6533b857fe1ef96bd12b515e
RESEARCH PRODUCT
International governance mode choice: Evidence from Brazilian franchisors
Ilan AlonVanessa Pilla Galetti BretasVanessa Pilla Galetti BretasJefferson Ricardo Bretas GalettiThelma Valéria Rochasubject
Index (economics)Public economicsVDP::Samfunnsvitenskap: 200::Økonomi: 210::Bedriftsøkonomi: 213Strategy and ManagementCorporate governance05 social sciencesContext (language use)Logistic regressionVariable (computer science)Internationalization0502 economics and business050211 marketingBusinessBusiness and International ManagementEmerging marketsMode choice050203 business & managementFinancedescription
Abstract The purpose of this article is to test a novel, integrative theory of governance mode selection in the context of international franchising from Brazil. Given the Brazilian emerging market context, we added and tested another variable in the model relating to environmental distance between the home (Brazil) and host countries. To test the theory, we employed two logistic regression models and representative data from the Brazilian Franchising Association in addition to the World Bank's Doing Business index, and the CEPII (Centre d'etudes prospectives et d'informations internationales). Findings show that three factors influence Brazilian franchisors' choices regarding international governance modes: the environmental uncertainty of the host countries, their behavioral uncertainty, and the franchisors' financial capacity. However, the environmental distance does not influence internationalization strategies of Brazilian firms. Emerging markets firms' governance modes of entry can be adequately explained with the existing model despite contextual differences.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2021-06-01 | Journal of International Management |