Information and Communication Technology, Franchisor Support and Franchisees Performance in Malaysia

Operational problems are often the issue of a franchise business notably at the franchisee’s level. Operational problems are usually linked to customer service, costs management, quality, productivity and assets management. These issues could affect the efficiency and effectiveness of a franchise system and be the cause of customer disloyalty. These problems can be solved with the use of information and communication technology (ICT) as the technology can improve the efficiency of a franchise system in terms of time and costs management. In addition, organizational support was found in previous studies to be a mediator in business performance. Accordingly, the study aims to examine the role of franchisor support as a mediator in the relationship between the benefits of ICT and franchisees’ performance in Malaysia. A total of 250 questionnaires were distributed to the franchisees who operate a franchise business format in Malaysia. Ninety-seven questionnaires were collected from the franchisees thus representing a 39 % response rate. The results present evidence that the benefits of ICT and franchisor support are the contributory factors to the performance of a franchise business system. The mediating effect of franchisor support is key to a franchisee’s performance hence the success of a franchise system.