How Collaborative Communication Promotes Franchisees Loyalty - Dissertation Example

Download file to see previous pages It is necessary that the cultural dimensions of various individuals and groups involved in franchise businesses be studied so that franchisers and franchisees have a better understanding of each other as well as the business itself. Such collaborative communication borne from this understanding is believed to bring about satisfaction and loyalty of franchisees, hence, more success in the business, and more profit for the franchise.

Qualitative methods such as questionnaires and focus group discussions of stakeholders from various franchise businesses in Hong Kong will be used in this study to determine if consideration of such cultural dimensions has an impact on the satisfaction and loyalty of franchisees and the net profit of the businesses.

Chapter 1 Introduction/ Rationale
Today, more than ever, businesses come in various forms. This is especially true with international businesses. Some companies expand by having more branches both locally and internationally. Ownership of these branches may either be retained by the original owners or sold as franchises to new owners but still under the same company name and operations, but with different management. In cosmopolitan places such as Hong Kong, businesses thrive well. This includes franchises of established businesses that may be based abroad. This naturally makes the franchise a multinational/ multicultural business venture.

Problem Statement
Like in most multicultural settings, communication between people from different cultures may pose to be a hindrance to the smooth flow of operations. There are many factors to consider here. One is cultural differences which may cause misinterpretations in communication. People may hold different belief systems and practices which may seem offensive to others without meaning. This may spell trouble between the communicating parties and may be a crucial point in business transactions if it is not resolved. Negative consequences may escalate if miscommunication persists. It may adversely affect the business, possibly the relationship between the contracting companies involved, and the financial aspect of the business.

This study will explore how collaborative communication in international settings can promote the satisfaction and loyalty of franchisees and study its moderating effect on the net profit of franchise businesses in Hong Kong.

Importance of the Study
This study will contribute much to the field of international business, especially in the area of intercultural communication. Being aware of factors that may cause conflicts and misunderstandings between parties coming from different cultures may be considered a start in the resolution of such issues. These need to be resolved right away because if not, then it may gravely affect the business relationship they share.

Scope and Delimitation
The scope of this study covers individuals involved in franchise businesses in Hong Kong and their international business associates in the franchise. Data will be completed by email to facilitate dissemination and collection. The responses will delimit to the views of the participants and although they may represent the views of their own companies, the conclusion will not be generalized to the whole population of international franchise owners.


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