A model of trust and compliance in franchise relationships

Mark A.P. Davies, Walfried Lassar, Chris Manolis, Melvin Prince and Robert D. Winsor

Journal of Business Venturing, 2011, vol. 26, issue 3, 321-340

Abstract: Despite the danger of franchisee non-compliance as a severe impediment to overall franchise operation and performance, there is currently minimal understanding of the key factors that lead to these behaviors. Using a foundation of relational exchange theory, we construct and test a model that demonstrates how two distinct forms of trust, based upon perceptions of franchisor integrity and franchisor competence, are critical to explaining the roles that relational conflict and satisfaction play in influencing franchisee compliance. Implications of these findings are then demonstrated to have compelling relevance to the effective management of franchise systems.

Keywords: Franchising; Trust; Satisfaction; Conflict; Compliance; Reciprocity (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (39)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:26:y:2011:i:3:p:321-340

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