Clustering for International Market Selection

International analysis of the countries where Brazilian franchise chains operate

“…We pointed out, however, that this study relates only to the countries in which Brazilian franchises have some international experience. The contributions made herein are based on the variables "market opportunity" and "business efficiency -trust and ease in doing business", both of which directly support the researches accomplished by Aliouche and Schlentrich, 2009e 2011, and Alon and Shoham, 2010 Moreover, the managerial contributions of this paper lie in helping the selection of destination countries according to the characteristics of the external environment of these markets, through a framework that considers the demographic, economic, political and government, corporate and legal factors. The grouping of countries into clusters can contribute to franchisors in the management of markets with similar institutional characteristics, assisting in the definition of policies of regional business.…”

“…In the 2000s, however, many scholars studying franchising started to focus on the devastating consequences that international expansion plans caused to the enterprises, which did not take into account the international environment of the countries of destination (Han & Diekman, 2001;Aliouche & Schlentrich, 2009). Before this, many academic papers that started to focus on countries where franchise chains installed operational units, gained more academic relevance (Aliouche & Schlentrich, 2009, 2011Alon & Shoham, 2010).…”

“…Finally, Alon and Shoham (2010) argue that the creation of country clusters is useful because it brings up facilitators to manage franchise chains. The franchisors can therefore select countries that have similar environmental characteristics to the countries of their own, which facilitate the choice of countries for expansion.…”

“…For sake of definitions, international commitment is herein understood as the number of franchise units abroad; external factors are, in turn, defined as the responsible elements for creating institutional conditions that enable enterprises to operate (Ghemawat, 2001;Peng, 2002;Berry, Guillén, & Zhou, 2010). More specifically, these factors are expressed by the market opportunity (economic and demographic factors) and the business efficiency -trust and ease to doing business (political, legal and administrative factors) -, which are commonly researched in the field of international business as well as in international franchising studies (Eroglu, 1992;Burton & Cross, 1995;Arthur Andersen, 1996;Vicent, 1998;Alon & McKee, 1999;Aliouche & Schlentrich, 2009;Alon & Shoham, 2010;Gámez-González, Rondan-Cataluña, Diez-de--Castro, & Navarro-Garcia, 2010;Kerkovic, 2010;Aliouche & Schlentrich, 2011).…”

Study of the influence of socio-economic factors in the international expansion of Spanish franchisors to Latin American countries

“…This unstoppable process of internationalization has not only been carried out by large operators but also by medium and small retailers [ 8 ]. Although the international franchising industry has become a major player in the development of countries, it has been uneven [ 9 ].…”