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

Author

Listed:
  • Tien Dung Luu
  • Khanh Huyen Nguyen Mai
  • Cuong Chi Huynh
  • Ngoc Huong Thi Phan
  • Nga Thanh Le
  • Thao Nguyen Diep Le

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.

Suggested Citation

  • Tien Dung Luu & Khanh Huyen Nguyen Mai & Cuong Chi Huynh & Ngoc Huong Thi Phan & Nga Thanh Le & Thao Nguyen Diep Le, 2023. "Performance of franchisee: the role of reciprocal resources, relationship quality and cultural sensitivity," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 20(1), pages 209-229, April.
  • Handle: RePEc:eme:ijoemp:ijoem-04-2022-0581
    DOI: 10.1108/IJOEM-04-2022-0581
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