International governance mode choice: Evidence from Brazilian franchisors

Vanessa P.G. Bretas, Ilan Alon, Thelma Valéria Rocha, Jefferson R.B. Galetti

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

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'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.

Original languageEnglish
Article number100851
JournalJournal of International Management
Volume27
Issue number2
DOIs
StatePublished - Jun 2021
Externally publishedYes

Keywords

  • Emerging markets
  • Governance modes
  • International business
  • International franchising
  • International marketing
  • Modes of entry

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