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A Study on the Key Factors Influencing International Franchisors’ Choice of Entry Modes into China |
Mingxia Zhu1(), Zhiqiong June Wang2(), Hong Rose Quan3() |
1. School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China; 2. School of Business Law & Taxation, University of New South Wales, Sydney 2052, Australia; 3. Newcastle Business School, Northumbria University, Newcastle upon Tyne NE1 8ST, UK |
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Abstract This paper examines factors associated with international franchising firms’ entry modes when they enter the Chinese market. To this end, a survey was conducted to investigate the linkage between entry modes and characteristics of franchising firms. The logit model and regression analysis were used to test the hypotheses. Findings reveal four factors that significantly influence international franchisors’ entry mode choices including cultural and geographic distance, international market experience, risk spreading, and maturity of the franchising system.
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Keywords
Chinese market
international franchising
direct international franchising
entry modes
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Corresponding Author(s):
Mingxia Zhu,Email:zhumingxia@uibe.edu.cn; Zhiqiong June Wang,Email:zhiqwang@unsw.edu.au; Hong Rose Quan,Email:rose.quan@unn.ac.uk
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Issue Date: 05 March 2011
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