Research On The Influence Of Social Capital On Franchise Network Performance

Franchise was one of the most potential and competitive business model in the 20th century,and this business model also showed great vitality and competitiveness since it entered in our country in the 1980's.Franchise has become the main way of the development and expansion of the third industry,and it plays a significant role in the development of national economy in our country now.But for how to improve the performance of franchise,there is still a lot of work remain to be done in both theory and practice field.The rising of social capital theory and enterprise network theory provide a new perspective to the research on the performance of franchises.Franchising enterprise network is composed of franchising enterprises and many franchisees,the enterprises inside the network establish a complex relational network,and that relationships with the resources embedded in the relationships constituted the social capital in franchising enterprise network.The development of the franchising enterprise network needs good relationship among the members of the network and the resources embedded in it,which reveals the important role of social capital.Most of the studies in franchising performance are in the perspective of franchising enterprises,exploring the impact of the franchise enterprise's behavior on the performance of the franchise.In this paper,we pay attention to the impact of the franchisees and the relationship between them,and research the performance of franchise network from the perspective of the social capital theory and the enterprise network theory.We define the concept and the dimensions of the franchise enterprise social capital and the network performance,and then put forward the conceptual model and research hypothesis of this study.At last,we get the following conclusions through statistical analysis and empirical analysis:(1)the social capital has positive effect on the performance of the network within enterprise;(2)the structural social capital,relational social capital and cognative social capital,the three dimensions of social capital,all have positive effect on the performance of the franchise network,and the relational social capital play the most important role.The conclusion of this paper will provide some valuable suggestions on building and optimizing the franchise enterprise network,and then improve the performance of the franchises.