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

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. © 2011 Higher Education Press and Springer-Verlag Berlin Heidelberg.