Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective

Although franchisee performance is likely to be influenced by franchisors’ management strategies, little is known about whether and how franchisors’ strategies affect franchisee employees’ performance. This study examines the combined effects of three franchisor management strategies, namely innovat...

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Main Authors: Ramaseshan, Balasubramani, Rabbanee, Fazlul, Burford, Oksana
Format: Journal Article
Published: Taylor and Francis 2017
Online Access:http://hdl.handle.net/20.500.11937/51600
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author Ramaseshan, Balasubramani
Rabbanee, Fazlul
Burford, Oksana
author_facet Ramaseshan, Balasubramani
Rabbanee, Fazlul
Burford, Oksana
author_sort Ramaseshan, Balasubramani
building Curtin Institutional Repository
collection Online Access
description Although franchisee performance is likely to be influenced by franchisors’ management strategies, little is known about whether and how franchisors’ strategies affect franchisee employees’ performance. This study examines the combined effects of three franchisor management strategies, namely innovative culture, support services and autonomy on service performance of the franchisee store employees and the loyalty of their customers. Data were collected from a total of 38 employees and 679 customers of 25 franchisee stores. The study employs multilevel analysis on a nested data-set created by matching customer data with employee data for each store. The results reveal that customer loyalty of a franchisee store is positively influenced by the service performance of its employees and the support services received by the employees of the store from its franchisor. On the other hand, it has been found that franchisor management strategy such as innovative culture and autonomy negatively influence customer loyalty of the franchisee store. The paper discusses relevant theoretical and managerial implications of the findings.
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spelling curtin-20.500.11937-516002020-08-17T03:09:28Z Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective Ramaseshan, Balasubramani Rabbanee, Fazlul Burford, Oksana Although franchisee performance is likely to be influenced by franchisors’ management strategies, little is known about whether and how franchisors’ strategies affect franchisee employees’ performance. This study examines the combined effects of three franchisor management strategies, namely innovative culture, support services and autonomy on service performance of the franchisee store employees and the loyalty of their customers. Data were collected from a total of 38 employees and 679 customers of 25 franchisee stores. The study employs multilevel analysis on a nested data-set created by matching customer data with employee data for each store. The results reveal that customer loyalty of a franchisee store is positively influenced by the service performance of its employees and the support services received by the employees of the store from its franchisor. On the other hand, it has been found that franchisor management strategy such as innovative culture and autonomy negatively influence customer loyalty of the franchisee store. The paper discusses relevant theoretical and managerial implications of the findings. 2017 Journal Article http://hdl.handle.net/20.500.11937/51600 10.1080/0965254X.2017.1293137 Taylor and Francis fulltext
spellingShingle Ramaseshan, Balasubramani
Rabbanee, Fazlul
Burford, Oksana
Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective
title Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective
title_full Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective
title_fullStr Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective
title_full_unstemmed Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective
title_short Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective
title_sort combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective
url http://hdl.handle.net/20.500.11937/51600