competitive advantage, influence both perceived benefits and risks. Similarly, environmental (external) factors, such as domestic competitive pressures and perceived favorability of the external environment, mainly influence just perceived benefits. The model development draws upon a number of earlier empirical studies, though some gaps in that research are filled through argument and discussion as might be expected in a conceptual paper. The benefit side seems clearer from previous studies. Notwithstanding, the paper provides an excellent discussion of the risk aspects of internationalization. Cultural distance is considered under the heading of perceived favorability of the external environment. This is the only external factor that explicitly is prefaced by ‘‘perceived,’’ which seems appropriate because cultural distance is at least partly in the mindset of the managers. In summary, both papers in Phase 1 provide a powerful foundation for the theory of international franchising. In particular, the Eroglu paper is important because it does seem to be the first comprehensive and full-fledged conceptual model of international franchising. It has become a well-justified classic, seminal article in this domain of the franchising literature.
Phase 2 Theories: Late 1990s
To represent the next stage in theory development, namely the mid-1990s, two studies are chosen. In chronological order of publication, the papers are FladmoeLindquist (1996) and Doherty and Quinn (1999). Fladmoe-Lindquist draws inspiration from the emergence of resource-based=capability theories especially in the early 1990s to develop what she calls a capability theory of international franchising. She combines two types of capabilities: a more general, administratively driven (including ability to monitor agents) capability of international franchising on one hand and, on the otherhand,whatshecalls a capacityfor developinginternational franchising. The latter is a more dynamic capability, connected to agility and flexibility and an ability or potential to operate in future new and diverse markets. Fladmoe-Lindquist (1996) develops a two-by-two matrix, with low and high levels of existing international franchising capabilities along the horizontal axis and high and low levels of capacity for developing international capabilities along the vertical axis. The classic well-known global franchising brands are in the highhigh cell (worldwide franchisors), while the domesticdominated franchisors are in the low-low cell (constrained franchisors). Conventional franchisors, in the high existing capability and low capacity for developing international capabilities combination, include well-established companies, with considerable domestic experience and even international experience,
but which make little effort to ‘‘learn’’ about new markets or to adapt their offering.1 The integrating franchisors with low existing international franchising capabilities and high capacity for developing international capabilities are particularly interesting and include what we now call ‘‘born global’’ enterprises. The Fladmoe-Lindquist (1996) typology is interesting and useful. It provides guidance for the potential international expansion by franchisors through emphasizing some critical pre-entry capabilities. The capabilities relate to existing domestic and international franchising operations, and they include the ability to master general franchising skills such as administrative efficiency. A possible limitation of the paper is the narrow set of general franchising skills canvassed, with a neglect of major areas like branding, marketing, and relationships. Another limitation is that the key concept of ‘‘capacity to develop international capabilities’’ is not fully developed. Reference is made to useful components, such as the skill of ‘‘alertness,’’ but more work is needed. In the first instance, scope existed to draw more on dynamic capability theory. Further, these ideas could be augmented by relevant knowledge of the international marketing and international franchising literatures. Doherty and Quinn (1999) is the second selected paper to represent the late 1990s epoch. This paper appeals for two reasons. First, although the earlier theories make reference in some way to agency theory or its associated components such as monitoring costs, moral hazard, opportunism, and risk management generally, Doherty and Quinn take the concepts further and use them as the total basis for a conceptual theory of international retail franchising. Second, for the first time, Doherty and Quinn explicitly refer to the notion of international retail franchising theory. Although this might seem to downgrade international franchising in a sense by covering only part of international franchising, it nonetheless focuses attention on the retail dimension. In most countries, retailing, especially when traditional retailing is combined with retail services, is probably more than 80% of franchising. T
