Andrea Lanfranchi, Pedro Lucas de Resende Melo, Felipe Mendes Borini and Renato Telles
In this study, the authors identify how formal institutional environments in destination countries matter to franchise chains as they internationalize. The institutional…
Abstract
Purpose
In this study, the authors identify how formal institutional environments in destination countries matter to franchise chains as they internationalize. The institutional environment of the destination countries of franchise chains is characterized according to three institutional dimensions necessary to attract international investment – public governance, ease of doing business and legal processes – and analyzed in the context of regional and global franchise expansion.
Design/methodology/approach
The descriptive quantitative study involved 625 franchise chains from Australia, Brazil, Germany, India, Russia, South Africa and the United States, with a total of 2,939 observations.
Findings
Results suggest that franchise chains from emerging markets are guided by the institutional conditions of ease of doing business and the quality of legal processes in global expansion and guided by ease of doing business, quality of legal processes and governance in regional expansion. On the other hand, franchise chains from developed markets are guided by the ease of doing business, quality of legal processes and governance in global expansion and governance and ease of doing business in regional expansion.
Research limitations/implications
The sample included only franchise chains associated with organizations that represent franchises in their countries of origin, and the study does not analyze the effect of institutional distance between countries of origin and destination.
Originality/value
This study identifies the formal institutional characteristics that explain selection and commitment in international markets by franchise chains from different countries. The contribution is in analyzing the phenomenon through the lens of institutional theory and showing, through a global sample, that institutions matter to franchise chains from different types of countries (developed and emerging) and with different strategies for internationalization (global and regional).
Details
Keywords
Andrea Giovani Lanfranchi, Suzane Strehlau, Felipe Mendes Borini and Pedro Lucas de Resende Melo
The purpose of this research is to identify the impacts of the country of origin of a franchise chain on its commitment in the destination countries, verifying the institutional…
Abstract
Purpose
The purpose of this research is to identify the impacts of the country of origin of a franchise chain on its commitment in the destination countries, verifying the institutional particularities between the chains from emerging and developed countries.
Design/methodology/approach
The research is descriptive and quantitative and involved 724 franchise chains from 10 countries of origin (Brazil, Russia, India, South Africa, Argentina, USA, Germany, Australia, Spain and Portugal), spread over 174 destination countries, totaling 3,513 cases.
Findings
The results indicate that institutional preferences do not vary according to the country of origin of the franchise chain but rather vary according to the destination country.
Research limitations/implications
This paper contributes to institutional theory by identifying a set of characteristics that explains the selection of international markets and the commitment of franchise chains.
Practical implications
The results obtained in the study can help managers of franchise chains to make decisions related to the selection of destination countries for international expansion based on the institutional characteristics of the markets and their compatibility with the objectives of the franchise chains.
Originality/value
Companies in emerging countries internationalize according to different management logics from those of companies from developed countries. Thus, it is possible that the process of selecting countries for internationalization is also based on different criteria that reflect different institutional preferences. The thesis defended in the paper is that market potential is more important to franchisees from emerging markets, whereas contract enforcement is more important to franchisees from developed markets.
Details
Keywords
The sustainability of global production chains is at the centre of discussion in the past few years. One of the most polluting sectors is the fashion industry. Fashion brands…
Abstract
Purpose
The sustainability of global production chains is at the centre of discussion in the past few years. One of the most polluting sectors is the fashion industry. Fashion brands often decline responsibility, and continue misleading or exaggerated communication. This study aims to provide a comprehensive evaluation of regulation in the fashion industry and show practices of fashion firms.
Design/methodology/approach
Based on documentary analysis and literature review, the article describes current civil, supranational and governmental policies aiming to enhance the three dimensions of sustainability. Connecting these to the high-growth firm theory, the authors present a case study of a rising Hungarian fashion star based on press, sustainability and balance-sheet report analysis and personal interviews.
Findings
The article highlights some problematic areas of sustainability and greenwashing and describes the different levels and targeted areas of regulation. From the entrepreneurial perspective, the difficult balancing among growth and sustainability is analyzed and illustrated by the detailed case study. The authors provide regulatory suggestions (including the creation of a supranational monitoring agency).
Practical implications
Even if the authors doubt that global fashion chains can be sustainable, they offer both managerial and policy suggestions to reach the highest level of sustainability.
Social implications
The suggested measures can contribute to the more sustainable practices and fraud reduction in the fashion industry.
Originality/value
To the best of the authors’ knowledge, the economic-regulatory approach used in this study to sustainable fashion industry is new, such as the presentation of the practices of a high-growth firm with a sustainable image.
Details
Keywords
The purpose of this paper is to show how one of the biggest phenomena of the twenty‐first century is the internationalisation of professional sports and how premier league…
Abstract
Purpose
The purpose of this paper is to show how one of the biggest phenomena of the twenty‐first century is the internationalisation of professional sports and how premier league football epitomises this. With the influx of foreign players, managers and now owners, European League Football has become big business. This paper aims to provide a theoretical analysis of the management implications of foreign players in the English Premiership League football – renamed the Barclays Premier League to suit the needs of its major sponsors.
Design/methodology/approach
The approach adopted is purely qualitative in nature, evaluating the top Barclays Premier League teams and the impact of globalisation on their reconfigurations since the early 1990s to date. The study draws mainly from a review of the extant literature on sports and management, as well as a critical analysis of media reports.
Findings
Globalisation has emerged as a new force that has changed the way corporations are managed. Financial services, retail and information technology firms have all responded to this new wave – and so also has sports. Unfortunately while sports have the potential to teach lessons on management strategy, management researchers seem to have relegated sports to the sociology and psychology disciplines.
Practical implications
The Barclays Premier league football provides a unique environment for management decisions and processes to occur in a range of markets and at varied levels. However, the globalisation of professional sports has received relatively very little attention in the academic literature – especially in the field of business and management.
Originality/value
This paper contributes to the scant literature on the management implications of football by highlighting how globalisation has affected and reconfigured professional sports using the influx of foreign players into the English football league as a point of departure.