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

Rozenn Perrigot and Thierry Pénard ()

Economics Working Paper Archive (University of Rennes 1 & University of Caen) from Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS

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.

Keywords: E-commerce; franchising; determinants; plural form; brand image; franchisors' resources (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com, nep-edu, nep-ict, nep-mkt and nep-net
Date: 2012-01
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Persistent link: https://EconPapers.repec.org/RePEc:tut:cremwp:201206

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