Managing a franchise system : a study of a mission-driven organization

• Main Author: Tsai, D. H. T
• Format: Dissertation
• Language: English
• Published: University of Liverpool 2018
• DOI: 10.17638/03023523

This study explored a mission-driven organization in the education franchise industry with the aim of understanding the impact between organizational practices, the adoption of a management philosophy and individual outcomes on the franchisor-franchisee relationship. The case study research method was employed, and quantitative online survey and observations from participants belonging to the focal organization were the main data collection methods utilized. In this study, structural equation modeling (SEM) was adapted as done by Wang (2011), while also introducing new variables to the original conceptual model. The results support the original conceptual model and hypotheses, in addition to confirming that these new variables are statistically significant and will influence individuals' adoption of a management philosophy and behavioural outcomes in the focal organization. Thus, franchisees and employees who accept the management philosophy of the franchisor are more likely to follow organizational norms and practices and demonstrate more positive attitudes and behaviours towards the franchisor, which can lead to a more positive relationship between the franchisor and the franchisee. This study contributes to the literature on mission-driven organizations and the sustainability of franchisor-franchisee relationships by examining the adoption of a management philosophy in a for-profit setting. The findings have implications for managers in both mission-driven and franchise businesses (and related types of companies) concerning philosophy-oriented organizational practices based on the adoption of a management philosophy. This study also contributes to the understanding of the private tutoring and supplemental education franchise industry, about which there is very limited academic research (Aurini, 2008; Bray, 1999). Practical recommendations are presented concerning operation and structuring of the focal organization.