US-Based Franchise Systems: A Comparison of Domestic versus International Operations

This study assesses both firm and relationship characteristics that may differentiate US-based franchisors that have internationalized operations from those that do not. Multiple discriminant analysis is used and shows that both firm and relationship characteristics are important discriminators. Not...

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Bibliographic Details
Published in:Journal of marketing channels 2006-06, Vol.13 (4), p.5-21
Main Authors: McIntyre, Faye S., Gilbert, Faye W., Young, Joyce A.
Format: Article
Language:English
Subjects:
Comparative analysis
Discriminant analysis
Domestic markets
Franchising
International
International franchising
relational exchange
Studies
trust
Citations: Items that this one cites
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Summary:This study assesses both firm and relationship characteristics that may differentiate US-based franchisors that have internationalized operations from those that do not. Multiple discriminant analysis is used and shows that both firm and relationship characteristics are important discriminators. Not surprisingly, international franchise systems are larger and exhibit lower levels of solidarity. A surprising finding, however, is that international systems exhibit lower levels of opportunism, in spite of greater geographic and cultural proximity. Interestingly, a number of firm characteristics (number of domestic units, number of franchised versus company-owned units, firm age, and experience with franchising) and relationship characteristics (flexibility, trust, behavioral transparency, and effectiveness) were not significant discriminators between domestic and international franchisors. Implications of the findings and directions for future research are provided.
ISSN:1046-669X
2694-3980
1540-7039
2694-3999
DOI:10.1300/J049v13n04_02