IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v22y2016i2p101-114.html
   My bibliography  Save this article

International Franchise Expansion: The Role of Institutions and Transaction Costs

Author

Listed:
  • Hoffman, Richard C.
  • Munemo, Jonathan
  • Watson, Sharon

Abstract

In this study, we examine how a country's institutional environment affects the international expansion activities of U.S. franchise companies. We draw on institutional and transaction cost theories to develop a model and a set of hypotheses regarding the effect of political, regulatory and infrastructural institutions, as well as economic instability, on international franchise expansion. Using a sample of U.S. franchise firms and data from a combination of secondary sources, we test these hypotheses by estimating a panel regression model. Our results demonstrate for the first time that, in addition to favorable political governance, a country's business climate, including entry regulations, taxes, and communications infrastructure, is an important predictor of foreign franchise firms' expansion into that country. Implications for practice and future research also are discussed.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:intman:v:22:y:2016:i:2:p:101-114
    DOI: 10.1016/j.intman.2016.01.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425316000041
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intman.2016.01.003?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. Christopher J. Coyne & Peter T. Leeson, 2004. "Read All About It! Understanding the Role of Media in Economic Development," Kyklos, Wiley Blackwell, vol. 57(1), pages 21-44, February.
    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. Russell S. Sobel & Nabamita Dutta & Sanjukta Roy, 2010. "Beyond Borders: Is Media Freedom Contagious?," Kyklos, Wiley Blackwell, vol. 63(1), pages 133-143, February.
    2. Peter T. Leeson & Andrea M. Dean, 2009. "The Democratic Domino Theory: An Empirical Investigation," American Journal of Political Science, John Wiley & Sons, vol. 53(3), pages 533-551, July.
    3. Sanjukta Roy, 2014. "Media development and political stability: an analysis of sub-saharan Africa," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(2), pages 255-273, April-Jun.
    4. Christopher J. Coyne & Peter T. Leeson, 2008. "How Do Rulers Choose? Dual Domains of Discretion in Political Decision Making," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(3), pages 727-743, September.
    5. Eiji Yamamura, 2012. "Effect of Free Media on Views Regarding Nuclear Energy after the Fukushima Accident," Kyklos, Wiley Blackwell, vol. 65(1), pages 132-141, February.
    6. Saltuk Ozerturk, 2018. "Choosing a media outlet when seeking public approval," Public Choice, Springer, vol. 174(1), pages 3-21, January.
    7. Christopher L. Ambrey & Christopher M. Fleming & Matthew Manning & Christine Smith, 2016. "On the Confluence of Freedom of the Press, Control of Corruption and Societal Welfare," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 859-880, September.
    8. Nabamita Dutta & Sanjukta Roy, 2009. "The Impact of Foreign Direct Investment on Press Freedom," Kyklos, Wiley Blackwell, vol. 62(2), pages 239-257, April.
    9. Alejandro Castañeda & César Martinelli, 2018. "Politics, entertainment and business: a multisided model of media," Public Choice, Springer, vol. 174(3), pages 239-256, March.
    10. Emanuele Teti & Alan Collins & John Sedgwick, 2014. "An offer they couldn't refuse (but probably should have): the ineffectiveness of Italian state subsidies to movie-making," Public Money & Management, Taylor & Francis Journals, vol. 34(3), pages 181-188, May.
    11. Christopher J. Coyne & Peter T. Leeson, 2009. "Media as a Mechanism of Institutional Change and Reinforcement," Kyklos, Wiley Blackwell, vol. 62(1), pages 1-14, February.
    12. Nabamita Dutta & Sanjukta Roy, 2013. "The changing face of culture: gauging the impact of a free media," European Journal of Law and Economics, Springer, vol. 36(1), pages 95-115, August.
    13. Johannes Bloh & Tom Broekel & Burcu Özgun & Rolf Sternberg, 2020. "New(s) data for entrepreneurship research? An innovative approach to use Big Data on media coverage," Small Business Economics, Springer, vol. 55(3), pages 673-694, October.
    14. Peter Leeson & Christopher Coyne, 2007. "The reformers’ dilemma: media, policy ownership, and reform," European Journal of Law and Economics, Springer, vol. 23(3), pages 237-250, June.
    15. Paul Aligica & Anthony Evans, 2009. "Thought experiments, counterfactuals and comparative analysis," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 22(3), pages 225-239, September.
    16. Jac C. Heckelman, 2010. "The Connection between Democratic Freedoms and Growth in Transition Economies," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(2), pages 121-146.
    17. Mohamed El Dahshan & Ahmed H. Tolba & Tamer Badreldin, 2012. "Enabling Entrepreneurship in Egypt: Toward a Sustainable Dynamic Model," Innovations: Technology, Governance, Globalization, MIT Press, vol. 7(2), pages 83-106, April.
    18. Jimmy Chan & Daniel Stone, 2013. "Media proliferation and partisan selective exposure," Public Choice, Springer, vol. 156(3), pages 467-490, September.
    19. Dutta, Nabamita & Roy, Sanjukta, 2008. "The Role of Foreign Direct Investment on Press Freedom," MPRA Paper 10185, University Library of Munich, Germany, revised 18 Jul 2008.
    20. Christopher Cunningham & Sel Dibooglu, 2020. "Engines of Growth in China: The Limits of Informal Institutions," Journal of Economic Issues, Taylor & Francis Journals, vol. 54(1), pages 252-275, January.

    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:intman:v:22:y:2016:i:2:p:101-114. 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/wps/find/journaldescription.cws_home/601266/description#description .

    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.