Institutional environment and internationalization of franchise chains: a regional and global analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Lanfranchi ◽  
Pedro Lucas de Resende Melo ◽  
Felipe Mendes Borini ◽  
Renato Telles
Keyword(s):  
Institutional Environment ◽  
Global Analysis ◽  
The United States ◽  
International Investment ◽  
Content Type ◽  
Global Expansion ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Legal Processes

PurposeIn this study, the authors identify how formal institutional environments in destination countries matter to franchise chains as they internationalize. The institutional environment of the destination countries of franchise chains is characterized according to three institutional dimensions necessary to attract international investment – public governance, ease of doing business and legal processes – and analyzed in the context of regional and global franchise expansion.Design/methodology/approachThe descriptive quantitative study involved 625 franchise chains from Australia, Brazil, Germany, India, Russia, South Africa and the United States, with a total of 2,939 observations.FindingsResults suggest that franchise chains from emerging markets are guided by the institutional conditions of ease of doing business and the quality of legal processes in global expansion and guided by ease of doing business, quality of legal processes and governance in regional expansion. On the other hand, franchise chains from developed markets are guided by the ease of doing business, quality of legal processes and governance in global expansion and governance and ease of doing business in regional expansion.Research limitations/implicationsThe sample included only franchise chains associated with organizations that represent franchises in their countries of origin, and the study does not analyze the effect of institutional distance between countries of origin and destination.Originality/valueThis study identifies the formal institutional characteristics that explain selection and commitment in international markets by franchise chains from different countries. The contribution is in analyzing the phenomenon through the lens of institutional theory and showing, through a global sample, that institutions matter to franchise chains from different types of countries (developed and emerging) and with different strategies for internationalization (global and regional).

The determinants of foreign direct investment: what about the potential of the Arab Maghreb countries?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hamdi Khalfaoui ◽  
Abdelkader Derbali
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Stability ◽  
The United States ◽  
Investment Risk ◽  
Content Type ◽  
Foreign Companies ◽  
Main Determinants ◽  
General Method Of Moments

Purpose The purpose of this paper is to elucidate the main determinants of foreign direct investment (FDI) in the case of the Arab Maghreb countries. Design/methodology/approach We employ a dynamic panel analysis using the General Method of Moments for a sample composed of 105 countries over the period 1985–2018. Findings We show that FDI stability, market size, higher education enrolment, quality of institutions, distance, sharing of common border, and bilateral investment and integration agreements are the main determinants of FDI location. These determinants are neither general. The potential for attracting FDI from AMU countries is poorly exploited. FDI to the AMU is lower than estimated stock. The observed FDI to potential FDI ratio does not exceed 87%. France and Spain are the main investors in the AMU region thanks to historical and cultural links. The FDI from the United States, Canada, Germany, Belgium, and Japan are below what is expected. Originality/value The contribution of this paper is observed on the examining oh the determinants of the FDI in the Arab Maghreb countries. Our study demonstrate that the political stability can decrease investment risk in these countries. The administrations correspondingly require expanding their rules and strategies with union demonstrations which were at the beginning of the departure and closing of several foreign companies.

Understanding retail quality of sporting goods stores: a text mining approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luke Lunhua Mao
Keyword(s):  
Text Mining ◽  
Customer Service ◽  
Online Reviews ◽  
The United States ◽  
Alternative Methods ◽  
Content Type ◽  
Sport Industry ◽  
Sporting Goods ◽  
Quality Dimensions

PurposeSporting goods retailing is a significant sector within the sport industry with the total revenue of this sector reaching $52.2 billion in 2018. Beset with formidable competition, sporting goods stores are compelled to augment their merchandise with service and improve retail quality. The purpose of this study is to investigate retail quality of sporting goods stores (RQSGS).Design/methodology/approachBased on 27,793 online reviews of 1481 stores in the United States, this study used Leximancer 4.0, a text mining software, to identify critical retail quality dimensions associated with sporting goods stores, and further explored the most salient dimensions among different levels of ratings.FindingsCustomer service and store aspects are the two higher-order dimensions of RQSGS; holistic experience, manager and staff are three themes under customer service, and product, B&M store and online–offline integration are three themes under store aspects. Furthermore, extreme reviews focus more on customer service, whereas lukewarm reviews focus more on store aspects.Practical implicationsKnowledgeable staff, managers and online–offline integration are instrumental in creating superior retail quality. Sporting goods stores should enhance hedonic and social values for consumers in order to ward off online competitions.Originality/valueThis study explored retail quality dimensions that are pertinent to sporting goods retailing utilizing text mining methods. This study to certain extent cross-validated the existing retailing literature that is developed on alternative methods.

A new index to measure ease of doing business at the sub-national level

2018 ◽  
Vol 25 (3) ◽  
pp. 515-537 ◽  
Author(s):  
Khee Giap Tan ◽  
Mulya Amri ◽  
Nurina Merdikawati
Keyword(s):  
Explanatory Power ◽  
National Level ◽  
Market Potential ◽  
Business Community ◽  
Primary Data ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Doing Business ◽  
Ease Of Doing Business

Purpose The purpose of this paper is to propose a novel framework to measure ease of doing business (EDB) that undertakes a holistic approach incorporating three distinct environments: attractiveness to investors, business friendliness, and competitive policies (ABC). This is offered as an alternative to existing popular indicators of doing business (DB), allowing for better approximation of investment and economic growth at the sub-national level. Design/methodology/approach The proposed “EDB Index ABC” aggregates 74 indicators into five sub-environments, three environments, and ultimately into the overall EDB Index ABC. Values are standardised using the standardised score method. The framework is applied to 33 Indonesian provinces using a combination of primary data from surveying the business community and government departments as well as secondary data from formal government statistics. Findings The findings suggest a positive association between the proposed EDB Index ABC and competitiveness as well as investments into Indonesian provinces. In terms of explanatory power, attractiveness to investors and business friendliness seem to be stronger and more consistent, while the role of competitive policies is more ambiguous. Originality/value This research departs significantly from conventional approaches to the study of DB that tend to overwhelmingly focus on formal regulatory aspects by including macroeconomic factors such as market potential and infrastructure resilience as well as micro-level variables such as profitability and cost effectiveness, and the role of government in managing competition. Responding to calls for a bottom-up approach in understanding the EDB, the EDB Index ABC is applied to 33 Indonesian provinces.

