A relational performance model for developing innovation and long-term orientation in retail franchise organizations |
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Affiliation: | 1. College of Charleston, 66 George Street, Beatty 415, Charleston, SC 29424, United States;2. Presbyterian College, 503 S. Broad St., Jacobs 213, Clinton, SC 29635, United States;1. S P Jain School of Global Management, Singapore, Singapore;2. S P Jain School of Global Management, 5 Figtree Drive, Sydney Olympic Park, Sydney, New South Wales 2127, Australia;1. Université de Bourgogne – IUT de Dijon, Boulevard Dr Petitjean, 21000 Dijon, France;2. Marketing Department, Groupe ESC Troyes, 217 Avenue Pierre Brossolette, BP 710, 10002 TROYES Cedex, France;3. Université Paris-Est Marne-la-Vallée, 5 boulevard Descartes - Champs-sur-Marne, 77454 Marne-la-Vallée Cedex2, France |
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Abstract: | A relational performance model is developed to show how innovation and long-term orientation can be evaluated and monitored within franchised retail service organizations. Using principles of justice from social exchange theory as a guide, our performance model measures how franchisee entrepreneurial passion (EP) and perceptions of fairness help to promote innovation and long-term commitment across retail franchise organizations. We test our model using data collected from one large U. S. retail service organization ($5B+ annual revenue) and its independent franchise operators. We discover that targeting distributive justice (or fairness) helps to leverage the EP of the independent operators for promoting innovation, while both procedural and distributive elements of the organizational justice climate help to enhance franchisee's long-term commitment. Moreover, we find that retail franchise operators perceive organizational justice differently than do corporate district managers, which suggests several important implications for both research and practice. |
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Keywords: | Retail Franchisor-franchisee relationships Justice Entrepreneurial passion Innovation Long-term orientation |
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