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A study on the key factors influencing international franchisors’ choice of entry modes into China

Frontiers of Business Research in China volume 5, pages 3–22 (2011)Cite this article

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.

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Authors and Affiliations

  1. School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China

    Mingxia Zhu

  2. School of Business Law & Taxation, University of New South Wales, Sydney, 2052, Australia

    Zhiqiong June Wang

  3. Newcastle Business School, Northumbria University, Newcastle upon Tyne, NE1 8ST, UK

    Hong Rose Quan

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  1. Mingxia Zhu
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  2. Zhiqiong June Wang
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  3. Hong Rose Quan
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Correspondence to Mingxia Zhu.

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Zhu, M., Wang, Z.J. & Quan, H.R. A study on the key factors influencing international franchisors’ choice of entry modes into China. Front. Bus. Res. China 5, 3–22 (2011). https://doi.org/10.1007/s11782-011-0118-3

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  • DOI: https://doi.org/10.1007/s11782-011-0118-3

Keywords

  • Chinese market
  • international franchising
  • direct international franchising
  • entry modes