Trust and Control in Franchise Networks: A Dyadic, Multi-Referent Analysis on Franchisee Network Exit Intentions

Abstract

We adopt a dyadic, multi-referent trust perspective to assess the effects of franchisee–franchisor trust (in)congruence and franchisee trust in peers on franchisee network exit intentions, under varying levels of franchisee perceived network control. We observe a nuanced relationship between trust (in)congruence and exit intentions, revealing a negative and nonlinear effect for trust congruence, and, surprisingly, a negative effect for incongruence. The effects of trust congruence and trust in peers are distinctively moderated by perceived control; when franchisees perceive stronger control, the negative effect of trust congruence on exit intentions becomes stronger, whereas the insignificant effect of peer trust becomes positive.