competitive advantage, influence both perceived benefits and risks. Similarly, environmental (external) factors, such as domestic competitive pressures and perceived favorability of the external environment, mainly influence just perceived benefits. The model development draws upon a number of earlier empirical studies, though some gaps in that research are filled through argument and discussion as might be expected in a conceptual paper. The benefit side seems clearer from previous studies. Notwithstanding, the paper provides an excellent discussion of the risk aspects of internationalization. Cultural distance is considered under the heading of perceived favorability of the external environment. This is the only external factor that explicitly is prefaced by ‘‘perceived,’’ which seems appropriate because cultural distance is at least partly in the mindset of the managers. In summary, both papers in Phase 1 provide a powerful foundation for the theory of international franchising. In particular, the Eroglu paper is important because it does seem to be the first comprehensive and full-fledged conceptual model of international franchising. It has become a well-justified classic, seminal article in this domain of the franchising literature.Phase 2 Theories: Late 1990sแสดงขั้นตอนถัดไปในการพัฒนาทฤษฎี ได้แก่ในกลางทศวรรษที่ 1990 ศึกษาสองที่เลือก เรียงตามลำดับของสิ่งพิมพ์ เอกสารเป็น FladmoeLindquist (1996) และโดเฮอร์ตี และควินน์ (1999) Fladmoe-Lindquist วาดแรงบันดาลใจจากการเกิดขึ้นของใช้ทรัพยากร =ทฤษฎีความสามารถโดยเฉพาะอย่างยิ่งในช่วงต้นทศวรรษ 1990 การพัฒนาสิ่งที่เธอเรียกทฤษฎีความสามารถของแฟรนไชส์นานาชาติ เธอรวมสองชนิดความสามารถ: เพิ่มเติมทั่วไป ขับเคลื่อน administratively (รวมถึงความสามารถในการตรวจสอบตัวแทน) ของแฟรนไชส์หนึ่ง และ otherhand, whatshecalls เป็น capacityfor developinginternational แฟรนไชส์นานาชาติ หลังมีความสามารถแบบไดนามิกมากขึ้น การเชื่อมต่อความคล่องตัว และ flexibility และความสามารถ หรือศักยภาพในการทำตลาดใหม่ และหลากหลายในอนาคต Fladmoe-Lindquist (1996) พัฒนาเมทริกซ์สองสอง มีระดับสูง และต่ำอยู่อินเตอร์เนชั่นแนลแฟรนไชส์สามารถตามแกนแนวนอนและระดับสูง และต่ำของความสามารถในการพัฒนาความสามารถประเทศแกนแนวตั้ง คลาสสิกสากลแฟรนไชส์แบรนด์รู้จักอยู่ในเซลล์ highhigh (franchisors ทั่วโลก), ในขณะ domesticdominated franchisors อยู่ในเซลล์ต่ำต่ำ (franchisors จำกัด) Franchisors ทั่วไป ความสามารถที่มีอยู่สูงและกำลังการผลิตต่ำสุดสำหรับการพัฒนาความสามารถนานาชาติชุด รวมบริษัทที่ดีขึ้น มีประสบการณ์มากในประเทศและต่างประเทศแม้ประสบการณ์but which make little effort to ‘‘learn’’ about new markets or to adapt their offering.1 The integrating franchisors with low existing international franchising capabilities and high capacity for developing international capabilities are particularly interesting and include what we now call ‘‘born global’’ enterprises. The Fladmoe-Lindquist (1996) typology is interesting and useful. It provides guidance for the potential international expansion by franchisors through emphasizing some critical pre-entry capabilities. The capabilities relate to existing domestic and international franchising operations, and they include the ability to master general franchising skills such as administrative efficiency. A possible limitation of the paper is the narrow set of general franchising skills canvassed, with a neglect of major areas like branding, marketing, and relationships. Another limitation is that the key concept of ‘‘capacity to develop international capabilities’’ is not fully developed. Reference is made to useful components, such as the skill of ‘‘alertness,’’ but more work is needed. In the first instance, scope existed to draw more on dynamic capability theory. Further, these ideas could be augmented by relevant knowledge of the international marketing and international franchising literatures. Doherty and Quinn (1999) is the second selected paper to represent the late 1990s epoch. This paper appeals for two reasons. First, although the earlier theories make reference in some way to agency theory or its associated components such as monitoring costs, moral hazard, opportunism, and risk management generally, Doherty and Quinn take the concepts further and use them as the total basis for a conceptual theory of international retail franchising. Second, for the first time, Doherty and Quinn explicitly refer to the notion of international retail franchising theory. Although this might seem to downgrade international franchising in a sense by covering only part of international franchising, it nonetheless focuses attention on the retail dimension. In most countries, retailing, especially when traditional retailing is combined with retail services, is probably more than 80% of franchising. T
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