This study aims to enhance the knowledge that managers and scholars have on franchising expansion. In this sense, it is worth mentioning that although the body of literature on…
Abstract
Purpose
This study aims to enhance the knowledge that managers and scholars have on franchising expansion. In this sense, it is worth mentioning that although the body of literature on international management focusing on emerging markets is growing, the attention paid to the Latin American context continues to be limited. This is surprising given the substantive economic importance of the region with a population over 590 million, and a gross domestic product of approximately US$5 trillion. To cover this gap, the present study examines how a number of market conditions may drive diffusion of franchising into Latin America: geographical distance, cultural distance, political stability and economic development. The authors also controlled for the host country’s market potential, transparency, unemployment rate and efficiency of contract enforcement.
Design/methodology/approach
This study uses a quantitative approach applied to a sample of 77 Spanish franchisors operating through 4,064 franchisee outlets across 21 Latin American countries in late 2012. They are: Argentina, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Bolivia, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay and Venezuela.
Findings
Results conclude that geographical distance between the host and home countries, as well as the level of host country’s political stability, economic development, market potential and transparency are able to drive the spread of international franchising across Latin American nations.
Research limitations/implications
This study provides readers with a general overview of the current state of global franchising diffusion overseas. Results obtained in this study are useful for understanding and predicting the demand for franchising in Latin American countries.
Practical implications
Economics reports argue that by 2050, the largest economies in the world will be China, the USA, India, Brazil and Mexico. This fact highlights the substantive importance of Latin America for foreign investors willing to expand their business abroad. In an attempt to give insights from the Latin American context, the present paper develops and tests a model that can be useful to franchisors willing to establish new outlets in the region. In addition, our findings offer guidance to firm managers seeking to target their franchises in Latin America. Franchisors may then use the results of this study as a starting point for identifying such regions whose characteristics best meet their needs of expansion.
Originality/value
This paper explores how market conditions may drive international diffusion of franchising into Latin American markets. The scant theoretical or empirical attention given to this topic has usually been examined from the USA and British base and focused on developed markets. To fill this gap, the present study analyzes the international spread of the Spanish franchise system into Latin America as a market for franchising expansion.
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This paper aims to to provide a better understanding of the effect that the corporate social responsibility (CSR) practices might have on brand love. It also analyzes the…
Abstract
Purpose
This paper aims to to provide a better understanding of the effect that the corporate social responsibility (CSR) practices might have on brand love. It also analyzes the importance of making supporters be aware and involved in such initiatives.
Design/methodology/approach
This study focuses on the Real Madrid Foundation, which is the most followed charitable sport institution worldwide. Data have been collected through a survey that was available online from January through April 2016. Participation has been solicited among the supporters of Real Madrid on fan sites. This produced a total of 402 completed questionnaires. In addition, the Managing Director of the Real Madrid Foundation has been interviewed.
Findings
The CSR activities carried out by the team positively influence fan commitment toward the club. Keeping the supporters updated about such initiatives through social networks also helps to increase the bonds between the club and its followers. Moreover, the fans’ use of the club’s website and their involvement in the club’s CSR activities may have a positive impact on the love the supporters profess toward the team’s brand. This claim, however, must be treated with some caution because it has not been proved to be statistically significant.
Originality/value
This study suggests that developing a website is not enough to get brand love from supporters. Experiential marketing does not seem to have statistical impact on brand love either. Conversely, the CSR actions and the use of social networks to keep followers updated about the social initiatives carried out by the team do provide new opportunities to achieve an emotional attachment toward the club and therefore, positively affect brand love.
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This paper aims to identify the driving variables in the franchise decision to expand abroad. It also explores the effect of a set of factors on the intensity of the…
Abstract
Purpose
This paper aims to identify the driving variables in the franchise decision to expand abroad. It also explores the effect of a set of factors on the intensity of the internationalization process pursued by franchise companies. To achieve this goal, the author considered the following variables: the role of management and franchising experience, brand awareness and the sector of activity (product versus service). The international franchise ratio and the size of the chain were also considered.
Design/methodology/approach
This study uses a quantitative approach applied to the Spanish franchise system, which occupies the second position in Europe in terms of the number of franchisee outlets (65,810) and the first position in Europe in terms of the number of franchisors (1,232). Moreover, in early 2016, a total of 302 Spanish chains were doing business in 137 foreign countries with 20,891 outlets established abroad. Data were obtained from secondary sources (i.e. the Spanish Franchise Association, the leading Spanish franchising Consultant Group, etc.) The most important international franchising associations were also considered. Multiple regression analyses were used to test the research hypotheses.
Findings
Results conclude that that franchisor’s brand awareness plays an important role in the decision of becoming a global franchise chain. In addition, the franchising experience, business orientation (product versus service), the international franchise ratio and the company size have significant impacts on the intensity of the internationalization process pursued by the franchisors.
