New Criteria to Select Foreign Entry Mode Choice of Global Franchise Chains into Emerging Markets

  1. Baena, Verónica 1
  2. Cerviño, Julio 2
  1. 1 Universidad Europea de Madrid
    info

    Universidad Europea de Madrid

    Madrid, España

    ROR https://ror.org/04dp46240

  2. 2 Universidad Carlos III de Madrid
    info

    Universidad Carlos III de Madrid

    Madrid, España

    ROR https://ror.org/03ths8210

Revista:
Procedia - Social and Behavioral Sciences

ISSN: 1877-0428

Año de publicación: 2015

Volumen: 175

Páginas: 260-267

Tipo: Artículo

DOI: 10.1016/J.SBSPRO.2015.01.1199 GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Procedia - Social and Behavioral Sciences

Resumen

Despite emerging markets are some of the fastest growing economies in the world and represent countries that are experiencing asubstantial economic transformation, little is known about the factors influencing choices of foreign entry mode in those markets.Especially, regarding companies that franchise overseas. In an attempt to expand our knowledge of this topic, this paper presentsan empirical assessment of the relationship between a set of different variables with the four possible modes of entry thatfranchisor companies can adopt overseas: i) direct franchising; ii) master franchising; iii) joint venture; and iv) direct investment.Besides the host market’s political stability, economic potential and unemployment rate were proposed as independent variables,we controlled for other variables that may affect foreign entry mode choice: the geographical distance between the host and homecountry, the franchisor’s international experience as well as the efficiency of contract enforcement in the host country.

Referencias bibliográficas

  • Akhter, S. and Robles, F. (2006) Leveraging internal competency and managing environmental uncertainty. Propensity to collaborate in international markets,. International Marketing Review, 23, 98-115.
  • Alexander. N., Rhodes, M. and Myers, H. (2006), International market selection: measuring actions instead of intention, Journal of Services Marketing, 21, 424-434.
  • Alon, I. (2001). The use of franchising by U.S. based retailers, Journal of Small Business Management, 32, 111-122.
  • Alon, I. and McKee, D. (1999). Towards a macro environmental model of international franchising. Multinational Business Review, 1:76-82.
  • Alon, I. (2010) Franchising globally, New York: Palgrave MacMillan.
  • Aulakh, P.S. (2005) “International product strategies: and integrative framework”. In Handbook of Research in International Marketing, Jain, S.C. (Ed.), Edward Elgar Publishing, Inc., Massachusetts, USA.
  • Anttonen, N., Tuunanen, M. and Alon, I. (2005) The international business environments of franchising in Russia, The International Business Environments, 5, 1-18.
  • Baena, V. (2009) Modeling Global Franchising In Emerging Markets. An Entry Mode Analysis, Journal of East West Business, 15, 164-188.
  • Baena, V. (2011) The effect of corruption on global franchising in emerging markets, International Journal of Business and Emerging Markets, 3, 57-74.
  • Baena, V. (2012) Market conditions driving international franchising in emerging countries, International Journal of Emerging Markets, 7, No. 1, 49-71.
  • Baena, V. (2013) Insights on international franchising: entry mode decision, Latin American Business Review, 14, 1-27.
  • Brookes, M. and Altinay, L. (2011) Franchise partner selection: perspective of franchisors and franchisees, Journal of Services Marketing, 35, 336-348.
  • Chang, S.-J. and Rosenzweig, P. (2001) The Choice of Entry Mode in Sequential Foreign Direct Investment, Strategic Management Journal, 22, 747-776.
  • Chiao Y, Lo F and Yu C-M (2010) ‘Choosing between wholly-owned subsidiaries and equity joint ventures of MNCs from an emerging market. International Marketing Review, 23, 338-365.
  • Contractor, F.J. and Kundu, S.K. (1998a). Franchising versus company-run operations: Modal choice in the multinational hotel sector, Journal of International Marketing, 6: 28-l53.
  • Contractor, F.J. and Kundu, S.K. (1998b). Modal choice in a world of alliances: Analyzing organizational forms in the international hotel sector, Journal of International Business Studies, 29, 325-358.
  • Cooper, A. and Gimeno, F. (1992). Entrepreneurs, processes of founding, and new firm performnace. In Sexton, D. and Kasarda, J. Eds. The state of the art of entrepreneurship, Boston: PWS Kent, 301-340.
  • Dant, R.P., Perrigot, R. and Cliquet, G. (2008) A cross cultural comparison of the plural form in franchise networks: USA, France and Brazil, Journal of Small Business Management, 46286-311.
  • Dant, R.P., Grunhagen, M. and Windsperger, J. (2011) “Franchising research frontiers for the twenty first century”, Journal of Retailing, 87, 253-268.
  • Djankov, S., La Porta, R., López de Silanes, F. y Shleifer, A, (2003). Courts, Quarterly Journal of Economics, 118, 453-517.
  • Doherty, A.M. and Alexander, N. (2006) Power and control in international retail franchising, European Journal of Marketing, 40, 1292-1316.
  • Erramilli, M.K. and Rao, C.P. (1993). Service firms international entry mode choice: a modified transaction-cost analysis approach, Journal of Marketing, 57, 19-38.
  • Fladmoe-Lindquist, K. (1996. International Franchising: Capabilities and Development, Journal of Business Venturing, 1, 419-438.
  • Hair, J., Anderson, R.E., Tatham, R.E., and Black, W.C. (1999): Multivariate Analysis (5th edition), Prentice-Hall International, Inc., Madrid.Herrmann, P. and Datta, D. (2002) CEO Successor Characteristics and the Choice of Foreign Market Entry Mode: An Empirical Study, Journal of International Business Studies, 33(Third Quarter), 551-570.
  • Hoffman, R. and Preble, J. (2001). Global diffusion of franchising: A country level examination, Multinational Business Review, 9, No. 1: 66-75.
  • Gençturk, F.E. (2005) “Foreign market entry modes; a sequentially embedded decision approach”. In Handbook of Research in International Marketing, Jain, S.C. (ed.), Edward Elgar Publishing, Inc., Massachusetts, USA.
  • Kotabe, M. (2005) “State-of-the-art review of research in international marketing management” In Handbook of Research in International Marketing, Jain, S.C. (Ed.), Edward Elgar Publishing, Inc., Massachusetts, USA, 3-41.
  • Lu, J. (2002) “Intra- and inter- organizational imitative behavior: Institutional influences on Japanese firmś entry mode choice”, Journal of International Business Studies, 33, 19-37.
  • Michael, S.C. (2003). Determinants of the rate of franchising among nations, Management International Review, 43, No. 3: 267-291.
  • Puck, J.F., Holtbrügge, D. and Mohr, A. (2008) ‘Beyond entry mode choice, explaining the conversion of joint ventures into wholly owned subsidiaries in the People's Republic of China’, Journal of International Business Studies, 40, 288-404.
  • Quinn, B. and Doherty, A.M. (2000). Power and control in international retail franchising. Evidence from theory and practice, International Marketing Review, 17, 354-371.
  • Zhang, Y., Zhang, Z. and Liu, Z. (2007). Choice of entry modes in sequential FDI in an emerging economy, Management Decision, 45, 749-772.