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Market and partner selection processes in international retail franchising

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  • Doherty, Anne Marie

Abstract

This paper adopts a qualitative, case study approach to examine the market and partner selection processes of retailers operating internationally via franchising. Despite the increasing prevalence of franchising as an entry mode for international retailers, little research exists that considers how these firms choose franchise markets and franchise partners. The paper proposes a conceptual framework of the market and partner selection process that exhibits opportunistic and strategic behavior. Firms adopting a strategic approach undergo a market screening process before market attractiveness factors ultimately lead to the market selection decision. In the strategic partner selection process that follows, finance, business know-how, local knowledge, a shared understanding of the business and brand, and, ultimately, chemistry between the partners are the key factors influencing partner selection. In the case of an opportunistic approach to market and partner selection, the process reverses, with partner selection directly influencing market selection.

Suggested Citation

  • Doherty, Anne Marie, 2009. "Market and partner selection processes in international retail franchising," Journal of Business Research, Elsevier, vol. 62(5), pages 528-534, May.
    • Handle: RePEc:eee:jbrese:v:62:y:2009:i:5:p:528-534
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    References listed on IDEAS

    as
    1. Dong, Li & Glaister, Keith W., 2006. "Motives and partner selection criteria in international strategic alliances: Perspectives of Chinese firms," International Business Review, Elsevier, vol. 15(6), pages 577-600, December.
    2. Petersen, Bent & Welch, Lawrence S., 2000. "International retailing operations: downstream entry and expansion via franchising," International Business Review, Elsevier, vol. 9(4), pages 479-496, August.
    3. Francine Lafontaine & Joanne E. Oxley, 2004. "International Franchising Practices in Mexico: Do Franchisors Customize Their Contracts?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(1), pages 95-123, March.
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    5. Michael A. Hitt & David Ahlstrom & M. Tina Dacin & Edward Levitas & Lilia Svobodina, 2004. "The Institutional Effects on Strategic Alliance Partner Selection in Transition Economies: China vs. Russia," Organization Science, INFORMS, vol. 15(2), pages 173-185, April.
    6. Ioannis-Dionysios Salavrakos & Chris Stewart, 2006. "Partner Selection Criteria as Determinants of Firm Performance in Joint Ventures: Evidence from Greek Joint Ventures in Eastern Europe," Eastern European Economics, Taylor & Francis Journals, vol. 44(3), pages 60-78, May.
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