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Article
Publication date: 17 September 2020

Vanessa Pilla Galetti Bretas and Ilan Alon

The purpose of this paper is to provide an overview of the franchising sector in Brazil and highlight the opportunities and offer strategies for practitioners. It also…

Abstract

Purpose

The purpose of this paper is to provide an overview of the franchising sector in Brazil and highlight the opportunities and offer strategies for practitioners. It also points out some challenges and gives suggestions to overcome them and thrive in the Brazilian market through the franchising system.

Design/methodology/approach

This paper reviews both literature and practical sources providing primary data from interviews conducted with franchising experts from the Brazilian Franchising Association and a consultant company.

Findings

International franchisors willing to enter the Brazilian market might face some challenges, such as the language barrier, the complex tax system and the need for local adaptations. Foreign entrants should consider low control entry modes as master franchising and area development agreements, with local partners that know the Brazilian culture, business system and regulations.

Originality/value

Brazil presents a great market potential for international franchisors. It counts with an established franchising system and a stable regulatory environment. This paper provides relevant information about the characteristics, opportunities and challenges to operate in the Brazilian market, offering suggestions of strategies and several possibilities to explore different regions, locations and models across the country.

Details

Journal of Business Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0275-6668

Keywords

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Article
Publication date: 13 November 2018

Ilan Alon and B. Elango

The purpose of this paper is to examine the factors associated with franchisors going public using signaling theory. Listing on the stock market is a sign that the…

Abstract

Purpose

The purpose of this paper is to examine the factors associated with franchisors going public using signaling theory. Listing on the stock market is a sign that the business concept has reached a threshold level of acceptance and success. To increase the relevance of this study to practitioners, the authors focus on franchising-specific controllable variables.

Design/methodology/approach

This study uses a sample of 2,134 franchisors from US drawn from a survey by Entrepreneur magazine during the years 2015–2016. Binominal logistic regression models are used for analysis of the data.

Findings

Findings indicate that time to franchise, international operations, franchise association affiliation, disclosure and extent of top management commitment are factors positively related to the likelihood of a franchisor being publicly listed.

Research limitations/implications

Study findings are based on a sample of franchisors from North America, where financial markets are well developed, and due caution should be exercised before generalizations are made to other contexts. A major implication of this study is that signaling theory may provide an important supplement to the already well-entrenched resource-scarcity and agency theoretic explanations in franchising research.

Originality/value

While signaling theory is growing in importance in the franchising literature, this study is the first to uncover the relationship between company signals and initial public offering.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 11/12
Type: Research Article
ISSN: 0959-0552

Keywords

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Article
Publication date: 13 February 2017

Melih Madanoglu, Ilan Alon and Amir Shoham

Using munificence, real options and ambidexterity theories, the purpose of this paper is to demonstrate how the differential between home and host market environmental…

Abstract

Purpose

Using munificence, real options and ambidexterity theories, the purpose of this paper is to demonstrate how the differential between home and host market environmental conditions affects US international franchising expansion.

Design/methodology/approach

The authors used firm-level panel data for 151 US-based franchising firms, from Bond’s Guide for Franchise Opportunities, for the years 1994-2008 plus macroeconomic data on the environment, to explain the probability of franchising.

Findings

The paper finds that the differential in economic growth and economic uncertainty impacts franchisors’ desire to expand abroad on a continual basis.

Research limitations/implications

Researchers in international franchising should not only focus on host market environmental variables (pull factors), but also on conditions in the home market (push factors).

Originality/value

The paper adds to environmental explanations of international franchising by focusing on the differential in munificence and uncertainty between home and host countries.

Details

International Marketing Review, vol. 34 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

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Article
Publication date: 18 May 2018

Alfredo Jiménez and Ilan Alon

While common sense suggests that corruption will likely have a negative impact on the economy as it raises the cost of doing business, research on the topic showed…

Abstract

Purpose

While common sense suggests that corruption will likely have a negative impact on the economy as it raises the cost of doing business, research on the topic showed inconsistent results (positive, negative and neutral). This paper aims to verify whether corruption has a “grease” or “sand” effect on the wheels of entrepreneurial rates and under which conditions corruption will have stronger or weaker effects.

Design/methodology/approach

Using institutional theory as the basis for the hypotheses, generalized least squares estimation is conducted to empirically examine the role of corruption and political discretion in entrepreneurship in a sample of 93 countries.

Findings

Countries with higher levels of corruption are associated with lower levels of firm creation. However, this negative effect of corruption is weaker when there are higher levels of political discretion.

Originality/value

This is the first evaluation of the moderating effect of political discretion on the negative impact of corruption on entrepreneurship.

