Digitisation of franchising supply chain impact on franchisor performance: a longitudinal case study of a coffee retail chain

Abstract

Purpose

Franchising contributes significantly to national economies but is overlooked in supply chain literature. This study aims to contribute to the franchising and supply chain literature by examining how the digitisation of the franchising supply chain improves firm performance.

Design/methodology/approach

A single longitudinal case study approach was selected to investigate how a leading coffee brand digitised its franchising supply chain. Resource constraints theory and agency theory provide the theoretical framework. Data collection included both qualitative and quantitative data. Over two years, chronological, supply chain and thematic analyses and interpretation uncovered important findings and developed four research propositions.

Findings

Findings show that digitisation can impact performance in eight areas: Resource management, Resource constraints, Efficiency, Business-to-Business (B2B)/Business-To-Customer (B2C) links, Rapid expansion, Risk mitigation, Information asymmetries and Faster supply chain responses. Four digital technologies (advanced analytics, Internet of Things, Autonomous Mobile Robots and B2B e-shop) impacted three franchisor functions (Machine maintenance, Inventory management, Franchisee and end-customer relations). The study develops four research propositions on how digitisation impacts performance in terms of (1) resource monitoring and control, (2) learning and knowledge creation, (3) coordination and collaboration and (4) competition.

Originality/value

Franchising supply chains have been overlooked in the literature; this study provides insights into using resource constraints theory and agency theory complementarily to explain supply chain digitisation and provides actionable practical implications for selecting, implementing and continuously improving Industry 4.0 technologies in franchising supply chains.