Purpose – This research addresses the relationship between organisational climate and employee turnover intention in a service sector franchise system operating throughout New Zealand. Design/methodology/approach – Employees of the 19 units of one food and beverage franchise system provided data by way of a mail survey. A single hypothesis derived from the literature was tested at the individual level of analysis using Multiple Linear Regression. Findings – In contrast to results commonly reported, no significant relationship was found between organisational climate and employee turnover intention. Research limitations/implications – The study employed a cross-sectional design and was limited to one franchise group’s activities in one country. In the absence of any alternative, the climate scale used was one originally designed for and used in large businesses operating within the service sector; however, the franchise system participating in the present research comprised a number of what are in fact, small business establishments. Of likely significance in regard to the study’s finding is the fact that the research was conducted amidst the onset of the Global Financial Crisis when much was being made of the decline in job security, in, amongst others, the sector under scrutiny in this undertaking.
Relation
Journal of New Business Ideas and Trends / Vol. 11, No. 1, pp.20-41