Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome

Eugenio Jose Silva Bitti (), Muriel Fadairo (), Cintya Lanchimba and Vivian-Lara Silva ()
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Eugenio Jose Silva Bitti: School of Economics, Business Administration and Accounting, University of São Paulo, Brazil
Muriel Fadairo: Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France
Vivian-Lara Silva: Center for Organization Studies (CORS), University of São Paulo (USP), Brazil

No 1614, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: This empirical article deals with the location strategy and performance outcomes of franchised chains in Brazil. Brazilian franchising has experienced vertiginous process of expansion in recent years, being present in different regions of this country of continental size, including the most remote and less developed. Based on the background literature in economics and management regarding location choices and spatial competition in retailing, we use a new and unique dataset to distinguish several behavior categories in spatial strategies of franchising chains in Brazil, via a two-step cluster analysis. The performance outcomes are then studied with econometric estimations on panel data. Our results provide evidence that the choice for agglomeration, and the location in areas with a high population and a high human development index, lead to higher chain performances.

Keywords: Franchising; Location Strategy; Spatial Competition; Emerging Market; Panel Data (search for similar items in EconPapers)
JEL-codes: C23 M21 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-cse, nep-lam and nep-ure
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ftp://ftp.gate.cnrs.fr/RePEc/2016/1614.pdf (application/pdf)

Related works:
Working Paper: Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome (2016)
Working Paper: Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome (2016)
Working Paper: Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1614

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