Relationships in Franchised Distribution System: the Case of the Spanish Market

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Abstract:

The purpose of this article is to examine long-term inter-firm relationship management and to investigate empirically if trust and commitment are essential variables for relationship success. This study analyses both the relationship between two behaviours (cooperation and exchange information) and the development of trust and commitment as well as their effects on long-term orientation, satisfaction and performance. The unit of analysis is the dyadic relationship, assessing separately franchisor's and franchisees' perspectives, and comparing similarities and differences across perspectives (Anderson & Narus, 1990; Jap, 1999). The model proposed has been tested with 107 franchisors and 102 franchisees operating both in the retail (food and beverages, fashions, furniture …) and the service sector (estate agencies, education, dry-cleaner's, diverse services …) in the Spanish franchised distribution system. Results show that both commitment and trust are key variables for long-term relationship success from the franchisors perspective, but that from the franchisees side, trust is the key variable for relationship success.

Keywords: Franchising; Spain; commitment; distribution; structural equations model; trust

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0959396032000154329

Publication date: January 1, 2004

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