International hotel development: A study of potential franchisees in China

Franchising is a strategic partnership formed by the franchisor and the franchisee, and consequently partner selection between the franchisor and the franchisee is critical to the long-term success of a franchise. However, the literature has primarily taken the viewpoint of franchisors, but failed to explore the perspective of the potential franchisees. As China represents a significant growth opportunity for international hotel franchisors, this study examines the perspective of China's domestic hotel operators regarding franchising and analyzes a mix of factors that may affect such perspective. The study of 182 Chinese hotel general managers shows that China's hotel practitioners have considerable interest in franchising and are knowledgeable about the concept as it pertains to hotels. The findings indicate that the length of work experience and educational background of Chinese hotel operators may influence their franchising preferences. Hotel chains that have strong brand awareness, supportive centralized reservation systems, and offer relatively high returns on investment at relatively low franchise fees, are most attractive to potential Chinese franchisees.     

Antecedents and consequences of Franchisee satisfaction in the U.S. restaurant industry

This study surveyed 3,177 franchisees from 58 restaurant brands with the purpose of examining the antecedents and consequences of franchisee satisfaction in the U.S. food service sector. Findings indicate that a high level of franchisee income and franchisor care and trust are associated with a high level of franchisee satisfaction. Education had a negative impact on franchisees' satisfaction, suggesting that the higher the level of franchisee education, the less franchisees were satisfied with the franchise. Furthermore, the higher the franchisees' satisfaction was, the stronger the franchisees' intention to remain in the franchise system was, and the higher the likelihood of recommending the franchise to others.     

Opportunistic behaviour in hospitality franchise agreements

This paper combines agency and social exchange theoretic perspectives to examine opportunistic behaviour in hospitality franchise agreements. It identifies and analyses the opportunistic behaviour of both franchisors and franchisees through a qualitative study of Turkish hospitality franchisees. A model of opportunistic behaviour and social exchange is developed from the study for further empirical testing. The model depicts different categories of franchisee behaviour, how franchisee behaviour is influenced by the behaviour of franchisors, the relevant characteristics of social exchanges between franchisors and franchisees, and the outcomes of those exchanges. As such, the study provides a complementary perspective of franchise opportunism and exchange relationships. A number of implications for hospitality franchise stakeholders are identified as a result.     

Knowledge transfer and isomorphism in franchise networks

This study draws on institutional and organisational learning theories to evaluate how knowledge transfer (KT) practices contribute to the development of isomorphism in franchise networks. It also analyses how the characteristics of franchise partners influence this process. Research conducted across a sample of hospitality and retail franchisees in Turkey reveals how the transfer of explicit knowledge aids in the realisation of coercive isomorphism and the transfer of tacit knowledge supports mimetic isomorphism. Additionally, the study identifies the factors that influence the extent to which these types of isomorphism are achieved. In doing so, it identifies the importance of franchisor institutionalisation, or the degree to which a strong and supportive infrastructure is developed, to isomorphism within franchise networks. Institutionalisation impacts on the antecedents to KT. Differences between the KT practices of hospitality and retail franchise networks are also identified.     

A sustainable franchisor-franchisee relationship model: Toward the franchise win-win theory

In order for a franchise system to obtain long-term sustainability, balancing the benefits between franchisors and franchisees is critically important. In order to expand this area of research, this study reviewed prior franchise literature and then outlined what a healthy franchise system is. Further, this study also proposed a model for sustainable franchisor-franchisee relationships (SFFR), which supports the ‘franchise win-win theory.’ In developing a model, this study suggested that relationship quality is a vital part of a healthy relationship. This study also identified the three core components of a sustainable franchisor-franchisee relationship (i.e., satisfaction, trust, and commitment), as well as the antecedents and consequences of the relationship. This study conclusively suggested that franchisees are willing to continue their current franchise business only when they are satisfied with a franchisor’s fairness, autonomy, formalization, and support.     

