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Should I stay or should I go? Geographic Entrepreneurial Choices in Brazilian Franchising

Author

Listed:
  • Eugênio José Silva Bitti

    (USP - Universidade de São Paulo = University of São Paulo)

  • Muriel Fadairo

    (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

  • Cintya Lanchimba

    (Escuela Politécnica Nacional, Quito)

  • Vivian-Lara Silva

    (USP - Universidade de São Paulo = University of São Paulo)

Abstract

In the broad empirical literature on franchising, performance outcomes of location decisions appear to be a largely forgotten issue. Yet franchising represents a rich context to study the impact of geographic entrepreneurial choices. Addressing this "blank spot" in the literature, we deal with the following question: Is it better for a chain to stay in the same geographic area, or to expand via distant franchised units? Our econometric estimations on new and unique Brazilian panel data show that spatial agglomeration of chain outlets leads to higher performance, suggesting that agglomeration gains outweigh cannibalization and spatial monopoly effects.

Suggested Citation

  • Eugênio José Silva Bitti & Muriel Fadairo & Cintya Lanchimba & Vivian-Lara Silva, 2019. "Should I stay or should I go? Geographic Entrepreneurial Choices in Brazilian Franchising," Post-Print halshs-01886971, HAL.
    • Handle: RePEc:hal:journl:halshs-01886971
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01886971
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    Cited by:

    1. Lanchimba, Cintya & Welsh, Dianne H.B. & Fadairo, Muriel & Silva, Vivian-Lara D.S., 2021. "The impact of franchisor signaling on entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 131(C), pages 337-348.

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