A Reveiw of the Ownership Strategy of International Franchisers

다국어 초록 (Multilingual Abstract)

The extant literature of the ownership structure of franchisers is mostly attempting to explain the US franchising system. This paper, accordingly, reviews, examines, and analyzes the ownership strategy of US franchisers in the US and overseas markets. Mainly two models, i.e. scare resource argument and agency theory, have been extensively used to understand the domestic ownership structure of the US franchisers. As a result, these models have been applied to explain the entry strategy of international franchisers.
The goal of this paper is to suggest a dynamic approach of comprehending the entry strategy of international franchisers. A new model is suggested by focusing on the dynamic interface between the global strategic motives and the foreign market entry modes. It is a knowledge-based view that understands international franchisers not only as market seekers but also as strategic asset or knowledge seekers. International franchisers have been generally regarded as market seekers who exploit their firm-specific capabilities in the overseas. The emerging approach, however, views international franchisers as dynamic learners and/or innovators trying to take advantage of geographic comparative advantages of the global operation.