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.     

Selecting franchise partners: Tourism franchisee approaches,processes and criteria

This paper identifies and evaluates the partner selection approaches, processes and criteria use by tourism franchisees to select their franchisor partners. A qualitative study of a sample of Turkish franchisees identifies the partner selection criteria and two distinct approaches used to select franchisor partners. The study contributes to our understanding of franchisee partner selection by demonstrating how the selection criteria, approaches and processes impact on franchisee satisfaction post contract signature. In addition, a framework that depicts the relationship between the criteria, approaches and processes is developed from the study. The study yields a number of implications particularly for prospective franchisees interested in joining a franchise network.     

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.     

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.     

Is restaurant franchising capital a substitute for or a complement to debt?

Since Oxenfeldt and Kelly’s 1969 study, the resource scarcity hypothesis has been considered a representative theory to explain franchising motivations. Whether franchising capital is a substitute for or a complement to debt has been discussed in the franchise literature but the relationship remains unclear. Using Frank and Goyal’s (2003) financial deficit model along with trade-off and pecking order theories, this study shed light on whether franchising capital acts as a substitute for and/or to complement debt in the restaurant industry. This study discovered that the adjustment speed of long-term debt leverage was faster for franchise restaurant firms than non-franchise restaurant firms. Further, the average long-term leverage target was lower for franchise restaurants. Consequently, this study revealed that franchising capital functioned as a substitute for long-term debt. In contrast, the adjustment speed of short-term debt leverage was slower for franchise restaurants and, thus, franchising capital complemented short-term debt.     

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.     

International franchising: Opportunities for China's state-owned hotels?

The hotel industry in China faces global competition. Most of the state-owned hotels have struggled during the period of transition from a planned economy to a market economy. Furthermore, international franchising hotel chains have entered China with their different operation modes. Could the franchising hotels bring opportunities for state-owned hotels? In an attempt to answer this question, the researchers carried out a study of state-owned independent hotels and state-owned franchised hotels to analyze their external and internal business factors, their intentions to join international franchise operations and the international hotel franchisors in China. The research technique used was qualitative. Two rounds of in-depth interviews were conducted. Content analysis was used in the data analysis. Results indicate that the majority of state-owned independent hotels have intentions to join an international franchise operation in the next 5 years. It also identified major factors affecting the franchising of state-owned hotels in China. However, franchising may not be attractive to those hotels that want to keep their management culture and characteristics. Implications of the study were discussed. Recommendations were provided to the state-owned hotels. Future research studies have been suggested to examine the relationships between franchisors and franchisees.     

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.     

Does a minimum wage increase endanger restaurant jobs? Examining the role of franchising

This study examined the effect of federal minimum wage increases on the U.S. restaurant industry. Based on the competitive labor market perspective, this study expected that minimum wage increases would negatively (positively) influence restaurant employment (compensation), while franchising would positively moderate the minimum wage-employment (minimum wage-compensation) relationship. The results of the analysis showed that minimum wage increases negatively influence employment, while franchising positively moderates the adverse effect of minimum wage increases on restaurant employment. This study also revealed that minimum wage increases positively influence per employee compensation, but franchising does not significantly moderate the relationship. This study suggested that franchising provides a buffer that absorbs the adverse effects of minimum wage increases on restaurant employment. Conversely, franchise restaurants may face potential service quality issues because franchise firms seem to strategically adjust full-time employees to part-time workers to address minimum wage increases.     

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     

Effects of restaurant franchising: Does an optimal franchise proportion exist?

Franchising has significantly affected the US economy, contributing to a rapid growth of its retail sales. To identify whether franchising influences a restaurant firm's financial performance, this study investigated (1) the profitability and intangible values of both franchise and non-franchise restaurant firms and (2) the effect of the combination of franchised and company-owned outlets of restaurant firms (i.e., franchise proportion). The results of this study showed that (1) franchise firms had significantly higher profitability than non-franchise firms and (2) the relationships between franchise proportion and firm profitability and intangible value were curvilinear (inverted U-shape), verifying the existence of an optimal franchise proportion. The results propose a possibility that restaurant franchisors could maximize their profitability and intangible value with an optimal franchise proportion when other variables held constant, implying that it is important to pay attention to the franchise proportion together with other management strategies.     

