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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.

The purpose of this paper is to understand and identify the various characteristics of the institutional environment and the factors that propitiate the attraction of franchise chains to cities in the interior, using Brazil as an analysis.

Secondary data from the Brazilian Institute of Geography and Statistics were used. It comprised a sample of 1,683 Brazilian cities with commercial outlets featuring franchise brands. It was limited to cities with populations of up to 100,000 inhabitants that did not constitute metropolitan regions. The statistical technique performed was multiple regression.

The results of the multiple regression confirm the explanatory power of R² = 36% for the analyzed model. Such presence of franchise chains is based on four institutional dimensions and their environmental characteristics: demographic (demographic density); economic and financial (average monthly salary of formal workers and number of banking agencies); business (number of active companies and presence of shopping centers); and human resources (presence of higher education units).

The main contribution of the study encompasses the call that regional institutional characteristics are part of knowledge guidelines on regional development and institutional environments for entrepreneurship. In this sense, the paper contributes to studies on regional development in particular, by punctuating the characteristics of the institutional environment of cities that are related to the existence of franchise chain brands.

Such contributions are addressed to managers and directors of expanding franchise chains, given the choice of locations that best enable the concept of their franchises. The fact that only 20% of franchises have a presence in these cities, even if it is admitted that for 70% of these chains, their businesses have the capacity to make these locations viable, shows the importance of this contribution.

This study is addressed to public managers, represented by secretaries of municipal developments, in view of the construction of an institutional environment conducive to entrepreneurial activity, in this specific case, by franchises. It is an important mechanism for attracting new businesses and creating a virtuous cycle of regional development.

Specifically, knowledge is generated about the insertion of ventures based on the franchise business model in small- and medium-sized regional markets. A second feature involves the understanding of the insertion of enterprises in a large and heterogeneous emerging market.