The influence of corporate global mindset on international franchising

Renata Fernandes Galhanone, Thelma Valeria Rocha, Eduardo Eugênio Spers and Fabiano Rodrigues

RAUSP Management Journal, 2019, vol. 55, issue 2, 161-175

Abstract: Purpose - This paper aims to investigate the influence of a corporate global mindset and international experience on the internationalization process of Brazilian franchisors. The purpose is to study the role played by global mindset in the internationalization process of franchisors from an emerging country by answering the question: What is the impact of a global mindset on the level of internationalization? Design/methodology/approach - A survey of 104 companies was conducted with franchise managers to compare Brazilian (domestic-only and internationalized) franchisors to foreign franchisors with operations in Brazil. The collected data were analyzed through descriptive statistics, ANOVA and regression analysis. Findings - Results showed that the firm’s experience in international markets (measured as the number of years in foreign countries) has a positive relation to corporate global mindset. Developing a corporate global mindset should help Brazilian franchises to grow internationally. The findings indicate that Brazilian franchisors fall behind their foreign counterparts in international experience, which affect the skills, knowledge, disposition and organizational structure needed to be successful outside their home market. Practical implications - Franchisors who decide to internationalize should carefully consider the need for developing a global mindset, especially in terms of investing in communication technologies, adequate human resources and an organizational structure to support international operations. Originality/value - This research contributes to the international franchising literature by exploring the role of a global mindset in the context of franchises from an emerging market. Using a multidimensional concept of corporate global mindset, comprised of global orientation, global knowledge and global skills, this study adds an aspect of international franchising beyond institutional and economic explanations.

Keywords: Internationalization; Emerging markets; Corporate global mindset; International franchising (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:rauspp:rausp-08-2018-0069

DOI: 10.1108/RAUSP-08-2018-0069

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