DETERMINANTS OF ENTREPRENEURIAL BUSINESS RELATIONSHIP SUCCESS
DOI:
https://doi.org/10.33736/ijbs.550.2015Abstract
The business development literature illustrates the importance of relationships on achieving
targets and ensuring the sustainability of enterprises. In this paper the sphere of franchising
which is essentially an entrepreneurial business is used to link measures of business relationships
in the domains of trust, credibility, commitment, integrity, confidence and trust to the success
of the business. It is found that irrespective of size and age of the franchise and business sector
of operation that these relationships are important determinants of success. Although they do
not act directly to enhance the prospect of success it is via their interactions that success arises.
Keywords: Entrepreneurial Business; Business-to-Business Relationships; Franchising; Trust
and Commitment.
References
Anderson J. C., Narus, J. A. (1990). A Model of Distributor Firm and Manufacturer Firm Working Partnerships. Journal of Marketing, 54(January), 42-58.
https://doi.org/10.1177/002224299005400103
Arthur, W. B. (1996). Increasing Returns and the New World of Business. Harvard Business Review, July-August, 100-109.
Atuahene-Gima, K. (1996). Market Orientation and innovation. Journal of Business Research, 35(2), 93-103.
https://doi.org/10.1016/0148-2963(95)00051-8
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
https://doi.org/10.1177/014920639101700108
Barney, J. B. (1996). Gaining and Sustaining Competitive Advantage. Reading, Massachusetts: Addison-Wesley Publishing Company.
Baucus, A. W., Baucus, S. M., & Human, E. S. (1996). Consensus in Franchise Organizations: A Cooperative Arrangement among Entrepreneurs. Journal of Business Venturing, 11(5), 359-378.
https://doi.org/10.1016/0883-9026(96)00055-9
Bentler, P. M. (1990). Comparative fit indexes in structural models. Psychology Bulletin, 107, 238-246.
https://doi.org/10.1037/0033-2909.107.2.238
Bourgeois, L. J. (1980). Performance and Consensus. Strategic Management Journal, 1(3), 227-248.
https://doi.org/10.1002/smj.4250010304
Child, J., & Faulkner, D. (1998). Strategies for Cooperation. Managing Alliances, Networks and Joint Ventures. Oxford: Oxford University Press
Coletti, A. L., Sedatole, K. L., & Towry, K. L. (2005). The Effect of Control Systems on Trust and Cooperation in Collaborative Environments. The Accounting Review, 80(2), 477-500.
https://doi.org/10.2308/accr.2005.80.2.477
Contractor, F. J., & Lorange, P. (1988). Cooperative Strategies in International Business. Lexington, MA: Lexington Books.
Coote, L. V., Forrest, E. J., & Tam, T. W. (2003). An investigation into Commitment in Non Western industrial Marketing Relationships. Industrial Marketing Management, 32(7), 595-604.
https://doi.org/10.1016/S0019-8501(03)00017-8
Costa, A. C. (2003). Work Team Trust and Effectiveness. Personnel Review, 32(5), 605-622.
https://doi.org/10.1108/00483480310488360
Cunningham, M. T., & Homse, E. (1986). Controlling The Marketing-Purchasing Interface: Resource Deployment and Organizational structure. Industrial Marketing and Purchasing, 1(2) 8-25.
Dant, R. P., & Nasr, N. I. (1998). Control Techniques and Upward Flow of information in Franchising in Distant Markets: Conceptualisation and Preliminary Evidence. Journal of Business Venturing, 13(1), 9-28.
https://doi.org/10.1016/S0883-9026(97)00040-2
De Ruyter, K. L., Moorman, C., & Lemmink, J. (2001). Antecedents of Commitment and Trust in Customer-Supplier Relationships in High Technology Markets. Industrial Marketing Management, 30(3), 271-286.
https://doi.org/10.1016/S0019-8501(99)00091-7
Dess, G., & Davis, P. (1984). Porter's 1980 Generic Strategies as Determinants of Strategic Group Membership and Organisational Performance. Academy of Management Journal, 27(3) 467-488.
https://doi.org/10.5465/256040
Foster, J., Barkus, E., & Yavorsky, C. (2006). Understanding and Using Advanced Statistics, Sage Publications.
https://doi.org/10.4135/9780857020154
Frigo, L. M. (2003). Strategy, Value Creation, and the CFO. Strategic Finance, 84(7) 9-11.
Ganesan, S. (1994). Determinants of Long-Term Orientation in Buyer-Seller Relationships. Journal of Marketing, 58(2) 1-20.
https://doi.org/10.1177/002224299405800201
Geyskens, I., Benedict, J. S., & Kumar, N. (1999). A Meta-Analysis of Satisfaction in Marketing Channel Relationships. Journal of Marketing Research, 36(2), 223-238.
https://doi.org/10.1177/002224379903600207
Gundlach, G. T., Achrol, M., Ravi, S., & Mentzer, J. T. (1995). Structure of Commitment in Exchange. Journal of Marketing, Chicago, 59(1) 55-78.
https://doi.org/10.1177/002224299505900107
Hadjikhani, A., & Thilenius, P. (2005). The Impact of Horizontal and Vertical Connections on Relationship's Commitment and Trust. Journal of Business and industrial Marketing, 20(3) 136-147.
https://doi.org/10.1108/08858620510592759
Hakansson, H., & Snehota, I. (1995). Developing Relationships in Business Networks. London: Routledge.