From innovation to sustainability: Sustainability innovations of eco-friendly hotels in Taiwan

Sustainable innovation is a critical attribute in modern hotel management, as is widely recognized by experts and hotel managers alike. This paper develops and tests a new integrated theoretical model of associations among innovation diffusion, environmental marketing strategy, sustainability innovations, and the organizational environment. This research also considers the mediating effect of environmental marketing strategy and the moderating role of the organizational environment. The results of a study that included 367 managers of eco-friendly hotels in Taiwan provide support for this model across various dimensions of hotels’ sustainable innovation. The present study found relationships among innovation diffusion, environmental marketing strategy and sustainability innovations, and a mediating effect of environmental marketing strategy. The results also confirmed that the organizational environment moderates the relationship between innovation diffusion and environmental marketing strategy. That is, a supportive organizational environment will enhance the effect of innovation diffusion on environmental marketing strategy.     

How do environmental knowledge,environmental sensitivity,and place attachment affect environmentally responsible behavior? An integrated approach for sustainable island tourism

Previous studies have explored tourists’ environmentally responsible behavior (ERB) from the perspectives of individual commitment, attractiveness, and involvement. This study approaches from the standpoint of environmental knowledge (EK); it probes tourists’ behavior to facilitate sustainable tourism development, and constructs a sustainable island tourism development model by integrating EK, environmental sensitivity, place attachment, and ERB. Four hundred and seventy seven tourists visiting the Penghu Islands, Taiwan, were surveyed. Structural equation modeling was used to determine the relationships among the variables and the mediating effects. Results indicate that higher levels of tourists’ EK about the Penghu Islands are associated with stronger environmental sensitivity; environmental sensitivity which tourists have for island tourism is positively associated with place attachment. The extent of place attachment of Penghu as perceived by tourists is also positively associated with stronger ERB. When tourists are highly sensitive to the attraction, they are more likely to exhibit ERB. Environmental sensitivity and place attachment were found to exert significant effects in mediating the relationships between EK and ERB. This study pioneers the integration of all four constructs in a sustainable tourism behavior model for tourists to island tourism destinations. Suggestions for marketing and implementation of sustainable tourism, and their managerial implications are proposed.     

Tour guide performance and sustainable visitor behavior at cultural heritage sites

Abstract

Using structural equation modeling, this study investigates how tour guide performance influences visitors’ sustainable behavior at cultural heritage sites by examining the mediating effects of visitor experience and satisfaction. The structural model was tested on a sample of 390 visitors at Petra Archaeological Park in Jordan. Tour guide performance was found to have a significant direct and indirect effects in enhancing visitor sustainable behavior. Moreover, the findings showed that visitor experience and satisfaction significantly mediates the relationship between tour guide performance and visitor sustainable behavior. This research contributes to our understanding of the tour guide role in maximizing visitors’ appreciation and enjoyment, and minimizing their negative impacts on heritage sites. Managerial implications are discussed in light of the empirical findings.     

How would the contextual features of a destination function together with individual factors to enhance tourists’ intention toward ST in Taiwan?

Abstract

Slow travel (ST), which emphasizes deeper experiences via slower transportation modes, has been promoted as an alternative to current practice and a more sustainable form of tourism. With lower GHG emissions being a national environmental goal in Taiwan, ST concepts have been garnering attention. The relationship between the environments of destinations and pro-environmental behavior of tourists has attracted relatively little academic attention. To remedy this, the current research establishes a fairly complete model for incorporating factors at the contextual level into the individual determinants useful in encouraging ST. The goal of this research is to understand how certain predictors directly and interactively influence the choices of tourists toward ST. This study collected 508 validly filled surveys addressing 13 industrial tourist destinations, and applied Hierarchical Linear and Nonlinear Modeling (HLM) analyses. In addition to the individual-level factors, including perceived benefits of tourism experiences and ages of tourists, the design of onsite tourism programs at the contextual level was one of the most influential drivers to encourage visitors’ ST intentions. Included in this research are the insights into how to promote ST and corresponding suggestions for tourism operations within the context of sustainable tourism and destination management.     

Self-efficacy and sustainable rural tourism development: local communities’ perspectives from Kuching,Sarawak

The future of the tourism industry is dependent on local communities’ ability to develop and sustain tourism developments, especially in sensitive rural areas. But there is limited research on this topic to guide tourism authorities and governments. In particular, few studies have studied sustainable rural tourism development from the perspective of the local communities. Therefore, this study examines local communities’ views on their capability to achieve sustainable rural tourism development in selected rural areas in Kuching, Sarawak. Questionnaires were distributed to the local communities residing at three rural tourism destinations in Kuching, Sarawak. Interestingly, the results indicated that local communities’ self-efficacy has a positive relationship with social, cultural, economic, and environmental sustainability. Hence, this study offers theoretical and practical contributions to sustainable rural tourism development literature and the tourism industry.     

