, Investment Risk and Relational Satisfaction
Author Grace, Debra Ann; Weaven, Scott Keith W
Journal Name Journal of Retailing
Year Published 2011
Place of publication United Kingdom
Publisher Elsevier
Abstract An exchange perspective of franchising recognizes the important role that both the franchisor and franchisee assume in developing and maintaining sustainable relationships. However, should franchisees not perceive value in the quality of provided products or services, some incentive misalignment between agent and principal is likely (e.g. free riding, non-compliance with system standards), potentially resulting in greater perceptions of financial risk, diminished levels of franchisee satisfaction, reduced unit performance and conflict ([Harmon and Griffiths, 2008] and [Kaufmann and Dant, 1998]). A greater understanding of franchisee perceptions of value is very important if ongoing satisfaction in the franchising relationship is the goal. This paper, therefore, makes a significant contribution to such an understanding by empirically testing the dimensions of value that influence franchisee perceptions of risk and relationship satisfaction. Moreover, we make important comparisons across gender, the results of which provide rich information. In theoretical terms, we advance the literature in the context of value and franchising and, in practical terms, the results, by managing for performance (financial risk and relationship quality), assist franchisors in developing, delivering and managing what is of value to their franchisees. Furthermore, the findings of this study provide a solid platform for future research in this area.
Peer Reviewed Yes
Published Yes
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Copyright Statement Copyright 2010 New York University. Published by Elsevier. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Volume 87
Issue Number 3
Page from 366
Page to 380
ISSN 0022-4359
Date Accessioned 2010-12-10
Language en_US
Research Centre Griffith Institute For Tourism
Faculty Griffith Business School
Subject Marketing
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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