Modeling the New Franchise Creation Decision: The Relevance of Behavioral Reasons

Abstract

Este artigo pode ser copiado, distribuído, exibido, transmitido ou adaptado desde que citados, de forma clara e explícita, o nome da revista, a edição, o ano, e as páginas nas quais o artigo foi publicado originalmente, mas sem sugerir que a RAM endosse a reutilização do artigo. Esse termo de licenciamento deve ser explicitado para os casos de reutilização ou distribuição para terceiros. Não é permitido o uso para fins comerciais. In 2014, the Brazilian Franchising Association reported 2,492 active brands in the country. Some theories with an economic point of view, such as the agency theory, plural forms theory, or scarcity principle, explain why companies choose franchising. However, did the decision makers and founders of these franchises decide on this strategy taking only economic reasons into consideration? The purpose of this study is to understand the a priori criteria (prior to the decision) that executives took into account when adopting this strategy and the key motivations for this decision. Originality/gap/relevance/implications: The literature emphasizes the economic reasons for the success of the franchise model, but it does not focus on the founders' motivations when they choose this strategy. This is the gap that this study seeks to address. Dissonance could arise between economic reasons and entry motivations that could result in consequences for the management of new franchises. Key methodological aspects: Ten companies of different industries and different life cycle stages involved with the franchise model were scrutinized using a semi-structured questionnaire based on the literature on decision theory and franchising. Summary of key results: Behavioral factors significantly influence decision makers when choosing the franchise model. Key considerations/conclusions: This study distinguishes the economic reasons from the executives' motivations when choosing the franchise model and highlights the importance of non-economic factors in this decision.

The factors that determine franchising intensity: An analysis in an emerging economy

“…These results seem to reflect that the behavior of franchises in Mexico is more intense in the use of franchised units as they acquire more experience and size coinciding with previous studies (Alon, 2001; Castrogiovanni et al, 2006a; Combs & Castrogiovanni, 1994). Additionally, it could be argued that the franchisers that adopt a greater franchising intensity pursue not only economic objectives, Aguiar, Pauli, Yu, and Nascimento (2016) found that there are motivational factors that drive franchisors to achieve status, as this status is a positive sign of professional and financial success of their concepts.…”

Franchising in African markets: Motivations and challenges from a Sub‐Saharan African country perspective

“…There are several motivations underlying the decision for franchisors to expand through franchising. Extant literature identifies entrepreneurial characteristics (Evanschitzky, Caemmerer, & Backhaus, ), economic reasons (Aguiar, Pauli, Yu, & Nascimento, ; Madanoglu, Alon, & Shoham, ), saturation in the domestic market (Elango, ), acquisition of additional capital, economies of scale, competitive advantage, opportunism (Doherty, Chen, & Alexander, ), and risk reduction (Sun & Lee, ) as some of the motivating factors for franchising. The agency theory, resource scarcity theory, and risk‐reducing theory are some of the theoretical groundings that can explain motivations for franchisors to adopt a franchising strategy (Sun & Lee, ).…”

Responsabilidade Ambiental, Sinalização E Desempenho Econômico: Uma Análise a Partir Do Caso Das Franquias

“…Partindo-se dos dados elencados acima, reforça-se um maior nível de concorrência agregada entre as franquias, de forma que as redes necessitam se diferenciar umas das outras e mostrar uma maior atratividade para conquistarem novos franqueados. Entre esses diferenciais, é necessário mostrar que as redes são rentáveis, que possuem um modelo de negócio sustentável do ponto de vista econômico, que estão bem posicionadas no mercado e que possuem uma reputação positiva perante o mercado (Brandt, 2007;Monge & Huerta, 2015;Aguiar, Pauli, Yu, & Nascimento, 2016).…”