What to Expect After the Honeymoon: Testing a Lifecycle Theory of Franchise Relationships |
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| Authors: | Markus Blut,Christof Backhaus,Tobias Heussler,David M. Woisetschlä ger,Heiner Evanschitzky,Dieter Ahlert |
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| Affiliation: | aDepartment of Marketing, TU Dortmund University, Otto-Hahn-Str. 6, 44221 Dortmund, Germany;bDepartment of Services Management, TU Dortmund University, Martin-Schmeißer-Weg 13, 44227 Dortmund, Germany;cMarketing Center Muenster, University of Muenster, Am Stadtgraben 13-15, 48143 Muenster, Germany;dDepartment of Marketing, University of Strathclyde, 173 Cathedral Street, G4 0RQ Glasgow, UK |
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| Abstract: | This research examines the evolution of interorganizational relationships in a franchising context. Using U-curve theory, we develop three hypotheses and contrast them with traditional lifecycle theory. Three groups of constructs are affected by lifecycle: cooperation variables, dependence variables, and relationship variables. Four distinct stages emerge, with highest levels of variables in the honeymoon stage, lower levels in routine and crossroad stages, and increasing levels in the stabilization stage. Franchisors should strive for “stability on high levels” before operational realities influence the franchisees. Franchisees’ intermediate lifecycle phases are most critical for the system, since opportunistic behavior and switching are most likely. |
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| Keywords: | Franchising U-curve theory Lifecycle theory Interorganizational relationships Multivariate analysis of variance |
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