Insights on international franchising: entry mode decision

Abstract

Despite the substantive importance of Latin America for foreign investors, the academic attention paid to this region continues to be limited. To cover this gap, this study examines how a number of franchise chain characteristics and market conditions may have an influence on the entry options that global franchisors have when seeking to expand their business in Latin America. Results conclude that the level of a host's country uncertainty avoidance, masculinity, economic development, economic potential, corruption, and the efficiency of contract enforcement are all drivers of the entry mode. The franchisor's international experience also determines the above choice.