Conceptualizing fairness in franchisor-franchisee relationship: dimensions, definitions and preliminary construction of scale

This paper seeks to conceptualize fairness in the context of franchisor-franchisee relationship adapting literature from organizational justice and fairness and channel relationship literature. The study then develops a valid... [ view full abstract ]

This paper seeks to conceptualize fairness in the context of franchisor-franchisee relationship adapting literature from organizational justice and fairness and channel relationship literature. The study then develops a valid and reliable instrument to measure fairness in the context of franchisor-franchisee relationship following step by step procedure suggested in the literature including exploratory interviews and generating a pool of items from the existing literature. The study surveyed 115 franchisees of large scale FMCG organisation in India using maximum likelihood estimation with promax rotation to analyse the data to assess the reliability, validity and the factor structure of the fairness construct. Through this study we propose comprehensive conceptualization of the concept of fairness based on our extensive review of the literature as having four dimensions namely, distributive, procedural, interpersonal and informational fairness. Preliminary scale developed exhibits clears the validity, reliability and nomological tests. Future should further refinement of the concept and construct validation in different settings and cultures.