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The internationalization of retailing : factors influencing the choice of franchising as a market entry strategy

Published on May 1, 2007in International Journal of Service Industry Management
· DOI :10.1108/09564230710737826
Anne Marie Doherty18
Estimated H-index: 18
Abstract
Purpose – The purpose of this paper is to examine the factors that motivate international retail companies to choose franchising as a method for entering international markets.Design/methodology/approach – Employs a qualitative methodology and a multiple case study design. Six major UK‐based international fashion retailers form the empirical basis for the work.Findings – Finds the motivating influences to be a combination of both organisational and environmental factors. International retailing experience, availability of financial resources, presence of a franchisable retail brand, company restructuring and influence of key managers emerge as the organisational factors while environmental influences are revealed as opportunistic approaches, local market complexities, domestic competitive pressures and availability of potential franchise partners.Practical implications – Provides a useful source of information for those retail firms considering internationalization via the franchising method. Research is ...
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References57
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This paper fills a gap in the research undertaken into the role of intrapreneurs in the international franchise process of an organisation. The intrapreneurial role of organisational members in implementing franchising decisions in an international hotel group was investigated. Semi‐structured interviews, observations and document analysis were used as the data collection techniques. Findings suggest that human factors play an important role in the expansion process and, in a culturally diverse ...
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The relationship marketing paradigm has emerged as a major tool by which marketers may examine and conceptualise relationships with consumers, however its application to the business‐to‐business dimension of retailing has been largely neglected. The current work examines one particular aspect of business‐to‐business marketing: the franchisor‐franchisee relationship in the context of international fashion retailing. This relationship is examined in the light of the relationship marketing literatu...
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#1Christopher M. Moore (GCU: Glasgow Caledonian University)H-Index: 19
#2Grete Birtwistle (GCU: Glasgow Caledonian University)H-Index: 20
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Research that has considered the problems faced by internationalising retailers has tended to focus upon such dimensions as non‐conducive environmental conditions and inferior internal capability, rather than the conflicts that may arise from the partnerships that are formed in order to facilitate the internationalisation of retailer operations. This study seeks to re‐dress this research neglect and does so by focusing upon the fashion sector. The aim of this study is to identify the problems th...
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#1Richard C. Hoffman (SU: Salisbury University)H-Index: 20
#2John F. Preble (UD: University of Delaware)H-Index: 18
About a decade ago positive predictions were made regarding the international growth of franchising. This study was undertaken to examine the actual growth and development of franchising globally during the 1990s. Using survey and archival data findings regarding the state of franchising in 40 countries are presented. Franchising has met or exceeded the growth expectations, generating an average of $3.7 billion in annual sales in the nations investigated. However, considerable regional differenc...
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#1C.M. Sashi (FAU: Florida Atlantic University)H-Index: 1
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When is franchising the appropriate organizational form for implementing marketing strategy in global markets? In this paper we identify conditions under which franchising facilitates efficient transactions globally with the help of constructs from transaction cost analysis, agency theory, and franchising research in domestic contexts. Some bases for setting initial fees and royalty payments as well as the rationale for establishing master franchises are also explored. The advantages and limitat...
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Franchising has become a major driving force in the globalisation of service businesses. Likewise, international retailing has become an important feature of global distribution systems. This has been brought about through changing socio‐economic patterns, favourable political and cultural environments, and a shift from manufacturing to service based economies. Both developments have contributed to the globalisation of marketing activity. However, there remain fundamental conceptual inconsistenc...
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Uses the results of a mail survey to gain insights into international expansion of US retailers and their strategic thrusts. The findings indicate that important drivers of the retail internationalization process are related to four distinct retailer characteristics, i.e. retail‐specific advantages, dimensional factors, and to international market orientation of companies and their strategic management teams. However, neither the retail operating format nor the lack of domestic growth opportunit...
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Franchising is fast becoming one of the most popular entry mode strategies for international retail companies when moving into international markets. Academic research, however, has only recently begun to examine international franchising within the context of retailer internationalisation. A major gap in the literature is the nature of the international retail franchise relationship and, in particular, the mechanisms used to control and co‐ordinate the international franchise network. This pape...
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Abstract International franchising has been widely studied from the franchisor perspective, as it relates to why and how firms decide to expand by viewing it as a uni-directional perspective. With the increased volume of international franchising businesses, theory development that considers multidimensional elements such as distance, trust and its effects on franchise relationship and the system’s performance is needed. The purpose of this paper is to develop a conceptual model on international...
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Abstract Albeit scholars have conducted international franchising research for over two decades, our understanding of the antecedents and outcomes of this particular type of internationalization is still limited. In this article, we systematically review the literature related to international franchising and create a road map of extant knowledge. Through this review, we seek to provide a greater understanding of the use of theories, methodologies, and the emergent phenomenon of international fr...
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