IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v85y2018icp238-257.html
   My bibliography  Save this article

International franchising: A literature review and research agenda

Author

Listed:
  • Rosado-Serrano, Alexander
  • Paul, Justin
  • Dikova, Desislava

Abstract

Albeit scholars have conducted international franchising research for over two decades, our understanding of the antecedents and outcomes of this particular type of internationalization is still limited. In this article, we systematically review the literature related to international franchising and create a road map of extant knowledge. Through this review, we seek to provide a greater understanding of the use of theories, methodologies, and the emergent phenomenon of international franchise partnerships in multiple industries. Additionally, we detected inconsistencies in paradigms that allowed us to offer suggestions for future research. Among the opportunities for future research in the area of international franchising, constructs such as cultural sensitivity, institutional distance, management motivation, network complexity and financial performance need further attention.

Suggested Citation

  • Rosado-Serrano, Alexander & Paul, Justin & Dikova, Desislava, 2018. "International franchising: A literature review and research agenda," Journal of Business Research, Elsevier, vol. 85(C), pages 238-257.
    • Handle: RePEc:eee:jbrese:v:85:y:2018:i:c:p:238-257
    DOI: 10.1016/j.jbusres.2017.12.049
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296317305520
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2017.12.049?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brickley, James A. & Dark, Frederick H., 1987. "The choice of organizational form The case of franchising," Journal of Financial Economics, Elsevier, vol. 18(2), pages 401-420, June.
    2. Francine Lafontaine & Joanne E. Oxley, 2004. "International Franchising Practices in Mexico: Do Franchisors Customize Their Contracts?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(1), pages 95-123, March.
    3. Lafontaine, Francine, 1999. "Franchising versus corporate ownership: The effect on price dispersion," Journal of Business Venturing, Elsevier, vol. 14(1), pages 17-34, January.
    4. M Krishna Erramilli & Sanjeev Agarwal & Chekitan S Dev, 2002. "Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(2), pages 223-242, June.
    5. Altinay, Levent & Brookes, Maureen & Madanoglu, Melih & Aktas, Gurhan, 2014. "Franchisees' trust in and satisfaction with franchise partnerships," Journal of Business Research, Elsevier, vol. 67(5), pages 722-728.
    6. Altinay, Levent & Brookes, Maureen & Aktas, Gurhan, 2013. "Selecting franchise partners: Tourism franchisee approaches, processes and criteria," Tourism Management, Elsevier, vol. 37(C), pages 176-185.
    7. Catherine L. Wang & Levent Altinay, 2008. "International franchise partner selection and chain performance through the lens of organisational learning," The Service Industries Journal, Taylor & Francis Journals, vol. 28(2), pages 225-238, March.
    8. Dant, Rajiv P. & Nasr, Nada I., 1998. "Control techniques and upward flow of information in franchising in distant markets: conceptualization and preliminary evidence," Journal of Business Venturing, Elsevier, vol. 13(1), pages 3-28, January.
    9. Karin Fladmoe-Lindquist & Laurent L. Jacque, 1995. "Control Modes in International Service Operations: The Propensity to Franchise," Management Science, INFORMS, vol. 41(7), pages 1238-1249, July.
    10. Francine Lafontaine, 2014. "Franchising: Directions for Future Research," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 21(1), pages 21-25, February.
    11. Jell-Ojobor, Maria & Windsperger, Josef, 2014. "The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model," Journal of International Management, Elsevier, vol. 20(2), pages 153-187.
    12. Canabal, Anne & White III, George O., 2008. "Entry mode research: Past and future," International Business Review, Elsevier, vol. 17(3), pages 267-284, June.
    13. Garg, Viany K. & Rasheed, Abdul A., 2003. "International multi-unit franchising: an agency theoretic explanation," International Business Review, Elsevier, vol. 12(3), pages 329-348, June.
    14. Dant, Rajiv P. & Grünhagen, Marko & Windsperger, Josef, 2011. "Franchising Research Frontiers for the Twenty-First Century," Journal of Retailing, Elsevier, vol. 87(3), pages 253-268.
    15. Cédric Durand & Neil Wrigley, 2009. "Institutional and Economic Determinants of Transnational Retailer Expansion and Performance: A Comparative Analysis of Wal-Mart and Carrefour," Environment and Planning A, , vol. 41(7), pages 1534-1555, July.
    16. Combs, James G. & Ketchen, David Jr. & Hoover, Vera L., 2004. "A strategic groups approach to the franchising-performance relationship," Journal of Business Venturing, Elsevier, vol. 19(6), pages 877-897, November.
    17. Arturs Kalnins, 2005. "Overestimation and Venture Survival: An Empirical Analysis of Development Commitments in International Master Franchising Ventures," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(4), pages 933-953, December.
