Association between satisfaction and performance in franchise networks: a study from the perspective of correspondence analysis

Abstract

Objective: to analyze the associative relationship between the performance of franchise networks and the level of satisfaction of franchisees, under the hypothesis that the level of satisfaction of franchisees has a positive association with the performance of the network. Methodology/approach: operationally, descriptive and documentary research with a quantitative approach was carried out in 106 Brazilian franchise networks from 12 different sectors comprising 20,261 franchised units. The data, referring to the fiscal year 2019, were compiled from yearbooks edited and audited by the Brazilian Franchising Association and Serasa Experian (PEGN). The categorical variables used in the research were: (i) network performance, (ii) franchisee satisfaction, (iii) network age, (iv) network size, and (v) franchise rate. Main results: through descriptive statistics and application of the exploratory technique of Correspondence Analysis, the study results confirm that the franchisee's satisfaction has a positive association with the network performance. Theoretical/ methodological contributions: these results contribute to the robustness of scientific research on franchising, specifically in the field of study on the relationship between franchisor and franchisee. Relevance/originality: this study empirically validates an association proposed in the literature involving satisfaction and performance in the context of franchises. Social/management contributions: this study also offers managerial input by reinforcing the importance of franchisors supporting their franchisees.