Abstract
This paper explores the impact that electronic commerce is beginning to have on franchising, with the objective of discovering how franchisors are utilising their Web sites. Results are presented from a survey of franchisor Web sites illustrating what content and features are being made available online. The analysis of franchise Web sites indicates that most franchisors use them for marketing purposes and to provide information. However, a significant number provide a fully developed electronic commerce site accepting both online orders and payments. The results of the study should help to significantly inform debate on this subject and serve as a starting-point for further research into the impact of electronic commerce, and more generally Internet technologies, on the franchising growth strategy.
Original language | English |
---|---|
Pages (from-to) | 311-322 |
Journal | Internet Research: Electronic Networking Applications and Policy |
Volume | 14 |
Issue number | 4 |
DOIs | |
Publication status | Published (in print/issue) - 2004 |
Bibliographical note
Reference text: Abell, M. and Scott, A. (2000), “The e-commerce challenge forfranchising”, Managing Intellectual Property, Vol. 101,
pp. 34-7.
Alon, I. (2001), “The use of franchising by US-based retailers”,
Journal of Small Business Management, Vol. 39 No. 2,
pp. 111-22.
Anon. (1998), “The realities of Web-based electronic
commerce”, International Journal of Retail & Distribution
Management, Vol. 26 No. 3, pp. 122-3.
Banhazl, P. (2002), “E-learning: technology delivers training to
franchising’s door”, Franchising World, Vol. 34 No. 2,
pp. 41-2.
Brickley, J.A., Dark, F.H. and Weisbach, M.S. (1991), “An agency
perspective on franchising”, Financial Management,
Vol. 20 No. 1, pp. 27-35.
Caves, R. and Murphy, W. (1976), “Franchising: firms, markets
and intangible assets”, Southern Economic Journal,
Vol. 42, pp. 572-86.
Chen, S. and Leteney, F. (2000), “Get real! Managing the next
stage of Internet retail”, European Management Journal,
Vol. 18 No. 5, pp. 519-28.
Combs, J.G. and Castrogiovanni, G.J. (1994), “Franchisor
strategy: a proposed model and empirical test of franchise
versus company ownership”, Journal of Small Business
Management, Vol. 32 No. 2, pp. 37-48.
Doherty, A.M. and Quinn, B. (1999), “International retail
franchising: an agency theory perspective”, International
Journal of Retail & Distribution Management, Vol. 27
No. 6, pp. 224-36.
Durfee, T. and Chen, G. (2002), “Should we e-?”, Journal of
Business Strategy, January-February, pp. 14-17.
Enders, A. and Jelassi, T. (2000), “The converging business
models of Internet and bricks-and-mortar retailers”,
European Management Journal, Vol. 18 No. 5, pp. 542-50.
Fisher, L. and Mullin, C.L. (2000), “To ‘e’ or not to ‘e’? using
electronic communication in franchise sales”, Franchising
World, Vol. 32 No. 1, pp. 30-3.
Floriani, B. and Lindsey, M.K. (2001), “The continuing impact of
the Internet on international franchising”, International
Journal of Franchising and Distribution Law, Vol. 3 No. 3,
pp. 175-237.
Gotsopoulou, N. (2000), “Legal issues on international
franchising and electronic commerce”, Business Law
Review, Vol. 21 No. 12, pp. 288-90.
Figure 4 Franchising firms’ activities online
Franchising and the Internet: an exploratory study of franchisor Web sites
Helen Dixon and Barry Quinn
Internet Research
Volume 14 · Number 4 · 2004 · 311-322
321
Greaves, C., Kipling, P. and Wilson, T.D. (1999), “Business use of
the World Wide Web, with particular reference to UK
companies”, International Journal of Information
Management, Vol. 19, pp. 449-70.
Grueneberg, S. (2001), “Internet offer exemptions: California
joins the fold”, Franchising World, Vol. 33 No. 1, pp. 34-6.
Grunberg, D. (1999), “Internet: friend or foe?”, Franchising
World, Vol. 31 No. 5, p. 39.
Harrington, L. and Reed, G. (1995), “Current research: early
perspectives on electronic commerce”, The McKinsey
Quarterly, Vol. 3, pp. 193-5.
Hoffman, D.L., Novak, T.P. and Chatterjee, P. (1995),
“Commercial scenarios for the Web: opportunities and
challenges”, Journal of Computer-Mediated
Communication, Vol. 1 No. 3, available at:
www.ascusc.org/jcmc/vol1/issue3/hoffman.html (accessed
December 12, 2003).
Hoffman, R.C. and Preble, J.F. (1991), “Franchising: selecting a
strategy for rapid growth”, Long Range Planning, Vol. 24
No. 4, pp. 74-85.
