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International Franchising in the Context of Competitive Strategy and the Theory of the Firm

International Franchising in the Context of Competitive Strategy and the Theory of the Firm Suggests that the strategic advantages of experience, scaleeconomies, product differentiation, capital requirements, and locationare important determinants of international franchise expansion, but areslowly being diminished by technological and capital market innovations.Explores this theme from the perspectives of competitive strategy andeconomic theory of the firm. Based on these perspectives, hypotheses aredeveloped and tested with a large sample of US franchisors at two pointsin time. Results show that franchise firms strategic advantages derivedfrom experience, scale economies and location differ for moreinternational firms compared to nationallyfocused firms. Results alsoprovide insights to the extent to which these differences are moderatedby technological and capital market innovations occurring over time. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Marketing Review Emerald Publishing

International Franchising in the Context of Competitive Strategy and the Theory of the Firm

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0265-1335
DOI
10.1108/02651339210020268
Publisher site
See Article on Publisher Site

Abstract

Suggests that the strategic advantages of experience, scaleeconomies, product differentiation, capital requirements, and locationare important determinants of international franchise expansion, but areslowly being diminished by technological and capital market innovations.Explores this theme from the perspectives of competitive strategy andeconomic theory of the firm. Based on these perspectives, hypotheses aredeveloped and tested with a large sample of US franchisors at two pointsin time. Results show that franchise firms strategic advantages derivedfrom experience, scale economies and location differ for moreinternational firms compared to nationallyfocused firms. Results alsoprovide insights to the extent to which these differences are moderatedby technological and capital market innovations occurring over time.

Journal

International Marketing ReviewEmerald Publishing

Published: May 1, 1992

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