TY - JOUR
T1 - International governance mode choice
T2 - Evidence from Brazilian franchisors
AU - Bretas, Vanessa P.G.
AU - Alon, Ilan
AU - Rocha, Thelma Valéria
AU - Galetti, Jefferson R.B.
N1 - Publisher Copyright:
© 2021 The Author(s)
PY - 2021/6
Y1 - 2021/6
N2 - 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'études 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.
AB - 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'études 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.
KW - Emerging markets
KW - Governance modes
KW - International business
KW - International franchising
KW - International marketing
KW - Modes of entry
UR - http://www.scopus.com/inward/record.url?scp=85104146720&partnerID=8YFLogxK
U2 - 10.1016/j.intman.2021.100851
DO - 10.1016/j.intman.2021.100851
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AN - SCOPUS:85104146720
SN - 1075-4253
VL - 27
JO - Journal of International Management
JF - Journal of International Management
IS - 2
M1 - 100851
ER -