• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.4 no.1
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• pp.89-111
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• 2009

Since the financial crisis in 1997, the Korean economy has a steady increase of people who tend to establish their own business by 2008. Business foundations can be divided into independent businesses and franchise businesses. This study focuses on what type of business owners among franchise enterprisers can achieve success. This is intended to reduce trial and error by drawing upon success factors in the stages of establishment, operation, and achievement based on a total sample of 350 individual business sites. The result shows that the success factors in the stage of establishment include (1) Preparation such as foundation education (2) Marketing capability (3) Appropriateness of Business Item (4) Other founder's entry barrier, conglomerate's entry regulation and (5) Head Office Support including service education, market survey education, marketing support. On the other hand, the success factors in the stage of operation include the supervisor capability, Marketing capability, Head Office Support, Customer Management Capability and Employee Satisfaction. Additionally after choosing the major factors according to each stage, multiple regression analysis was processed and interpreted. Finally, we believe that the franchise or independent business foundations can make a profit as well as increase continuous sales and customer satisfaction only with thorough and careful preparation in all stages of foundation and operation. This study is expected to contribute to those who prepare new business in franchise domain to minimize failures with deep consideration of the success factors in the franchise.

• Journal of Distribution Science
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• v.14 no.7
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• pp.91-100
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• 2016

Purpose - Recently actively growing franchise systems distribution channel system in which franchise headquarter compared with franchise occupies an important place in distribution channel. Due to this, franchise and franchise headquarter are interdependent on task and in this situation the goal they go after, motivation and objective are probably inconsistent. If so, possibility to participate goal setting process or operating activity of opposite side is becoming bigger and in the end conflict may generate. The purpose of this study is to examine the role of the supervisor's attitude and expertise as moderating factors in the relationship between goal-incongruity/coercive power/role-incongruity and the conflict perceived by franchisee. Research design, data and methodology - This study was intended to verify how the supervisor's attitude and expertise as moderating factors in the relationship between goal-incongruity/coercive power/role-incongruity and the conflict perceived by franchisee. In order to achieve the purpose of this study, some study models and hypotheses have been established through theoretical examinations. Then, using these scales, the researcher completed the questionnaire survey. To test our hypotheses, the survey was conducted from March 9, 2016 for 20 days by random sampling, The study was implemented through a descriptive survey method using a self-administered questionnaire. A survey of 124 restaurant franchisee across Seoul and Gyeonggi Province was performed. A total of 124 completed responses were analyzed. In this study, I used SPSS 22.0 to analyze data and did frequency analysis to see demographic, and general features of the respondents; also did exploratory factor analysis to examine the validity of the items of measurement. Factor analysis was first calculated at a minimum, the number of factors, principal component analysis used when variables are committed to maximising the information with (principle component analysis) and the rotation of factors were angry about the great variable factors than 1.0 by applying Varimax rotation. In addition, I used the value of Cronbach's (Alpha) to examine the reliance of questionnaire items, final analysis the reliability factor can be found both high reliability hayeoteumeuro exceeds over 0.6 and did Multiple regression analysis to test hypothesis and also did hierarchical regression analysis to examine moderating effect. Results - To analyze the proposed model, according to the analysis result, it was found that the influence of goal-incongruity, coercive power, and role-incongruity on the perceived conflict of franchisee is moderated by the supervisor's attitude and expertise. That is, the more the supervisor's attitude and expertise were positive, the more the conflicts of the goal-incongruity, coercive power, and role-incongruity were decreased. It also confirmed previous research's finding that goal-incongruity, coercive power, and role-incongruity positively influence on the conflict. Conclusions - According to the results of this research which reduces the conflict of franchise from the in consistent goal; coercive power, and inconsistent role of superiors, it provides very important implications for franchise headquarter which has franchise system and also give them some suggestion about how to recruit superiors and what kind of training may be fit for the superiors.

