The internationalization of retailing: factors influencing the choice of franchising as a market entry strategy

Abstract

Purpose – The purpose of this paper is to examine the factors that motivate international retail companies to choose franchising as a method for entering international markets.Design/methodology/approach – Employs a qualitative methodology and a multiple case study design. Six major UK‐based international fashion retailers form the empirical basis for the work.Findings – Finds the motivating influences to be a combination of both organisational and environmental factors. International retailing experience, availability of financial resources, presence of a franchisable retail brand, company restructuring and influence of key managers emerge as the organisational factors while environmental influences are revealed as opportunistic approaches, local market complexities, domestic competitive pressures and availability of potential franchise partners.Practical implications – Provides a useful source of information for those retail firms considering internationalization via the franchising method. Research is ...