Corporate social responsibility as a determinant of long-term orientation

Predictors for developing long-term orientation are of great interest to researchers and practitioners in the franchise industry since long-term orientation is a significant driver of success. The current research investigated the impact of congruity between a franchisee’s values and its franchisor’s corporate social responsibility (CSR) initiatives as well as the influence of ethical value on the franchisor–franchisee relationship. Also, this study examined the interrelationships among CSR activities, trust, and satisfaction, which then ultimately resulted in long-term orientation to the franchisor. Empirical findings indicated that value relevance and ethical value significantly influenced CSR activities which enhanced trust and two aspects of satisfaction (i.e. economic and non-economic). Also, trust significantly affected long-term orientation as well as two dimensions of satisfaction. Lastly, long-term orientation was significantly affected only by economic satisfaction. This study provides greater insights into long-term relationships in the franchise industry.