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Determinants of Monitoring Capabilities in International Franchising: Foodservice Firms within East Asia

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Abstract

This paper undertakes an exploratory study on determining capabilities of international franchising within East Asia. There is a need to develop a deeper understanding in franchising within East Asia as much of the franchising literature is based on the U.S. experience. Findings from this paper indicate that international franchisors use a combination of mechanisms to prevent franchisee opportunism in East Asia. They include ex-ante bonds, performance schedules and formal controls in brand management. However, the effectiveness of these mechanisms depend on the capabilities of the franchisor to negotiate a high initial franchise fee, select the right franchisee and make adaptation but still maintain brand integrity.

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Authors and Affiliations

  1. School of Management, Curtin Business School, Curtin University of Technology, GPO Box U1987, Perth, Western Australia, 6845

    Stephen Choo

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  1. Stephen Choo
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Correspondence to Stephen Choo.

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Choo, S. Determinants of Monitoring Capabilities in International Franchising: Foodservice Firms within East Asia. Asia Pacific J Manage 22, 159–177 (2005). https://doi.org/10.1007/s10490-005-1253-1

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  • DOI: https://doi.org/10.1007/s10490-005-1253-1

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