Performance of franchisee: the role of reciprocal resources, relationship quality and cultural sensitivity

Tien Dung Luu, Khanh Huyen Nguyen Mai, Cuong Chi Huynh, Ngoc Huong Thi Phan, Nga Thanh Le and Thao Nguyen Diep Le

International Journal of Emerging Markets, 2023, vol. 20, issue 1, 209-229

Abstract: Purpose - This study aims to reveal the impact mechanism of franchisor-owned resources, franchise relationship quality and franchisee's dynamic capabilities on franchisee performance, with the moderating role of cultural sensitivity. Design/methodology/approach - The sample consisted of 290 middle managers and team leaders at 113 hotels and food and beverage settings participating in the international- and domestic franchises in Ho Chi Minh City, Vietnam. A partial least squares structural equation model (PLS-SEM) is used to analyse the data. Findings - The result reveals that franchisor-owned resources, franchise relationship quality and franchisee's dynamic capabilities significantly impacted franchisee performance. Furthermore, cultural sensitivity has a beneficial role in the effect of franchise relationship quality on franchisee performance. Originality/value - This study develops an integrated analytical framework of franchisee performance from the franchisee's perspective, contributing to integrating international business theory in franchising studies, namely the resource-based view, dynamic capability view and relationship-marketing theory.

Keywords: Cultural sensitivity; Franchisee performance; Franchisor resources; Innovation capacity; Relationship quality; Responsiveness (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-04-2022-0581

DOI: 10.1108/IJOEM-04-2022-0581

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