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The Role Of ICT And The Internet In The Development Of Franchise Systems

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  • Stefanović Suzana

    (University of Niš, Faculty of Economics, Serbia)

  • Stanković Milica

    (Higher Business School, Novi Sad, Serbia)

Abstract

Franchising is a business format which is becoming a global phenomenon in the contemporary business. Franchise systems extensively use modern information and communication technology (ICT) to enhance communication among franchisors and franchisees, and to provide interaction with end users. The aim of the paper is to highlight the importance of using the modern technology in franchise systems globally and need for more intensive use of ICT in our country and in neighboring countries, based on the comparative analysis of using the ICT and Internet in developed and less developed economies. The research was conducted through a comprehensive on-line analysis of franchisors’ web sites. In this paper, it is analyzed whether there is a connection between the franchisors and franchisees linking through web site and the number of given franchise. Correlation analysis showed a statistically significant strong positive correlation between the use of the web site for linking franchisors and their franchisees and the number of franchise units. It can be concluded that less use of modern technology and the Internet in developing countries affects the slower expansion of the franchise units network than in developed countries where the use of ICT and the Internet is at a much higher level.

Suggested Citation

  • 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.
    • Handle: RePEc:vrs:ecothe:v:52:y:2014:i:4:p:409-435:n:3
    DOI: 10.1515/ethemes-2014-0026
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    References listed on IDEAS

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    1. Dutta, Soumitra & Biren, Beatrix, 2001. "Business Transformation on the Internet:: Results from the 2000 Study," European Management Journal, Elsevier, vol. 19(5), pages 449-462, October.
    2. Enders, Albrecht & Jelassi, Tawfik, 2000. "The converging business models of Internet and bricks-and-mortar retailers," European Management Journal, Elsevier, vol. 18(5), pages 542-550, October.
    3. Griffith, David A. & Palmer, Jonathan W., 1999. "Leveraging the web for corporate success," Business Horizons, Elsevier, vol. 42(1), pages 3-10.
    4. 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 1 & University of Caen) 201206, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
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