Skip to main content

Internationalization of Franchising

  • Chapter
Franchising Globally

Abstract

In the U.S. economy, the service sector has witnessed a tremendous growth in the past several decades, and the hospitality industry is one of the major components of this fast growth (Ketchen et al 2006). Different to most of the other service sectors, the hotel industry is usually capital intensive and its logistics and supply chain can be as complex as those of manufacturing operations (Chen and Dimou, 2005). For hotel companies, this can be a great obstacle to equity-based expansion models in various markets, particularly in the international market. This also raises the issue of the importance of the internationalization process through franchising for hotel companies.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Alon, I. (1999). The Internationalization of US Franchising Systems. New York: Garland Publishing.

    Google Scholar 

  • Alon, Ilan (2005). Service Franchising: A Global Perspective, New York: Springer.

    Google Scholar 

  • Alon, I., and D. McKee (1999a). “The Internationalization of Professional Business Service Franchises,” Journal of Consumer Marketing 6(1), 74–85.

    Article  Google Scholar 

  • Alon, Ilan, and D. McKee (1999b). “Towards a Macro Environmental Model of International Franchising,” Multinational Business Review7 (1), 76–82.

    Google Scholar 

  • Alon, I., R. Perrigot, and G. Cliquet (2004). “The Internationalization of French and American Franchisors in the Hotel Sector,” Sasin Journal of Management 10, 4–18.

    Google Scholar 

  • Altinay, L. (2003). “How Will Growth Be Financed by the International Hotel Companies?” International Journal of Contemporary Hospitality Management 15 (5), 274–82.

    Article  Google Scholar 

  • Altinay, L. (2007). “The Internationalization of Hospitality Firms: Factors Influencing a Franchise Decision-making Process,” Journal of Service Marketing 21 (6), 398–409.

    Article  Google Scholar 

  • Aydin, N., and M. Kacker (1990). “International Outlook on US-Based Franchisors,” International Marketing Review 7 (2), 206–19.

    Article  Google Scholar 

  • Azevedo, P., and V. Silva (2001). “Contractual Mix Analysis in the Brazilain Franchising,” Proceedings of the 5th Annual Meeting of the International Society of New Institutional Economics, Berkley, USA: 13–15.

    Google Scholar 

  • Baker, Brent L., and Rajiv P. Dant (2008). “Stable Plural Forms in Franchise Systems: An Examination of the Evolution of Ownership Redirection Research,” in George W.J. Hendrikse, Mika Tuunanen, Josef Windsperger, and Gerard Cliquet, Eds. Strategy and Governance of Networks: Cooperatives, Franchising and Strategic Alliances. Heidelberg: Physica-Verlag, a Springer Company, 87–112.

    Chapter  Google Scholar 

  • Brickley, J.A., and F.H. Dark (1987. “The Choice of Organizational Form. The case of Franchising,” Journal of Financial Economics 18, 401–420.

    Article  Google Scholar 

  • Burton, F.N., and A.R. Cross (1995). “Franchising and Foreign Market Entry,” in S. J. Paliwoda and J. K. Ryans, Eds., International Marketing Reader. London: Routledge, 35–48.

    Google Scholar 

  • Chen, J., and I. Dimou (2005). “Expansion Strategy of International Hotel Firms,” Journal of Business Research, 58, 1730–40.

    Article  Google Scholar 

  • Cho, M. (2005). “Transaction Costs Influencing International Hotel Franchise Agreements: The Case of the Holiday Inn Seoul,” Journal of Vacation Marketing 11 (2), 121.

    Article  Google Scholar 

  • Contractor, F. J., and S.K. Kundu (1998). “Model Choice in a World of Alliances: Analyzing Organization Forms in the International Hotel Sector,” Journal of International Business Studies 29 (2), 325–357.

    Article  Google Scholar 

  • Creswell, J.W. (2009). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. London: Sage Publications.

    Google Scholar 

  • Dunning, J. H., Y. S. Pak, and S. Beldona (2007). “Foreign Ownership Strategies of UK and US international franchisors: An Exploratory Application of Dunning’s Envelope Paradigm,” International Business Review 16, 531–548.

    Article  Google Scholar 

  • Eisenhardt (1989). “Agency Theory: An Assessment and Review,” Academy of Management Review 14(1), 57–74.

    Google Scholar 

  • Elango, B. (2007). “Are Franchisors with International Operations Different from Those Who are Domestic Market-Oriented?,” Journal of Small Business Management 45(2), 179–193.

    Article  Google Scholar 

  • Entrepreneur (1990–1997). “Franchise 500,” January Editions.