The dynamics and evolution of knowledge transfer in international master franchise agreements

The paper identifies and evaluates the antecedents, contextual factors and inter-organisational processes that influence knowledge transfer in international hotel master franchise agreements and how these evolve from the perspective of both franchisors and franchisees. A single, purposively selected in-depth qualitative case study reveals the specific factors relevant to knowledge transfer at different stages of the franchise agreement. Drawing on the alliance literature, the impact of four partner-specific variables on inter-organisational design processes used to transfer knowledge and on three antecedents to knowledge transfer; shared identity, absorptive capacity and casual ambiguity is identified. The study contributes to our understanding of the dynamics and evolution of knowledge transfer in master franchise agreements by highlighting the relative importance of partner-specific variables and relational management to knowledge transfer evolution and the relative importance of shared identity as an antecedent to knowledge transfer in these agreements     

Sustainable tourism indicators: selection criteria for policy implementation and scientific recognition

The use of sustainable tourism indicators (STI) raises several issues, mainly because of the multiple interpretations of the concept of sustainable development, and by extension of the concept of sustainable tourism. It also brings to light incompatibilities between the needs and objectives of academics and policy-makers in developing a set of STI. The STI are then either scientifically relevant but too complex to be operational, or else they result from a political consensus, which could lead to conflicts of interest, such as in the destination branding strategy. In this paper, we argue that the trade-off between academic and policy-maker approaches to indicator development can be achieved through the development of core STI, based on the application of two sets of selection criteria to 507 expert-recognized indicators. The first set of criteria allows us to select 20 core STI, while the second set of criteria aims to match the selected indicators with a destination's policy framework in order to guarantee their usability. We illustrate the selection procedure using the Gaspésie region in Québec as a case study.     

An analysis of franchisees’ satisfaction with support provided by franchisors in foodservice industry

ABSTRACT

This study validated the scale originally developed in Taiwan for measuring satisfaction of foodservice franchisees with support provided by franchisors in mainland China. Data for validation were collected by means of a questionnaire distributed to foodservice franchisees in Shanghai and Xiamen, China respectively, and analyzed through confirmatory factor analysis. The findings showed that the proposed measurement scale is applicable across the two regions with acceptable model fit indices. In addition, this study examined the differences of franchisees’ perception on support provided by franchisors in Taiwan and China. The findings in this research not only advanced scholarly understanding and theory in franchising but also provided useful insight for foodservice stakeholders seeking to expand their market by franchising in these two regions.     

Segmenting the Business Traveler Market

In order to position products, hotel managements need to understand its customersÆ needs and wants. With the application of multivariate techniques, this study identifies segments within the business travel market based on criteria business travelers use to choose their hotels. A national usable sample of 350 business travelers, drawn from a mail survey, was analyzed to determine hotel selection criteria. The list of choice criteria was reduced by factor analysis, and the respondents were clustered into three groups based on similar important factors. Profiles of the three groups of responsdents are discussed.     

Long-haul and short-haul outbound all-inclusive package tours

Most long-haul and short-haul outbound travelers in Hong Kong purchase all-inclusive package tours through travel agencies. Thus, it is important for travel agencies to understand the criteria used by travelers to select package tours. This study aims to identify these criteria, and to investigate the differences between these two groups of travelers. The sample size was 200. The results show that personal safety and the guarantee of a promised departure date were the most important selection criteria for the travelers. Prospective long-haul travelers were more concerned with product features and the quality of counseling, and were less sensitive to price than were short-haul travelers.     

Efficiency comparison of multiple brands within the same franchise: Data envelopment analysis approach

As the restaurant franchising industry increasingly diversifies its brands, it is pivotal for a firm to accurately assess the efficiency of brands within its franchise system. This research compares and contrasts the efficiency of different brands belonging to the same franchisor using data envelopment analysis (DEA). The sample was drawn from three brands that are in operation under the same restaurant franchisor. The results of the study showed that the efficiency of each establishment, as well as the brands, differed significantly from each other.     

