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Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome

Author

Listed:
  • Eugenio Jose Silva Bitti

    (USP - Universidade de São Paulo = University of São Paulo)

  • Muriel Fadairo

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Cintya Lanchimba

    (Escuela Politécnica Nacional, Quito)

  • Vivian-Lara Silva

    (USP - Universidade de São Paulo = University of São Paulo)

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," Post-Print halshs-01438197, HAL.
    • Handle: RePEc:hal:journl:halshs-01438197
    as

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