Originality/value
The scant attention given to this topic has usually been examined from the US and British base and has focused on a reduced number of sectors of activity such as hospitality and manufacturing doing business in a single region (i.e. developed or emerging nations). To fill this gap, this work analyzes the international spread of the entire Spanish franchise system, which in early 2016 had presence in 137 foreign countries and operated in a total of 52 different sectors of activity.
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The purpose of this paper is to introduce a model that explores various possible determining factors in the rate of franchising among emerging nations. Emerging markets are some…
Abstract
Purpose
The purpose of this paper is to introduce a model that explores various possible determining factors in the rate of franchising among emerging nations. Emerging markets are some of the fastest growing economies in the world; moreover, the countries they represent are undergoing substantial economic transformations. Yet despite all this, little is known about the factors influencing country selection for expansion into these markets. In an attempt to enhance the knowledge that managers and scholars have on franchising expansion, the present study examines how market conditions may constrain diffusion of franchising into emerging markets. They are: geographical distance; cultural distance; uncertainty avoidance; individualism; political stability, and corruption. The author also controlled for gross domestic product, the efficiency of contract enforcement, and nascent entrepreneurship.
Design/methodology/approach
This study uses a quantitative approach applied to a sample of 63 Spanish franchisors with 2,836 franchisee outlets operating across the emerging countries.
Findings
Results conclude that geographical distance, uncertainty avoidance, individualism, political stability, corruption, gross domestic product, efficiency of contract enforcement, and nascent entrepreneurship are able to constrain the spread of franchising across emerging nations.
Research limitations/implications
This study provides readers with a general overview of the current state of global franchising diffusion overseas. Results obtained in this study are useful for understanding and predicting the demand for franchising in emerging countries.
Practical implications
The present manuscript develops and tests a model that can be useful not only to academics interested in broadening their knowledge regarding global franchising, but also to firm managers wanting to establish new outlets in emerging nations. Thus, franchisors may use the results of this study as a starting point for identifying the emerging regions whose characteristics best meet their needs of expansion.
Originality/value
This paper explores how certain market conditions may drive international diffusion of franchising into emerging markets. The scant theoretical or empirical attention given to this topic has usually been examined from a US base and focused on developed markets. To fill this gap, the present study analyzes the international spread of the Spanish franchise system, which since 2008 has ranked fifth worldwide in terms of both the number of franchisors and the quantity of franchisee outlets across emerging markets.
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– The purpose of this paper is to analyze the role of online and mobile marketing as drivers of brand love.
Abstract
Purpose
The purpose of this paper is to analyze the role of online and mobile marketing as drivers of brand love.
Design/methodology/approach
Data were collected through an online survey during early 2013. A total of 241 valid answered questionnaires were collected and the constructs were tested for unidimensionality by using principal components analysis.
Findings
This work confirms that in spite of the fact that players are relevant assets and investments, sports managers need to concentrate their efforts on managing the team’s brand, as this is one of the company’s most important assets. Moreover, the present paper shows that developing an interactive website is not enough to get brand love. In particular, findings reveal that traditional websites are no longer motivating customers to return to the site. As a result, sports managers need to use interactive marketing mediums to connect with consumers in real time. In addition, by integrating different elements of social media such as blogs, YouTube, Facebook, and Twitter, professional teams elevate presence and create virtual communities, which influence the choice of brands and impact fan engagement.
Practical implications
As the Real Madrid branded mobile application was not found to be a driver of brand love, marketers should consider this strategy with caution.
Originality/value
This work could also be of help for sport managers considering mobile marketing as a way to interact with their followers.
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Marina Mattera and Veronica Baena
The purpose of this study is to analyze how corporate social responsibility (CSR) affects a firm’s value added. Specifically, through a combination of Stakeholder Theory and…
Abstract
Purpose
The purpose of this study is to analyze how corporate social responsibility (CSR) affects a firm’s value added. Specifically, through a combination of Stakeholder Theory and specific concept within the Innovation Theory framework (called Social Innovation Capital), this work explores the relation between effective stakeholder management and how marketable innovation production affects a company’s possibility of achieving a sustainable competitive advantage. By doing so, new insights on CSR management to gain competitive advantage are provided.
Design/methodology/approach
The present study analyzes the role of a firm’s international presence, and the company’s social commitment initiatives as drivers of the enterprise’s corporate intangible assets. A company’s reputation has also been considered as a control variable. To achieve this goal, the Spanish market was analyzed. Specifically, those Spanish companies who had the highest reputation in the global reputation pulse and showed the highest level of brand awareness, according to the latest report published by the Forum of Leading Spanish Brands, were considered.
Findings
Findings show that companies including their stakeholders’ interests in the knowledge-creation and innovation process are able to enhance their intangible assets and thus the capitalization of such knowledge. Similarly, firms with international presence have a large number of global stakeholders, which also evidences a positive relation with its intangible assets. By honoring the social contract, firms benefit from stakeholders while contributing to social welfare, creating a win–win situation.
