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Should I Stay or Should I Go? Geographic Entrepreneurial Choices in Brazilian Franchising

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  • Eugênio J. S. Bitti
  • Muriel Fadairo
  • Cintya Lanchimba
  • Vivian Lara Dos santos silva

Abstract

In the broad empirical literature on franchising, performance outcomes of location decisions appear to be a largely forgotten issue. Yet franchising represents a rich context to study the impact of geographic entrepreneurial choices. Addressing this “blank spot” in the literature, we deal with the following question: Is it better for a chain to stay in the same geographic area, or to expand via distant franchised units? Our econometric estimations on new and unique Brazilian panel data show that spatial agglomeration of chain outlets leads to higher performance, suggesting that agglomeration gains outweigh cannibalization and spatial monopoly effects.

Suggested Citation

  • Eugênio J. S. Bitti & Muriel Fadairo & Cintya Lanchimba & Vivian Lara Dos santos silva, 2019. "Should I Stay or Should I Go? Geographic Entrepreneurial Choices in Brazilian Franchising," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(S2), pages 244-267, November.
    • Handle: RePEc:taf:ujbmxx:v:57:y:2019:i:s2:p:244-267
    DOI: 10.1111/jsbm.12469
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    1. Lanchimba, Cintya & Welsh, Dianne H.B. & Fadairo, Muriel & Silva, Vivian-Lara D.S., 2021. "The impact of franchisor signaling on entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 131(C), pages 337-348.

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