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Article
Publication date: 1 April 2014

Laura Lucia-Palacios, Victoria Bordonaba-Juste, Yolanda Polo-Redondo and Marko Grünhagen

The purpose of this paper is to examine the impact of e-business implementation (in terms of internal integration and external diffusion) on organizational performance…

Abstract

Purpose

The purpose of this paper is to examine the impact of e-business implementation (in terms of internal integration and external diffusion) on organizational performance through the mediating effects of differentiation, enterprise agility, customer relationship development and partner attraction.

Design/methodology/approach

A survey of franchisors was conducted across the USA and Spain. Before running the model, the paper tests for measurement invariance across the two country samples. The paper uses structural equation modeling to test the conceptual model.

Findings

The results of the measurement invariance suggest that all the constructs supported this characteristic, except for internal integration. External diffusion leads to differentiation, enterprise agility, relationship development and partner attraction for American and Spanish firms. However, internal integration has no impact on any outcome in the USA while, for Spanish firms, it has a positive and direct effect on economic performance. The full mediating role of non-financial performance between external diffusion and organizational performance depends on the country analyzed. While differentiation and relationship development fully mediate this relationship in the US sample, in the Spanish sample, the advantages of external diffusion are transferred through differentiation, enterprise agility and partner attraction.

Practical implications

–The paper suggests that franchise firms should not focus on the direct effect of e-business implementation on performance. Instead, franchisors should consider that its effect on performance is achieved through greater differentiation, relationship development, enterprise agility and partner attraction. So, the paper suggests that franchisors should think about the long-term effects of the advantages obtained from implementing e-business.

Originality/value

This study contributes to IS research by identifying the link between internal integration and external diffusion and organizational performance through the examination of the mediating role of non-financial performance measures in two countries. Compared with previous research, the paper first analyzes measurement invariance across countries to provide unbiased results.

Details

Internet Research, vol. 24 no. 2
Type: Research Article
ISSN: 1066-2243

Keywords

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Article
Publication date: 6 May 2014

Laura Lucia-Palacios, Victoria Bordonaba-Juste, Melih Madanoglu and Ilan Alon

The purpose of this paper is to demonstrate how signaling support services and contractual arrangements that create value for incumbent franchisees can help to create…

Abstract

Purpose

The purpose of this paper is to demonstrate how signaling support services and contractual arrangements that create value for incumbent franchisees can help to create value for the whole network by attracting prospective franchisees.

Design/methodology/approach

Using data from Bond's Franchising Report the study analyses franchisors operating between 1994 and 2008 via a Generalized Method of Moments (GMM) model for an unbalanced panel of 2,474 franchisors.

Findings

Training, financial assistance, sub-franchising and restrictions against passive ownership, and the use of area development agreements are found to be valuable for prospective franchisees. Experience and the number of company-owned and franchised units also attract prospective franchisees.

Research limitations/implications

Our findings imply that not all value-creating services and contractual arrangements are interpreted in the same way by prospective franchisees. Franchisors should offer training and financial assistance to new franchisees in the early stages of a franchise. They should also allow sub-franchising but restrict passive ownership and offer the possibility for area development agreements as contractual arrangements to appeal to new franchisees. Franchisors should focus not only on expansion, but should view the chain in a holistic manner by sustaining and growing both franchised and company-owned units.

Originality/value

The findings contribute to the franchising literature by providing new evidence on how offering and signaling some contractual arrangements and support services can help franchisors create value for incumbent franchisees and can attract new franchisees. Our research shows that value in franchising is created differently depending on whether the franchisees are incumbent or prospective.

Details

Journal of Services Marketing, vol. 28 no. 2
Type: Research Article
ISSN: 0887-6045

Keywords

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Article
Publication date: 23 March 2012

Victoria Bordonaba‐Juste, Laura Lucia‐Palacios and Yolanda Polo‐Redondo

There are two purposes of this paper: first, to analyze the effect of size and other organizational factors (IT knowledge, IT external support and the level of employees'…

Abstract

Purpose

There are two purposes of this paper: first, to analyze the effect of size and other organizational factors (IT knowledge, IT external support and the level of employees' education) on the use of e‐business; and second, to identify similarities and differences among these factors in micro, small, medium‐sized and large enterprises.

