The purpose of this paper is to provide an in-depth investigation of e-commerce strategy implementation in mature franchise organisations from both franchisor and franchisee perspectives.
This research employed a multiple case study method where the e-commerce strategies of two mature franchise organisations were investigated in depth. Franchising experts were interviewed to provide an additional dimension to this study.
This research found that e-commerce must be integrated with the overall business strategy for optimal franchise performance. Since all parties to the franchising relationship are affected by the introduction of e-commerce, both the franchisees’ and the franchisor’s interests must be considered when the strategy is being developed. In addition, the consumer’s perspective is central to how e-commerce is structured, and franchisees are best placed to know their customers’ needs because they are directly involved in operating their business and interfacing with customers.
A preliminary model for e-commerce structures in service and retail franchising has been developed that depends on the nature of the business, the distribution arrangements and the order fulfilment arrangements. The two main avenues in e-commerce structuring were centralisation and decentralisation.
This study contributes to knowledge through an in-depth investigation of the internal process of e-commerce implementation in franchise networks from both franchisor and franchisee perspectives.
This paper forms part of a special section “E-tailing: the current landscape and future developments”, guest edited by Park Thaichon, James R. Brown and Scott Weaven.
Kremez, Z., Frazer, L., Weaven, S. and Quach, S. (2021), "Ecommerce structures for retail and service franchises: Ecommerce implementation in mature franchise systems", Asia Pacific Journal of Marketing and Logistics, Vol. 33 No. 6, pp. 1292-1308. https://doi.org/10.1108/APJML-11-2018-0461
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