INTEGRATING SOCIAL EXCHANGE THEORY AND ENGAGEMENT THEORY: A HOLISTIC APPROACH TO FRANCHISEE-FRANCHISOR RELATIONSHIPS

Franchisee–franchisor relationships are critical to the sustainability and success of franchise systems, influencing operational consistency and overall brand perception. This study integrates Social Exchange Theory (SET) and Engagement Theory (ET) into a unified conceptual framework that capture...

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Main Author: Abdul Razak Yahaya
Format: Article
Language:English
Published: UUM PRESS 2025-07-01
Series:Journal of Business Management and Accounting
Subjects:
Online Access:https://www.e-journal.uum.edu.my/index.php/jbma/article/view/26267
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author Abdul Razak Yahaya
author_facet Abdul Razak Yahaya
author_sort Abdul Razak Yahaya
collection DOAJ
description Franchisee–franchisor relationships are critical to the sustainability and success of franchise systems, influencing operational consistency and overall brand perception. This study integrates Social Exchange Theory (SET) and Engagement Theory (ET) into a unified conceptual framework that captures both transactional and relational dimensions of these relationships. Social Exchange Theory emphasizes trust, reciprocity, and fairness as foundational principles that shape mutual obligations, while Engagement Theory highlights the role of emotional and cognitive involvement as key drivers of commitment and performance. The integration of these theories offers a holistic perspective on how franchisee support services, leadership engagement, and regulatory frameworks interact to influence brand equity. The proposed framework enhances SET by incorporating emotional engagement, and extends ET through its inclusion of trust and fairness, thus bridging relational and engagement-based theoretical perspectives. Franchisee engagement is positioned as a mediating variable, while regulatory frameworks act as moderators in the enhancement of brand equity. This research employs structural equation modeling (SEM) and thematic analysis to validate the model and suggests avenues for future studies, particularly in addressing sector-specific challenges, cross-cultural dynamics, and the impact of technological innovations. The findings contribute to both theoretical advancement and practical strategies for fostering sustainable and competitive franchise ecosystems.
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spelling doaj-art-5e45a688fbb4426a97543e82c5a482c42025-08-20T03:57:54ZengUUM PRESSJournal of Business Management and Accounting2231-92982636-92492025-07-0115210.32890/jbma2025.15.2.1INTEGRATING SOCIAL EXCHANGE THEORY AND ENGAGEMENT THEORY: A HOLISTIC APPROACH TO FRANCHISEE-FRANCHISOR RELATIONSHIPSAbdul Razak Yahaya0University Tun Abdul Razak Franchisee–franchisor relationships are critical to the sustainability and success of franchise systems, influencing operational consistency and overall brand perception. This study integrates Social Exchange Theory (SET) and Engagement Theory (ET) into a unified conceptual framework that captures both transactional and relational dimensions of these relationships. Social Exchange Theory emphasizes trust, reciprocity, and fairness as foundational principles that shape mutual obligations, while Engagement Theory highlights the role of emotional and cognitive involvement as key drivers of commitment and performance. The integration of these theories offers a holistic perspective on how franchisee support services, leadership engagement, and regulatory frameworks interact to influence brand equity. The proposed framework enhances SET by incorporating emotional engagement, and extends ET through its inclusion of trust and fairness, thus bridging relational and engagement-based theoretical perspectives. Franchisee engagement is positioned as a mediating variable, while regulatory frameworks act as moderators in the enhancement of brand equity. This research employs structural equation modeling (SEM) and thematic analysis to validate the model and suggests avenues for future studies, particularly in addressing sector-specific challenges, cross-cultural dynamics, and the impact of technological innovations. The findings contribute to both theoretical advancement and practical strategies for fostering sustainable and competitive franchise ecosystems. https://www.e-journal.uum.edu.my/index.php/jbma/article/view/26267Social Exchange TheoryEngagement TheoryFranchise RelationshipsBrand PerceptionFranchisee Engagement
spellingShingle Abdul Razak Yahaya
INTEGRATING SOCIAL EXCHANGE THEORY AND ENGAGEMENT THEORY: A HOLISTIC APPROACH TO FRANCHISEE-FRANCHISOR RELATIONSHIPS
Journal of Business Management and Accounting
Social Exchange Theory
Engagement Theory
Franchise Relationships
Brand Perception
Franchisee Engagement
title INTEGRATING SOCIAL EXCHANGE THEORY AND ENGAGEMENT THEORY: A HOLISTIC APPROACH TO FRANCHISEE-FRANCHISOR RELATIONSHIPS
title_full INTEGRATING SOCIAL EXCHANGE THEORY AND ENGAGEMENT THEORY: A HOLISTIC APPROACH TO FRANCHISEE-FRANCHISOR RELATIONSHIPS
title_fullStr INTEGRATING SOCIAL EXCHANGE THEORY AND ENGAGEMENT THEORY: A HOLISTIC APPROACH TO FRANCHISEE-FRANCHISOR RELATIONSHIPS
title_full_unstemmed INTEGRATING SOCIAL EXCHANGE THEORY AND ENGAGEMENT THEORY: A HOLISTIC APPROACH TO FRANCHISEE-FRANCHISOR RELATIONSHIPS
title_short INTEGRATING SOCIAL EXCHANGE THEORY AND ENGAGEMENT THEORY: A HOLISTIC APPROACH TO FRANCHISEE-FRANCHISOR RELATIONSHIPS
title_sort integrating social exchange theory and engagement theory a holistic approach to franchisee franchisor relationships
topic Social Exchange Theory
Engagement Theory
Franchise Relationships
Brand Perception
Franchisee Engagement
url https://www.e-journal.uum.edu.my/index.php/jbma/article/view/26267
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