A Study on the Key Factors Influencing International Franchisors’ Choice of Entry Modes into China

• Published in: Frontiers of business research in China Vol. 5; no. 1; pp. 3 - 22
• Main Authors: Zhu, Mingxia, Wang, Zhiqiong June, Quan, Hong Rose
• Format: Journal Article
• Language: English
• Published: Netherlands Brill 01.03.2011; Higher Education Press; SP Higher Education Press; Springer Nature B.V
• Subjects: Accounting/Auditing; Business and Management; Business Finance; Chinese market; Cultural differences; Culture; direct international franchising; Economic models; Economic reform; Economic theory; Emerging markets; entry modes; Franchising; Globalization; Host country; Human Resource Management; International business; international franchising; Literature reviews; Market entry; Marketing; Organization; Regression analysis; Research Article; Studies; China; entry modes; direct international franchising; international franchising; Chinese market
• ISSN: 1673-7326; 1673-7431
• DOI: 10.1007/s11782-011-0118-3

This paper examines factors associated with international franchising firms’ entry modes when they enter the Chinese market. To this end, a survey was conducted to investigate the linkage between entry modes and characteristics of franchising firms. The logit model and regression analysis were used to test the hypotheses. Findings reveal four factors that significantly influence international franchisors’ entry mode choices including cultural and geographic distance, international market experience, risk spreading, and maturity of the franchising system.