Journal Article


The hospitality franchise purchase decision making process

Abstract

Purpose - This study explores the hospitality franchise purchase decision-making process undertaken by franchisees in Macau as an emerging tourism destination, and the role of national culture on purchasing a franchise brand and selecting a potential franchisor. Design/methodology/approach - Semi-structured in-depth interviews with 18 franchisees in Macau, who purchased international and domestic hospitality franchise brands, were conducted to understand the feelings, attitudes and motivation of franchisees towards purchasing a hospitality franchise. Findings – The study reveals that national culture can play an important role in franchisees’ decision-making process. Personal networks of friends and family (guanxi) are very influential in introducing and steering aspiring entrepreneurs towards franchising as an option to realize their ambitions, although there may be some limitations to franchisees with this approach. Guanxi, was also found to be particularly relevant during negotiations and franchisees’ postpurchase reviews. Practical implications – International franchisors should understand the importance of guanxi at different stages of franchisees’ decision-making process. Franchisees should realize how a reliance on guanxi might negatively impact on their efforts to undertake sufficient research to thoroughly evaluate the franchisor offer prior to contract signature. Originality/value - A comprehensive hospitality franchisee decision-making purchase framework is developed which includes the cultural context and cultural values. Guanxi in particular, impacts upon the franchisee decision-making process.

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Authors

Yeung, Ruth M.W.
Brookes, Maureen
Altinay, Levent

Oxford Brookes departments

Faculty of Business\Oxford School of Hospitality and Management

Dates

Year of publication: 2016
Date of RADAR deposit: 2017-11-23


Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License


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