REGIONAL DEVELOPMENT - Regional Development and Institutional Environment for Franchise Chains: Regional Expansion of Franchise Chains in Brazil

1. Purpose

This paper aims to analyze attractiveness of the markets in the inland of Brazil to franchise chains based on the characteristics of institutional environment, referring to the socioeconomic, geographical, and human resources dimensions.

2. Originality/value

Interiorization is a theme that has been hardly explored in franchise chains’ growth strategies. This paper contributes to this debate through the institutional theoretical perspective, contributing to the clarification and ordering of the decision-making factors for the regional expansion of franchises. For regional development, it calls for municipal management to direct actions aimed at socioeconomic development and human resources.

3. Design/method/approach

The quantitative method using secondary data was employed in this study for the analysis of franchise location and for municipalities. The sample comprised 458 municipalities with a population of above 50 thousand inhabitants. The statistical technique used was factor analysis and multiple regression analysis.

4. Findings

The results show that the socioeconomic and human resources factors of the municipalities are essential for the attractiveness of franchises chains to the inland of the country. In turn, the geographical distance of the inland municipality in relation to the state capital did not present adherence to the model as an explanation for the attraction of franchises.

2020 - DV Regional Franquias - RAM - ENG - Pedro, Renata, Victor, Felipe.pdf (328903)

2020 - DV Regional Franquias - RAM - PT - Pedro, Renata, Victor, Felipe.pdf (344099)