The influence of place attachment on the relationship between destination attractiveness and environmentally responsible behavior for island tourism in Penghu,Taiwan

This study examines the causal relationships between place attachment, destination attractiveness and environmentally responsible behavior (ERB), and the mediating effect of place attachment. Four hundred and thirteen tourists were surveyed who had visited the Penghu islands, Taiwan. Structural Equation Modeling was used to determine the relationships among the variables and the mediating effects. Results show that the emotions and feelings (place attachment), which tourists have for Penghu, are positively associated with stronger ERB; the extent of attractiveness of island tourism as perceived by tourists is also positively associated with stronger ERB. A higher level of tourists’ destination attractiveness in regard to island tourism is associated with stronger place attachment; place attachment was found to exert a significant effect in mediating the relationship between destination attractiveness and ERB. The study shows that when island tourists are attracted by and are attached to the destination, they are more likely to exhibit ERB. The study pioneers the integration of all three factors in a sustainable tourism behavior model designed for tourists who stay one night or more at a destination, and tests the hypotheses for the first time in an Asian destination. Management implications and recommendations for the sustainable development of Penghu islands tourism are provided.     

Influence of sustainable hospitality supply chain management on customers’ attitudes and behaviors

This study aims to identify the impact of the environmental, social and economic dimensions of sustainable hospitality supply chain management actions on customers’ attitudes and behaviors including satisfaction, loyalty and willingness to pay a premium for sustainable hospitality goods and services utilizing data collected from U.S. consumers who frequently stay at hotels. Findings suggest that while both environmental and economic dimensions’ actions of sustainable hospitality supply chain management have positive influences on customer satisfaction, loyalty and willingness to pay a premium for sustainable hospitality goods and services, the social dimension actions are found to have a positive influence on customer satisfaction and a negative influence on customer willingness to pay a premium. Results also indicate that customer satisfaction fully mediates the relationship between social dimension actions and customer loyalty. In addition, customer satisfaction positively influences customer loyalty, which ultimately increases customer willingness to pay a premium. The implications of the research findings are provided.     

Development of intangible cultural heritage as a sustainable tourism resource: the intangible cultural heritage practitioners’ perspectives

ABSTRACT

Authentic intangible cultural heritage (ICH) provides a community with a unique selling point in the globally competitive tourism industry. The process of commodification of ICH, however, has threatened its authenticity and thus sustainable tourism approaches are required to achieve successful transmission and promotion of ICH as a sustainable tourism resource. This paper explores the priorities of ICH practitioners in relation to the development of ICH as a sustainable tourism resource, by utilising South Korea as a case study. The results revealed that from the ICH practitioners’ perspectives, authenticity is a holistic notion integrating the transmitted customs, inherited meanings and the practitioners’ identities. ICH practitioners agree with the potential positive symbiotic relationship between transmission of authentic ICH and promotion of ICH as a tourism resource. To achieve the positive symbiotic relationship, locals’ awareness of ICH, ICH practitioner empowerment and parallel development between tourism development and transmission of ICH are necessary. To date, the practitioner approach to the authenticity of ICH and ICH as a sustainable tourism resource is little explored in the literature, thus this paper makes a valuable addition to the area of sustainable heritage tourism.     

新生代游客涉入度与文化认同对红色旅游忠诚度的影响研究

红色旅游是红色文化宣传和教育的实现方式之一,但作为旅游主力军的新生代游客对红色文化的认同逐渐式微,存在认同危机风险,并对红色旅游的后续发展和持续经营产生影响,已成为当今显著且亟待关注的社会现象。本研究运用文化认同理论,以新生代游客为研究群体,尝试探索影响新生代游客文化认同的因素并寻找增强其红色旅游忠诚度的作用机制,由此建构新生代游客涉入度、文化认同与红色旅游忠诚度影响关系模型并进行实证验证。研究发现：(1)新生代游客涉入度对红色旅游的文化认同和忠诚度均具有显著的正向影响,其中对文化认同的影响更为显著;(2)新生代游客对红色旅游的文化认同正向影响忠诚度;(3)文化认同在新生代游客涉入度与忠诚度之间存在部分中介效应。本研究揭示了新生代游客涉入度对培育红色旅游忠诚度的重要作用,拓展了文化认同的应用边界;认为增强新生代游客的涉入度,培育其文化认同,对于忠诚度及红色旅游持续经营和后续发展具有积极的现实意义。