Design/methodology/approach

The proposed model is empirically tested using data from the Sectorial e‐Business W@tch survey. A logit estimation for the whole sample and for each type of firm size has been implemented on the use of e‐business.

Findings

The study finds positive and significant effects of all the organizational factors on the intensity of e‐business use. When analyzing the effect of size, it was found that medium‐sized and large firms are more likely to use e‐business more intensively. Although medium‐sized and large firms are similar, some differences have been found between small and medium‐sized firms. Only small firms use IT outsourcing as a key factor to use e‐business.

Research limitations/implications

This study is based on a cross‐sectional data set. Longitudinal research would be needed for comparing results over time. Future studies could focus on the use of each type of e‐business technology, instead of a global measure of e‐business use. Future research could also analyze the differences of e‐business adoption rates among countries.

Practical implications

The paper concludes that small and micro firms are less likely to conduct e‐business than medium‐sized and large firms. An important influence on the use of e‐business is workforce education, implying that training could substitute hiring IT employees. Outsourcing IT activities is a suitable strategy only for small firms.

Originality/value

The paper contributes to the literature on e‐business with new evidence of the importance of size and human capital. Additionally, an analysis for each firm size has been done, which allows comparison of results.

Details

Marketing Intelligence & Planning, vol. 30 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

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Article
Publication date: 2 August 2011

Victoria Bordonaba‐Juste, Laura Lucia‐Palacios and Yolanda Polo‐Redondo

Research on franchise system survival has focused on analyzing organizational failure. However, there are two types of market exit: organizational failure and franchise…

Abstract

Purpose

Research on franchise system survival has focused on analyzing organizational failure. However, there are two types of market exit: organizational failure and franchise discontinuance, but little research has distinguished between the two. The purpose of this study is to examine whether different factors explain these types of exit. Apart from the common factors included in previous research (age, size, upfront fee, royalty rate and ownership structure), this paper aims to add system growth and its interaction with age and size.

Design/methodology/approach

The paper uses data about franchise systems in Spain from 1986 to 2004 from the catering and fashion sectors and applies the Cox survival model to test the hypotheses.

Findings

The paper finds that system growth rates and system size only influence franchise discontinuance. Both the youngest and the oldest firms show the lowest risk of discontinuing franchising. The results are similar to those found in previous research that uses the two types of market exit as synonymous.

Research limitations/implications

The article findings suggest that it is important to define franchise survival.

Practical implications

This research identifies what franchisors can do to continue in the market. An important result is that young and small franchisors should grow at a moderate rate. They should learn first how to manage a few units before becoming a large network.

Originality/value

This research examines the differences between two types of market exit (organizational failure and franchise discontinuance) and their drivers from the franchisor's perspective. This research contributes to the franchising literature by analyzing the effect of growth on survival. Additionally, the moderating effect of size and age on growth on the two types of market exits is included.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 15 February 2011

Yolanda Polo‐Redondo, Victoria Bordonaba‐Juste and Laura Lucia Palacios

The purpose of this paper is to examine three strategic decisions that determine firm size in the franchise distribution system: price policy, the timing decision, and…

Abstract

Purpose

The purpose of this paper is to examine three strategic decisions that determine firm size in the franchise distribution system: price policy, the timing decision, and network ownership.

Design/methodology/approach

The paper uses data covering 384 franchise chains operating in the catering and fashion retailing sectors for an 18‐year period (from 1986 to 2004). The panel data methodology is applied.

Findings

The paper finds that the pricing policy and the ownership structure can be used to attract new franchisees and it also finds empirical evidence of the advantages of early followers. Some differences are found between the two sectors analysed. Additionally, it finds evidence of the use of different strategies by mature and young franchise chains.

