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This paper aims to identify the interrelationships of institutional factors that compose an entrepreneurial ecosystem (EE) in small towns that can potentially increase the attraction of franchises.

The authors analyzed 728 small towns with franchise chains that do not belong to metropolitan regions and are limited to populations of up to 50,000 inhabitants. Secondary data are obtained from the Brazilian Institute of Geography and Statistics. The data analysis technique used is Poisson regression.

A higher number of employed persons (H1), a higher savings (H2) and a higher number of educational institutions (H4) correlates with more franchise chains in small towns. The availability of institutional support (H3) does not correlate with the number of franchise chains. Regarding the interrelationships between factors, the interactive effect between two constructs is determined to cause a decrease in franchise chains, whereas interrelating three factors raises the number of franchise chains (R² = 72.3%).

The analysis identifies some environmental factors to be considered in market prospecting by franchise chains’ expansion managers. These factors constitute a relevant analytical model focused on the regional development of franchise chains.

Social contributions are directed to public policy professionals responsible for regional economic development, as emerging markets demand actions to encourage job creation when confronted with high unemployment rates and dependence on the informal economy.

The contribution of this paper is bringing EE to the debate of the institutional environment’s impact on new businesses. EE adds to the debate examining the interrelationships between different institutional factors. An EE not only identifies the factors, but also examines the interdependence of these factors, which can potentially explain the attraction of franchise chains in small towns.

The scholarly discourse concerning the significance of relational embeddedness within multinational corporation (MNC) subsidiaries has reached a stage of maturity, albeit with fragmentation. In light of this, this paper aims to delineate hot topics that can serve as a promising research trajectory for future investigations into the phenomenon of relational embeddedness in MNC subsidiaries.

Through a systematic literature review, the authors examined 66 articles published between 1998 and 2022, sourced from two prominent databases: Scopus and Web of Science. To ensure the rigor of the investigation, the authors specifically focused on articles published in journals accredited with a minimum two-star rating according to the ABS (2021) criteria.

In the systematic review, the authors delineated four principal themes addressed in the literature concerning subsidiaries and relational embeddedness. Within these themes, the authors identified five underexplored research avenues that hold promise for future studies on relational embeddedness within the context of subsidiaries: (a) the question of the dark side of relational embeddedness, (b) the development of a global construct for relational embeddedness, (c) understanding how the social factors of relational embeddedness relate to each other, (d) the gains that local partners have in developing relational embeddedness with subsidiaries of foreign MNCs and how this relationship is moderated by the institutional environment and (e) the impact of internal.

While this study drew upon two major databases, future researchers are encouraged to explore alternative repositories to ensure the thoroughness of the findings. Another limitation of this study pertains to the chosen set of keywords, which did not encompass literature on innovation collaboration or knowledge flows within foreign subsidiaries. These areas are interconnected with the knowledge management literature and relational embeddedness, warranting attention in future investigations.

The managerial insights cater to two distinct cohorts: multinational subsidiary managers, equipping them with insights into leveraging relational strategies effectively and managers of partner companies, facilitating informed decision-making in optimizing access to subsidiary knowledge and resources.

In addition to facilitating the consolidation of fragmented literature, this study has identified five theoretical gaps that remain insufficiently explored within research utilizing the relational embeddedness framework in the context of MNC subsidiaries. Consequently, this research serves as an inaugural step for future investigations, elucidating specific avenues ripe for further exploration in the field.