    18. David G Sirmon & Peter J Lane, 2004. "A model of cultural differences and international alliance performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 306-319, July.
    19. Levent Altinay & Samantha Miles, 2006. "International franchising decision-making: An application of stakeholder theory," The Service Industries Journal, Taylor & Francis Journals, vol. 26(4), pages 421-436, June.
    20. Shane, Scott A., 1996. "Why franchise companies expand overseas," Journal of Business Venturing, Elsevier, vol. 11(2), pages 73-88, March.
    21. Michael, Steven C. & Moore, Hollie J., 1995. "Returns to franchising," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 133-155, October.
    22. Zhi Shen & Francisco Puig & Justin Paul, 2017. "Foreign Market Entry Mode Research: A Review and Research Agenda," The International Trade Journal, Taylor & Francis Journals, vol. 31(5), pages 429-456, October.
    23. Justin Paul & Gabriel R. G. Benito, 2018. "A review of research on outward foreign direct investment from emerging countries, including China: what do we know, how do we know and where should we be heading?," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(1), pages 90-115, January.
    24. Grace, Debra & Weaven, Scott & Frazer, Lorelle & Giddings, Jeff, 2013. "Examining the Role of Franchisee Normative Expectations in Relationship Evaluation," Journal of Retailing, Elsevier, vol. 89(2), pages 219-230.
    25. Rajiv P. Dant & Michael F. Price & Marko Grünhagen & Patrick J. Kaufmann & James R. Brown & Gérard Cliquet & Robert A. Robicheaux, 2012. "Chronicling the saga of 25 years of International Society of Franchising," Post-Print halshs-00762105, HAL.
    26. Kedia, Ben L. & Lahiri, Somnath, 2007. "International outsourcing of services: A partnership model," Journal of International Management, Elsevier, vol. 13(1), pages 22-37, March.
    27. Wu, Chih-Wen, 2015. "Antecedents of franchise strategy and performance," Journal of Business Research, Elsevier, vol. 68(7), pages 1581-1588.
    28. Williams, Darrell L., 1999. "Why do entrepreneurs become franchisees? an empirical analysis of organizational choice," Journal of Business Venturing, Elsevier, vol. 14(1), pages 103-124, January.
    29. James G. Combs & David J. Ketchen Jr & Jeremy C. Short, 2011. "Franchising Research: Major Milestones, New Directions, and its Future within Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 35(3), pages 413-425, May.
    30. Davies, Mark A.P. & Lassar, Walfried & Manolis, Chris & Prince, Melvin & Winsor, Robert D., 2011. "A model of trust and compliance in franchise relationships," Journal of Business Venturing, Elsevier, vol. 26(3), pages 321-340, May.
    31. Farok J Contractor & Sumit K Kundu, 1998. "Modal Choice in a World of Alliances: Analyzing Organizational Forms in the International Hotel Sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 325-356, June.
    32. Desislava Dikova & Keith Brouthers, 2016. "Erratum to: International Establishment Mode Choice: Past, Present and Future," Management International Review, Springer, vol. 56(5), pages 781-781, October.
    33. Petersen, Bent & Welch, Lawrence S., 2000. "International retailing operations: downstream entry and expansion via franchising," International Business Review, Elsevier, vol. 9(4), pages 479-496, August.
    34. Gassenheimer, Jule B. & Baucus, David B. & Baucus, Melissa S., 1996. "Cooperative arrangements among entrepreneurs: An analysis of opportunism and communication in franchise structures," Journal of Business Research, Elsevier, vol. 36(1), pages 67-79, May.
    35. Aliouche, E. Hachemi & Schlentrich, Udo A., 2011. "Towards a Strategic Model of Global Franchise Expansion," Journal of Retailing, Elsevier, vol. 87(3), pages 345-365.
    36. Fladmoe-Lindquist, Karin, 1996. "International franchising: Capabilities and development," Journal of Business Venturing, Elsevier, vol. 11(5), pages 419-438, September.
    37. Xiaoli Yin & Edward J. Zajac, 2004. "The strategy/governance structure fit relationship: theory and evidence in franchising arrangements," Strategic Management Journal, Wiley Blackwell, vol. 25(4), pages 365-383, April.
    38. Sea‐Jin Chang & Philip M. Rosenzweig, 2001. "The choice of entry mode in sequential foreign direct investment," Strategic Management Journal, Wiley Blackwell, vol. 22(8), pages 747-776, August.
    39. Doherty, Anne Marie, 2009. "Market and partner selection processes in international retail franchising," Journal of Business Research, Elsevier, vol. 62(5), pages 528-534, May.
    40. Blut, Markus & Backhaus, Christof & Heussler, Tobias & Woisetschläger, David M. & Evanschitzky, Heiner & Ahlert, Dieter, 2011. "What to Expect After the Honeymoon: Testing a Lifecycle Theory of Franchise Relationships," Journal of Retailing, Elsevier, vol. 87(3), pages 306-319.
    41. Juliet Cox & Colin Mason, 2009. "Franchise network restructuring: Pressures, constraints and mechanisms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(5-6), pages 503-527, September.
    42. Michael, Steven C., 2002. "Can a franchise chain coordinate?," Journal of Business Venturing, Elsevier, vol. 17(4), pages 325-341, July.
    43. Hoffman, Richard C. & Munemo, Jonathan & Watson, Sharon, 2016. "International Franchise Expansion: The Role of Institutions and Transaction Costs," Journal of International Management, Elsevier, vol. 22(2), pages 101-114.
