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Antecedents of early adoption and use of social networks for stakeholder communications: Evidence from franchising

Author

Listed:
  • Rozenn Perrigot

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Manish Kacker
  • Guy Basset

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Gérard Cliquet

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

he motivation for this paper arises from the importance of stakeholder communications for firms and the rapid emergence of social media networks as a means of such communications. Our purpose is to understand the early adoption and use of social media networks for such communications by firms at a point in time when such networks were relatively new. Specifically, we examine the adoption and use of Facebook (the most popular social networking site) by franchisors and focus on two questions: (1) antecedents of early adoption of Facebook by franchisors, mainly in terms of system age, size, organizational form, advertising royalty rates, industry, and internationalization, and (2) variations in use of Facebook (in terms of content) by these franchisors and the way these variations relate to the characteristics of the franchisors and their systems. Our empirical study covers 408 franchisors doing business in the French market. The analysis approach is quantitative, with the use of t-tests, Pearson chi-square tests and a logistic regression model, as well as a content analysis of the franchisors' Facebook pages. At the time we collected data, we found that only 21.3 per cent of the franchisors had a presence on Facebook. Several characteristics of the system (for example, percentage of company-owned outlets, advertising royalty rates, industry) influence whether a franchisor has a presence on Facebook as well as the nature of content on the relevant Facebook page. We draw on organizational theories and institutional economic theories to offer potential explanations for our preliminary investigation. These research findings can help the franchisors better understand the role of social media networks for stakeholder communications. In particular, our results offer insights for smaller franchisors, in terms of when and how they adopt communication innovations to compete against larger firms.

Suggested Citation

  • Rozenn Perrigot & Manish Kacker & Guy Basset & Gérard Cliquet, 2012. "Antecedents of early adoption and use of social networks for stakeholder communications: Evidence from franchising," Post-Print halshs-00744548, HAL.
  • Handle: RePEc:hal:journl:halshs-00744548
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    Citations

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    Cited by:

    1. Thierry Pénard & Rozenn Perrigot, 2015. "Search Online – Purchase Online in Franchising: An Empirical Analysis of Franchisor Website Functionality," Economics Working Paper Archive (University of Rennes & University of Caen) 201517, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    2. Coluccia, Daniela & Dabić, Marina & Del Giudice, Manlio & Fontana, Stefano & Solimene, Silvia, 2020. "R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspective," Journal of Business Research, Elsevier, vol. 119(C), pages 259-271.
    3. Pénard, Thierry & Perrigot, Rozenn, 2017. "Online search – Online purchase in franchising: An empirical analysis of franchisor website functionality," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 164-172.
    4. López-Fernández, Begoña & Perrigot, Rozenn, 2018. "Using Websites to Recruit Franchisee Candidates," Journal of Interactive Marketing, Elsevier, vol. 42(C), pages 80-94.
    5. Efosa Carroll Idemudia & Mahesh S. Raisinghani & Olusola Samuel-Ojo, 0. "The contributing factors of continuance usage of social media: An empirical analysis," Information Systems Frontiers, Springer, vol. 0, pages 1-14.
    6. Kacker, Manish & Perrigot, Rozenn, 2016. "Retailer use of a professional social media network: Insights from franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 222-233.

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