Psychological contract and the hotel franchising relationship

Abstract

This qualitative research study explores the hotel franchising relationships and the psychological contract and develops a model of success factors of hotel franchising relationships. A multiple case study approach was adopted involving document analysis and semi-structured interviews with hotel franchisors and a number of their franchisees to explore how hotel franchisors and franchisees approach the issues of hotel franchise lifecycle, phases and psychological contract. This study explores the nature of the relationship between franchisor and their franchisees in each phase of the hotel franchise relationship. The findings illustrated the important aspects which the franchisor and the franchisees should follow in each phase in order to have success in their relationship. These findings led to the development an initial model of hotel franchise success factors. Additionally the findings stressed the necessity of developing policies and practices used by the psychological contract to be more helpful for the success of hotel franchise relationships. The researcher developed the final model based on the way franchisors and franchisees approach hotel franchising relationship aspects.