Standardization vs. Local Adaptation in Total Quality Management: A Systematic Review of Governance Challenges in Global Franchise Operations

Abstract

Background: Both the TQM and franchise governance literature have increased significantly in both volume and methodological rigor, but there is no systematic review that brings these streams into one analytical framework to discuss cross-franchise tensions of reliability and flexibility. This review was aimed to fill the void with a synthesis of the literature that was reviewed on the mechanisms for governance, contingent conditions, and relational dynamics influencing the effectiveness of TQM in culturally and institutionally diverse franchise networks.

Methodology: Systematic literature review (SLR) using the guidelines of PRISMA were used for this review. Six bibliographic databases were used to search: Scopus, Web of Science, Emerald Insight, ScienceDirect, SpringerLink and Google Scholar with Boolean string combinations of TQM, franchising, and governance. 7 years studies (2019-2026) were considered to gather the data for SLR, analyzed using thematic analysis.

Findings: Five thematic dimensions were found which are interrelated on the implementation of TQM: governance mechanisms for the enforcement of TQM; adaptations occurring on the local level, with the influence of culture and institutions; transfer of knowledge and building of capacities; quality assurance through technology; and relationship dynamics in franchise systems. There is indeed a consistent pattern of evidence that confirms that contractual control intensity does not result in durable compliance with TQM.

Conclusion: Global franchising along localization and standardization cannot be directly compared across either industry sectors or national contexts, and the proposed conceptual model should be tested empirically from a different perspective across various types of franchise systems. Future studies can shed light on the dynamics of trust–control over time, institutionalize the institutional distance effect through a cross-national comparative study and analyze the interaction of digital governance infrastructure and relational governance investment at different degrees of institutional distance.