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The Indian power distribution companies are increasingly recognizing franchising for reviving their high loss-making rural pockets. The motivation for franchising has been a reduction of the franchisor's resource scarcity by bringing in operational efficiency and improved service quality to end consumers. However, there is a dearth of evidence on the influence of the franchisee's operations in addressing the resource scarcity of franchisors in predominantly rural areas. This study contributes towards filling the research gap.

A qualitative embedded multiple case study was conducted. The cases comprised two rural franchisees operating towards attaining the common goal. The study was built on archival analysis, personal observations and semi-structured interviews with the franchisors and franchisee officials across the organization's hierarchical levels. A conceptual model based on the review of prior literature formed the initial set of coding for the study. The data were presented based on within-case and across-case analysis.

The analysis revealed that the contract design impacts the requisite operational efficiency achievement. This variation could be elaborated by factors, such as system adaptation across organizational hierarchy, autonomy and independence, review and feedback systems, monitoring, a professional's attitude, bureaucracy, adaption with the local areas, risk sharing, incentives and compensation structure.

The study findings could be generalized to the extent of similar socio-economic conditions, prevailing governance mechanisms and law and orders. Additionally, since the law does not mandate the regulatory commissions to scrutinize the performance of the franchisees, the study was built on data shared by the franchisees and the discom. Further, this study considered the performance of only two performing franchisees. Matching these actualities with the discoveries of this study remains a continuing project as participation of private players is increasingly being recognized. Therefore, the insights drawn from this study could be used to improve the franchise model and can be scaled up across the nation, regions and sectors.

There is a dearth of literature on franchising in electricity distribution. This study is one of the first studies on studying the franchise system in the electricity distribution sector through the application of a well-accepted management theory.

The aim of this study is to explore possible contingent variables that might explain these twin contradictory effects of marketing channel governance. Franchisors govern their systems to limit opportunism and enhance performance. However, the exact opposite often occurs.

This paper develops an integrative conceptual model of franchisor governance of its franchisees. This model is tested empirically with data collected from 197 Australian franchisees.

Under strong relational norms, goal congruence and outcome monitoring limit franchisee opportunism; compliance enhances franchisee performance, while opportunism reduces it. With weaker norms, outcome monitoring facilitates compliance, and goal congruence boosts franchisee performance, as does franchisee opportunism. However, norms fail to mitigate behavioral monitoring’s negative impact on opportunism.

This research confirms the positive and negative effects of franchisor governance. It also shows that norms can reverse the positive link between franchisee opportunism and performance. It additionally illustrates how goal congruence and compliance can limit opportunism and boost performance. Future research should refine this study’s measures, incorporate additional constructs into the conceptual model and test the generalizability of these findings in lesser-developed economies.

This research shows that monitoring has both positive and negative effects on franchisee opportunism and performance. To avoid monitoring’s adverse effects, franchisors are advised to enhance goal congruence, boost franchisee compliance and develop strong relational norms.

This paper shows that goal congruence, as well as franchisor outcome monitoring, can mitigate the negative effects of franchisor behavioral monitoring on franchisee opportunism, as do relational norms.

This paper aims to explore franchisor–franchisee relationships in the context of plural forms. Plural forms implies the co-existence of franchised and non-franchised outlets of a given company. More specifically, the paper examines the impact of franchisors’ leadership styles on franchisees’ relationship commitment when the company franchised outlets co-exist with independent non-franchised outlets. Specifically, this study operationalize the plural forms phenomenon in franchising, using multi-channel complexity as a moderator. The mediating role of relational capital is also examined.

Data were collected from 254 franchisees. The hypothesized model was tested using partial least squares structural equation modeling (PLS-SEM).

The results indicate that all three – participative, supportive and directive leadership styles of franchisors increase relationship commitment. In a high channel complexity context, a supportive leadership style is the most effective, whereas, in a low channel complexity context, a participative style is the most effective. Relational capital also partially mediated the relationships between leadership styles and relationship commitment.

Franchisors should follow a participative leadership style when channel complexity is low. However, as they add new channels and the channel complexity increases, franchisors should shift toward a supportive leadership style to maintain existing franchisees’ commitment. In current environments, managers should avoid using directive leadership in favor of the other two leadership styles.

The present study is the first to examine the influence of channel leadership style on relationship commitment in an environment of multiple channel complexity.

The purpose of this paper is to present a selection model that adopts several important criteria, enabling a durable goods franchiser to select franchisees that are most appropriate.

Questionnaires based on selection criteria are identified from modified Delphi Technique and then sent to experts and decision makers. Major criteria weights are analyzed using the analytic hierarchy process and entropy. Final weights are then determined using the compromised weighting method.

This study has demonstrated that the durable goods sector in Taiwan emphasizes the condition of a franchisee personal condition more than its store location, and our results further indicate that a franchiser should emphasize finance and business ability when selecting franchisees. Additionally, consumer purchasing power, individuals passing by and parking convenience are all important factors for selecting a franchisee.

Analysis results indicate that the proposed selection model enables a franchiser to select franchisees more reasonably by allowing them to operate effectively.

