An empirical investigation of the conflict behavior process in franchise channels of distribution

Abstract

The purpose of this research effort was to empirically examine various relationships in the conflict behavior process existing in the franchise channel of distribution for real estate brokerage services. Specifically, the study examined the effects of the interorganizational climate of the franchise arrangement between franchisor and franchisee on dependent measures of intrachannel conflict and franchisee satisfaction and operating performance. The study also examined the effects of intrachannel conflict on franchisee satisfaction and operating performance. Finally, the study examined the total effects of interorganizational climate on overall franchisee satisfaction and operating performance in order to determine the intervening effects of intrachannel conflict on these relationships. A total of forty-two hypotheses were developed and summarily tested. To collect the data, an eight-page questionnaire was mailed to the 1,052 franchised real estate brokers representing the six major franchise organizations doing business in Texas, Oklahoma, and Arkansas. Of these, 391 questionnaires were returned, 349 of which were usable. Prior to the implementation of appropriate statistical procedures selected to test the hypotheses, it was necessary to assess the validity and reliability of various multidimensional scales included in the test instrument for the purpose of measuring interorganizational climate, intrachannel conflict, and franchisee satisfaction. All measures exhibited satisfactory levels of validity and reliability. Multiple regression and path analysis were then used in testing the null hypotheses. The results of the multiple regression analysis indicated that interorganizational climate, specifically the respective levels of consideration and reward orientation, had a significant, positive impact on all major dimensions of franchisee satisfaction. Consideration and reward orientation also had a significant, negative effect on franchisees' perceptions of the level of conflict between them and their franchisor. Franchisees' perceptions of the level of autonomy and degree of structure did not significantly affect any of the various dimensions of franchisee satisfaction. None of the various dimensions of interorganizational climate had a significant impact on franchisee operating performance...