• Journal of Distribution Science
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• v.13 no.1
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• pp.35-46
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• 2015

Purpose - This paper attempted to investigate the relationships among the perception of job insecurity and organizational effectiveness, and it examines these relationships while considering the moderating effect of trust in the manager and self-efficacy. Job insecurity is an independent variable, organizational effectiveness aspects (job satisfaction, organizational commitment, and turnover intention) are dependent variables, and trust and self-efficacy are moderators. Research design, data, and methodology - Regression analysis was used to verify the effects. The measurement items were already deemed as reliable and valid in the previous study, but for this purpose, some modifications were made. To examine the model, this study relied on the samples chosen from Korean employees in the six franchise business firms. The survey was conducted on 288 workers. Each question is based on a 5-point Likert type scale. The data were analyzed using SPSS 18.0. Results - The results of the study are summarized as follows. First, job insecurity has an influence on organizational effectiveness aspects (negatively on job satisfaction, negatively on organizational commitment, and positively on turnover intention). Second, analyzing the moderating effect of trust, trust in manager is mediated between job insecurity and organizational effectiveness aspects (on organizational commitment and on turnover intention). However, employees' trust in manager had no significant moderating effect on the job insecurity-job satisfaction relationship. Third, self-efficacy is mediated between job insecurity and organizational effectiveness aspects (on job satisfaction, on organizational commitment, and on turnover intention). Conclusions - First, it is necessary to be aware of the seriousness of employees' job insecurity in franchise firms, which have played a pivotal role in national economic growth, and to create a detailed plan for reducing insecurity and actively implementing it. To this end, the franchise companies should implement efficiency efforts such as obtaining an appropriate capacity of equipped personnel and a training program. Second, there are moderating effects of self-efficacy and trust in the relationship between job insecurity and organizational effectiveness. Depending on business conditions, stability and instability can only be experienced in the organizations of franchise companies. This can give rise to instability in employment. Therefore, it is necessary to develop and utilize a system that can be minimized with a change in the new awareness of employment instability. After all, a good leader (manager) must accumulate personal trust and build up a core competence that is necessary to become competent in the field himself. Even if you lack the material resources to improve performance, if the leader with the core competencies (e.g., technical/management /organization/marketing/design) can gain the trust of the supervisor, you can get a good organizational performance. Therefore, you should foster a healthy organizational culture through education such as leadership training and employee training to be built on trust between the leaders and the employees. In addition, you need to focus on HRD&M training in order to increase the self-efficacy of the supervisor.

• The Journal of the Korea Contents Association
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• v.18 no.12
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• pp.558-569
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• 2018

The purpose of this study is examine the effect of social work field practicum related factors on empowerment of students majoring in social welfare. For this purpose, a survey of the university students with completing social work field practicum was conducted and data was analyzed. The results of this study are summarized as follows: The empowerment level of the students with completing social work field practicum is 3.71. Multiple regression analysis was conducted for each sector by dividing the factors related to the social welfare field practicums affecting the empowerment into individual factors, practical institutional factors, and school factors. Degrees of practice(${\beta}=.123$, t=2.405, p<.05), the satisfaction level of the supervisor(${\beta}=.176$, t = 2.446, p <.05), the lecture satisfaction level of the practicum(${\beta}=.229$, t=4.018, p<.001) were found to affect the empowerment in each sector. But in final analysis with all factors have been concerned, the lecture satisfaction level of the practicum(${\beta}=.257$, t=4.495, p<.001) had a positive effect on the empowerment. Based on these results, implications for research and practice were discussed.

• Journal of Distribution Science
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• v.9 no.2
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• pp.49-59
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• 2011

A franchise can be said to be the main method of distribution and marketing. It appears to be the future of the retail industry and is one of the world's fastest growing businesses sectors, as many policy reports and research results have acknowledged. Korea's franchise industry began in the 1970s, spread out into many areas (including food services, retail, and the service industry), and has grown by over 10% each year ever since. The industry's influence on the national economy becomes ever greater. Although the size of the franchise industry is expected to grow as it spreads and as the government expands its support, it has not yet attracted much academic interest. Research has so far been very fragmented. The main interest has been the relationship and conflicts between the head offices and the affiliates. No study has yet occurred on whether the concepts of satisfaction and intent to conclude a contract directly affect the success or failure of the affiliates. Few studies have empirically inquired into the demographic characteristics and abilities of the affiliates that significantly affect their results. Domestic franchise industries must prepare to leap from quantitative to qualitative growth. Most important is the need for affiliate headquarters and affiliates to build confidence between them. A friendly and reliable relationship between affiliate headquarters and affiliates will eliminate distrust from the franchise and maintain a healthy franchise system. This study suggests that current and prospective heads of affiliation should concentrate not on attracting affiliates but on investment and techniques of affiliate support. They should work on the reinforcement of brand power, the appropriate affiliate business environment, systematic education/training, taking burdens off the affiliate business persons, consolidating the relationship with the affiliate business persons, marketing mix factors (e.g. products, price conditions, logistics and shipping services, promotion, supervising and supervisor, operation procedures/processes, and material evidence); these all greatly affect the success or failure of the affiliate business. Supporting the affiliates is an important factor that enhances their results and satisfaction and consequently increases the positive recommendations to others and the ratio of recurrent conclusions of contracts, which ultimately generate the growth of the franchises. In addition, it is suggested that prospective franchise founders should make every effort to choose a good head office since the characteristics of the head office greatly influence the success of the affiliates. This study is significant in that it grasps the characteristics of the head office of affiliation and of the affiliates that influence affiliate results in ways not yet academically attempted.

