In Thailand, business success has been a focal topic of systematic explanatory studies, but the contextual success of the country’s mobile phone store franchises, in particular, has received only scant research attention. Given the critical role of the mobile phone sector in the growth of the communication market in Thailand, the mobile phone store franchises’ success is relevant for research as it is practical for the market, especially for both new and current franchisees. This report discusses a structural equation modeling of factors affecting the success of the mobile phone store franchises in Thailand. Surveyed were 1,666 mobile phone store franchises from across the country, from which 600 franchisees were recruited and interviewed using a self-accomplished questionnaire. All of the hypothesized direct and indirect effects on the franchise success of the franchise’s organizational features, corporate environment, and management and operation, the franchisor- franchisee relationship, and the brand-franchisee equity are confirmed. Overall, 58% of the variance in the franchise success and 43% of the variance in the brand-franchisee equity can be attributed to the factors examined in the structural equation modeling developed in this study.
Keywords: brand-franchisee equity, corporate environment, franchise success, franchisor-franchisee relationship, management and operation, organizational featuresAccenture. (n.d.). Thailand: A land of digital possibilities. Retrieved from https://www.accenture.com/_acnmedia/PDF-68/Accenture-Insights-Digital-Commerce-Thailand.pdf
Adeiza, A., Ismail, N. A., & Malek, M. M. (2017). An empirical examination of the major relationship factors affecting franchisees’ overall satisfaction and intention to stay. Iranian Journal of Management Studies, 10(1), 31-–62. Retrieved from https://pdfs.semanticscholar.org/b00c/17b0b3db510448f588260409bfa92133a326.pdf
Akremi, A. E., Mignonac, K., & Perrigot, R. (2011). Opportunistic behaviors in franchise chains: The role of cohesion among franchisees. Strategic Management Journal, 31(9), 930-–948. https://doi.org/10.1002/smj.912
Bhargava, J., & Klat, A. (2016). Content democratization: How the Internet is fueling the growth of creative economies. Retrieved from https://www.strategyand.pwc.com/media/file/Content-democratization.pdf
Cappelli, P., & Hamori, M. (2008). Are franchises bad employers? ILR Review, 61(2), 147-–162. Retrieved from https://www.jstor.org/stable/25249131?seq=14#metadata_info_tab_contents
Claro, D. P., Fragoso, A. F. G. R., Neto, S. A. L., & Claro, P. B. O. (2014). Consumer complaints and company market value. Brazilian Administration Review, 11(3), 248-–263. Retrieved from http://dx.doi.org/10.1590/1807-7692bar2014130004
Cox, J., & Mason, C. (2007). Standardization versus adaptation: Geographical pressures to deviate from franchise formats. The Service Industries Journal, 27(8), 1053-–1072. Retrieved from https://doi.org/10.1080/02642060701673737
Elnaga, A., & Imran, A. (2013). The effect of training on employee performance. European Journal of Business and Management,. 5(4), 137-–147. Retrieved from https://pdfs.semanticscholar.org/354c/2c8c60f37f5e25f63f557b3573ec366197ae.pdf
Farquhar, P. H. (1989). Managing brand equity. Marketing Research, 1, 24-–33.
Felix, E. (2015). Marketing challenges of satisfying consumers changing expectations and preferences in a competitive market. International Journal of Marketing Studies, 7(5), 41-–52.
Gaul, C. (2015). What makes a franchise successful: Attitudes and pre-requisites of profitable franchise partners. International Business and Economics Research Journal, 14(2), 387-–394. Retrieved from https://cutt.ly/RwrkHFf
Khidhir, S. (2018, November 27). Thailand has huge mobile potential. The ASEAN Post, Retrieved from https://theaseanpost.com/article/thailand-has-huge-mobile-potential
McFarlane, D. A. (2014). The challenges of operations management for business managers. International Journal of Operations and Logistics Management, 3(1), 16-–29.
Minkler, A. P. (1992). Why firms franchise: A search cost theory. Journal of Institutional and Theoretical Economics, 148(2), 240-–259.
Moliner, J. R. S., Moliner, M. A., & Garcia, J. S. (2013). Relationship quality in business to business: A cross-cultural perspective from universities. Marketing Intelligence and Planning, 31(3), 196-–215. DOIdoi: 10.1108/02634501311324573
National Statistical Office of Thailand. (2017). The 2016 household survey on the use of information and communication technology. Bangkok: National Statistical Office of Thailand.
Nijmeijer, K. J., Fabbricotti, I. N., & Huijsman, R. (2014). Making franchising work: A framework based on a systematic review. International Journal of Management Reviews, 16, 62-–83. Retrieved from https://cutt.ly/dweuNAO
Ninkitsaranont, P. (2019, May). Mobile operator. Thailand Industry Outlook 2019-21. Retrieved from https://bit.ly/2Of6ZYg
Pervan, M., & Visic, J. (2012). Influence of firm size on its business success. Croatian Operational Research Review, 3, 213-–223.
Savolainen, T., & Hakkinen, S. (2011). Trusted to lead: Trustworthiness and its impact on leadership. Open Source Business Resource. Retrieved from https://timreview.ca/article/429
Stites, E. (2016, May 11). How much does it really cost to run a franchise business? CommentaryCNBC. Retrieved from https://cutt.ly/cCEzyp
Wilson, W., Ouyang, M., Rinehart, S. M., & Grant, E. S. (2004). Brand equity in the drinkin’ box market: Canadian vs. American. Journal of Comparative International Management, 7(2), 55-–65. Retrieved from https://journals.lib.unb.ca/index.php/JCIM/article/download/458/764/
Wood, L. (2000). Brands and brand equity: Definition and management. Management Decision, 38(9), 662-–669. Retrieved from https://cutt.ly/yCVCHQ