The purpose of this paper is to examine whether operating countries influence restaurant franchising system performance and what would be an optimal international franchise proportion.
The authors observed ten publicly traded franchise firms that operated between 1995 and 2015. Data analysis is conducted through a generalized linear model (GLM) of panel data.
The model confirms a curvilinear U-shaped relationship between international franchise expansion and firm performance, similar to domestic franchising. The authors found that international franchisors have a higher optimal franchise proportion than domestic franchisors. The authors did not find that operating countries influence firm performance.
This study contributes to franchising literature by expanding limited empirical studies on international franchising. It provides practitioners with a new optimal franchise proportion at the international level.
Authors would like to acknowledge the comments received from Dr Rosarito Sanchez, which have helped the authors to improve the quality of the manuscript.
It has come to the attention of the publisher that the article Rosado-Serrano, A. (2019), “Country dispersion in international franchising: system, proportion, and performance”, published in the International Journal of Retail & Distribution Management, Vol. 47 No. 7, pp. 752-771, did not include Dr Teresa Longobardi and Dr Justin Paul as co-authors of the work. In addition, a number of edits have been made to the body of the paper to correct the description of table III, and to correct an error in table III. The current value provided for the variable DEBT on the first line under ROE is –0.54, whereas the correct value is –0.0012966.
The author recognises the contributions made by Dr Teresa Longobardi and Dr Justin Paul, and sincerely apologises for this mistake. The author guidelines of the International Journal of Retail & Distribution Management make it clear that anyone who has made a significant contribution to an article should be included as an author. Dr Teresa Longobardi and Dr Justin Paul have now been added as second and third co-author’s to the article respectively, and the errors in the body of the article have now been corrected in the online version.
Rosado-Serrano, A., Longobardi, T. and Paul, J. (2019), "Country dispersion in international franchising: system, proportion, and performance", International Journal of Retail & Distribution Management, Vol. 47 No. 7, pp. 752-771. https://doi.org/10.1108/IJRDM-10-2018-0216
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