Institutional Environments and the internationalization of franchise chains: the contrasting cases of North African countries
AbstractFranchising has become a dominant model of retailing in the Western world and is also developing in emerging countries, with the internationalization of franchisors. The paper is an attempt at explaining the significant differences in the development of franchise between Morocco, Algeria and Tunisia. Explanations can be found in the general institutional environment in these countries (country risk, capital export control) as well as in the governments' willingness to modernize the distribution structures and the specific institutional environment of franchising: franchising law, the development of federations that serve to legitimize franchise partners with resource providers, banks and prospective franchisees. The analytical framework is that of institutional theory (DiMaggio and Powell, 1983) that provides new insight on approaches based on economic efficiency (agency theory and the resource scarcity perspective). From an analysis of the documents in the major public databases in the three countries, supplemented with field research, we propose an analysis grid of the institutional environment specific to franchising. Our analysis grid is used to explain the contrasting development of franchises in the North African countries. This development is also explained through the institutional theories renewing the approaches based on economic efficiency (agency theory and the resource scarcity perspective).
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Bibliographic InfoPaper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-200.
Length: 34 pages
Date of creation: 28 Mar 2014
Date of revision:
Institutional environment; institutional theory; analysis grid; international expansion; Maghreb.;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-11 (All new papers)
- NEP-ARA-2014-04-11 (MENA - Middle East & North Africa)
- NEP-GER-2014-04-11 (German Papers)
- NEP-PKE-2014-04-11 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barthélemy, Jérôme, 2011. "Agency and institutional influences on franchising decisions," Journal of Business Venturing, Elsevier, vol. 26(1), pages 93-103, January.
- 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.
- 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.
- Odile Chanut & Nadjoua Gharbi & Dominique Bonet Fernandez & E. Hachemi Aliouche, 2013. "Institutional Environments and the Internationalization of Franchise Chains - The Contrasting Cases of Three North African Countries," Working Papers 2013-039, Department of Research, Ipag Business School.
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