Details

Multinational Business Review, vol. 26 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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Article
Publication date: 31 January 2019

Judith Jacob Iddy and Ilan Alon

This paper aims to offer a comprehensive systematic review of knowledge management (KM) in franchising literature over the past 29 years.

Abstract

Purpose

This paper aims to offer a comprehensive systematic review of knowledge management (KM) in franchising literature over the past 29 years.

Design/methodology/approach

By means of bibliometric citation analysis, ISI Web of Science (WoS) database is used to analyze articles from 1990-2018. A total of 169 articles by 369 authors across 40 countries published in 113 journals from 200 institutions were clustered and examined through HistCites and VOSviewer.

Findings

The exploration of KM in franchising is associated with 3 factors: governance structure; performance outcome; and franchise network growth. The findings also reveal that KM in franchising is still an emerging discipline encompassing conflicting results which offer potential for future research.

Research limitations/implications

Identified research gaps and contradicting views in the literature offer opportunities for researchers to contribute to this research domain by empirically testing the role of absorptive capacity, replication vs adaptation strategies and new franchising formats, such as micro/social franchising.

Originality/value

This study is unique in its examination of KM in franchising. It also highlights the value of knowledge in franchise chain performance.

Details

Journal of Knowledge Management, vol. 23 no. 4
Type: Research Article
ISSN: 1367-3270

Keywords

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Article
Publication date: 11 November 2019

Ilan Alon and Michael Alexander Kruesi

Although China is among the most populated and fastest growing markets in the world, the reason why China’s franchising scale and scope is so limited remains an enigma…

Abstract

Purpose

Although China is among the most populated and fastest growing markets in the world, the reason why China’s franchising scale and scope is so limited remains an enigma. The purpose of this paper is to shed light on franchising in China and offer strategies for practitioners to more effectively operate under a franchise model in the Chinese market.

Design/methodology/approach

This paper reviews both literature and practical sources providing some primary data from interviews conducted with franchise industry practitioners in China.

Findings

The findings of this paper are that foreign entrants to China must carefully consider if they should enter the Chinese market through franchising or if the market may be too difficult to navigate. Franchisors, whose brand is unknown in China or have operations that are too Western-centric, should probably seek international markets closer to home. Those with a high value proposition in the local market and the capabilities to adapt effectively to China’s peculiarities may, however, find a promising and profitable niche to operate in.

Originality/value

This paper focuses on the under examined realities of franchising in the Chinese market. Based on the previous experiences of franchisors in China, the paper raises seven practical strategies that practitioners can use to more successfully enter the Chinese market through franchising. Although China is among the most populated and fastest growing markets in the world, the reason why China’s franchising scale and scope is so limited remains an enigma. According to the International Franchise Association and International Trade Administration reports, China is among the top-ranking countries in terms of trade opportunities, with the top 100 franchisor sales estimated at ¥428bn (about US$66bn). China is the largest franchise market in the world, with over 4,500 franchise systems and some 400,000 franchised outlets in over 70 industries. However, considering China’s US$13.6tn (2018) economy, this is still far lower than its full potential. In addition, the scope of franchising is limited and is mostly centered in food and beverage and retail outlets, which consists of approximately 40 per cent of all franchisors.

Details

Journal of Business Strategy, vol. 41 no. 5
Type: Research Article
ISSN: 0275-6668

Keywords

Content available
Article
Publication date: 17 November 2020

Ilan Alon, Indri Dwi Apriliyanti and Massiel Carolina Henríquez Parodi

This paper aims to provide a bibliometric meta-analysis of the already substantial and growing literature on international franchising. Franchising is a model for…

Abstract

Purpose

This paper aims to provide a bibliometric meta-analysis of the already substantial and growing literature on international franchising. Franchising is a model for businesses to achieve scale with limited resources. International franchising is a mode of entry that allows firms to develop new markets with relatively little risk but also little control.

Design/methodology/approach

Using a systematic approach, the paper identifies all articles in the ISI Web of Science from 1970 to 2018 that includes the term international franchising (in the title, the abstract or keywords) and finds 131 articles. This paper used HistCite software to analyze the bibliometric data.

Findings

Four major research clusters in the international franchising literature are identified. In addition, this study shows a change in research patterns regarding topics, theories and methodologies from the 1970s through 2018. The paper presents the most influential articles, authors and journals.

Originality/value

From the analyzes, this study develops a conceptual framework of international franchising and suggest avenues for future research.

