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Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome

Author

Listed:
  • Eugenio Jose Silva Bitti

    () (School of Economics, Business Administration and Accounting, University of São Paulo, Brazil)

  • Muriel Fadairo

    () (Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France)

  • Cintya Lanchimba

    () (Escuela Politécnica Nacional, Ecuador, Ladron de Guevera E11-253, Quito 170517, Ecuador)

  • Vivian-Lara Silva

    () (Center for Organization Studies (CORS), University of São Paulo (USP), Brazil)

Abstract

This empirical article deals with the location strategy and performance outcomes of franchised chains in Brazil. Brazilian franchising has experienced vertiginous process of expansion in recent years, being present in different regions of this country of continental size, including the most remote and less developed. Based on the background literature in economics and management regarding location choices and spatial competition in retailing, we use a new and unique dataset to distinguish several behavior categories in spatial strategies of franchising chains in Brazil, via a two-step cluster analysis. The performance outcomes are then studied with econometric estimations on panel data. Our results provide evidence that the choice for agglomeration, and the location in areas with a high population and a high human development index, lead to higher chain performances.

Suggested Citation

  • Eugenio Jose Silva Bitti & Muriel Fadairo & Cintya Lanchimba & Vivian-Lara Silva, 2016. "Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome," Working Papers 1614, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
  • Handle: RePEc:gat:wpaper:1614
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Franchising; Location Strategy; Spatial Competition; Emerging Market; Panel Data;

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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