Open Access

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

Frontiers of Business Research in ChinaSelected Publications from Chinese Universities20115:118

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

Received: 26 November 2009

Published: 10 February 2011

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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