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The internationalization of retailing: Factors influencing the choice of franchising as a market entry strategy

Anne Marie Doherty (School of Marketing, Supply and Strategy, Glamorgan Business School, University of Glamorgan, Pontypridd, UK)

International Journal of Service Industry Management

ISSN: 0956-4233

Article publication date: 1 May 2007

19887

Abstract

Purpose

The purpose of this paper is to examine the factors that motivate international retail companies to choose franchising as a method for entering international markets.

Design/methodology/approach

Employs a qualitative methodology and a multiple case study design. Six major UK‐based international fashion retailers form the empirical basis for the work.

Findings

Finds the motivating influences to be a combination of both organisational and environmental factors. International retailing experience, availability of financial resources, presence of a franchisable retail brand, company restructuring and influence of key managers emerge as the organisational factors while environmental influences are revealed as opportunistic approaches, local market complexities, domestic competitive pressures and availability of potential franchise partners.

Practical implications

Provides a useful source of information for those retail firms considering internationalization via the franchising method. Research is made all the more pertinent by the fact that retail service firms do not necessarily have franchising experience in the domestic market before they adopt franchising in the international environment. While findings are particular to retail firms they could also have relevance for other service sectors.

Originality/value

Addresses a gap in international franchising literature by examining the factors that motivate retail firms to internationalise via franchising. As such, the paper contributes to academic and practitioner understanding of the international retail franchise process.

Keywords

Citation

Doherty, A.M. (2007), "The internationalization of retailing: Factors influencing the choice of franchising as a market entry strategy", International Journal of Service Industry Management, Vol. 18 No. 2, pp. 184-205. https://doi.org/10.1108/09564230710737826

Publisher

:

Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

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