The Effect of ICT on Franchise Relationships The Effect of Information and Communications Technology (ICT) on Franchisee to Franchisor Relationships Clive Brooks A thesis submitted in partial fulfillment of the requirements of Bournemouth University for the Degree of Doctor of Philosophy June 2012 Bournemouth University Business School 1 The Effect of ICT on Franchise Relationships Table of Contents ABSTRACT!.............................................................................................................................5 ACKNOWLEDGEMENTS!.......................................................................................................6 DECLARATION!.......................................................................................................................6 CHAPTER ONE – INTRODUCTION!.......................................................................................7 1.1 AIM AND OBJECTIVES OF THE RESEARCH!.............................................................................................8 1.2 USEFULNESS AND SIGNIFICANCE OF THE RESEARCH!...........................................................................10 1.3 INFORMATION AND COMMUNICATION TECHNOLOGY IN FRANCHISE NETWORKS!.....................................10 1.4 STRUCTURE OF THE THESIS!...............................................................................................................12 CONCLUSIONS!........................................................................................................................................14 CHAPTER TWO – BACKGROUND TO FRANCHISING & LITERATURE REVIEW!...........15 INTRODUCTION!........................................................................................................................................15 2.1 THE BUSINESS FORMAT FRANCHISE MODEL!.......................................................................................15 2.2 REASONS FOR FRANCHISING!.............................................................................................................16 2.3 THE AGENCY THEORY!.......................................................................................................................16 2.4 THE RESOURCE SCARCITY THEORY!...................................................................................................19 2.5 A FRANCHISE TECHNOLOGY TIMELINE!...............................................................................................21 2.6 FRANCHISING IN THE UK!...................................................................................................................25 2.7 THE FRANCHISE LIFECYCLE!...............................................................................................................32 2.8 ON THE UNIQUENESS OF THE FRANCHISE RELATIONSHIP!.....................................................................33 2.9 IDENTIFIED RESEARCH GAPS!.............................................................................................................37 CONCLUSIONS!........................................................................................................................................42 CHAPTER THREE – RESEARCH METHODOLOGY!..........................................................44 INTRODUCTION!........................................................................................................................................44 3.1 THE CHOICE AND JUSTIFICATION OF THE METHODOLOGY!....................................................................44 3.1.1 IDENTIFYING THE RESEARCH SETTING!...............................................................................................................46 3.1.2 GAINING ORGANISATIONAL ACCESS!...................................................................................................................46 3.1.3 METHOD OF DATA COLLECTION!.........................................................................................................................47 3.1.4 RESEARCH ETHICS!...........................................................................................................................................49 3.2 INTRODUCTION TO THE GROUNDED THEORY METHODOLOGY!...............................................................50 3.3 THE GROUNDED THEORY METHOD IN OUTLINE!...................................................................................51 3.3.1 CODING!...........................................................................................................................................................52 3.3.2 CONSTANT COMPARISON!..................................................................................................................................53 3.3.3 CONCEPTUAL CATEGORISING!............................................................................................................................54 3.3.4 THEORETICAL SAMPLING!...................................................................................................................................55 3.3.5 CONCEPTS!.......................................................................................................................................................55 3.3.6 THE CORE CATEGORY!......................................................................................................................................56 3.3.7 SATURATION!.....................................................................................................................................................56 3.4 GROUNDED THEORY TIMELINE: DEVELOPMENT AND DIVERGENCE!.......................................................57 3.4.1 GLASER VERSUS STRAUSS - THE BATTLE LINES!.................................................................................................58 3.4.2 TOWARDS CONSTRUCTIVIST GROUNDED THEORY!..............................................................................................61 3.5 RESEARCH STRATEGY AND DESIGN!....................................................................................................62 3.6 UNITS OF ANALYSIS AND DATA COLLECTION!.......................................................................................64 3.7 ADDRESSING RESEARCH VALIDITY!.....................................................................................................66 3.8 CONCLUSIONS!...................................................................................................................................68 CHAPTER FOUR – THE MANAGEMENT OF THE DATA!...................................................70 INTRODUCTION!........................................................................................................................................70 4.1 THE RESEARCHER AS AN INSIDER!......................................................................................................70 4.1.1 INTRODUCING BRACKETING!...............................................................................................................................70 2 The Effect of ICT on Franchise Relationships 4.1.2 INTRODUCING REFLEXIVITY!...............................................................................................................................71 4.1.3 MY BRACKETED BELIEFS!...................................................................................................................................72 4.2 BRACKETING: EXPECTED POSITIVE OUTCOMES FROM THE INTRODUCTION OF ICT!................................73 4.3 BRACKETING: EXPECTED NEGATIVE OUTCOMES FROM THE INTRODUCTION OF ICT!..............................75 4.4 FRANCHISOR A: EXPECTED BENEFITS OF ICT INTRODUCTION!.............................................................76 4.5 POSSIBLE METHODS OF ICT ADOPTION!.............................................................................................77 CONCLUSIONS!........................................................................................................................................94 CHAPTER FIVE - THE ROUTE TO EMERGENCE: HOW THE THEORY DEVELOPED FROM THE RAW DATA!...................................................................................................................96 INTRODUCTION!........................................................................................................................................96 5.1 DATA COLLECTION!............................................................................................................................97 5.2 OPEN CODING!...................................................................................................................................99 5.3 TENTATIVE STAGE ONE CATEGORIES!...............................................................................................102 5.4 MEMOING!.......................................................................................................................................109 5.5 THEORETICAL SAMPLING!.................................................................................................................115 CHAPTER SIX – FRANCHISE REMOTE CONTROL: THE EMERGENT THEORY!..........118 INTRODUCTION!......................................................................................................................................118 6.1 INTRODUCING FRANCHISE REMOTE CONTROL!...................................................................................120 6.2 ABSENT INTERROGATING!.................................................................................................................121