ABSTRACT

Purpose - This paper aims to test the effects of Korean food service franchisors’ and franchisees’ TSI (Transaction Specific Investment) on dependence and trust toward the franchisor and re-contract intention. The study examines the effects of both franchisors’ and franchisees’ TSI on dependence and trust, as compared with Ganesan (1994). Research design, data, and methodology - Data were collected from 495 Korean food service franchisees and analyzed with structural equation modeling using path analysis through SPSS 18.0 and AMOS 18.0. Results - 1) The franchisor's TSI has positive effects on the franchisee’s dependence and trust toward the franchisor. 2) The franchisee's TSI has a positive effect on the franchisee’s dependence toward the franchisor. 3) The franchisee’s dependence and trust have positive effects on commitment. 4) The franchisee’s dependence, trust, and commitment have a positive effect on re-contract intention. Conclusions - The franchisor’s and franchisee's TSI affect the franchisee’s dependence and trust toward the franchisor. The franchisee’s dependence and trust influence commitment and re-contract intention. This has managerial implications for franchisors striving to raise franchisees’ re-contract intention.

KEYWORD

Dependence, Trust, TSI, Re-Contract Intention, Franchise.

REFERENCES(25)open

  1. [jounal] Anderson, J. / 1992 / Assumption and comparative strengths of the two-step approach / Sociological Methods and Research 30 (3) : 321 ~ 333

  2. [jounal] Anderson, J. C. / 1990 / A model of distributor firm and manufacturer firm working partnerships / Journal of Marketing 54 (1) : 42 ~ 58

  3. [jounal] Bendapudi, N. / 1997 / Customers’ motivations for maintaining relationships with service providers / Journal of Retailing 73 (1) : 15 ~ 37

  4. [jounal] Bhattacherjee, A. / 2000 / Acceptance of e-commerce services:The case of electronic brokerages / IEEE Transactions on Systems, Man, and Cybernetics-Part A: Systems and Humans 30 (4) : 411 ~ 420

  5. [jounal] Chiou, Jyh-Shen / 2006 / Service Quality, Trust, Specific Asset Investment, and Expertise: Direct and Indirect Effects in a Satisfaction-Loyalty Framework / Journal of the Academy of Marketing Science 34 : 613 ~ 627

  6. [jounal] Doney, P. M. / 1997 / An examination of the nature of trust in buyer–seller relationships / Journal of Marketing 61 (2) : 35 ~ 52

  7. [jounal] Eyuboglu, N. / 2007 / Quasi-darwinian selection in marketing relationships / Journal of Marketing 71 (4) : 48 ~ 61

  8. [jounal] Fornell, C. / 1981 / Evaluating structural equation models with unobservable variables and measurement error / Journal of Marketing Research 18 (1) : 39 ~ 50

  9. [jounal] Ganesan, S. / 1994 / Determinants of long-term orientation in buyer-seller relationships / Journal of Marketing 58 (2) : 1 ~ 19

  10. [other] Goodman, J. / 1980 / Franchisor-frachisee conflicts of interest as perceived by selected non-food franchisees / Dissertation Abstract International, University, Micro Films, No.41/02a

  11. [jounal] Gundlach, G. T. / 1994 / Exchange interdependence and interfirm interaction : Research in a simulated channel setting / Journal of Marketing Research 31 : 516 ~ 532

  12. [jounal] Heide, J. B. / 1988 / The role of dependence balancing in safeguarding Transaction-Specific Assets in conventional channels / Journal of Marketing 52 : 20 ~ 35

  13. [jounal] Jones, T. O. / 1995 / Why satisfied customers defect / Havard Business Review : 88 ~ 99

  14. [jounal] Klein, S. / 1990 / A transaction cost analysis medel of channel integration in international markets / Journal of Marketing Research 27 : 196 ~ 208

  15. [jounal] Lewis, C. / 1991 / A model of channel member performance, dependence, and satisfaction / Journal of Retailing 67 (1) : 205 ~ 224

  16. [jounal] 유명근 / 2013 / 가맹본부에 대한 신뢰와 공정성이 관계만족과 장기적 결속에 미치는 영향 / 유통과학연구 11 (1) : 25 ~ 34

  17. [jounal] Moorman, C. / 1992 / Relationships between providers and users of market research : The dynamics of trust within and between organizations / Journal of Marketing Research 29 (3) : 314 ~ 328

  18. [jounal] Morgan, R. M. / 1994 / The commitment-trust theory of relationship marketing / Journal of Marketing 58 (3) : 20 ~ 38

  19. [jounal] Oh, Sejo / 2009 / The Mediating Role of Dependence and Conflict in the Relationship of Relationship, Termination Cost, Alternative Attractiveness, Goal Incongruity, Unfairness, and Dissolution Intention / Marketing Research : 181 ~ 201

  20. [jounal] Rosenberg, L. / 1984 / A marketing approach in customer retention / Journal of Consumer Marketing 1 (2) : 45 ~ 51

  21. [jounal] Sheng, S. / 2006 / Do exchange hazards always foster relational governance? : An empirical test of the role of communication / International Journal of Research in marketing 23 : 63 ~ 77

  22. [jounal] Smith J. B. / 1997 / The effects of organizational differences and trust on the effectiveness of selling partner relationship / Journal of Marketing 61 (1) : 3 ~ 21

  23. [jounal] Stanley, S. M. / 1992 / Assessing commitment in personal relationships / Journal of Marriage and the Family 54 : 595 ~ 608

  24. [jounal] Van Lange C. R, / 1998 / Cognitive interdependence : Commitment and the mental representation of close relationships / Journal of Personality and Social Psychology 74 : 939 ~ 954

  25. [jounal] Williamson, O. E. / 1981 / The economics of organizations : The transaction cost approach / American Journal of Sociology 87 (3) : 548 ~ 577