Research limitations/implications

The focus is only on the fashion and catering sectors in the franchise industry. Although they are the two most important sectors in the Spanish market, this limitation provides researchers with interesting possibilities for further research in other countries and in other sectors.

Practical implications

The results may help franchisors to know which strategies can increase their system size. First, franchisors should focus on minimizing their control of the network strategy. Second, franchisors should increase the franchise fee and the royalties as the chain matures to expand their system size. Third, managers who are planning to begin to franchise their businesses should decide to enter at the growth stage of the franchise market in order to achieve greater advantages.

Originality/value

This paper highlights the importance of the price strategy and of the entry timing decision in the franchising context in countries where the franchise system is still developing.

Details

European Journal of Marketing, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 13 February 2009

Victoria Bordonaba Juste, Laura Lucia‐Palacios and Yolanda Polo‐Redondo

This paper aims to examine whether there is evidence of pioneering advantage in long‐term survival terms in the particular context of franchising.

Abstract

Purpose

This paper aims to examine whether there is evidence of pioneering advantage in long‐term survival terms in the particular context of franchising.

Design/methodology/approach

Data covering 188 franchise chains for an eight‐year period (from 1995 to 2003), operating in restoration and fashion retailing sector are used. The Cox proportional hazard model is used to examine survival. The existence of pioneering advantage is tested in the Spanish context because its franchising sector is one of the most developed in Europe, along with those of France, the UK and Germany.

Findings

Empirical evidence of pioneering advantage was found. Early entry strategy leads to lower failure risk. Different strategies are highlighted according to different entry time moments, suggesting a moderating role of the entry timing decision. Additional variables influence survival such as previous experience or dual distribution.

Research limitations/implications

The paper has some limitations. The focus is just on one country. Therefore, a multi‐country study could help to generalize the results. Furthermore, the research could be improved by adding variables of the specific franchise context such as the franchise fee or the royalty rates.

Practical implications

The results may help franchisors to improve their survival, adapting their strategies to be more competitive in the market. Depending on their entry timing decisions, they can have different strategies to continue in the market. Pioneers differ from late entrants in terms of ownership structure and system size – two main aspects for survival. Moreover, the paper can help the prospective franchisee in making a better selection of franchise chain in which to invest. Findings support the idea that entering at the early stages of the franchise industry brings some advantages.

Originality/value

The paper highlights the importance of the entry‐timing decision in the franchising context using survival as performance. This objective has not been underlined in previous research.

Details

International Journal of Retail & Distribution Management, vol. 37 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

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Article
Publication date: 12 October 2012

Victoria Bordonaba‐Juste, Laura Lucia‐Palacios and Yolanda Polo‐Redondo

The purpose of this paper is to contribute to the discussion related to the antecedents of the extent of e‐business use and the effect of this level on changing strategy…

Abstract

Purpose

The purpose of this paper is to contribute to the discussion related to the antecedents of the extent of e‐business use and the effect of this level on changing strategy, management and marketing.

Design/methodology/approach

The authors use data from 691 retailers in seven European countries. Information is obtained from the survey of the “e‐Business W@tch”. Data analysis was performed using biprobit estimation. The sample is divided into two groups depending on the level of e‐commerce of the countries.

Findings

Results suggest that the e‐business use implies changes in the firm's strategy, management and marketing in all the countries studied. Differences between the two groups of countries are minimal. The main factors that influence the level of e‐business use are IT expertise and perceived benefits.

Research limitations/implications

The limitations are related to the nature of the data and concretely the main limitation lies in the consequences construct. The data provided are very general and it would be useful to specify what kind of change is generated.

Practical implications

Antecedents of the level of use are similar for all the countries, so there might be additional factors that explain why, in some countries, retailers have adopted a different level of e‐business. Managers have to take into account that the adoption and use of a higher level of e‐business requires changes in all the functional areas. The decision of adopting and using e‐business should be taken seriously.

