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The Relationships of Governance Structures, Conflicts and Performance in Foodservice Franchising Systems

  • Journal of Tourism Sciences
  • Abbr : JTS
  • 2011, 35(8), pp.127-143
  • Publisher : The Tourism Sciences Society Of Korea
  • Research Area : Social Science > Tourism

전영민 1 Kim, Young-Gook 2

1동국대학교 대학원
2동국대학교

Accredited

ABSTRACT

This study was to investigate the impact of types of governance structural on the reduction of conflict between the two parties of franchiser and franchisee and increase of business performance of franchiser. Based on previous study, governance structure between franchiser and franchisee were conceptualized in terms of contractual governance and relational governance. Also, a structural model which contained five research hypotheses between the two types of governance structure and the other constructs were developed. Data were collected from 206 restaurant franchisees in the Seoul and Kyunggi area. Results of structural equation model analysis indicated that contractual governance positively influenced on the reduction of conflicts and increase of franchisees business performance. Results also showed that the relational governance was found to be positively associated with the business performance and the reduction of conflicts. Results from this study suggest that relational governance and contractual governance function as complements in minimizing conflicts and improving performance in franchise organization. Implications of the results and limitations of the study were also discussed.

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