Abstract
This study examined central propositions of conservation of resources theory in a unique work context, specifically, the associations of franchisee personal and contextual resources with franchisee performance. Data were collected from 1570 Australian franchisees from 35 different franchise networks, with franchisee financial performance and franchise citizenship rated by the franchisor executives responsible for supervising these franchisees. Franchisee proactivity, optimism, family support, and perceived organizational support were positively associated with financial performance. Franchisee affective commitment, family support, and perceived organizational support were positively associated with franchise citizenship. Moderation analyses further revealed that, at higher levels of family support, there was a positive relationship between franchisee optimism and franchisee citizenship. In addition, multilevel analyses showed that low levels of aggregated organizational support (i.e., lower means at the franchise network level) nullified the positive association of franchisee proactivity with financial performance. The findings provide valuable insights into the personal and contextual resources that are linked to performance in the context of franchising, yielding practical implications for how franchisors select, develop, and support franchisees. We apply propositions of conservation of resources theory to a unique work context and demonstrate that franchisee personal and contextual resources are associated with franchisee citizenship and financial performance.
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Appendix
Appendix
Franchisor Performance Ratings
Please rate the franchisee on the criteria below. Where possible refer to data or objective criteria to guide your ratings. If the franchisee operates more than one unit, rate average performance across the units.
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1.
Considering their site or territory, and how long they have been operating the business, how would you rate their sales figures?
1 | 2 | 3 | 4 | 5 |
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Well below expectations | Below expectations | As expected | Above expectations | Well above expectations |
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2.
Please indicate below to show where their business would sit in terms of sales performance when compared to the other operators in your system?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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3.
How would you rate their profit performance compared with group benchmarks? (please use whatever profit measures you have)
1 | 2 | 3 | 4 | 5 |
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In the bottom 20% | Below average | Around average | Above average | In the top 20% |
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4.
How compliant have they been to operating standards of your brand/company? (e.g., consider compliance scores, breach notices)
1 | 2 | 3 | 4 | 5 |
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Poor compliance | Below acceptable | Just acceptable | Very good | Exceptional compliance |
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5.
How constructively have they participated in the group activities of your brand/company? (e.g., consider meetings, field visits, conferences, committees)
1 | 2 | 3 | 4 | 5 |
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Very negative | At odds or absent | Moderately positive | Very positive | Extremely positive |
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6.
To your knowledge how trustworthy have they been in providing accurate and reliable information?
1 | 2 | 3 | 4 | 5 |
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Problematic | Unreliable | Seems satisfactory | Reliable | Outstanding |
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Parker, S.L., Cutts, S., Nathan, G. et al. Understanding Franchisee Performance: The Role of Personal and Contextual Resources. J Bus Psychol 34, 603–620 (2019). https://doi.org/10.1007/s10869-018-9558-5
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DOI: https://doi.org/10.1007/s10869-018-9558-5