TY - JOUR
T1 - Examining the determinants of hotel chain expansion through international franchising
AU - Alon, Ilan
AU - Ni, Liqiang
AU - Wang, Youcheng
PY - 2012/6
Y1 - 2012/6
N2 - This study proposes and tests an agency-based organizational model of internationalization through franchising in the hotel sector. Using data obtained from a Franchisor Questionnaire 2001-2008, we analyzed a panel of 117 observations of 17 U.S.-based hotels. Our analysis reveals that a hotel franchisor's decision to internationalize through franchising is positively related to the percentage of franchises, the ratio of franchised units to the total number of units. The article contributes to the literature by empirically modeling international franchising of hotels, which present unique characteristics among franchising companies, with a high investment capital requirement, maturity in the product life cycle, and a high level of standardization and globalization of operations. The unique characteristics of individual chains and their segment in the industry are particularly important, as revealed by both data analysis and expert opinion.
AB - This study proposes and tests an agency-based organizational model of internationalization through franchising in the hotel sector. Using data obtained from a Franchisor Questionnaire 2001-2008, we analyzed a panel of 117 observations of 17 U.S.-based hotels. Our analysis reveals that a hotel franchisor's decision to internationalize through franchising is positively related to the percentage of franchises, the ratio of franchised units to the total number of units. The article contributes to the literature by empirically modeling international franchising of hotels, which present unique characteristics among franchising companies, with a high investment capital requirement, maturity in the product life cycle, and a high level of standardization and globalization of operations. The unique characteristics of individual chains and their segment in the industry are particularly important, as revealed by both data analysis and expert opinion.
KW - Bayesian data analysis
KW - Franchising
KW - Hospitality
KW - Hotel industry
KW - Internationalization
UR - http://www.scopus.com/inward/record.url?scp=84855498414&partnerID=8YFLogxK
U2 - 10.1016/j.ijhm.2011.06.009
DO - 10.1016/j.ijhm.2011.06.009
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AN - SCOPUS:84855498414
SN - 0278-4319
VL - 31
SP - 379
EP - 386
JO - International Journal of Hospitality Management
JF - International Journal of Hospitality Management
IS - 2
ER -