Determinants of Monitoring Capabilities in International Franchising: Foodservice Firms within East Asia

Stephen Choo ()

Asia Pacific Journal of Management, 2005, vol. 22, issue 2, 159-177

Abstract: This paper undertakes an exploratory study on determining capabilities of international franchising within East Asia. There is a need to develop a deeper understanding in franchising within East Asia as much of the franchising literature is based on the U.S. experience. Findings from this paper indicate that international franchisors use a combination of mechanisms to prevent franchisee opportunism in East Asia. They include ex-ante bonds, performance schedules and formal controls in brand management. However, the effectiveness of these mechanisms depend on the capabilities of the franchisor to negotiate a high initial franchise fee, select the right franchisee and make adaptation but still maintain brand integrity. Copyright Springer Science + Business Media, Inc. 2005

Keywords: Agency theory; capabilities; monitoring; international franchising; East Asia; case study (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:22:y:2005:i:2:p:159-177

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DOI: 10.1007/s10490-005-1253-1

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