About this Journal Submit a Manuscript Table of Contents
ISRN Economics
Volume 2012 (2012), Article ID 293478, 8 pages
http://dx.doi.org/10.5402/2012/293478
Research Article

Master Franchising as Foreign Entry Mode: Evidences from the Spanish Franchise System

Department of Business Administration, European University of Madrid, Calle Tajo, s/n Urb. El Bosque, Villaviciosa de Odón, 28670 Madrid, Spain

Received 25 April 2012; Accepted 13 August 2012

Academic Editors: B. Junquera, J. Menon, and M. D. Ramirez

Copyright © 2012 Veronica Baena. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Linked References

  1. S. J. Chang and P. M. Rosenzweig, “The choice of entry mode in sequential foreign direct investment,” Strategic Management Journal, vol. 22, no. 8, pp. 747–776, 2001. View at Publisher · View at Google Scholar · View at Scopus
  2. P. Herrmann and D. K. Datta, “CEO successor characteristics and the choice of foreign market entry mode: an empirical study,” Journal of International Business Studies, vol. 33, no. 3, pp. 551–569, 2002. View at Google Scholar · View at Scopus
  3. I. Alon, “Executive insight, evaluating the market size for service franchising in emerging markets,” International Journal of Emerging Markets, vol. 1, pp. 9–20, 2006. View at Google Scholar
  4. Y. C. Chiao, F. Y. Lo, and C. M. Yu, “Choosing between wholly-owned subsidiaries and joint ventures of MNCs from an emerging market,” International Marketing Review, vol. 27, no. 3, pp. 338–365, 2010. View at Publisher · View at Google Scholar · View at Scopus
  5. C. M. Moore, A. M. Doherty, and S. A. Doyle, “Flagship stores as a market entry method: the perspective of luxury fashion retailing,” European Journal of Marketing, vol. 44, no. 1-2, pp. 139–161, 2010. View at Publisher · View at Google Scholar · View at Scopus
  6. R. Khemakhem, “Explaining the entry mode choice among Tunisian exporting firms: development and test of an integrated model,” European Journal of Marketing, vol. 44, no. 1-2, pp. 223–244, 2010. View at Publisher · View at Google Scholar · View at Scopus
  7. V. Baena, “Modeling global franchising in emerging markets: an entry mode analysis,” Journal of East-West Business, vol. 15, no. 3-4, pp. 164–188, 2009. View at Publisher · View at Google Scholar · View at Scopus
  8. T. Vaishnav and L. Altinay, “The franchise partner selection process and implications for India,” Worldwide Hospitality and Tourism Themes, vol. 1, no. 1, pp. 52–65, 2009. View at Google Scholar
  9. S. Choo, T. Mazzarol, and G. Soutar, “The selection of international retail franchisees in East Asia,” Asia Pacific Journal of Marketing and Logistics, vol. 19, no. 4, pp. 380–397, 2007. View at Google Scholar
  10. F. J. Contractor and S. K. Kundu, “Modal choice in a world of alliances: analyzing organizational forms in the international hotel sector,” Journal of International Business Studies, vol. 29, no. 2, pp. 325–358, 1998. View at Google Scholar · View at Scopus
  11. I. Alon, Franchising Globally, Palgrave MacMillan, New York, NY, USA, 2010.
  12. V. Baena, “Market conditions driving international franchising in emerging countries,” International Journal of Emerging Markets, vol. 7, no. 1, pp. 49–71, 2012. View at Google Scholar
  13. B. Quinn and A. M. Doherty, “Power and control in international retail franchising: evidence from theory and practice,” International Marketing Review, vol. 17, no. 4-5, pp. 354–372, 2000. View at Google Scholar · View at Scopus
  14. A. M. Doherty, “The internationalization of retailing: factors influencing the choice of franchising as a market entry strategy,” International Journal of Service Industry Management, vol. 18, no. 2, pp. 184–205, 2007. View at Publisher · View at Google Scholar · View at Scopus
  15. I. Alon and D. McKee, “Towards a macro environmental model of international franchising,” Multinational Business Review, vol. 7, pp. 76–82, 1999. View at Google Scholar
  16. B. Elango, “Are franchisors with international operations different from those who are domestic market oriented?” Journal of Small Business Management, vol. 45, no. 2, pp. 179–193, 2007. View at Publisher · View at Google Scholar · View at Scopus
  17. V. Baena, “The effect of corruption on global franchising in emerging markets,” International Journal of Business and Emerging Market, vol. 3, no. 1, pp. 57–74, 2011. View at Google Scholar
  18. S. C. Peng and R. T. Justis, “Franchise management in East Asia,” The Academy of Management Perspectives, vol. 4, no. 2, pp. 75–85, 1990. View at Google Scholar
  19. P. Deng, “Determinants of full-control mode in China, an integrative approach,” American Business Review, vol. 21, no. 1, pp. 113–123, 2003. View at Google Scholar
  20. V. Sharma and M. Erramilli, “Resource-based explanation of entry mode choice,” Journal of Marketing Theory and Practice, vol. 12, pp. 1–18, 2004. View at Google Scholar
  21. O. E. Williamson, Economic Institutions of Capitalism, Free Press, New York, NY, USA, 1985.
  22. J. F. Puck, D. Holtbrügge, and A. T. Mohr, “Beyond entry mode choice: explaining the conversion of joint ventures into wholly owned subsidiaries in the People's Republic of China,” Journal of International Business Studies, vol. 40, no. 3, pp. 388–404, 2009. View at Publisher · View at Google Scholar · View at Scopus
