Long-term oriented internal management philosophies, their effects on HRM implementation and shop climates in franchised small businesses

Official URL: http://risc01.sabanciuniv.edu/record=b1891429 (Table of Contents)

This dissertation examines the effects of (1) owner’s long-term oriented internal management philosophies and (2) owner’s and shop manager’s transformational and transactional leadership styles on HRM content (i.e., HPWS) and process (i.e., HRM strength), shop climates (i.e., climates of concern for employees and service), and service quality. The study context consisted of franchised sales and service shops of a corporation operating in the Turkish retail sector providing technological products and services to the mass market. The research model and measures were constructed after a qualitative study conducted through visits to 15 shops and 73 in-depth interviews with various parties. Survey responses were collected from 1,278 employees, 587 shop managers, and 277 shop owners from a total of 1,031 shops. The results of the multilevel analyses indicated that owner’s long-term orientation was positively related to HRM strength, but not related to use of HPWS practices. Owner’s and shop manager’s transformational and transactional leadership behaviors were generally positively linked to HPWS and HRM strength. Owner’s long-term orientation was found to buffer the negative influence of manager’s transactional leadership on HRM strength. In addition to the positive main effect of HRM strength, HPWS and HRM strength had joint influences on both climate types. The interactions were such that HRM strength dominated over the positive influence of HPWS on shop climates. Furthermore, group cohesion moderated the HRM strength-climate relationships. Finally, service climate was positively related to service quality and this effect was also moderated by group cohesion. The implications of the results for theory and practice are discussed.