Article: Analysis of firm-specific, country-specific and sectoral determinants of international franchise survival Journal: European Journal of International Management (EJIM) 2024 Vol.24 No.3/4 pp.487 - 510 Abstract: Franchising is a major part of the worldwide economy. Different factors at the firm and country levels simultaneously influence franchising survival, including location and governance. The purpose of this study is to holistically view the factors that affect franchisors' survival. This study examines factors that affect franchisors' survival in emerging and developed countries in different economic sectors by comparing data from Latin American and European countries between 2009 and 2017. Using survival analysis modelling, the results show that franchisors that enter many years after the first franchisor in the host country have higher hazard rates (franchisor's failure probability). This finding is based on the fact that compared with late entrants, franchisors that enter the market earlier are more likely to gain brand loyalty, and advantages from the early registration of their brand, which allows them to survive longer. Franchise survival increases as the host country's economic, institutional, infrastructure and technology factors improve. Implications are discussed. Inderscience Publishers - linking academia, business and industry through research

Title: Analysis of firm-specific, country-specific and sectoral determinants of international franchise survival

Authors: Cintya Lanchimba; Hugo Porras Encalada; Yasmin Salazar; Dianne H.B. Welsh

Addresses: Departamento de Economía Cuantitativa, Escuela Politécnica Nacional, Quito, Ecuador ' Departamento de Economía Cuantitativa, Escuela Politécnica Nacional, Quito, Ecuador ' Departamento de Economía Cuantitativa, Escuela Politécnica Nacional, Quito, Ecuador ' Department of Marketing, Entrepreneurship, Hospitality & Tourism, The University of North Carolina (Greensboro), North Carolina, Greensboro, USA

Abstract: Franchising is a major part of the worldwide economy. Different factors at the firm and country levels simultaneously influence franchising survival, including location and governance. The purpose of this study is to holistically view the factors that affect franchisors' survival. This study examines factors that affect franchisors' survival in emerging and developed countries in different economic sectors by comparing data from Latin American and European countries between 2009 and 2017. Using survival analysis modelling, the results show that franchisors that enter many years after the first franchisor in the host country have higher hazard rates (franchisor's failure probability). This finding is based on the fact that compared with late entrants, franchisors that enter the market earlier are more likely to gain brand loyalty, and advantages from the early registration of their brand, which allows them to survive longer. Franchise survival increases as the host country's economic, institutional, infrastructure and technology factors improve. Implications are discussed.

Keywords: franchising; first-mover advantages; country stability; technology exports; international; Latin America; Europe; governance; survival strategy; location; branding.

DOI: 10.1504/EJIM.2024.141658

European Journal of International Management, 2024 Vol.24 No.3/4, pp.487 - 510

Received: 28 Sep 2021
Accepted: 26 May 2022
Published online: 30 Sep 2024 *

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Title: Analysis of firm-specific, country-specific and sectoral determinants of international franchise survival

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