The role of prior knowledge in international franchise partner recruitment

Abstract

Purpose – To investigate the role of prior knowledge in the international franchise partner recruitment process and to evaluate how cultural distance influences the role of prior knowledge in this process.Design/methodology/approach – A single embedded case study of an international hotel firm was the focus of the enquiry. Interviews, observations and document analysis were used as the data collection techniques.Findings – Findings reveal that prior knowledge of the franchisor enables the franchisor to coordinate more efficiently with prospective partners. However, the case study firm experienced a great deal of cultural distance in different country markets. The greater the cultural distance, the more challenges the firm has to face in terms of upgrading and adapting its prior knowledge to local needs.Research limitations/implications – The findings are based on a hotel franchise chain, and may not be generalisable to other firms or industry sectors, although the literature on international management do...