Effects of Relationship Value, Alternative Attractiveness, and Investment Size on Franchisee Commitment

Purpose - This study's objective is to confirm the effects of the perceived relationship value, alternative attractiveness, and investment size on Korean food service franchisees' commit-ment, using an investment model. Among the three factors, the study examines which factors enhance or weaken the commit-ment in the franchising investment model. Research design, data, methodology - The data were col-lected from 495 franchisees and analyzed by a SEM (Structure Equation Model) using path analysis by SPSS 18.0 and AMOS 18.0. Results - 1) The perceived relationship value has a positive effect on franchisee commitment. 2) The alternative attractive-ness has a negative effect on franchisee commitment. 3) The investment size has a positive effect on franchisee commitment. Conclusions - The findings show that the investment model can be adapted to franchising and confirms previous investment model study results. We can assume that the higher the per-ceived relationship value and the bigger the investment, the stronger the commitment, and the greater the alternative attrac-tiveness, the weaker the commitment. These results offer mana-gerial implications for a franchisor wanting to strengthen franchi-see commitment.