What is it about?
When entering country markets, franchisors use governance modes with lower levels of control when faced with environmental uncertainties due to corruption, economic down turns, and when the geographic distance is large. Moreover, the franchise system assets as well as its local market assets also affect the choice of governance modes.
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Why is it important?
First test of the model predicting franchise governance modes in international markets.
Perspectives
Our data reveals the use of at least seven governance modes by US franchisors in international markets, more than in any other previous study.
Dr Richard C. Hoffman
Salisbury University
Read the Original
This page is a summary of: Modes of governance for market entry by international franchisors: factors affecting the choice, Management Research Review, December 2020, Emerald,
DOI: 10.1108/mrr-07-2020-0400.
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