Value creation through knowledge management in franchising: a multi-level conceptual framework

The purpose of this paper is to present an integrative systems model of knowledge management (KM) across the franchisor-franchisee-customer triad. The conceptual development of this paper focuses on the areas of knowledge development, knowledge transfer and knowledge use within the context of dyadic monitoring, and key relational outcomes (partner congruence, relationship quality, perceived conflict, opportunism), and performance results (franchisor, franchisee and customer welfare).

This paper critically reviews the relevant literatures in order to address three conceptual goals exemplified by the following research questions. How does knowledge development and organizational learning effectively facilitate knowledge transfer and knowledge usage in franchise systems? What role does monitoring play in the relationship between the knowledge management processes and the welfare of franchisors and franchisees? How does the process of knowledge management (development, synthesis, transfer, usage) influence franchisor, franchisee and customer welfare?

An extensive review of the literature results in ten key research propositions being offered and these are graphically presented in the conceptual model in Figure 1. This model represents a multi-level perspective of KM which provides a solid platform for future empirical studies and further academic discussion.

This paper makes two key contributions. First, through adopting an integrative KM perspective it draws attention to many (as yet) unanswered questions concerning the franchise relationship. Second, it re-positions KM research beyond consideration at a singular (firm, employee, supplier or customer) level by focusing on intra-firm and firm-customer linkages in the value creation process.