Originality/value

Most research has focused on analyzing the antecedents of e‐business use in a single country. However, this paper presents some new evidence on the factors that influence the extent of e‐business use for two groups of countries. Furthermore, previous research has suggested that changes might be necessary within the firm due to the e‐business use but there is little empirical evidence on the internal impact of e‐business use. This paper provides a first approximation to the general areas in which managers had to made changes.

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Article
Publication date: 7 August 2009

Victoria Bordonaba‐Juste and Jesús J. Cambra‐Fierro

The purpose of this paper is to highlight the efforts of a Spanish SME, Bodega Pirineos, to combine technology and a customized strategy in communication management with…

Abstract

Purpose

The purpose of this paper is to highlight the efforts of a Spanish SME, Bodega Pirineos, to combine technology and a customized strategy in communication management with its suppliers. This is extremely important because of the necessity to adapt its supply system to the characteristics of its micro‐suppliers, which are key trade partners of the firm.

Design/methodology/approach

The approach used was a case study.

Findings

The case study suggests how firms must adapt their supply relationships both with suppliers and with the environment. The paper shows that technology is not always enough. Firms need to understand their partners and to communicate with them.

Research limitations/implications

This paper is based on a specific case study. Therefore, its recommendations may be successfully applied to other products in different settings and in other sectors.

Practical implications

The ideas contained in this case study can help supply chain managers to reflect on the necessity of understanding their strategic suppliers. Communication between a company and its suppliers is important for improving the efficiency of its supplying management. A proper management of business‐to‐business communication flow may guarantee the achievement of the necessary inputs and the meeting of the required standards for its products. Understanding why and how Bodega Pirineos customizes communications flows with its micro‐suppliers will help both managers and researchers to reflect on the idea that communication needs comprehension more than technological intensity.

Originality/value

The special characteristics of small and medium‐sized enterprises (SMEs) seem to recommend strategies adapted to their economic and human resources. The paper highlights a successful strategy based on the SME context. It includes both the firm's and their most representative suppliers' perspective.

Details

Supply Chain Management: An International Journal, vol. 14 no. 5
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 7 April 2014

Marianna Sigala

Destination marketing systems (DMS) represent a vital inter-organisational information system (IOIS) for supporting the collaborative e-marketing strategies of tourism…

Abstract

Purpose

Destination marketing systems (DMS) represent a vital inter-organisational information system (IOIS) for supporting the collaborative e-marketing strategies of tourism firms and the competitiveness of tourism destinations. However, many DMS have failed to deliver the expected outcomes, while the performance measurement of DMS has not been thoroughly investigated in the literature so far. The study synthesises research from the fields of DMS, IOIS and collaborative practices for investigating the perceptions of various tourism DMS stakeholders about the evaluation of DMS performance. The paper aims to discuss these issues.

Design/methodology/approach

The study conducted a nation-wide survey for measuring the perceptions of various tourism DMS stakeholders in Greece about the importance of the roles that DMS should serve as well as the items that should be used for measuring the performance of these DMS’ roles.

Findings

The findings showed that the public and private stakeholders held different perceptions about the roles of DMS as well as about the metrics that need to be used for evaluating DMS performance. The findings also showed that the perceptions that stakeholders hold about the roles of the DMS influence their perceptions about the performance evaluation of DMS.

Research limitations/implications

The findings are based on evaluating a specific type of IOIS and sector/context. Thus, caution is required in generalising the results to other types of IOIS and social/environmental contexts.

Practical implications

The study highlighted that the performance and success of DMS, and of IOIS projects in general, require the nurturing of a collaborative culture and the co-ordination of the various stakeholders’ perceptions and interests.

Originality/value

The study addresses the gap in DMS performance evaluation and it contributes to the literature about IOIS evaluation by adopting a stakeholders approach.

Details

Marketing Intelligence & Planning, vol. 32 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

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