• Journal of Distribution Research
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• v.15 no.3
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• pp.1-34
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• 2010

Introduction The purpose of this research is to develop overall model which involves the effect of ongoing support services by franchisor on franchisee's relationship quality(trust, satisfaction, and commitment) and business performance(financial and non-financial performance), and to investigate the relationships among trust, satisfaction, commitment, financial and non-financial performance. This study also suggests franchise business or franchise system should be based on long-term orientation between franchisor and franchisee rather than short-term orientation, or transactional relationship, and proposes the most effective way of providing on-going support services by franchisor with franchisee thru symbiotic relationship among franchisor and franchisee Research Model and Hypothesis The research model as Figure 1 shows the variables on-going support services which affect the relationship quality between franchisor and franchisee such as trust, satisfaction, and commitment, and also analyze the effects of relationship quality on business performance including financial and non-financial performance We established 12 hypotheses to test as follows; Relationship between on-going support services and trust H1: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's trust. Relationship between on-going support services and satisfaction H2: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's satisfaction. Relationship between on-going support services and commitment H3: On-going support services factors (product category & price, logistics service, promotion, information providing & problem solving capability, supervisor's support, and education & training support) have positive effect on franchisee's commitment. Relationship among relationship quality: trust, satisfaction, and commitment H4: Franchisee's trust has positive effect on franchisee's satisfaction. H5: Franchisee's trust has positive effect on franchisee's commitment. H6: Franchisee's satisfaction has positive effect on franchisee's commitment. Relationship between relationship quality and business performance H7: Franchisee's trust has positive effect on franchisee's financial performance. H8: Franchisee's trust has positive effect on franchisee's non-financial performance. H9: Franchisee's satisfaction has positive effect on franchisee's financial performance. H10: Franchisee's satisfaction has positive effect on franchisee's non-financial performance. H11: Franchisee's commitment has positive effect on franchisee's financial performance. H12: Franchisee's commitment has positive effect on franchisee's non-financial performance. Method The on-going support services were defined as an organized system of continuous supporting services by franchisor for the purpose of satisfying the expectation of franchisee based on long-term orientation and classified into six constructs such as product category & price, logistics service, promotion, providing information & problem solving capability, supervisor's support, and education & training support. The six constructs were measured agreement using a 7-point Likert-type scale (1 = strongly disagree to 7 = strongly agree)as follows. The product category & price was measured by four items: menu variety, price of food material provided by franchisor, and support for developing new menu. The logistics service was measured by six items: distribution system of franchisor, return policy for provided food materials, timeliness, inventory control level of franchisor, accuracy of order, and flexibility of emergency order. The promotion was measured by five items: differentiated promotion activities, brand image of franchisor, promotion effect such as customer increase, long-term plan of promotion, and micro-marketing concept in promotion. The providing information & problem solving capability was measured by information providing of new products, information of competitors, information of cost reduction, and efforts for solving problems in franchisee's operations. The supervisor's support was measured by supervisor operations, frequency of visiting franchisee, support by data analysis, processing the suggestions by franchisee, diagnosis and solutions for the franchisee's operations, and support for increasing sales in franchisee. Finally, the of education & training support was measured by recipe training by specialist, service training for store people, systemized training program, and tax & human resources support services. Analysis and results The data were analyzed using Amos. Figure 2 and Table 1 present the result of the structural equation model. Implications The results of this research are as follows: Firstly, the factors of product category, information providing and problem solving capacity influence only franchisee's satisfaction and commitment. Secondly, logistic services and supervising factors influence only trust and satisfaction. Thirdly, continuing education and training factors influence only franchisee's trust and commitment. Fourthly, sales promotion factor influences all the relationship quality representing trust, satisfaction, and commitment. Fifthly, regarding relationship among relationship quality, trust positively influences satisfaction, however, does not directly influence commitment, but satisfaction positively affects commitment. Therefore, satisfaction plays a mediating role between trust and commitment. Sixthly, trust positively influence only financial performance, and satisfaction and commitment influence positively both financial and non-financial performance.