  23. O. E. Williamson, Markets and Hierarchies, Analysis and Antitrust Implications, Free Press, New York, NY, USA, 1975.
  24. E. H. Aliouche and U. A. Schlentrich, “Towards a strategic model of global franchise expansion,” Journal of Retailing, vol. 87, no. 3, pp. 345–365, 2011. View at Publisher · View at Google Scholar · View at Scopus
  25. Y. R. Chen, C. Yang, S. M. Hsu, and Y. D. Wang, “Entry mode choice in China's regional distribution markets: institution vs. transaction costs perspectives,” Industrial Marketing Management, vol. 38, no. 7, pp. 702–713, 2009. View at Publisher · View at Google Scholar · View at Scopus
  26. D. H. B. Welsh, I. Alon, and C. M. Falbe, “An examination of international retail franchising in emerging markets,” Journal of Small Business Management, vol. 44, no. 1, pp. 130–149, 2006. View at Publisher · View at Google Scholar · View at Scopus
  27. C. M. Sashi and D. P. Karuppur, “Franchising in global markets: towards a conceptual framework,” International Marketing Review, vol. 19, no. 5, pp. 499–524, 2002. View at Publisher · View at Google Scholar · View at Scopus
  28. S. Eroglu, “The internationalisation process of franchise systems, a conceptual model,” International Marketing Review, vol. 9, pp. 19–30, 1992. View at Google Scholar
  29. S. A. Shane, “Why franchise companies expand overseas,” Journal of Business Venturing, vol. 11, no. 2, pp. 73–88, 1996. View at Publisher · View at Google Scholar · View at Scopus
  30. D. Dow and J. Larimo, “Challenging the conceptualization and measurement of distance and international experience in entry mode choice research,” Journal of International Marketing, vol. 17, no. 2, pp. 74–98, 2009. View at Publisher · View at Google Scholar · View at Scopus
  31. S. Agarwal and S. N. Ramaswami, “Choice of foreign market entry mode, Impact of ownership, location, and internalization factors,” Journal of International Business Studies, vol. 23, pp. 1–27, 1992. View at Google Scholar
  32. B. S. Javorcik and S. J. Wei, “Corruption and cross-border investment in emerging markets: firm-level evidence,” Journal of International Money and Finance, vol. 28, no. 4, pp. 605–624, 2009. View at Publisher · View at Google Scholar · View at Scopus
  33. N. M. Jensen, Q. Li, and A. Rahman, “Understanding corruption and firm responses in cross-national firm-level surveys,” Journal of International Business Studies, vol. 41, no. 9, pp. 1481–1504, 2010. View at Publisher · View at Google Scholar · View at Scopus
  34. L. E. Brouthers, Y. Gao, and J. P. McNicol, “Corruption and market attractiveness influences on different types of FDI,” Strategic Management Journal, vol. 9, no. 6, pp. 673–680, 2008. View at Google Scholar
  35. M. Habib and L. Zurawicki, “Corruption and foreign direct investment,” Journal of International Business Studies, vol. 33, no. 2, pp. 291–307, 2002. View at Google Scholar · View at Scopus
  36. S. H. Rahman, “International market selection process, an investigation of the relevant of business operating environment,” Journal of International Business Research, vol. 5, no. 1, pp. 73–86, 2006. View at Google Scholar
  37. M. Tétrault, “Economic conditions: doing business in the Middle East: politics and economic crisis in Jordan and Kuwait,” The Middle East Journal, vol. 59, no. 2, pp. 323–324, 2005. View at Google Scholar
  38. G. Hofstede, Culture's Consequences, Comparing Values, Behaviours, Institutions, and Organizations Across Nations, Sage Publications, Thousand Oaks, Calif, USA, 2001.
  39. G. Hofstede, Culture’s Consequences, International Differences in Work-Related Values, Sage Publications, Beverly Hills, Calif, USA, 1980.
  40. B. Kogut and H. Singh, “The effect of national culture on the choice of entry mode2,” Journal of International Business Studies, vol. 19, no. 4, pp. 411–432, 1988. View at Google Scholar
  41. A. H. L. Slangen and R. J. M. van Tulder, “Cultural distance, political risk, or governance quality? Towards a more accurate conceptualization and measurement of external uncertainty in foreign entry mode research,” International Business Review, vol. 18, no. 3, pp. 276–291, 2009. View at Publisher · View at Google Scholar · View at Scopus
  42. M. Yamin and S. Golesorkhi, “Cultural distance and the pattern of equity ownership structure in international joint ventures,” International Business Review, vol. 19, no. 5, pp. 457–467, 2010. View at Publisher · View at Google Scholar · View at Scopus
  43. R. Hoffman and J. Preble, “Global diffusion of franchising, A country level examination,” Multinational Business Review, vol. 9, pp. 66–75, 2001. View at Google Scholar
  44. N. Alexander, M. Rhodes, and H. Myers, “International market selection: measuring actions instead of intentions,” Journal of Services Marketing, vol. 21, no. 6, pp. 424–434, 2006. View at Google Scholar
  45. S. Djankov, R. La Porta, F. Lopez-de-Silanes, and A. Shleifer, “Courts,” Quarterly Journal of Economics, vol. 118, no. 2, pp. 453–517, 2003. View at Publisher · View at Google Scholar · View at Scopus
  46. D. Welsh and I. Alon, International Franchising in Emerging Markets, Central and Eastern Europe and Latin America, CCH, Chicago, Ill, USA, 2001.
  47. H. G. Barkema and F. Vermeulen, “International expansion through start-up or acquisitions: A learning perspective,” Academy of Management Journal, vol. 41, pp. 7–26, 1998. View at Google Scholar