The internationalization of professional business service franchises

Alon, Ilan; McKee, David L.

doi:10.1108/07363769910250787

Cited by 47 publications

(31 citation statements)

References 7 publications

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“…One notices, therefore, a greater recognition of the franchisor's effort to the existing franchisees and consumers. Thus, internationalization is an alternative to overcome resource scarcity and not a preliminary condition so that the internationalization occurs, as has been pointed out in some studies (Fladmoe-Lindquist, 1996;Shane, 1996a;Alon & McKee, 1999b;Delios & Beamish, 2001;Perrigot et al, 2004).…”

Section: Discussionmentioning

confidence: 95%

“…Franchise studies in developed markets show that internationalization occurs when franchisors manage to develop and accumulate sufficient resources in their operations in the domestic market. These resources include financial capital, human resources, brand recognition and know-how capabilities to operate the whole franchising system (Fladmoe-Lindquist, 1996;Shane, 1996a;Alon & McKee, 1999B;Delios & Beamish, 2001;Perrigot, Cliquet, & Mesbah, 2004). …”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…As for franchise chains, one of the risks involved in international operations lies in the loss of standards by the franchisee, and this risk accentuates as the geographical and cultural distance to the countries of destination increases (Fladmoe-Linquist, 1996). Thus, the Agency Theory, when applied to franchising, suggests that the greater the capability for franchisors to monitor and control the franchisees, the greater the probability and capacity to look for international operations (Alon & McKee, 1999b).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…The age may be related to a greater know-how, to the establishment of standards of operation (Agency Theory) and to the accumulation of resources (Theory of Resource Scarcity). Second, the sector in which the company operates, since different industries have their own particularities (Alon & McKee, 1999b;Elango, 2007). At last, we have considered the franchise size, which refers to the total number of units of a franchise chain, whether franchised or own units (Elango, 2007).…”

Section: Operationalization Of Variables and Measurementmentioning

confidence: 99%

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Internationalization of Brazilian Franchise Chains: A Comparative Study

et al. 2015

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Internacionalização das redes de franquias brasileiras: um estudo comparativo Internacionalización de las redes de franquicias brasileñas: un estudio comparativo ABSTRACTThe primary goal of this paper is to comprehend the fundamental organizational differences between Brazilian franchise chains that only operate in the home market and Brazilian franchise chains that operate internationally. The sample chosen for this study comprehends 96 Brazilian franchises operating in the home market and 67 franchises with international operations; logistic regression was used to analyze data obtained from these sources. Our findings suggest that the development of a brand in international operations can be strategic for certain Brazilian franchise chains; this seems to be, however, a scarce resource for many franchises and it could be developed through international operations. With regard to the fees charged, the outcomes demonstrate that Brazilian franchises with international operations tend to charge lower fees from its franchisees to install new units. Regarding the monitoring and control of franchises, there is evidence that the monitoring capability is one of the determining factors in the development of Brazilian franchises international operations.KEYWORDS | Franchising, internationalization, emerging markets, small businesses, entrepreneurship. RESUMO O principal objetivo do artigo é compreender as diferenças organizacionais fundamentais entre redes de franquias brasileiras com apenas operações domésticas em comparação com as redes que têm operações internacionais. Como critério para seleção da amostra foram escolhidas 96 redes de franquias com operações domésticas e 67 redes de franquias brasileiras com operações internacionais. Nas análises de dados utilizou-se a regressão logística. Os resultados sugerem que é estratégico o desenvolvimento de uma marca nas operações internacionais. Parece ser um recurso escasso para muitas redes de franquias que podem ser desenvolvidas por meio de operações internacionais. Em relação às taxas cobradas, os resultados mostram que as cadeias brasileiras com operações internacionais cobram taxas mais baixas para seus franqueados para a instalação. Em relação ao monitoramento e controle de franquias verifica-se que a capacidade de monitoramento é um dos fatores determinantes para as franquias brasileiras com operações internacionais. PALAVRAS-CHAVE | Redes de franquias, internacionalização, mercados emergentes, pequenas empresas, empreendedorismo. RESUMEN El principal objetivo del artículo es comprender las diferencias organizacionales fundamentales RAE-Revista de Administração de Empresas | FGV-EAESP

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Section: Discussionmentioning

confidence: 95%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Operationalization Of Variables and Measurementmentioning

confidence: 99%

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Internationalization of Brazilian Franchise Chains: A Comparative Study

et al. 2015

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“…In addition to geographical and cultural distances (Aliouche & Schlentrich, 2011), economic criteria (development level, potential for growth) (Alon & Mckee, 1999), market governance rules and the institutional environment (Welsh et al, 2006) are also taken into account, particularly to assess the level of risk associated with investment in host countries. Installation in a host country implies that this country offers an institutional environment compatible with the franchisors' interests.…”

Section: Copyright By Author(s); Cc-by 420mentioning

confidence: 99%

Institutional Environments And The Internationalization Of Franchise Chains: The Contrasting Cases Of Three North African Countries

Aliouche¹,

Fernandez²,

Chanut³

et al. 2015

JABR

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Franchising has become a dominant model of retailing in the Western world and is rapidly expanding in emerging countries. This paper is an attempt to explain the significant differences in the development of franchising in three emerging countries: Morocco, Algeria and Tunisia. Explanations can be found in the general institutional environment in these countries, including the political and economic environments; governments' willingness to modernize the distribution structures; and the legal and regulatory environments specific to franchising. Our analytical framework is based on institutional theory (DiMaggio & Powell, 1983), a framework that provides further insights beyond the approaches based on economic efficiency (agency theory and the resource scarcity perspective). Based on an analysis of the documents in the major public databases in the three countries, supplemented with field research, we propose an analytical framework that helps explain the uneven developments of franchising in the three North African countries based on the specific institutional environment of each country. This study thus provides empirical evidence supporting the institutional theory of franchise expansion. It appears that institutional theory complements agency theory and resource scarcity theory in explaining the development of franchising in emerging markets: while agency theory and resource scarcity theory explain the motivation of firms to expand internationally through franchising, institutional theory helps explain the success or failure of these firms in the emerging markets they expand to.

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Latin American franchise internationalization: The impact of institutional environment

Melo

Borini

Ogasavara

2018

Thunderbird Intl Bus Rev

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We analyze the internationalization of Brazilian franchise chains in Latin America. A total of 119 observations verify international commitment in each country in relation to institutional environment factors and how they are moderated by chain size and industry. The results show that despite all institutional aspects having a significant effect, their explanatory power depends on chain size. Larger franchise chains usually choose countries with better institutional aspects in terms of contract compliance and business freedom, even if the efficiency of business conditions in these countries are not the best in Latin America. In this study, were used public data from international organizations that report on the ease of doing business, level of corruption, political risk, and legal regulations. Specifically, it contributes by using institutional theory in franchising in order to understand the process of chain internationalization originating from emerging markets. Our results, in part, contradict the idea that the origin disadvantage is always an advantage of internationalization. K E Y W O R D Scountry analysis, emerging markets, entrepreneurship, franchise chains, franchise internationalization, institutional theory

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The internationalization of professional business service franchises

Cited by 47 publications

References 7 publications

Internationalization of Brazilian Franchise Chains: A Comparative Study

Internationalization of Brazilian Franchise Chains: A Comparative Study

Institutional Environments And The Internationalization Of Franchise Chains: The Contrasting Cases Of Three North African Countries

Latin American franchise internationalization: The impact of institutional environment

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