IDEAS home Printed from https://ideas.repec.org/a/ids/ijbglo/v20y2018i4p457-478.html
   My bibliography  Save this article

The effect of franchisor characteristics and host country features on the foreign entry mode. Lessons from the Spanish franchise system lessons from the Spanish franchise system

Author

Listed:
  • Verónica Baena

Abstract

Franchisors have many options when seeking to expand their business into foreign countries. Specifically, they can enter new markets via one of four different ways: 1) direct franchising; 2) master franchisor; 3) equity joint venture; 4) direct investments. This paper aims to analyse the factors that determine this entry mode decision. To achieve this goal, transaction cost theory is used to explain the entry mode choice phenomenon, by using a franchisor and host country level perspective. Additionally, a quantitative approach was applied to a sample of 43 Spanish chains operating 2,532 outlets across 62 foreign nations. The results show that foreign entry mode choice is driven by franchisor characteristics such as international experience, brand awareness, and industry type (product versus service), in conjunction with host country features including geographical distance, uncertainty avoidance, masculinity, political stability, economic development, unemployment rate and efficiency of contract enforcement.

Suggested Citation

  • Verónica Baena, 2018. "The effect of franchisor characteristics and host country features on the foreign entry mode. Lessons from the Spanish franchise system lessons from the Spanish franchise system," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 20(4), pages 457-478.
    • Handle: RePEc:ids:ijbglo:v:20:y:2018:i:4:p:457-478
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=93579
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jell-Ojobor, Maria & Hajdini, Ilir & Windsperger, Josef, 2022. "Governance of international franchise networks: Combining value creation and value appropriation perspectives," Journal of Business Research, Elsevier, vol. 139(C), pages 267-279.
    2. Jell-Ojobor, Maria & Alon, Ilan & Windsperger, Josef, 2022. "The choice of master international franchising – A modified transaction cost model," International Business Review, Elsevier, vol. 31(2).

    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:ids:ijbglo:v:20:y:2018:i:4:p:457-478. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=245 .

    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.