2024-03-28T18:36:38Zhttps://riubu.ubu.es/oai/requestoai:riubu.ubu.es:10259/57152021-11-02T11:59:43Zcom_10259_4596com_10259.4_2574com_10259.4_106com_10259_2604col_10259_4597
Effects of contract and trust on franchisor performance
Calderón Monge, Esther
Pastor Sanz, Iván
single-unit franchising
multi-unit franchising
cross-franchising
trust
contract
The franchisor-franchisee relationship is governed by contracts and trust. This paper analyzes how
formal (contracts) and relational (trust) governance mechanisms affected franchisor performance
in a service sector franchise for the period 2008¬2015. Using the SOM method in the empirical
analysis, the results revealed that trust-based governance was more prominent than contractbased
governance in the multi-unit franchise network and the cross-franchising network, negatively
affecting franchisor performance in the multi-unit franchise network and positively affecting
franchisor performance in the cross-franchising network. In contrast, contracts were more prominent
than trust in single-unit franchising, negatively affecting franchisor performance. The primary
practical implication is that the franchisor should prevent franchisees in the MUF network from
opening new outlets in the same city and competing for the existing outlet’s customers.
2021-04-20T07:57:35Z
2021-04-20T07:57:35Z
2021-04-20T07:57:35Z
2017-12
info:eu-repo/semantics/article
2300-8814
http://hdl.handle.net/10259/5715
10.5709/ce.1897-9254.251
eng
Contemporary economics. 2017, V. 11, n. 4, p. 383-400
http://www.ce.vizja.pl/en/issues/volume/11/issue/4#art513
http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
Atribución 4.0 Internacional
University of Finance and Management in Warsaw