Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective
MetadataShow full item record
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.
Showing items related by title, author, creator and subject.
Rabbanee, Fazlul; Burford, Oksana; Ramaseshan, Balasubramani (2015)Purpose: Employees in community pharmacies play a far significant and distinct role compared to the employees in traditional retail stores. This paper examines the effects of employee performance on customer loyalty of ...
Communities of practice, knowledge creation, and corporate sustainability : a study of Bahrain service industryAl Azali, Ralla (2010)The Kingdom of Bahrain is a service-based economy in which the service industry is a highly competitive market environment. Therefore, organisations require employing strategies to compete and sustain their competitive ...
Chi, C.; Gursoy, D (2009)The purpose of this study is to examine the relationship between employee satisfaction and customer satisfaction, and to examine the impact of both on a hospitality company's financial performance utilizing service-profit-chain ...