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Institutional Environments and the internationalization of franchise chains: the contrasting cases of North African countries

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Author Info

  • Odile CHANUT
  • Nadjoua GHARBI
  • Dominique BONET FERNANDEZ

Abstract

Franchising 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 Info

Paper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-200.

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Length: 34 pages
Date of creation: 28 Mar 2014
Date of revision:
Handle: RePEc:ipg:wpaper:2014-200

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Related research

Keywords: Institutional environment; institutional theory; analysis grid; international expansion; Maghreb.;

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References

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  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. Barthélemy, Jérôme, 2011. "Agency and institutional influences on franchising decisions," Journal of Business Venturing, Elsevier, vol. 26(1), pages 93-103, January.
  3. 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.
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Cited by:
  1. Emilie Roger & Agnès Lancini & Dominique Bonet Fernandez, 2014. "Le contrôle de la gestion des connaissances d’un fournisseur stratégique : une perspective relationnelle," Working Papers 2014-400, Department of Research, Ipag Business School.
  2. Carole Poirel & Virginie Noireaux, 2014. "Collective strategies in the distribution channel : The case of industrial waste in France," Working Papers 2014-372, Department of Research, Ipag Business School.
  3. Carole Poirel & Virginie Noireaux, 2014. "Comment les PME peuvent-elles s’allier pour se faire entendre de leurs fournisseurs ? Une approche par les stratégies collectives," Working Papers 2014-359, Department of Research, Ipag Business School.
  4. 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.
  5. Carole Poirel, 2014. "Equilibre et déséquilibre dans le canal de distribution : Les apports du concept de résistance," Working Papers 2014-373, Department of Research, Ipag Business School.
  6. Virginie Noireaux & Carole Poirel, 2014. "Stratégies collectives et contrepouvoir : diversité des formes et impact sur la performance. L’exemple de la gestion des déchets industriels," Working Papers 2014-370, Department of Research, Ipag Business School.

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