Authors: Chinnicha Wongsawat and Samart Deebhijarn

Research Article

Year: 2019, Volume 19 Number 4

Pages: 66–77 

Abstract

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 features