Holm, B. D., Eriksson, K., & Johanson, J. (1999). Creating Value through Mutual Commitment to Business Network Relationships. Strategic Management Journal, 20(5) 467-479.
https://doi.org/10.1002/(SICI)1097-0266(199905)20:5<467::AID-SMJ38>3.0.CO;2-J
Huxham, C., & Macdonald, D. (1992). Introducing Collaborative Advantage: Achieving Inter-Organisational Effectiveness through Meta-Strategy. Management Decision, 30(3) 50-56.
https://doi.org/10.1108/00251749210013104
Inkpen, A. C., & Birkenshaw, J, (1994). International Joint Ventures and Performance: An Inter-organizational Perspective. International Business Review, 3(3) 201-217.
https://doi.org/10.1016/0969-5931(94)90002-7
Kidder, L. H., & Judd, C. M. (1986). Research Methods in Social Relations. New York: Holt, Rinehart and Winston.
Lawler, E. J., & Yoon, J. (1996). Commitment in Exchange Relations: Test of A Theory of Relational Cohesion. American Sociological Review, 61(1), 89-108.
https://doi.org/10.2307/2096408
Mayer, R. C., & Davis, J. H., & Schoorman, F. D. (1995). An integrative Model of Organizational Trust. Academy of Management Review, 20(3), 709-34
https://doi.org/10.2307/258792
Miyamoto, T., & Rexha, N. (2004). Determinants of Three Facets of Customer Trust: A Marketing Model of Japanese Buyer-Supplier Relationship. Journal of Business Research, 57(3), 312-319.
https://doi.org/10.1016/S0148-2963(01)00327-7
Moorman, C., D. R., Zaltman, G. (1993). Factors Affecting Trust in Market Research Relationships. Journal of Marketing, 54(1), 81-101.
https://doi.org/10.1177/002224299305700106
Morgan, R. M., & Hunt, S. D. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58(3), 20-39.
https://doi.org/10.1177/002224299405800302
Ndubisi, L., & Wah, G. (2005). Factorial and Discriminant Analyses of the Underpinnings of Relationship Marketing and Customer Satisfaction. International Journal of Bank Marketing, 23(7), 542-557
https://doi.org/10.1108/02652320510629908
Nicholson, C. Y., Compeau, L. D., & Sethi, R. (2001). The Role of Interpersonal Liking in Building Trust in Long-Term Channel Relationships. Journal of the Academy of Marketing Science, 29 (1), 3-15.
https://doi.org/10.1177/0092070301291001
Perry, C., Cavaye, A., & Coote, L. (2002). Technical and Social Bonds within Business To Business Relationships. The Journal of Business and International Marketing, 17(1) 75-88.
https://doi.org/10.1108/08858620210415217
Powell, W. W. (1987). Hybrid Organizational Arrangements: New Form or Transitional Development? California Management Review, 30(1) 67-87.
https://doi.org/10.2307/41165267
Powell, W. W. (1990). Neither Market nor Hierarchy: Networks Form Organisations. In B.M. Staw, & L. L. Cummings (Eds.), Research in Organisational Behaviour (pp. 295-336). Greenwich: JAI-Press.
Ring, P. S., & Van-De-Ven, A. H. (1994). Development Process of Cooperative Inter- Organisational Relationships. Academy of Management Review, 19(1) 90-118.
https://doi.org/10.2307/258836
Sako, M. (2000). Modules in Design, Production and Use: Implications for the Global Automotive industry. Paper prepared for the International Motor Vehicle Program, Cambridge Mass. USA.
Salthouse, T. A., Berish, D. E., & Siedlecki, K. L. (2004). Construct Validity and Age Sensitivity of Prospective Memory. Psycho-Nomic Society Publications, 32(7), 1133- 1148
https://doi.org/10.3758/BF03196887
Sarkar, M. S., Cavusgil, T., & Evirgen, C. (1997). A Commitment-Trust Mediated Framework of International Collaborative Venture Performance. In P. Beamish & J. P. Killing (Eds.), Cooperative Strategies: North American Perspectives (255-285). San Francisco: New Lexington Press.
Shane, S. A. (1996). Hybrid Organizational Arrangements and Implications for Firm Growth and Survival: A Study of New Franchisors. Academy of Management Journal, 39(1), 216-235.
https://doi.org/10.2307/256637
Shane, S. A., & Spell, C. (2002). What Successful Franchisors Have In Common? Retrieved June 2, 2005, from http://www.franchise.co.nz/article/view/69
Swenson, M. J., Rinne, H., & Geurts, M. (1990). Why Franchise Channels Are Different, Franchising: Evolution in The Midst of Change. Paper presented at the Annual Conference of the Society of Franchising, Scottsdale, AZ, and February 2-24.
Tellefsen, T. (2002). Commitment in Business-To-Business Relationships. Industrial Marketing Management, 31(8), 645-652.
https://doi.org/10.1016/S0019-8501(01)00172-9
Ulaga, W., & Eggert, A. (2006). Relationship Value and Relationship Quality, Broadening the Nomological Network of Business-To-Business Relationships. European Journal of Marketing, 40(¾) 311-327.
Downloads
Published
How to Cite
Issue
Section
License
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.
