Sustaining success: the power of relational bonding in building franchisee trust in South Korea’s food service industry

Abstract

Purpose

Relationship marketing has emerged as pivotal, aiming to bolster collaboration and reduce uncertainty for both franchisors and franchisees. However, understanding the nuanced impact of relational bonding strategies – financial, social, and structural – on franchisee outcomes, particularly in South Korea’s food service industry, remains lacking. This study is an in-depth exploration of the nuanced impact of franchisors’ relational bonding strategies – structural, social, and economic – on critical franchisee outcomes in the food service industry.

Design/methodology/approach

By leveraging data from 496 franchisees in South Korea, our investigation meticulously delineates the unique contributions of these bonding strategies in enhancing franchisee’s social and economic satisfaction, building trust in franchisors and fostering long-term orientation among franchisees. This study unravels the complex mediating roles that satisfaction and trust play in the dynamic interplay between franchisors’ bonding efforts and the cultivation of enduring franchisee relationships.

Findings

The study reveals that structural, social, and economic bonding impact social satisfaction, while all relational bonding factors directly influence economic satisfaction. Structural and economic bonding influence trust in the franchisor, but social bonding does not. Economic and social satisfaction directly affect trust, and only economic satisfaction directly influences long-term orientation. Finally, trust in the franchisor positively affects long-term orientation.

Originality/value

We offer fresh insights into the strategic management of franchisor–franchisee relationships, aiming to enrich the literature on relationship marketing by highlighting the differential impacts and significance of distinct bonding strategies in promoting sustainable franchise partnerships.

Citation

Koo, D.-W. and Lee, S.-M. (2024), "Sustaining success: the power of relational bonding in building franchisee trust in South Korea’s food service industry", Asia Pacific Journal of Marketing and Logistics, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJML-12-2023-1280