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

Objetivos de desarrollo sostenible

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.

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