Franchise Brand Perception in Malaysia: An Empirical Analysis of Leadership Engagement and Regulatory Frameworks

Abstract

This study empirically investigates the impact of leadership engagement and regulatory frameworks on brand perception within Malaysian franchise operations. A quantitative research design was employed, collecting data from 382 franchisees through structured questionnaires utilizing validated Likert scales. The study used correlation, regression, mediation, as well as moderation analyses to test the hypotheses of the study. The findings of the study show that leadership engagement mediates the relationship between support services and franchisee satisfaction. The findings also show that regulators moderate the relationship. Furthermore, the findings show that the direct effect of regulatory compliance on the brand perception of the franchise is insignificant. These insights have practical implications for franchise managers and policymakers, advocating for the development of leadership training programs, regulatory flexibility, and enhanced consumer- driven branding strategies. The study recommends refining franchise governance models to balance control mechanisms with franchisee autonomy, ensuring sustainable brand perception and operational success. To further understand the impact of franchisor leadership on the brand perception of customers, future research should include cross-cultural comparisons, longitudinal analysis, and Structural Equation Modelling (SEM).