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Franchising, Familiness and Institutions

This presentation discusses the research areas of franchising, domestic and international aspects, the role of "familiness," and the influence of institutions. It includes testable hypotheses and relevant case studies.

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Franchising, Familiness and Institutions

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  1. Franchising, Familiness and Institutions Ilan Alon, PhD Ilan.alon@uia.no

  2. Agenda • Quick introduction • Franchising research • Domestic • International • “Familiness” and Franchising • Institutions and Franchising • Some testable hypotheses

  3. Research Areas International Strategy

  4. Editor-in-Chief

  5. Why Study Franchising? • Franchising = services, small businesses • Franchising = growth, jobs and soft tech (know-how) • The subject is multidisciplinary and still scantly researched

  6. Domestic Franchising Research • To franchise or not, proportion of franchising • Success, growth and survival • Social franchising

  7. Franchising Explanations

  8. Strategic Agility Explanation

  9. Signaling Theory (J of Service Mrkt, 2014)

  10. Are the Parents to Blame?

  11. Determinants of Franchising IPOs

  12. Third Generation Franchising

  13. Social Franchising

  14. International Franchising Research • Internationalization • Mode of entry • International market selection • Country specific studies (institutions matter) • Impact of franchising

  15. The Dissertation (Kent State, 1998)

  16. Journal of Consumer Marketing (1999)

  17. International Marketing Review (2017)

  18. International Franchising Modes of Entry

  19. Franchising in Emerging Markets

  20. International Franchising Overview

  21. Franchising and Familiness • Resource based logic of familiness (complements Agency explanations of franchising) • Family firms are more • Committed • Long term oriented • Relationship oriented • Proactive • Conservative • Altruistic • Relies on social capital

  22. Some testable hypotheses • Compared to non-family franchisors, family franchisors will have • Higher price bonding (royalties vis-à-vis fees) • More investment in training and development • Provide more support to franchisees • Grow more slowly but steadily • Higher survivability

  23. What are institutions? • Traditions and institutions by which authority in a country is exercised • Process by which governments are selected, monitored, replaced • Capacity of government to effectively formulate and implement sound policies • Respect of citizens and the state for the institutions that govern economic and social interactions among them • (Kaufmann and Kraay, 2007)

  24. Some testable hypotheses • Relation based economies will see proportionally more family owned businesses • Due to low level of generalized trust, relation-based economies will see proportionally less franchising-based businesses • In the franchising sector in relation-based economies, there will be a higher propensity of family owned businesses

  25. Some Cases

  26. Thank You Q&A

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