Hunt, S.D. (1973), “The trend toward company-operated units in
franchise chains”, Journal of Retailing, Vol. 49 No. 2,
pp. 3-12.
Javalgi, R. and Ramsey, R. (2001), “Strategic issues of
e-commerce as an alternative global distribution system”,
International Marketing Review, Vol. 18 No. 4, pp. 376-91.
Kalakota, R. and Whinston, A. (1997), Electronic Commerce:
A Manager’s Guide, Addison-Wesley, Reading, MA.
Lafontaine, F. (1992), “Agency theory and franchising: some
empirical results”, RAND Journal of Economics, Vol. 23
No. 2, pp. 263-83.
Liu, C., Arnett, K.P., Capella, L.M. and Beatty, R.C. (1997), “Web
sites of the Fortune 500 companies: facing customers
through home pages”, Information and Management,
Vol. 31, pp. 335-45.
Martin, D. (1999), “‘Real World’ Internet applications (that
franchise companies actually use)”, Franchising World,
Vol. 31 No. 4, pp. 22-6.
Natwest (2003), “Winning franchise formula still a safe bet”,
available at: www.natwest.com/pressroom/
index.asp?navid=PRESS_ROOM&pid=16 (accessed
December 12).
Natwest/BFA (2001), “Franchise Survey 2001”, BDRC/20135,
available at: www.europeanfranchising.com/download/
BFASurvey02_web.pdf (accessed December 10, 2003).
Ng, H.-I., Pan, Y.J. and Wilson, T.D. (1998), “Business use of the
World Wide Web: a report on further investigations”,
International Journal of Information Management, Vol. 18
No. 5, pp. 291-314.
Office of National Statistics (2003), “2002 E-commerce survey of
business: information and communication technologies
(ICT) adoption and usage”, available at:
www.statistics.gov.uk/downloads/themeeconomy/
2002ecommerce_survey_of_business.pdf (accessed
December 1).
O’Keefe, R.M., O’Connor, G. and Kung, H.J. (1998), “Early
adopters of the Web as a retail medium: small company
winners and losers”, European Journal of Marketing,
Vol. 32 No. 7/8, pp. 629-43.
Oxenfeldt, A.R. and Kelly, A.O. (1968), “Will successful franchise
systems ultimately become wholly-owned chains?”,
Journal of Retailing, Vol. 44 No. 49, pp. 69-83.
Plave, L.J. and Amolsch, R.B. (2000), “How to implement
dot.com franchising solutions: two aspects of a multifaceted
issue”, FranchisingWorld, Vol. 32 No. 5, pp. 17-19.
Plave, L.J. and Miller, M. (2001), “International franchising and
e-commerce: adapting franchise systems to the global
electronic marketplace”, International Journal of
Franchising and Distribution Law, Vol. 3 No. 4, pp. 259-313.
Quinn, B. and Doherty, A.M. (2000), “Power and control in
international retail franchising: evidence from theory and
practice”, International Marketing Review, Vol. 17 No. 4/5,
pp. 354-72.
Rubin, P.H. (1978), “The theory of the firm and the structure of
the franchise contract”, Journal of Law and Economics,
Vol. 21, pp. 223-33.
Scott, N.R. (2001), “Web-enabled franchises rush to adapt
Internet’s efficient management potential”, Franchising
World, Vol. 33 No. 5, pp. 14-16.
Shane, S. (1998), “Explaining the distribution of franchised and
company-owned outlets in franchise systems”, Journal of
Management, Vol. 24 No. 6, pp. 717-39.
Spinelli, S. and Birley, S. (1998), “An empirical evaluation of
conflict in the franchise system”, British Journal of
Management, Vol. 9, pp. 301-25.
Stephenson, P.R. and House, R.G. (1971), “A perspective on
franchising”, Business Horizons, Vol. 14, pp. 35-42.
Testa, L. (2002), “Royalty reporting and payment collection
made easy”, Franchising World, Vol. 34 No. 6, pp. 44-7.
Tikoo, S. (1996), “Assessing the franchise option”, Business
Horizons, Vol. 39 No. 3, pp. 78-82.
Trice, M.B. (2001), “Managing Internet issues within the
franchise system: a legal perspective”, Franchising World,
Vol. 33 No. 5, pp. 37-8.
Watson, A., Kirby, D.A. and Egan, J. (2002), “Franchising,
retailing and the development of e-commerce”,
International Journal of Retail & Distribution
Management, Vol. 30 No. 5, pp. 228-37.
Franchising and the Internet: an exploratory study of franchisor Web sites
Helen Dixon and Barry Quinn
Internet Research
Volume 14 · Number 4 · 2004 · 311-322
322