‘I Was Trapped at Home’: Men's Experiences with Leisure While Giving Care to Partners During a Breast Cancer Experience

Men whose partners are diagnosed with breast cancer experience many changes to daily living, including taking on additional family and household roles and responsibilities, caring for their partner, and often relinquishing leisure activities. Although leisure participation has been found to help individuals cope and to mitigate the negative effect of traumatic life events, men's experience with leisure during their partners’ breast cancer experience has received little attention. The purpose of this study was to explore men's experiences with leisure and the meaning of those experiences during and following their partners’ breast cancer diagnosis and treatment. Semi-structured, face-to-face interviews were conducted with 10 men. The findings illuminate that men's leisure became more home-based, was used to release and regulate emotions, and provided a means to maintain identity. The illness experience also increased men's appreciation of leisure with their partners.     

Acquiescence and conflict in exchanges between inbound tour operators and their overseas outbound partners: A case study on Tanzania

Achieving partner acquiescence is critical in interfirm exchanges because it allows the focal firm to achieve its desired outcomes. Using a case study on dyadic relationships between inbound tour operators in Tanzania and their overseas outbound partners, this paper investigates the effect of partner irreplaceability and distributive fairness on acquiescence, and the subsequent effect that acquiescence has on conflict. The case study uses partial least squares structural equation modeling on data collected from 129 dyadic relationships. Results show that partner irreplaceability and distributive fairness are positively associated with acquiescence, which in turn reduces conflict. The effect of distributive fairness on acquiescence was found to be larger than that of irreplaceability. In addition, the direct effect of distributive fairness on conflict, although not hypothesised, was found to be significant. This emphasises the importance of distributive fairness, and its role as a possible buffer to conflict in less acquiescent exchanges.     

LETTER FROM THE GUEST EDITOR

ABSTRACT

Research was undertaken to gain a better understanding of the nature and competitive importance of bidding on events by destination marketing organizations, with emphasis on identifying event selection criteria and critical success factors for winning bids. Data were collected on the goals and nature of the event bidding process from convention and visitor bureaus in Canada. Canadian bureaus were found to be very active in bidding on a diverse range of events, especially meetings, conventions, political events, and sports. Most bureaus encouraged and assisted other local organizations to make bids and themselves concentrated on major events with city-wide economic impacts. Although event selection criteria were frequently not formalized, respondents stressed potential economic impacts, size, media exposure, time of year, available venues, and local involvement. The most important critical success factors for winning bids were strong partners, excellent presentations, and treating each bid as a unique process, but many respondents also felt their destination needed bigger and better facilities and more marketing/bidding resources. To aid in future research and theory-building, a framework is presented to illustrate event bidding as an exchange process between owners and sellers, including antecedent conditions and event selection criteria.     

What kind of marketing distribution mix can maximize revenues: The wholesaler travel agencies' perspective?

This study attempts to identify the variety of marketing channel efficiencies for marketing activities and sets up an optimal marketing distribution mix when using different distribution channels for wholesaler travel agencies. This research examines 12 large-scale travel agencies in Taiwan and offers seven direct and indirect distribution channels in order to establish an optimal marketing distribution mix and identifies the different forms of distribution involved. We also implement the analytic hierarchy process (AHP) to prioritize the seven main marketing distribution channels of travel agency: websites, cable TV, radios, professional magazines, retailer travel agencies, strategic alliances, and newspapers. Five criteria are categorized as a distribution channel selection: overall cost of the channel, target audience respondent rate, impression rates, transactional capabilities, and gross profit of the channel. The results show that Taiwan's wholesaler travel agencies adopt the retailer travel agency as their highest priority of channel selection, while travel agency websites hold it as their second priority. Transactional capabilities, gross profit of the channel, and overall cost of the channel are the top three favorable choices among the five criteria considered. This study proposes an innovative hierarchy model of marketing distribution mix to a wholesaler travel agency practitioner when making decisions in order to effectively exploit the different distribution mix, to maximize performances and revenues, and to overcome the traditional experience based on the shortcomings of the selection.     

