Franchising in Indonesia from Franchisee Perspective: A Case on Early Childhood Education Franchising in Indonesia

摘要

The successful cooperation within the franchise system is largely determined by the quality of the relationship between the franchisor and the franchisee. The purpose of this study is to examine relationship between franchisor and franchisee from franchisee perspective in the earlychildhood franchising in Indonesia. In addition, this study was tested how the good relationships between two parties affect satisfaction and performance. Quantitative methods are used in this study with franchisee as the unit of analysis. This study used an online questionnaire because it was taken from the entire city in Indonesia. Data processing was performed using the WarpPLS 3.0 software which can be used for analysis of the structural equation model. Results of this study from 101 online questionnaires declare that apparently in the early childhood education franchise in Indonesia, franchisee will have a good performance if there was good relational quality between two parties backed by entrepreneurial orientation of franchisees. On the other hand, transactional qualities between the two parties do not directly influence the performance, just as antecedent to relational quality. The main practical implication is the entrepreneurial orientation that needs to be owned by a franchisee to be successful in running a franchise business, because entrepreneurial orientation from franchisee has positive effects to relational quality between franchisor and franchisee and also to franchisee performance. This study contributes to the relational quality and entrepreneurial orientation of franchisees that determines the success of the franchise system.