A model of trust and compliance in franchise relationships |
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| Authors: | Mark AP Davies Walfried Lassar Chris Manolis Melvin Prince Robert D Winsor |
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| Institution: | a School of Management and Languages, Heriot-Watt University, Riccarton, Edinburgh, Midlothian, Scotland EH14 4AS, United Kingdomb Marketing Department, College of Business, Florida International University, 11200 SW 8th Street, RB307C; Miami, FL 33199, USAc Department of Marketing, Williams College of Business, Xavier University, 3800 Victory Parkway, Cincinnati, OH 45207-3214, USAd Marketing Department, School of Business, Southern Connecticut State University, 501 Crescent Street; New Haven, CT 06515, USAe College of Business Administration, Loyola Marymount University, One LMU Drive, Los Angeles CA 90045, USA |
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| Abstract: | Despite the danger of franchisee non-compliance as a severe impediment to overall franchise operation and performance, there is currently minimal understanding of the key factors that lead to these behaviors. Using a foundation of relational exchange theory, we construct and test a model that demonstrates how two distinct forms of trust, based upon perceptions of franchisor integrity and franchisor competence, are critical to explaining the roles that relational conflict and satisfaction play in influencing franchisee compliance. Implications of these findings are then demonstrated to have compelling relevance to the effective management of franchise systems. |
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| Keywords: | Franchising Trust Satisfaction Conflict Compliance Reciprocity |
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