Originality/value
This study categorizes how intangible assets can be increased through stakeholder’s involvement and firm’s international presence. Consequently, researchers studying business strategy can incorporate these variables as key elements in strategic planning. Scholars in fields of information systems, operations management, knowledge or supply chain management can also evaluate the inclusion of corporate social responsibility into their studies to evaluate how it reflects on tangible assets, production process, supply chain management or the knowledge production life cycle. Moreover, this work illustrates the convenience of using Innovation Theory in conjunction with the Stakeholder Theory to analyze a firm’s intangible assets enhancement.
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Abstract
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Sónia Monteiro, Verónica Ribeiro, Patricia Gomes, Maria José Fernandes and Cristiana Molho
Local governments (LGs) play a crucial role as policymakers and catalysts for change at the local level, making them well-positioned to connect the United Nations’ 2030 Agenda…
Abstract
Purpose
Local governments (LGs) play a crucial role as policymakers and catalysts for change at the local level, making them well-positioned to connect the United Nations’ 2030 Agenda goals with local communities. Therefore, LGs should collect and analyze data to monitor progress toward the sustainable development goals (SDGs) and report on the outcomes. In this regard, webpages on the internet stand out as a valuable tool to enhance accountability in LGs and to promote stakeholder engagement with the community. Thus, this paper aims to analyze whether Portuguese municipalities disclose information regarding the SDGs on their websites, and to identify the main drivers of SDG web-reporting.
Design/methodology/approach
Drawing on the theoretical foundation of legitimacy theory, this study examines the relationship between SDG reporting and the characteristics of several municipalities (such as geographical location, municipality size, financial performance, political ideology and gender), as well as adherence to some programs/networks/platforms (such as CESOP_Local and ODSLocal). The websites of 306 Portuguese municipalities were analyzed using the content analysis technique. A bivariate and multivariate statistical analysis was applied.
Findings
Bivariate analysis shows that coastal, larger and financially efficient municipalities are more likely to disclose SDG information on their websites due to visibility and stakeholder pressure. Contrary to extant literature, left-wing municipalities are not necessarily more inclined to embrace the 2030 Agenda. However, the presence of women in decision-making bodies and adherence to networks and sustainable programs positively influence SDG disclosure. In multivariate analysis, logistic regression identifies two significant factors impacting online SDG disclosure: the representation of women in municipal plenaries; and adherence to the CESOP_local network. Other factors show no significant influence, highlighting these two variables as the main drivers for SDG information disclosure.
Practical implications
The findings are in line with the literature review and lead us to conclude that SDG reporting in LGs is still in its infancy. Therefore, policymakers and regulators need to work together to implement and standardize sustainability reporting within LGs.
Social implications
Considering the significance of the gender variable, the findings could have implications for policy formulation, promoting gender diversity and its impact on the quality of SDG reporting.
Originality/value
Empirical research on SDG reporting remains limited, particularly within the context of LGs. To the best of the authors’ knowledge, no previous studies have delved into the reporting of SDGs specifically in this Portuguese context.
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Hayford Amegbe, Michael D. Dzandu and Charles Hanu
The lovemarks theory (love and respect) is fairly new to the marketing literature and is now gaining much attention among marketing scholars. The study examined how brand love and…
Abstract
Purpose
The lovemarks theory (love and respect) is fairly new to the marketing literature and is now gaining much attention among marketing scholars. The study examined how brand love and brand respect moderate the relationship between corporate social responsibility (CSR), trust (TRUS), satisfaction (SAT) and loyalty (LOY) among bank customers in an emerging/and or a developing country's context.
Design/methodology/approach
A quantitative survey approach was used. Data from a total of 769 banking customers, containing demographic and psychographic measures were used.
Findings
This study tested six (6) hypotheses. The results confirmed the moderating role of brand respect on the relationship between CSR and TRUS in the banking sector. Also, our results reveal that BLOV moderates the relationship between SAT and LOY. The rest of our hypotheses did not confirm any significant relationship between them.
Research limitations/implications
Like any academic exercise, this study also has some limitations. The hypotheses tested for brand love on bank customers' perceptions of CSR were based on a country study. The implication of brand love for CSR may be the same or vary in different country contexts.
Practical implications
The study provides managers of banks and managers of financial institutions a better understanding of how love and respect could play a role in their loyalty program and how to incorporate these new constructs into the already known constructs such as satisfaction, trust and loyalty.
Originality/value
This study is unique because it quantitatively examined the relationships between well-researched constructs corporate social responsibility (CSR), trust (TRUS), satisfaction (SAT) on loyalty (LOY) as well as examining these constructs with a fairly new constructs brand love (BLOV) and respect (BRES) in a single study.