Market orientation and business performance: Evidence from franchising industry

This paper examines the relationships between top management factors, franchisor market orientation, competitive strategy, and business performance within the context of Korean franchisor companies. 156 food-service franchise firms provide the basis for this empirical investigation. Findings show that top management factors such as management emphasis and risk aversion can lead to market orientation. Franchisor market orientation was found to lead differentiation and cost strategies, which, in turn, increase financial and non-financial business performance. Also, market orientation directly increases financial and non-financial business performance. The context of the franchise industry differs from other industries, and this paper discusses the implications of these findings for researchers and managers in the franchise industry.     

An integrated approach for selecting corporate social responsibility programs and costs evaluation in the international tourist hotel

The purpose of this paper is to present an integrated approach and scientific techniques for corporate social responsibility (CSR) programs selection decisions and costs evaluation in the hotel industry. First, experts are chosen to conduct the analytic structure construction for CSR programs selection by identifying cost and differentiation advantage criteria and CSR program candidates that can benefit society and competitive advantage for hotels. Second, the DEMATEL (Decision Making Trial and Evaluation Laboratory) method is used to detect complex relationships and build a network structure among the cost and differentiation advantage criteria. Third, the ANP (Analytic Network Process) is used where the criteria are dependent. Fourth, the ANP results are applied to ZOGP (Zero–One Goal Programming) formulation to find the optimal CSR program portfolio under limited resources and constrained situations. Finally, ABC (Activity-Based Costing) model is used to calculate each chosen CSR program's costs in order to acquire accurate cost information. The result shows that the improvement on the image of an organization is the major dispatch for driving the international tourist hotel to fulfill CSR goals. The integrated approach can help international tourist hotels’ managers to select CSR programs more scientifically and to make decisions conforming to the reality.     

The comparative analysis of Hong Kong as an international conference destination in Southeast Asia

The purpose of this study was to analyze the competitiveness of Hong Kong as an international conference destination in Southeast Asia. Survey questionnaires were sent to the conference end-users, organizers, and venues in Hong Kong and Singapore to study the limitation of holding a large conference in Hong Kong, and the importance and satisfaction of site selection criteria for holding conferences in Hong Kong and Singapore. The pair mean t test was used to compare satisfaction differences on the selection criteria in Hong Kong and Singapore. The ANOVA analysis was conducted to identify the selection criteria perceived differently by end-users, organizers and venues. The finding showed that Hong Kong was perceived as less competitive than Singapore as an international conference destination. The study suggested that Hong Kong must overcome its weaknesses and develop competitive advantages to maintain itself as an ideal international conference destination in Southeast Asia.     

Building up a B2B e-commerce strategic alliance model under an uncertain environment for Taiwan's travel agencies

E-travel agencies adopt B2B strategic alliances in order to strengthen their competitive advantages in the e-commerce travel market and because they are an effective tool to gain wider sustainable gains. External environmental and internal organizational factors impacting the success of strategic alliances model are themselves a crucial issue. This study uses multiple methods to collect data from multiple sources and uses qualitative and quantitative surveys. A two-stage research design is adopted to explore the present strategic alliances between Taiwan's wholesaler e-travel agencies and retailer sub-agencies. The results provide an in-depth understanding into the B2B e-commerce strategic alliance model. According to this research, Taiwanese e-travel agencies consider three external environment uncertainties, five internal organization motivations, five partner selection criteria, and two performance measurements of alliance strategies. Finally, the paper proposes an optimal B2B e-commerce strategic alliance model that matches the essential development needs of B2B e-commerce and overcomes the environmental uncertainties.