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Determinants of E-commerce adoption by franchisors: Insights from the U.S. market

Author

Listed:
  • Rozenn Perrigot

    (Graduate School of Management (IGR-IAE), University of Rennes 1 & ESC Rennes School of Business - CREM-CNRS, France)

  • Thierry Pénard

    (University of Rennes 1 - CREM-CNRS, France)

Abstract

E-commerce has grown tremendously over the past decade. This paper focuses on E-commerce adoption within the franchising sector. We formulate various hypotheses on the factors that influence the adoption of an E-commerce strategy by franchisors, namely the percentage of company-owned stores in the network, network size and age, franchisor resources (franchising fees and franchising royalties), and the allocation of exclusive territories to franchisees. The empirical study relies on a sample of 486 franchise networks in the U.S. market. Our findings suggest that the percentage of company-owned stores and the brand image, as represented by network size, both exert a significant and positive impact on the adoption of an E-commerce strategy, whereas network age and franchising royalties exert a significant and negative impact on the adoption of such a strategy. These findings are discussed with respect to previous research results.

Suggested Citation

  • Rozenn Perrigot & Thierry Pénard, 2012. "Determinants of E-commerce adoption by franchisors: Insights from the U.S. market," Economics Working Paper Archive (University of Rennes & University of Caen) 201206, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    • Handle: RePEc:tut:cremwp:201206
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    References listed on IDEAS

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    Cited by:

    1. Stefanović Suzana & Stanković Milica, 2014. "The Role Of ICT And The Internet In The Development Of Franchise Systems," Economic Themes, Sciendo, vol. 52(4), pages 409-435, December.

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    Keywords

    E-commerce; franchising; determinants; plural form; brand image; franchisors' resources;
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