Abstract

PEDRO, Isabel; FILIPE, José António  and  REIS, Elizabeth. The internationalization of franchising companies in Iberian countries. Economia Global e Gestão [online]. 2008, vol.13, n.1, pp.65-84. ISSN 0873-7444.

Franchising has become probably the main strength for the companies’ globalization in the services sector. However, there are not many empirical studies explaining the internationalization of franchising companies. If we take into account the research studies in this area and if we consider the Agency Theory and the Resource Theory, we can create a theoretical model that can be empirically tested. Our model includes several variables which are articulated, some internal and some external to the company, and it intends to explain why Iberian companies decide to go to foreign markets. Particularly, we can show that there are some important internal variables for internationalization (such as “age of network”, “dimension” and “dispersion”) and that they are independent of risk. Internal variable “bond” and external and motivational variables are also important. However, they are connected to the risk factor of internationalization.

Keywords : Franchising; Internationalization; Organizational Theory; Service Delivery Companies.

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