Handbook of Research on Franchising
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Handbook of Research on Franchising

Edited by Frank Hoy, Rozenn Perrigot and Andrew Terry

Franchising is one of the major engines of business expansion and job creation globally. The Handbook of Research on Franchising offers new insights into entrepreneurial behavior, organizational forms, regulation, internationalization, and other contemporary issues relating to this dynamic business strategy. The Handbook challenges both practitioners and scholars to give attention to the conclusions of scholarly research on this business model. Practitioners can benefit from the results of high quality scientific research, and scholars can find exciting opportunities for contributing to the body of knowledge of a subject that has not received sufficient attention in educational institutions.
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Chapter 18: International franchising: influences of environmental uncertainty and munificence on market entry timing

Melih Madanoglu and Gary J. Castrogiovanni

Abstract

Studies of international market entry timing tend to focus on manufacturing firms and modes of entry that involve equity. In contrast, this chapter investigates how environmental uncertainty and munificence in both the home and host countries influence international entry timing of US service and retail franchising firms. The chapter finds that uncertainty and munificence in both the home and host countries have an effect on the timing of international entry. Thus, the chapter extends franchising and international management literatures by demonstrating that the economic environment has an influence on international market entry via non-equity entry modes.

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