| Summary: | The popularity of franchising as a growth strategy and the opportunities presented by the internet to reach dispersed markets have resulted in these phenomena being widely researched. However, there appears to be little investigation into e-comrnerce within the context of franchising or into the effect of the internet on franchises. Thus, this study is an attempt to bridge the gap between research and practice by investigating the use of the internet by franchising firms. In light of the vacuities in the literature, the research problem addressed by this thesis is: How does the internet affect franchising firms and what are the implications for franchises engaging in e-commerce? Given the paucity of research investigating the imbrications of franchising and e-commerce this study adopted a three-stage methodological design, combining quantitative and qualitative research, in an exploratory study aimed at building theory in a range of issues pertinent to this organisational quandary. In particular, this research endeavours to determine the degree of embracement of internet technology by franchisors; to elucidate franchisors' motivations for e-cornmerce; to explore the role of franchisees in the internet strategy; to evaluate the benefits of the internet for franchises; to assess the challenges encountered with internet technology; to determine the impact of the internet on the franchise relationship; and to examine the factors influencing franchises' internet strategy. The mam conclusions derived from this research are that while franchises are enjoying idiosyncratic benefits of internet technology, a lack of strategic integration with their offline activities is limiting their potential to gain a sustainable competitive advantage. Fundamentally, this study highlights the importance of a collaborative strategy by franchisors and franchisees to emerging technologies in ensuring the internet strengthens rather than threatens the franchise relationship. Thus, this study has implications for both academia and the franchise industry.
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