    Google Scholar 

  • Eroglu, S. (1992). “The Internationalization Process of Franchise Systems: A Conceptual Model,” International Marketing Review 9, 19–30.

    Article  Google Scholar 

  • Fladmoe-Lindquist, K. (1996). “International Franchising: Capabilities and Development,” Journal of Business Venturing 11, 419–38.

    Article  Google Scholar 

  • Fladmoe-Lindquist, Karin, and Laurent L. Jacque (1995). “Control Modes in International Service Operations: The Propensity to Franchise,” Management Science 41 (July), 1238–49.

    Article  Google Scholar 

  • Fullerton, J.A., A. Kendrick, K. Chan, M. Hamilton, and G. Kerr (2007). “Attitudes towards American Brands and Brand America.” Place Branding and Public Diplomacy 3, 205–12.

    Article  Google Scholar 

  • Garg, V.K., and A. Rasheed (2006). “An Explanation of International Franchisors’ Preference for Multiunit Franchising,” International Journal of Entrepreneurship 10, 1–20.

    Google Scholar 

  • Gatignon, H. and E. Anderson (1988). “The Multinational Corporation’s Degree of Control Over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation,” Journal of Law, Economics and Organization (Fall), 305–66.

    Google Scholar 

  • Huszagh, S.M., F.W. Huszagh, and F. McIntyre (1992). “International Franchising in the Context of Competitive Strategy and the Theory of the Firm,” International Marketing Review 9, 5–18.

    Article  Google Scholar 

  • Jensen, M.C., and W.H. Meckling (1976), “Theory of the Firm: Managerial Behavior, Aagency Costs and Ownership Structure,” Journal of Financial Economics 3, 305–360.

    Article  Google Scholar 

  • Johnson, C., and M. Vanetti (2005). “Locational Strategies of International Hotel Chains,” Annals of Tourism Research 32 (4), 1077–99.

    Article  Google Scholar 

  • Kaufmann, Patrick J., and Rajiv Dant (1996). “Multi-Unit Franchising: Growth and Management Issues,” Journal of Business Venturing 11 (5), 343–58.

    Article  Google Scholar 

  • Ketchen, D., J. Combs„ and J. Upson, (2006). “When Does Franchising Help Restaurant Chain Performance?” Cornell Hotel and Restaurant Administrative Quarterly 47 (1), 14–26.

    Article  Google Scholar 

  • Kostecka, A. (1988). Franchising in the Economy. Washington DC: US Department of Commerce.

    Google Scholar 

  • Lafontaine, F., and K. Shaw (1999). “The Dynamics of Franchise Contracting: Evidence from Panel Data,” Journal of Political Economy 107, 1041–80.

    Article  Google Scholar 

  • Lashley, C., and A.J. Morrison (2000). Franchising Hospitality Services. London: Butterworth-Heinemann.

    Google Scholar 

  • Mendelsohn, M. (1994). The Guide to Franchising (5th edition) London: Cassel.

    Google Scholar 

  • Norton, S. (1988). “An Empirical Look at Franchising as an Organizational Form,” Journal of Business 61(2), 197–218.

    Article  Google Scholar 

  • Perrigot, R. (2006). “Services vs Retail Chains: Are There Any Differences?: Evidence from the French Franchising Industry,” International Journal ofRetail & Distribution Management 34 (12), 918–30.

    Article  Google Scholar 

  • Rodriguez, A. R. (2002). “Determining Factors in Entry Choice for international expansion: The Case of the Spanish Hotel Industry,” Tourism Management, 23, 597–607.

    Article  Google Scholar 

  • Rubin, P.H. (1978). “The Theory of the Firm and the Structure of the Franchise Contract,” Journal of Law and Economics 21, 223–33.

    Article  Google Scholar 

  • Shane, S. (1996). “Why Franchise Companies Expand Overseas,” Journal of Business Venturing 11 (2), 73–88.

    Article  Google Scholar 

  • Tucker, K., and M. Sundberg M. (1988) International Trade in Services. Worcester: Billing and Sons Ltd.

    Google Scholar 

  • Vianelli, D., and I. Alon, (2008). “Opportunities and Risks of International Franchising in the Italian Hotel Sector,” Mercati e Competitività 3, 73–98.

    Google Scholar 

  • Yin, R. (2003). Case Study Research: Design and Methods. London: Sage Publications.

    Google Scholar 

Download references

Authors

Copyright information

© 2010 Ilan Alon

About this chapter

Cite this chapter

Alon, I., Ni, L., Wang, R.Y. (2010). Internationalization of Franchising. In: Franchising Globally. Palgrave Macmillan, London. https://doi.org/10.1057/9780230289857_4

Download citation

Publish with us

Policies and ethics