Brazilian Franchising Networks: Degree of Internationalization and Current Status
Internationalization has long been discussed in the strategic management literature as a way of diversifying a business and creating value (Dunning, 2000; Johanson & Vahlne, 1977). Yet firms have different strategies in terms of entry mode (Kogut & Singh, 1988) and ownership (Hennart & Reddy, 1997). Some of them, depending on their industry and strategic objectives prefer to open commercial offices to support sales from the home country, whereas others avoid transportation costs by exporting parts of products and finalizing those in foreign markets. Some others see opportunities for the acquisition or opening of production plants to carry out all stages of the value chain in the country of destination (Dunning, 1980). Services providers usually have a support branch and displace its staff, whether in operations or direct contact with customers (Philippe & Léo, 2011).
KeywordsForeign Direct Investment Foreign Market Brand Equity Entry Mode Foreign Asset
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