Determinants of E-commerce adoption by franchisors: Insights from the U.S. market
AbstractE-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.
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Bibliographic InfoPaper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 201206.
Date of creation: Jan 2012
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-08 (All new papers)
- NEP-BEC-2012-02-08 (Business Economics)
- NEP-COM-2012-02-08 (Industrial Competition)
- NEP-EDU-2012-02-08 (Education)
- NEP-ICT-2012-02-08 (Information & Communication Technologies)
- NEP-MKT-2012-02-08 (Marketing)
- NEP-NET-2012-02-08 (Network Economics)
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