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RESEARCH PRODUCT

Enterprise System Implementation in a Franchise Context: An Action Case Study

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Abstract This research paper reports on a study focusing on a franchise relationship that utilizes an enterprise system (ES) to optimize its supply chain. The ES is in its post-implementation phase; however, the franchisee has challenges with inventory management due to poor data quality, which causes problems with vendor analysis and revenue control. An action case study was carried out to identify and diagnose the source of the problem, and interventions were implemented and evaluated. The findings demonstrate that several of the challenges related to poor data quality in the supply chain were influenced by problems of a socio-technical character. These included a lack of understanding of the system, a shortage of training, workarounds, opportunistic behaviors and a lack of effective control mechanisms for the franchisor. Implications for the franchisor include the need for greater emphasis on good communication routines with franchisees, so problems in the system can be identified early and resolved. Franchisees must try to establish a good relationship with the franchisor and to be aware that knowledge and training can be the keys to realizing the benefits of the ES.