A stakeholder model of performance in networks evidence from Central European franchising firms

Abstract This study addresses the underexplored question of how a multilateral stakeholder orientation of the franchisor impacts franchise network performance. Drawing on the attention‐based view of the firm operationalized through the stakeholder salience approach, we develop a conceptual framework suggesting a franchisor's focus on the interests of a wide range of stakeholders—such as franchisees, investors, customers, employees and suppliers—enhances the quality of relationships among network partners, rather than diminishes them. We empirically test this model using structural equation modeling with original data from Central and Eastern European franchising firms. The findings reveal that fostering attention to diverse stakeholder groups improves collaboration among network partners and positively impacts relationship quality and performance. This research contributes to the franchise and stakeholder salience literature by highlighting the value of shifting from a traditional franchisor–franchisee dyadic perspective to a multilateral stakeholder approach, advancing our understanding of managerial attention and its role in enhancing franchising network outcomes.