Modeling global franchising in emerging markets: An entry mode analysis

Abstract

Emerging markets are some of the fastest-growing economies in the world because of their substantial economic transformation. Nevertheless, little is known about the factors influencing choices of foreign entry mode into those markets. In an attempt to expand knowledge of this topic, this article presents an empirical assessment of the relationship between a set of variables and the four possible entry modes franchisors can adopt: direct franchising, master franchising, joint venture, and direct investments. Moreover, we controlled for two other aspects: the franchisor's international experience and the efficiency of contract enforcement in the host country.