Relationship Quality In Franchising : Antecedents And Outcomes
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Date
2015-07
Authors
Ishak, Khairol Anuar
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
This study attempts to examine empirically two constructs namely relational mechanisms and transactional mechanisms which may influence the relationship quality in franchising relationship. Furthermore, this study examines two main outcomes of relationship quality namely performance and loyalty in franchising relationships. This study adopts a quantitative approach, applying a cross-sectional study. Thirteen franchisors were willing to participate in the survey, and one hundred and twenty eight useable questionnaires were received from mail and online survey from franchisees. The findings reveal that relational mechanisms but not transactional mechanisms are crucial in affecting franchisee relationship quality. The results provide strong evidence that franchisee relationship quality is found to significantly affect business performance and franchisees’ loyalty to stay in the franchise system. Interestingly, transactional mechanisms are identified as antecedents of relational mechanisms indirectly influencing relationship quality in franchise relationship. In addition, this study reveals that environmental factors do not moderate the relationship between relationship quality and business performance. The inclusion of relationship value is suggested to contribute additionally to the literature of relationship marketing relationship and provide a more complete model within the franchising context. Findings also imply the need for franchise players in general, and franchisors in particular, to strategically handle the key antecedents of relationship quality, business performance and loyalty in pursuit of a more competitive and long term profit.
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Keywords
Relationship quality in franchising relationship