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

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Abstract

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.
Employs a qualitative methodology and a multiple case study design. Six major UK-based international fashion retailers form the empirical basis for the work.
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.
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.
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.
Original languageEnglish
Pages (from-to)184-205
Number of pages22
JournalInternational Journal of Service Industry Management
Volume18
Issue number2
DOIs
Publication statusPublished - 2007

Keywords

  • internationalization of retailing
  • retailing
  • united kingdom
  • fashion industry
  • franchising
  • globalization
  • market entry
  • market entry strategy

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