    44. Dhruv Grewal & Gopalkrishnan R. Iyer & Rajshekhar (Raj) G. Javalgi & Lori Radulovich, 2011. "Franchise Partnership and International Expansion: A Conceptual Framework and Research Propositions," Entrepreneurship Theory and Practice, , vol. 35(3), pages 533-557, May.
    45. Rozenn Perrigot & Begona López-Fernández & S. Eroglu, 2013. "Intangible Resources and Plural Form as Drivers of Franchise Internationalization: Examination within a Two-Country Perspective," Post-Print halshs-00863396, HAL.
    46. Kaufmann, Patrick J. & Dant, Rajiv P., 1999. "Franchising and the domain of entrepreneurship research," Journal of Business Venturing, Elsevier, vol. 14(1), pages 5-16, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jell-Ojobor, Maria & Windsperger, Josef, 2014. "The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model," Journal of International Management, Elsevier, vol. 20(2), pages 153-187.
    2. Bretas, Vanessa P.G. & Alon, Ilan & Rocha, Thelma Valéria & Galetti, Jefferson R.B., 2021. "International governance mode choice: Evidence from Brazilian franchisors," Journal of International Management, Elsevier, vol. 27(2).
    3. Jell-Ojobor, Maria & Alon, Ilan & Windsperger, Josef, 2022. "The choice of master international franchising – A modified transaction cost model," International Business Review, Elsevier, vol. 31(2).
    4. S. Verbieren & M. Cools & A. Van den Abbeele, 2008. "Franchising. A Literature Review on Management and Control Issues," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 398-443.
    5. Ghantous, Nabil & Das, Shobha S. & Chameroy, Fabienne, 2018. "Governance capabilities and relationship performance in international franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 19-30.
    6. Begoña López-Fernández & Susana López-Bayón, 2018. "Antecedents of early terminations in franchising: franchisor versus franchisee cancelations," Small Business Economics, Springer, vol. 50(4), pages 677-695, April.
    7. Hsu, Liwu & Kaufmann, Patrick & Srinivasan, Shuba, 2017. "How Do Franchise Ownership Structure and Strategic Investment Emphasis Influence Stock Returns and Risks?," Journal of Retailing, Elsevier, vol. 93(3), pages 350-368.
    8. Boulay, Jacques & Caemmerer, Barbara & Evanschitzky, Heiner & Duniach, Krista, 2020. "Multi-unit franchising from franchisor and franchisee perspectives: Antecedents, performance outcomes, and the optimal mini-chain size," Journal of Business Research, Elsevier, vol. 113(C), pages 49-58.
    9. Perrigot, Rozenn & López-Fernández, Begoña & Basset, Guy, 2020. "“Conflict-performance assumption†or “performance-conflict assumption†: Insights from franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    10. Hadjielias, Elias & Dada, Olufunmilola (Lola) & Eliades, Kostas, 2021. "Entrepreneurial process in international multiunit franchise outlets: A social capital perspective," Journal of Business Research, Elsevier, vol. 134(C), pages 13-28.
    11. Dubey, Vivek K. & Matthes, Joseph M. & Saini, Amit, 2023. "Impact of socioeconomic values collaboration on performance in franchising," Journal of Business Research, Elsevier, vol. 162(C).
    12. Muriel Fadairo & Cintya Lanchimba & Josef Windsperger, 2015. "Network Form and Performance. The Case of Multi-Unit Franchising," Working Papers 1502, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    13. Muriel Fadairo & Cintya Lanchimba & Josef Windsperger, 2015. "Network Form and Performance. The Case of Multi-Unit Franchising," Working Papers halshs-01128075, HAL.
    14. James G. Combs & David J. Ketchen Jr & Jeremy C. Short, 2011. "Franchising Research: Major Milestones, New Directions, and its Future within Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 35(3), pages 413-425, May.
    15. Keith D. Brouthers & Liang Chen & Sali Li & Noman Shaheer, 2022. "Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2088-2115, December.
    16. Gillis, William E. & Combs, James G. & Yin, Xiaoli, 2020. "Franchise management capabilities and franchisor performance under alternative franchise ownership strategies," Journal of Business Venturing, Elsevier, vol. 35(1).
    17. Melo, Pedro Lucas de Resende & Borini, Felipe Mendes & Oliveira Junior, Moacir de Miranda & Parente, Ronaldo Couto, 2015. "Internacionalização das redes de franquias brasileiras: um estudo comparativo," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(3), May.
    18. Combs, James G. & Ketchen, David Jr. & Hoover, Vera L., 2004. "A strategic groups approach to the franchising-performance relationship," Journal of Business Venturing, Elsevier, vol. 19(6), pages 877-897, November.
    19. Gonzalez-Diaz, Manuel & Solis-Rodriguez, Vanesa, 2012. "Why do entrepreneurs use franchising as a financial tool? An agency explanation," Journal of Business Venturing, Elsevier, vol. 27(3), pages 325-341.
    20. Wu, Chih-Wen, 2015. "Antecedents of franchise strategy and performance," Journal of Business Research, Elsevier, vol. 68(7), pages 1581-1588.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:85:y:2018:i:c:p:238-257. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.