Performance of franchisee: the role of reciprocal resources, relationship quality and cultural sensitivity

Abstract

Purpose

This study aims to reveal the impact mechanism of franchisor-owned resources, franchise relationship quality and franchisee's dynamic capabilities on franchisee performance, with the moderating role of cultural sensitivity.

Design/methodology/approach

The sample consisted of 290 middle managers and team leaders at 113 hotels and food and beverage settings participating in the international- and domestic franchises in Ho Chi Minh City, Vietnam. A partial least squares structural equation model (PLS-SEM) is used to analyse the data.

Findings

The result reveals that franchisor-owned resources, franchise relationship quality and franchisee's dynamic capabilities significantly impacted franchisee performance. Furthermore, cultural sensitivity has a beneficial role in the effect of franchise relationship quality on franchisee performance.

Originality/value

This study develops an integrated analytical framework of franchisee performance from the franchisee's perspective, contributing to integrating international business theory in franchising studies, namely the resource-based view, dynamic capability view and relationship-marketing theory.

Citation

Luu, T.D., Mai, K.H.N., Huynh, C.C., Phan, N.H.T., Le, N.T. and Le, T.N.D. (2025), "Performance of franchisee: the role of reciprocal resources, relationship quality and cultural sensitivity", International Journal of Emerging Markets, Vol. 20 No. 1, pp. 209-229. https://doi.org/10.1108/IJOEM-04-2022-0581