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Determinants of Monitoring Capabilities in International Franchising: Foodservice Firms within East Asia

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  • Stephen Choo

Abstract

This paper undertakes an exploratory study on determining capabilities of international franchising within East Asia. There is a need to develop a deeper understanding in franchising within East Asia as much of the franchising literature is based on the U.S. experience. Findings from this paper indicate that international franchisors use a combination of mechanisms to prevent franchisee opportunism in East Asia. They include ex-ante bonds, performance schedules and formal controls in brand management. However, the effectiveness of these mechanisms depend on the capabilities of the franchisor to negotiate a high initial franchise fee, select the right franchisee and make adaptation but still maintain brand integrity. Copyright Springer Science + Business Media, Inc. 2005

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  • Stephen Choo, 2005. "Determinants of Monitoring Capabilities in International Franchising: Foodservice Firms within East Asia," Asia Pacific Journal of Management, Springer, vol. 22(2), pages 159-177, June.
    • Handle: RePEc:kap:asiapa:v:22:y:2005:i:2:p:159-177
    DOI: 10.1007/s10490-005-1253-1
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    References listed on IDEAS

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    2. Jell-Ojobor, Maria & Windsperger, Josef, 2014. "The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model," Journal of International Management, Elsevier, vol. 20(2), pages 153-187.

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