Title

U.S.-Based Fast-Food Restaurants: Factors Influencing The International Expansion Of Franchise Systems

Keywords

Bonding; Firm characteristics; International franchising expansion; Nonlinear; Opportunism

Abstract

Studies of international franchising are scant but increasing and can be divided into two streams of research: those focusing on environmental predictors of internationalization and those focusing on strategic, firm-level characteristics. Examining the latter category, this study empirically explores a set of firm-level attributes as predictors of decision making on whether firms seek international expansion. Using longitudinal data from Bond's Franchise Guide 2001-2008, we draw on a sample of U.S.-based fast-food franchise systems to test our hypotheses. Specifically, our database is composed of 1,058 observations of 158 chains, and we estimate a semi-parametric logistic model for international franchising. The model contributes to the literature by being the first to examine the nonlinearity of international franchising determinants using agency theory. The results show that (a) bonding, (b) the percentage of franchised units, (c) the number of states within which the system operates, and (d) the provision of area development agreements and sub-franchising significantly contribute to the international expansion of U.S.-based fast-food franchisors. © Taylor & Francis Group, LLC.

Publication Date

10-19-2010

Publication Title

Journal of Marketing Channels

Volume

17

Issue

4

Number of Pages

339-359

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1080/1046669X.2010.512861

Socpus ID

77957887796 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/77957887796

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