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Examining strategic and economic development implications of globalising through franchising


  • Teegen, Hildy


This paper addresses the strategic and policy implications of franchise system expansion overseas. The study is based on survey data of 76 Mexican buyers of US franchise systems and information provided by seven directors of national franchise associations from both industrialised and developing countries. Globalisation, economic liberalisation and advances in communications provide strong incentives for franchising firms to seek access to foreign markets. This work delineates the conditions that favour, and that work against, international expansion of franchise networks from the perspective of franchisors, local franchise buyers and policy makers. The study questions the commonly held notion that franchising is consistent with successful firm strategies and the economic development goals of governments.

Suggested Citation

  • Teegen, Hildy, 2000. "Examining strategic and economic development implications of globalising through franchising," International Business Review, Elsevier, vol. 9(4), pages 497-521, August.
  • Handle: RePEc:eee:iburev:v:9:y:2000:i:4:p:497-521

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    References listed on IDEAS

    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. Mathewson, G Frank & Winter, Ralph A, 1985. "The Economics of Franchise Contracts," Journal of Law and Economics, University of Chicago Press, vol. 28(3), pages 503-526, October.
    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.
    4. Klenosky, David B. & Benet, Suzeanne B. & Chadraba, Petr, 1996. "Assessing Czech consumers' reactions to western marketing practices: A conjoint approach," Journal of Business Research, Elsevier, vol. 36(2), pages 189-198, June.
    5. Hoffman, Richard C. & Preble, John F., 1993. "Franchising into the twenty-first century," Business Horizons, Elsevier, vol. 36(6), pages 35-43.
    6. J J Boddewyn & Marsha Baldwin Halbrich & A C Perry, 1986. "Service Multinationals: Conceptualization, Measurement and Theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 41-57, September.
    7. James A. Brickley & Frederick H. Dark & Michael S. Weisbach, 1991. "An Agency Perspective on Franchising," Financial Management, Financial Management Association, vol. 20(1), Spring.
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    Cited by:

    1. Aleluia, João & Leitão, João, 2009. "International Entrepreneurship and Technology Transfer: The CDM´s Reality in China," MPRA Paper 16150, University Library of Munich, Germany.
    2. Liang, Hueimei & Lee, Kuo-Jung & Huang, Jen-Tsung & Lei, Hsien-Wei, 2013. "The optimal decisions in franchising under profit uncertainty," Economic Modelling, Elsevier, vol. 31(C), pages 128-137.


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