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Intangible Resources and Plural Form as Drivers of Franchise Internationalization: Examination within a Two-Country Perspective

Author

Listed:
  • Rozenn Perrigot

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Begona López-Fernández

    (Facultad de Economía y Empresa - University of Oviedo)

  • S. Eroglu

    (Robinson College of Business - Georgia State University - USG - University System of Georgia)

Abstract

This study focuses on drivers of franchise network internationalization, namely, intangible resources and plural form. Intangible resources refer to those that the franchisor acquires over time and are deemed instrumental to firm success, namely, brand name, monitoring, and know-how transfer abilities. Plural form refers to the coexistence of franchised outlets and company-owned outlets within the same network. The empirical study involves 853 U.S. and French networks. Findings indicate that the percentage of Company-owned outlets in international networks is lower than that in purely domestic networks, and this holds for both the combined data sample (United States and France) and the U.S. sample on its own. Moreover, U.S. franchisors are shown to be much more internationalized, with a smaller percentage of company-owned outlets than their French counterparts. The intangible resource that most strongly affects franchise internationalization is brand-name recognition, whereas there is partial support for the impact of two other intangible resources, namely, monitoring and know-how transfer ability. The results of the logistic regression models underscore the importance of intangible resources in franchise network internationalization as well as the significant and negative impact of percentage of company-owned outlets. Finally, the drivers of internationalization are not found to be statistically different between both countries.

Suggested Citation

  • Rozenn Perrigot & Begona López-Fernández & S. Eroglu, 2013. "Intangible Resources and Plural Form as Drivers of Franchise Internationalization: Examination within a Two-Country Perspective," Post-Print halshs-00863396, HAL.
    • Handle: RePEc:hal:journl:halshs-00863396
    DOI: 10.1111/jsbm.12006
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    Citations

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    Cited by:

    1. López-Fernández, Begoña & Perrigot, Rozenn, 2018. "Using Websites to Recruit Franchisee Candidates," Journal of Interactive Marketing, Elsevier, vol. 42(C), pages 80-94.
    2. Thierry Pénard & Rozenn Perrigot, 2015. "Search Online – Purchase Online in Franchising: An Empirical Analysis of Franchisor Website Functionality," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201517, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    3. Karine Picot-Coupey & Steve L. Burt & Gérard Cliquet, 2014. "Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories," Post-Print halshs-01075645, HAL.
    4. Rosado-Serrano, Alexander & Paul, Justin & Dikova, Desislava, 2018. "International franchising: A literature review and research agenda," Journal of Business Research, Elsevier, vol. 85(C), pages 238-257.
    5. Pénard, Thierry & Perrigot, Rozenn, 2017. "Online search – Online purchase in franchising: An empirical analysis of franchisor website functionality," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 164-172.
    6. Ghantous, Nabil & Das, Shobha S. & Chameroy, Fabienne, 2018. "Governance capabilities and relationship performance in international franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 19-30.
    7. Bretas, Vanessa P.G. & Alon, Ilan & Rocha, Thelma Valéria & Galetti, Jefferson R.B., 2021. "International governance mode choice: Evidence from Brazilian franchisors," Journal of International Management, Elsevier, vol. 27(2).
    8. Picot-Coupey, Karine & Burt, Steve L. & Cliquet, Gérard, 2014. "Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 976-991.
    9. Kacker, Manish & Perrigot, Rozenn, 2016. "Retailer use of a professional social media network: Insights from franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 222-233.
    10. Kretinin, Andrey & Anokhin, Sergey & Wincent, Joakim, 2020. "Exploring the antecedents of franchise internationalization," Journal of Business Research, Elsevier, vol. 112(C), pages 422-430.

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