TITLE:
A Study on Value Co-Creation of Franchised Enterprises Driven by Digital Transformation: A Case Study of Tea Beverage Chain
AUTHORS:
Mei-Hui Hsu, Chun-Liang Chen
KEYWORDS:
Digital Transformation, Value Co-Creation, Precision Marketing, Data-Driven, Artificial Intelligence
JOURNAL NAME:
Open Journal of Business and Management,
Vol.14 No.4,
July
24,
2026
ABSTRACT: This study explored a digital-transformation-driven value co-creation model of franchise enterprises. First, the reasons for digital transformation in franchises were identified, and how franchise headquarters help franchisees employ data to conduct precision marketing and thereby become more competitive was explored. This research conducted a case study and completed in-depth interviews and secondary data analysis. A two-level analysis structure was employed, where the levels were the headquarters’ operational strategy and franchise stores’ marketing strategy, both of which are affected by digital transformation. The frameworks aim at data-driven process, data sharing and precision marketing, and put forward the outcomes of value co-creation. The findings of this study revealed that the case headquarters connected various information systems through cloud services, analyzed and shared data from franchised stores, and constructed a prototype platform ecosystem. In addition, the headquarters assisted franchise stores in engaging in precision marketing. The brand’s business strategy and franchisees’ feedback were used as a basis on which to modify marketing strategies. Finally, this paper proposes a conceptual framework for the digital-transformation-driven value co-creation of franchise enterprises. The framework can provide inspiration for business strategies for franchise headquarters and franchisees who wish to invest.