DIGITAL CHANNELS AND ENCROACHMENT: OWNERSHIP REDIRECTION IN FRANCHISE CHANNELS

Adopting a dynamic perspective is crucial when considering distribution channels and digital revolution. We illustrate how the short-term acceptance of centralized e-commerce by franchisees, driven by imbalanced power dynamics in their relationships with franchisors, may not necessarily align with the broader, longer-term trends in the franchising industry. A new wave of ownership reconfiguration and redirection may emerge within the industry: rather than being a manifestation of opportunistic behavior by franchisors, as previously projected in academic research during the mature stages of the franchising life cycle, it could now be a consequence of franchisees' limited involvement in e-commerce initiatives and decrease motivation to continue the relationship. Consequently, a higher proportion of stores within franchising networks may transition to direct operation by the franchisor. This shift raises questions about the behavior of multi-unit franchisees within this evolving landscape, warranting further investigation in future research.