Details

Multinational Business Review, vol. 29 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

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Article
Publication date: 11 July 2018

Ilan Alon, Shan Chen and Marco Mandolfo

The purpose of this paper is to discuss China’s New Silk Road initiative as an opportunity for European small and medium-sized enterprises (SMEs) to export to Chinese…

Abstract

Purpose

The purpose of this paper is to discuss China’s New Silk Road initiative as an opportunity for European small and medium-sized enterprises (SMEs) to export to Chinese market. It offers research propositions on redefining the business process of European SMEs and Chinese importers in light of the initiative.

Design/methodology/approach

SMEs’ export barriers, particularly in SCM and marketing, are identified through literature review. Then they are discussed in accordance with the measures that New Silk Road proposed.

Findings

Logistic infrastructure development under the New Silk Road significantly lowers the supply chain barrier. Marketing remains a challenge for European SMEs to export to China. This paper argues that the European SMEs and the Chinese importers should create closer collaboration, expand their relationship beyond SCM, and integrate their marketing efforts for mutual benefits.

Research limitations/implications

Several future research areas are proposed in this paper. The authors invite researchers and practitioners to deepen the discussion with empirical evidence.

Practical implications

The New Silk Road has already become a high stake project for many countries involved. Many measures are yet to be defined and the stakeholders, including industries and businesses, should have an influence on their definition. This paper provides the authors’ viewpoints on how businesses should act in this initiative.

Originality/value

Despite being an important topic of the world’s economy in the recent years, the New Silk Road initiative has rarely been studied in management research, possibly due to lack of evidence. As its development significantly sped up since 2017, it is high time that the research community starts to contribute to the knowledge building in this project. This paper is among the firsts to call for and to propose avenues for future research efforts.

Details

Business Process Management Journal, vol. 25 no. 2
Type: Research Article
ISSN: 1463-7154

Keywords

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Article
Publication date: 15 July 2019

David McHardy Reid, Guotai Chi, Zhi Chong Zhao and Ilan Alon

Performed over a five-year time horizon, this paper aims to analyze the progression rates of technological innovation across 15 sub-provincial Chinese cities. The authors…

Abstract

Purpose

Performed over a five-year time horizon, this paper aims to analyze the progression rates of technological innovation across 15 sub-provincial Chinese cities. The authors quantify and rate innovation performance, then rank the cities based on a purpose-built index designed to gauge the rate of technological progress.

Design/methodology/approach

Using the inferior constraint method, and a variety of national sources of data, the authors construct an innovation index based in part on new product sales revenue, proportion of college students, research and development expenditure of industrial enterprises in relation to gross industrial output value, contract deals in technical markets per capita, hazard-free treatment rate of waste, enterprises with technical development agencies accounts for industrial enterprises, number of high-tech enterprises and invention patent ownership per million population.

Findings

The findings provide a methodology for indexing cities, with 15 Chinese provincial cities as examples. Among the top five cities with the highest technological innovation index were Shenzhen, Nanjing, Guangzhou, Hangzhou and Wuhan. In the bottom were Shenyang, Changchun, Dalian, Xi’an and Harbin.

Research limitations/implications

This study applied a new model of innovation at the city level for China. Application to other industries (real estate, manufacturing, etc.) and countries will extend boundaries of this model and show its wider applicability.

Practical implications

Companies can use this research and methodology when seeking new investments in high tech and innovative products. Locations offering more hospitable environments should be prioritized ceteris paribus.

Originality/value

One weakness of much of the international business and competitiveness literature is that it often views the country as the primary unit of analysis. In this way, nuanced views of the institutional environments within countries are often overlooked. This paper proposes a measure of regional rates of innovativeness across China.

Details

Competitiveness Review: An International Business Journal , vol. 29 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

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Article
Publication date: 11 June 2018

Mohammad Falahat, Gary Knight and Ilan Alon

The purpose of this paper is to examine the impact of entrepreneurial orientation and networking capabilities of born global firms in an emerging market on marketing…

Abstract

Purpose

The purpose of this paper is to examine the impact of entrepreneurial orientation and networking capabilities of born global firms in an emerging market on marketing strategy and foreign market performance.

Design/methodology/approach

Structural equation modeling was used to analyze data from 1,001 internationalized firms in an emerging market and to test seven hypotheses regarding the development of marketing strategy and foreign market performance.

Findings

Marketing strategy was found to mediate the relationship between entrepreneurial orientation and networking capability and foreign market performance, while foreign market performance is affected by entrepreneurial orientation and marketing strategy.

Research limitations/implications

Research on emerging market multinationals can be merged with that of born globals to augment our understanding of how early internationalizers from emerging markets perform in foreign markets.

Originality/value

This study is among the few focusing on born globals in emerging markets, which face the difficulties of newness and limited resources, as well as characteristics of emerging markets, such as institutional voids.

Details

International Marketing Review, vol. 35 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

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