The purpose of this chapter is to examine how leaders furthered the development of a social enterprise in response to paradoxes. Data on leadership practices were collected through interviews and observations in an Italian Healthcare network over the organization’s first two years. The data indicate that leaders addressed paradoxes in developing several critical resources by using both top-down influence and bottom-up participation. Leaders used top-down practices to further organizational development along a known path when they could leverage technical expertise or a vision to address a source of tension. Bottom-up practices, on the other hand, permitted the discovery of new paths that had not been previously identified. Leaders leveraged such responses where tensions appeared intractable. Implications for managers and organizational development and change practitioners are discussed.

This paper aims to outline different signals that franchisors can use to communicate their value proposition to prospective franchisees. It also tests whether these signals can enable franchisors to charge a premium from their franchisees.

This paper uses a mixed-methods approach to arrive at the findings. It uses a combination of open-ended survey and archival data to arrive at the findings.

Franchisees consider franchisor’s characteristics such as its “capability,” “support offered” and “franchisee membership criteria” significant while buying into their franchises. The results suggest that franchisors can leverage some of their capability signals to obtain a higher franchise fee if they use the right signals as desired by franchisees.

Signals identified in this study are specific to this study. The relationship between the signals and franchise fee is applicable for high-performing franchises operating in the American context only. Future research can address this limitation by collecting more data, testing additional signals and using alternative methods to verify the findings.

Franchisors can take cues from the evaluative criteria used by franchisees to design their signaling strategies. Franchisors can leverage some of their capabilities to extract higher fees from their franchisees. Prospective franchisees should engage in due diligence before purchasing a franchise unit and avoid franchises with higher support fees and loose franchisee recruitment criteria.

This study contributes to research on the evaluative criteria used by franchisees. It contributes to the signaling theory by offering insights into the performance outcomes of signals in the franchising context. It also contributes to our understanding of franchising by adopting a mixed-methods approach that includes information about franchisors and franchisees.

This study focuses on a unique retail outlet location decision‐making problem found in business format franchising industries. The problem is derived from the latent conflict in the relationship between franchisor and franchisees. An empirical study was carried out to compare benefits of two different outlet allocation decision modes: centralised planning mode (locations allocated by the franchisor) and decentralised planning mode (franchisees given autonomy to select the location of their own outlets). Research findings revealed that the decentralised location decision mode is more beneficial to the franchise system with a lower level of customer loyalty.

The purpose of this paper is to propose a franchising decision support system (FDSS) for future development planning by center positioning strategy formulation under a franchising business model.

The system makes use of data collected from the franchising business and external environment analysis for decision making in center positioning problems. The fuzzy logic approach is integrated into the system for analyzing the geographical market dynamics including profitability and competitiveness in the district concerned. To demonstrate the application of the proposed FDSS, a case study is conducted in a Hong Kong-based franchising private education center, i.e. Dr I-Kids Education Center.

The tailor made FDSS helps to facilitate the business operations of the franchising education center and develops a district positioning model for the centers located in the 18 districts of Hong Kong. The findings provide a solid foundation for marketing strategy and expansion direction formulation.

Due to the globalization of business, managing a growing franchising business model becomes challenging to the franchisor. In order to fully leverage the merits of the franchising system, an intelligent decision support model, focusing on making strategic development plans, is needed so as to expand the scale of business efficiently.

The purpose of this paper is to explore the interrelationship of branding practices and legitimacy-building of commercial degree program franchising within transnational higher education (TNHE). It aims to understand how commercial franchisees’ branding practices employ discursive and symbolic strategies for building legitimacy, and how these practices impact both organizational development and stakeholder perception.

This qualitative study uses document and visual content analysis, supported by discourse analysis, as the methods in analyzing commercial franchisees’ branding practices of their franchised programs. The sample of the study consists of five commercial franchisees offering primarily Western MBA programs in the United Arab Emirates. The data were obtained through franchisees’ websites, marketing materials, student prospectuses, visiting campuses and their marketing events, and through interviews with franchise managers.

The findings of this study indicate that growing a sustainable brand for a commercial franchisee requires successful building of its legitimacy in the host country. Legitimacy in such arrangement however involves two paradoxes: the “self-promoter’s paradox” where the franchisees often engage in legitimacy-building practices that decrease their legitimacy, and the “legitimacy-borrowing paradox” that happens when the commercial franchisee initially borrows its legitimacy from the franchised program, but simultaneously this borrowing of legitimacy prevents it from becoming a fully legitimate higher education institution.

This study contributes to the research on management of TNHE by exploring the branding practices of franchised programs, which so far has been a neglected area in research. Furthermore, interconnections of legitimacy-building and branding practices are underrepresented within the broader higher education research.

Marketing, Retail Marketing and E-commerce.

Graduate and Post-graduate.

The Future Group is the most profitable retailer in India without having any foreign direct investment (FDI). In September 2013, the retailer launched its online retailing platform, “Big Bazaar Direct” (BBD). BBD is a franchisee-based model which aims to partner with people having rich customer networks to reach more shoppers. This novice idea of BBD is the result of Big Bazaar’s greater mind share over its market share. Mr Kishore Biyani, CEO Future Group, has lot of expectation from this business model.

The outcomes include: to familiarize students with Indian Retail Industry; to develop student’s skills in critically analyzing an online retail-based new business model; and to explain key factors that work for success of a retail-based business model.

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CSS 8: Marketing