Factors Influencing the Decision to Join Non-Retail Franchise Business with an Application to Ready-Mixed Concrete Industry in Thailand

Jirat Sirichalermpong, Chuvej Chansa-ngavej

Abstract


There are limited academic papers studied on the factors influencing the decision to join franchise network for non-retail franchise business comparing to retail franchise business. The lesson learned from ready-mixed concrete franchise business model in Thailand is chosen to be the case study because special characteristic along the supply chain from upstream to downstream of ready-mixed concrete business can be determined as a non-retail business (Tommelein and Li, 1999). The ready-mixed franchise business in Thailand is the business format franchise which was defined by Bruno (1984). For potential franchisee in the decision phase, they considers whether to join or not to join the franchise network, two key factors influencing the decision are identified namely PUSH factors and PULL factors. PUSH factors are negative factors pushing potential franchisees to join the franchise network aiming for being competitive. PULL factors are positive factors attracting potential franchisees to join to increase competitiveness through the franchisor expertise.

From the analysis result, both factors have influence in the decision to join ready-mixed concrete franchise network. The result shows PULL factors have higher influence hence the franchisor of ready-mixed concrete franchise network because PULL factors are under franchisor control.

Full Text:

PDF

References


Anson, M., Tang, S.L. and Ying, K.C. (2002), “Measurement of the performance of ready mixed concrete resource as data for simulation”,Construction Management and Economics, Vol. 20 No.3, pp. 237-50.

Boyle, E. (1999), “A study of the impact of environmental uncertainty on franchise systems: the case of petrol retailing in the UK”, Journal of Consumer Marketing, Vol.6 No.2 , pp. 181-195.

Bruno, R.R. (1984), “Franchising : Business Review”, Journal of Consumer Marketing, Vol.1, issue 4, pp. 47-56.

Chareonsuk, C and Chansa-ngavej, C (2009), “Business performance improvement through managing intangible assets”, Proceedings of 2009 International Conference on Technology Innovation and industrial Management, pp.S2/44-S2/58.

Hair, J.F.Jr., William C.B., Barry, J.B., Rolph, E.A. and Ronald, L.T. (2006), “Multivariate data analysis”, Pearson Education Inc., New Jersey.

Hoffmann, R.C. and Prebles, J.F. (1993), “Franchising into the twenty-first century”, Business Horizons, Vol. 36 No. 6, pp. 35-44.

Johnson, M.W. (2010). Seizing the white space: growth and renewal through business model innovation, Harvard Business Press, USA.

Klein, B. (1980),“Transactions cost determinants of unfair contractual arrangements”, American Economic Review, Vol. 70 No. 2, pp.356-362.

Klein, B. and Leffler, K.B. (1981), “The role of market forces in assuring contractual performance” ,The Journal of Political Economy, Vol.89 No.4, pp.615-641.

Moser, C.A. and Kalton, G. (1971), “Survey Methods in Social Investigation” , London: Gower.

Nunnally, J.C. and Bernstein, I.H. (1994), “Psychometric Theory”, McGraw-Hill, New York.

Rubin, P.H. (1978), “The theory of the firm and structure of the franchise contract”, Journal of Law and Economics, Vol.21, pp. 223-33.

Saleh, S. & Kleiner, B.H. (2005). Effective franchise management. Management Research News, 28(2/3), 74-79.

Schreiber, J.B., Stage, F.K., King, J., Nora, A. And Barlow, E.A. (2006), “Reporting structural equation modeling and confirmatory factor analysis results: A review”, The Journal of Educational Research, Vol. 99 (No.6), pp.323-337.

Sorenson, O. and Sorensen, J.B. (2001), “Finding the right mix: franchising, organizational learning, and chain performance”, Strategic Management Journal, Vol. 22, pp.713-724.

Sirichalermpong, J. and Chansa-ngavej, Chuvej (2011), “Franchising as a growth strategy for non-retail businesses”, Proceedings of the 9th International Conference on Multinational Enterprises, College of Business, Chinese Culture University, Republic of China, pp.1133-1146

Tommelein, I.D. and Li, A. (1999), “Just-in-time concrete delivery: Mapping alternatives for vertical supply chain integration”, Proceedings of the 7th Annual Conference of the International Group for Lean Construction IGL-7, University of California, Berkeley, California, pp.97-108.

Wang, S.Q., Ofori, G. and Teo, C.L. (2001), “Scheduling the truckmixer arrival for a ready mixed concrete pour via simulation with @Risk”, Journal of Construction Research, Vol.2 No.2, pp. 169-79.

Wang, E.T.G., Tai, J.C.F. and Wei, .H.L. (2006),“A virtual integration theory of improved supply-chain performance”, Journal of Management Information System, Vol.23 No.2, pp.41-




DOI: https://doi.org/10.5296/jmr.v4i3.1900

Copyright (c)



Journal of Management Research ISSN 1941-899X

Email: jmr@macrothink.org

Copyright © Macrothink Institute

 

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.