Signals that determine internationalisation
Master thesis
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http://hdl.handle.net/11250/2454005Utgivelsesdato
2017Metadata
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Sammendrag
International franchising business model is extensively and increasingly being used by
entrepreneurs and firms seeking growth through geographic expansion. Thus, continued
research efforts are needed to help entrepreneurs make wise choices when attracting investors
into the business. Two popular theories (agency and resource scarcity) have been the basis on
which international franchising has been explained. In this research, we expand on existing
literature by focusing on signaling theory, answering the question “what are the signals that
determine international franchising?” We answer this research question empirically, using
cross-sectional data on a sample of 4150 business format franchise systems from 5 industries
in the United States in 2016. The findings from this research show that there exists a positive
relationship between a firm’s listing status, earning claim (Item 19), and international
franchise association membership. Royalty rate and company owned units were not found to
be significant with internationalisation. Another striking revelation from the research shows
that franchisee in different industry react to signals differently.
Keywords; Franchising, Internationalisation, Signaling
Beskrivelse
Master's thesis Business Administration BE501 - University of Agder 2017