Verónica Baena

Modeling Global Franchising in Emerging Markets: An Entry Mode Analysis

Emerging markets are some of the fastest-growing economies in the world because of their substantial economic transformation. Nevertheless, little is known about the factors influencing choices of foreign entry mode into those markets. In an attempt to expand knowledge of this topic, this article presents an empirical assessment of the relationship between a set of variables and the four possible entry modes franchisors can adopt: direct franchising, master franchising, joint venture, and direct investments. Moreover, we controlled for two other aspects: the franchisors international experience, and the efficiency of contract enforcement in the host country.

Market conditions driving international franchising in emerging markets

Purpose – The purpose of this paper is to introduce a model that explores various possible determining factors in the rate of franchising among emerging nations. Emerging markets are some of the fastest growing economies in the world; moreover, the countries they represent are undergoing substantial economic transformations. Yet despite all this, little is known about the factors influencing country selection for expansion into these markets. In an attempt to enhance the knowledge that managers and scholars have on franchising expansion, the present study examines how market conditions may constrain diffusion of franchising into emerging markets. They are: geographical distance; cultural distance; uncertainty avoidance; individualism; political stability, and corruption. The author also controlled for gross domestic product, the efficiency of contract enforcement, and nascent entrepreneurship.Design/methodology/approach – This study uses a quantitative approach applied to a sample of 63 Spanish franchisor...

International franchise expansion of service chains: insights from the Spanish market

This paper attempts to identify the effects of several variables on the international expansion pursued by Spanish service franchise chains. These include: management and franchising experience, brand awareness, the international franchise ratio, and a franchisors size. Specifically, the study looks at 125 franchisors doing business in 44 foreign countries in late 2009. Findings allow us to conclude that management and franchising experience, together with brand awareness, the international franchise ratio and company size are significantly associated with (i) the number of countries where the chain has a presence; (ii) the number of operational outlets the franchisor has abroad, and (iii) the number of years the chain has been operating overseas.

The effect of corruption on global franchising in emerging markets

Although emerging markets are some of the fastest growing economies and represent countries that are experiencing a substantial economic transformation, little is known about the factors influencing choices of foreign entry mode in those markets. In an attempt to expand our knowledge of this topic, this paper presents an empirical assessment of the relationship between corruption and the four possible modes of entry that franchiser companies can adopt overseas: direct franchising, master franchising, joint venture and direct investments. Besides country corruption, other variables – political stability, per-capita income, cultural distance, geographical distance and international experience – were also controlled.

European franchise expansion into Latin America

Purpose – This study aims to enhance the knowledge that managers and scholars have on franchising expansion. In this sense, it is worth mentioning that although the body of literature on international management focusing on emerging markets is growing, the attention paid to the Latin American context continues to be limited. This is surprising given the substantive economic importance of the region with a population over 590 million, and a gross domestic product of approximately US

Online and mobile marketing strategies as drivers of brand love in sports teams

5 trillion. To cover this gap, the present study examines how a number of market conditions may drive diffusion of franchising into Latin America: geographical distance, cultural distance, political stability and economic development. The authors also controlled for the host country’s market potential, transparency, unemployment rate and efficiency of contract enforcement. Design/methodology/approach – This study uses a quantitative approach applied to a sample of 77 Spanish franchisors operating through 4,064 franchisee outlet...

Insights on International Franchising: Entry Mode Decision

Purpose – The purpose of this paper is to analyze the role of online and mobile marketing as drivers of brand love. Design/methodology/approach – Data were collected through an online survey during early 2013. A total of 241 valid answered questionnaires were collected and the constructs were tested for unidimensionality by using principal components analysis. Findings – This work confirms that in spite of the fact that players are relevant assets and investments, sports managers need to concentrate their efforts on managing the team’s brand, as this is one of the company’s most important assets. Moreover, the present paper shows that developing an interactive website is not enough to get brand love. In particular, findings reveal that traditional websites are no longer motivating customers to return to the site. As a result, sports managers need to use interactive marketing mediums to connect with consumers in real time. In addition, by integrating different elements of social media such as blogs, YouTub...

The key to carving out a high corporate reputation based on innovation: corporate social responsibility

ABSTRACT Despite the substantive importance of Latin America for foreign investors, the academic attention paid to this region continues to be limited. To cover this gap, this study examines how a number of franchise chain characteristics and market conditions may have an influence on the entry options that global franchisors have when seeking to expand their business in Latin America. Results conclude that the level of a hosts country uncertainty avoidance, masculinity, economic development, economic potential, corruption, and the efficiency of contract enforcement are all drivers of the entry mode. The franchisors international experience also determines the above choice.

International Franchising Decision-Making: A Model for Country Choice

Purpose – The purpose of this study is to analyze how corporate social responsibility (CSR) affects a firm’s value added. Specifically, through a combination of Stakeholder Theory and specific concept within the Innovation Theory framework (called Social Innovation Capital), this work explores the relation between effective stakeholder management and how marketable innovation production affects a company’s possibility of achieving a sustainable competitive advantage. By doing so, new insights on CSR management to gain competitive advantage are provided. Design/methodology/approach – The present study analyzes the role of a firm’s international presence, and the company’s social commitment initiatives as drivers of the enterprise’s corporate intangible assets. A company’s reputation has also been considered as a control variable. To achieve this goal, the Spanish market was analyzed. Specifically, those Spanish companies who had the highest reputation in the global reputation pulse and showed the highest l...

Investing time wisely: enhancing brand awareness through stakeholder engagement in the service sector

The present study examines how a number of market conditions may drive diffusion of franchising. It considers a sample of 63 Spanish franchisors operating through 2321 franchisee outlets across 20 different Latin American countries: Argentina, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay, and Venezuela in January 2011. Results conclude that geographical and cultural distance between the host and home country, as well as the level of the host countrys uncertainty avoidance, individualism, political stability, unemployment rate, market potential, and efficiency of contract enforcement, may drive the spread of international franchising. Results reinforce previous research on country choice as to the association between international franchising and the host countrys unemployment rate and cultural distance, but also identify differences from other regions in some issues such as political stability. Moreover, new insights relative to the effect of market potential, individualism, uncertainty avoidance, and the efficiency of contract enforcement on international franchise diffusion are also shown.