E-Business Strategy in Franchise Relationship Management

Ye-Sho Chen, Chuanlan Liu, Qingfeng Zeng and Renato F. L. Azevedo
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Ye-Sho Chen: Louisiana State University, USA
Chuanlan Liu: Louisiana State University, USA, and Central University of Finance and Economics, China
Qingfeng Zeng: Shanghai University of Finance and Economics, China
Renato F. L. Azevedo: University of Illinois at Urbana-Champaign, USA

International Journal of Strategic Information Technology and Applications (IJSITA), 2012, vol. 3, issue 1, 54-65

Abstract: Franchising as a global growth strategy, especially in emerging markets, is gaining its popularity. For example, the U.S. Commercial Service estimated that China, having over 2,600 brands with 200,000 franchised retail stores in over 80 sectors, is now the largest franchise market in the world. The popularity of franchising continues to increase, as people witness an emergence of a new e-business model, Netchising, which is the combination power of the Internet for global demand-and-supply processes and the international franchising arrangement for local responsiveness. The essence of franchising lies in managing the good relationship between the franchisor and the franchisee. This paper shows e-business strategy plays an important role in growing and nurturing such a good relationship. Specifically, the authors discuss: managing the franchisor/franchisee relationship, harnessing the e-business strategy, aligning the e-business strategy with application service providers, and an attention-based framework for franchisee training.

Date: 2012
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