INTERNATIONAL BUSINESS - Does origin matter? The impact of the institutional environment of the origin country on the internationalization of franchise chains

Purpose: The purpose of this research is to identify how the country of origin of the franchise chain impacts its commitment in the destination countries, verifying the institutional particularities between the chains from emerging and developed countries.

Methodology: The research is descriptive and quantitative, and involved 724 franchise chains from ten countries of origin (Brazil, Russia, India, South Africa, Argentina, United States, Germany, Australia, Spain and Portugal), spread over 174 destination countries, totaling 3513 cases.

Findings: The results indicate that institutional preferences do not vary according to the country of origin of the franchise chain, but rather according to the country of destination.

Research implications: The article contributes to institutional theory once it identifies a set of characteristics that explains the selection of international markets and the commitment of franchise chains.

Practical implications: The results achieved in the study can help franchise chains managers to make decisions related to the process of choosing countries for international expansion, based on the institutional characteristics of the markets, in order to select the most compatible with the objectives of the franchise chains.

Originality/value: Companies in emerging countries internationalize according to a different management logic from that of a developed country company. Thus, it is possible that the process of selecting countries for internationalization is also based on different criteria that reflect different institutional preferences. The thesis defended in the article is that market potential is more important to franchisees from emerging markets and contract enforcement is more important to franchisees from developed markets.

2021 - Internac franquias - MBR - Andrea, Suzane, Felipe, Pedro - author copy.pdf (274969)