Positive integration of the franchise system: A new perspective on leadership, followership, trust and group efficacy

This study has been conducted by focusing franchisor’s leadership style, franchisee’s followership, group-efficacy and their trust in order to achieve positive integration of the franchise system. The key results of empirical examination on the moderating effect of group-efficacy and trust between leadership style proposed by Path-Goal Theory and followership has been found as follows. First, franchisors should be showed their leadership style to fit their mutual business situation. Second, Franchisors and franchisees will be found many ways to increase level of franchisee’s group-efficacy. Third, Franchisors will be obtained trust from their own franchisees. These efforts will be given high level of franchisees’ trust and group-efficacy. As a result, positive integration of the franchise system will both enhance their competitiveness.