Examining strategic and economic development implications of globalising through franchising |
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| Institution: | 1. School of Architecture, Harbin Institute of Technology, Heilongjiang Cold Region Architectual Science Key Laboratory, Harbin 150001, China;2. School of Architecture, Harbin Institute of Technology, Heilongjiang Cold Region Architectual Science Key Laboratory, Harbin 150001, China;1. INCAE Business School, Campus Francisco de Sola, Nicaragua;2. INCAE Business School, Campus Walter Kissling Gam, Costa Rica;3. IE University, Madrid, Spain;1. Department of Marketing, McCoy College of Business Administration, Texas State University, San Marcos, TX 78666-4616, United States;2. Department of Marketing, Silla University, South Korea |
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| Abstract: | This paper addresses the strategic and policy implications of franchise system expansion overseas. The study is based on survey data of 76 Mexican buyers of US franchise systems and information provided by seven directors of national franchise associations from both industrialised and developing countries. Globalisation, economic liberalisation and advances in communications provide strong incentives for franchising firms to seek access to foreign markets. This work delineates the conditions that favour, and that work against, international expansion of franchise networks from the perspective of franchisors, local franchise buyers and policy makers. The study questions the commonly held notion that franchising is consistent with successful firm strategies and the economic development goals of governments. |
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