Formal control influence on franchisee trust and brand-supportive behavior within franchise networks

Raisa Yakimova, Martin Owens, Jörg Sydow

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Although management scholars recognize that intention of formalization influences the manner in which formal controls are applied within organizations, this issue has been largely overlooked in research on strategic alliances including franchise networks. We investigate formalization intent (the way in which controls are initiated and executed) by asking: How do franchisor formal controls promote trust and brand-supportive behavior among franchisees? On the basis of case study research involving retail franchises, we develop a framework that explains how formal controls counter-intuitively promote franchisee brand-supportive behavior via trust-building. Our study contributes to understanding the complementary relationship between formal and social control on promoting partner trust and co-operation. These insights move research beyond the present preoccupation with the complementary influence of formalization degree and content.
Original languageEnglish
Pages (from-to)123-135
Number of pages13
JournalIndustrial Marketing Management
Volume76
Early online date18 Aug 2018
DOIs
Publication statusPublished - 1 Jan 2019

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Franchise
Formal control
Franchisee
Formalization
Franchisor
Social control
Case study research
Strategic alliances
Retail

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Formal control influence on franchisee trust and brand-supportive behavior within franchise networks. / Yakimova, Raisa; Owens, Martin; Sydow, Jörg.

In: Industrial Marketing Management, Vol. 76, 01.01.2019, p. 123-135.

Research output: Contribution to journalArticle

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