Linking Satisfaction, Commitment, and Compliance in Franchise Relationships: Empirical Evidence from Malaysia

Abstract

Franchising is a key driver of economic activity. This study explores compliance issues between franchisees and franchisors from the franchisee's point of view. It aims to provide a framework to understand how economic and non-economic satisfaction, along with commitment, influence compliance in a franchise partnership of various sectors in Malaysia. The research highlights the importance of both economic and non-economic satisfaction for franchisees, as these factors encourage compliance and can lead to a more successful business. Based on an analysis of 193 responses, the findings show that economic satisfaction and commitment are strong predictors of compliance. The study also reveals that the link between commitment and compliance is stronger when there is low environmental uncertainty.