Document Type
Article
Publication Date
6-1-2012
Abstract
This study proposes and tests an agency-based organizational model of internationalization through franchising in the hotel sector. Using data obtained from a Franchisor Questionnaire 2001-2008, we analyzed a panel of 117 observations of 17 U.S.-based hotels. Our analysis reveals that a hotel franchisor’s decision to internationalize through franchising is positively related to the percentage of franchises, the ratio of franchised units to the total number of units. The article contributes to the literature by empirically modeling international franchising of hotels, which present unique characteristics among franchising companies, with a high investment capital requirement, maturity in the product life cycle, and a high level of standardization and globalization of operations. The unique characteristics of individual chains and their segment in the industry are particularly important, as revealed by both data analysis and expert opinion.
Published In
Alon, Ilan; Ni, Liqiang; and Wang, Youcheng, "Examining the Determinants of Hotel Chain Expansion through International Franchising" (2012). Faculty Publications. 94.
https://scholarship.rollins.edu/as_facpub/94
Publication Title
International Journal of Hospitality Management
ISSN
0278-4319
DOI
http://dx.doi.org/10.1016/j.ijhm.2011.06.009
Comments
Published in International Journal of Hospitality Management 31, no. 2 (2012): 379-386.