Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businesses
Franchising is one of the most trustworthy strategic alliance formations to start or expand businesses. Like many other business formations, franchise businesses need sustainable and long-term running; these objectives can be reached by a proper relationship between partners – the franchisor and the...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2021-09-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/15573/PPM_2021_03_Prihandono.pdf |
| _version_ | 1818736480104742912 |
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| author | Dorojatun Prihandono Andhi Wijayanto Dwi Cahyaningdyah |
| author_facet | Dorojatun Prihandono Andhi Wijayanto Dwi Cahyaningdyah |
| author_sort | Dorojatun Prihandono |
| collection | DOAJ |
| description | Franchising is one of the most trustworthy strategic alliance formations to start or expand businesses. Like many other business formations, franchise businesses need sustainable and long-term running; these objectives can be reached by a proper relationship between partners – the franchisor and the franchisee – in the alliances. Both partners’ perspectives are valuable inputs to provide insight into understanding the sustainability of Indonesian franchise businesses. Furthermore, in any type of strategic alliances conflict is a risk that needs to be managed properly. This study aims to examine the relationships of determinants that influence franchise business sustainability. The determinants are risk management, trust, satisfaction, and sustainability. The study applies confirmatory factor analysis using structural equation modeling (SEM) AMOS software. Respondents in this study are franchisors and franchisees in the Indonesian retail and food and beverages (F&B) sectors, the study accommodates 204 respondents. Based on the analysis the study reveals that there is a positive relationship between risk management and satisfaction. Risk management also has a positive relationship with survivability; trust and satisfaction also have a positive relationship. Meanwhile, there is no relationship between satisfaction and survivability and the last relationship is between trust and survivability that has no positive relationship between the determinants. This study provides clearer insight to understand the relationships between determinants that influence franchise business survivability in Indonesia, especially based on both parties’ perspectives. |
| first_indexed | 2024-12-18T00:37:49Z |
| format | Article |
| id | doaj.art-d964292e25484f3f8063f8b5ee167d99 |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-12-18T00:37:49Z |
| publishDate | 2021-09-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-d964292e25484f3f8063f8b5ee167d992022-12-21T21:26:58ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672021-09-0119338339510.21511/ppm.19(3).2021.3115573Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businessesDorojatun Prihandono0https://orcid.org/0000-0001-6642-3602Andhi Wijayanto1https://orcid.org/0000-0003-0883-5523Dwi Cahyaningdyah2https://orcid.org/0000-0002-1175-329XPh.D., Lecturer, Faculty of Economics, Department of Management, Universitas Negeri SemarangM.M., Lecturer, Faculty of Economics, Department of Management, Universitas Negeri SemarangDr., Lecturer, Faculty of Economics, Department of Management, Universitas Negeri SemarangFranchising is one of the most trustworthy strategic alliance formations to start or expand businesses. Like many other business formations, franchise businesses need sustainable and long-term running; these objectives can be reached by a proper relationship between partners – the franchisor and the franchisee – in the alliances. Both partners’ perspectives are valuable inputs to provide insight into understanding the sustainability of Indonesian franchise businesses. Furthermore, in any type of strategic alliances conflict is a risk that needs to be managed properly. This study aims to examine the relationships of determinants that influence franchise business sustainability. The determinants are risk management, trust, satisfaction, and sustainability. The study applies confirmatory factor analysis using structural equation modeling (SEM) AMOS software. Respondents in this study are franchisors and franchisees in the Indonesian retail and food and beverages (F&B) sectors, the study accommodates 204 respondents. Based on the analysis the study reveals that there is a positive relationship between risk management and satisfaction. Risk management also has a positive relationship with survivability; trust and satisfaction also have a positive relationship. Meanwhile, there is no relationship between satisfaction and survivability and the last relationship is between trust and survivability that has no positive relationship between the determinants. This study provides clearer insight to understand the relationships between determinants that influence franchise business survivability in Indonesia, especially based on both parties’ perspectives.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/15573/PPM_2021_03_Prihandono.pdfconflictfranchiseefranchisorrisk managementsatisfactionsurvivability |
| spellingShingle | Dorojatun Prihandono Andhi Wijayanto Dwi Cahyaningdyah Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businesses Problems and Perspectives in Management conflict franchisee franchisor risk management satisfaction survivability |
| title | Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businesses |
| title_full | Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businesses |
| title_fullStr | Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businesses |
| title_full_unstemmed | Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businesses |
| title_short | Franchise business sustainability model: Role of conflict risk management in Indonesian franchise businesses |
| title_sort | franchise business sustainability model role of conflict risk management in indonesian franchise businesses |
| topic | conflict franchisee franchisor risk management satisfaction survivability |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/15573/PPM_2021_03_Prihandono.pdf |
| work_keys_str_mv | AT dorojatunprihandono franchisebusinesssustainabilitymodelroleofconflictriskmanagementinindonesianfranchisebusinesses AT andhiwijayanto franchisebusinesssustainabilitymodelroleofconflictriskmanagementinindonesianfranchisebusinesses AT dwicahyaningdyah franchisebusinesssustainabilitymodelroleofconflictriskmanagementinindonesianfranchisebusinesses |