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Franchising In Macedonia – Opportunities And Threats

Author

Listed:
  • Erceg, Aleksandar

    (Josip Juraj Strossmayer University of Osijek, Faculty of Economics in Osijek, Croatia)

  • Boškovska, Vera

    (University of Tourism and Management in Skopje, Republic of North Macedonia.)

Abstract

Franchising as a business model is present in the global economy in the current form from the 1950-ties and from the moment Ray Kroc started with McDonald's franchising system. Worldwide, this business model has proven itself an excellent way to grow and geographic expansion of the business. Many different and famous companies are using franchising to grow their business, but since the 1990-ties franchising has been part of the western and developed world. Franchising in Macedonia is present since the beginning of 1990-ties and starting the market economy and its independence. But although there are some movements, franchising as a way of growing business and creating new ventures did not develop in Macedonia. Thus, the paper aims to understand this situation's reason and identify opportunities and threats franchising in Macedonia face. The first part of the paper gives a literature review on franchising and research on franchising in Macedonia. In the second part of the paper, a current franchising situation in Macedonia is provided. In the third part, empirical research is presented. The study investigated the measurement of perceptions about the perspectives of the development of franchising in Macedonia. Short empirical survey results were compared with similar research conducted in Croatia in 2006 (Alon, Alpeza and Erceg, 2007) and 2014 (Alpeza, Erceg and Oberman Peterka, 2015). The research results were presented in the form of a PEST analysis. Finally, in the last section, conclusions and the proposals for further research are given.

Suggested Citation

  • Erceg, Aleksandar & Boškovska, Vera, 2020. "Franchising In Macedonia – Opportunities And Threats," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 11(2), pages 171-182.
    • Handle: RePEc:ris:utmsje:0295
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    References listed on IDEAS

    as
    1. Norton, Seth W, 1988. "An Empirical Look at Franchising as an Organizational Form," The Journal of Business, University of Chicago Press, vol. 61(2), pages 197-218, April.
    2. Blair,Roger D. & Lafontaine,Francine, 2011. "The Economics of Franchising," Cambridge Books, Cambridge University Press, number 9780521775892, January.
    3. Dant, Rajiv P. & Grünhagen, Marko & Windsperger, Josef, 2011. "Franchising Research Frontiers for the Twenty-First Century," Journal of Retailing, Elsevier, vol. 87(3), pages 253-268.
    4. Francine Lafontaine, 1992. "Agency Theory and Franchising: Some Empirical Results," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 263-283, Summer.
    5. Michael, Steven C., 2000. "The effect of organizational form on quality: the case of franchising," Journal of Economic Behavior & Organization, Elsevier, vol. 43(3), pages 295-318, November.
    6. Kidwell, Roland E. & Nygaard, Arne & Silkoset, Ragnhild, 2007. "Antecedents and effects of free riding in the franchisor-franchisee relationship," Journal of Business Venturing, Elsevier, vol. 22(4), pages 522-544, July.
    7. Nada Mumdžiev & Josef Windsperger, 2011. "The Structure of Decision Rights in Franchising Networks: A Property Rights Perspective," Entrepreneurship Theory and Practice, , vol. 35(3), pages 449-465, May.
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    More about this item

    Keywords

    franchising; business model; growth opportunities; Macedonia;
    All these keywords.

    JEL classification:

    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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