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

Mingxia Zhu; Zhiqiong June Wang; Hong Rose Quan

doi:10.1007/s11782-011-0118-3

Front. Bus. Res. China ›› 2011, Vol. 5 ›› Issue (1) : 3 -22. DOI: 10.1007/s11782-011-0118-3

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

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Abstract

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.

Keywords

Chinese market / international franchising / direct international franchising / entry modes

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Mingxia Zhu, Zhiqiong June Wang, Hong Rose Quan. A Study on the Key Factors Influencing International Franchisors’ Choice of Entry Modes into China. Front. Bus. Res. China, 2011, 5(1): 3-22 DOI:10.1007/s11782-011-0118-3