Policies could damage Tanzania’s strong growth trend

2017 ◽  
Keyword(s):  
Tax Evasion ◽  
Financial Services ◽  
Growth Trend ◽  
Sharp Drop ◽  
Content Type ◽  
Doing Business ◽  
The World ◽  
Ease Of Doing Business ◽  
Tourism Revenue ◽  
Growing Population

Significance The World Bank’s 2017 Ease of Doing Business ranking shows Tanzania improving, moving up to 132nd place from 144 last year. However, an austerity drive and a crackdown on tax evasion may undermine progress. Businesses have shuttered since President John Magufuli took office, and commercial retrenchment could dampen key growth sectors including construction, telecoms and financial services. Impacts A fast-growing population of 53 million will add to an already large consumer base. A sharp drop in tourism revenue could prompt a review of taxation on the sector. Natural gas discoveries could boost revenue, but exports will only begin in the next decade.

Nigeria’s 2020 budget plans could prove impossible

2019 ◽  
Keyword(s):  
Interest Rate ◽  
World Bank ◽  
Growth Potential ◽  
High Interest Rate ◽  
Content Type ◽  
National Assembly ◽  
Doing Business ◽  
Deficit Financing ◽  
Rate Environment ◽  
Ease Of Doing Business

Subject Nigeria's 2020 budget. Significance President Muhammadu Buhari on October 8 proposed a 10.3-trillion-naira (28.4-billion-dollar) budget for 2020. The budget plans to increase spending on much-needed infrastructure, while deficit financing trends also look set to continue with a proposed 2.18-trillion-naira deficit. However, the proposed budget is plagued by the same challenges that have crippled previous Buhari plans, namely overly optimistic revenue expectations. Impacts A curtailing of infrastructure spending, combined with the high interest rate environment, will likely limit the economy's growth potential. Increased compliance costs could hurt an already diminished investment reputation and future World Bank ‘ease of doing business’ rankings. An easier relationship between the presidency and the national assembly should see the budget passed without the major delays of past years.

Investment ease will shape East Africa’s recovery

2020 ◽  
Keyword(s):  
Limited Resources ◽  
East African ◽  
Content Type ◽  
Doing Business ◽  
Developing Markets ◽  
Ease Of Doing Business ◽  
Economic Slowdown

Significance However, with FDI flows expected to be much reduced amid the global economic slowdown, especially for ‘riskier’ frontier or developing markets, ease of doing business is likely to become a much more immediate concern for companies looking to invest limited resources in the region. Impacts The challenges associated with investing in Tanzania will see non-extractives-focused companies look to other East African markets. Kenya’s poor corruption rankings will deter firms as scrutiny on anti-bribery compliance, especially for large multinationals, increases. Rwanda may prove especially attractive to small and medium-sized enterprises (SMEs) that are more cost conscious than multinationals.

Added US sanctions on Syria may prove self-defeating

2019 ◽  
Keyword(s):  
Economic Growth ◽  
Regional Integration ◽  
The United States ◽  
Content Type ◽  
Goods And Services ◽  
Us Congress ◽  
Doing Business ◽  
The Us ◽  
Criminal Groups ◽  
Economic Tools

Significance This comes as the US Congress is finalising a bill, the Caesar Act, that would substantially increase the sanctions pressure on Syrian President Bashar al-Assad’s government. As Washington’s military footprint in the Syrian theatre shrinks, it is reprioritising the use of economic tools. Impacts With no exposure to the United States, Iranian and Russian companies doing business with Syria will not be significantly affected. The main losers could be US partners, who had hoped that a Syrian recovery would aid their own economies and regional integration. Black market activity may proliferate in the Levant as criminal groups help establish alternative mechanisms to supply goods and services. Sanctions will make life more difficult for the average Syrian, restricting economic growth and reconstruction.

scholarly journals How the Legal Environment Affects the Structure of Employment

2015 ◽  
Vol 63 (6) ◽  
pp. 2005-2009 ◽  
Author(s):  
Marek Litzman ◽  
Luděk Kouba
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
World Bank ◽  
Institutional Environment ◽  
Legal Environment ◽  
Transparency International ◽  
Doing Business ◽  
The World Bank ◽  
Corruption Perception

The quality of the institutional environment is considered a crucial determinant of economic growth. Low quality of the formal institutional environment can slow down economic development via various mechanisms described in the literature. The present paper will analyse formal institutional factors leading to the structure of employment that Murphy, Shleifer and Vishny (The Quarterly Journal of Economics, 1991) found to be associated with lower rate of economic growth. They assumed that a high proportion of lawyers in the country may be associated with slower economic development. Thus, the aim of the paper is to examine some of the parameters of institutional environment that can lead to such a distribution. Results show that quality of law measured by the World Bank (Doing Business database) and the Corruption Perception Index obtained from Transparency International may have some explanatory abilities regarding the structure of employment.

scholarly journals BARRIERS IN FINANCING MICROENTERPRISES FROM THE PERSPECTIVE OF CZECH AND SLOVAK MICROENTREPRENEURS

2019 ◽  
Vol 20 (2) ◽  
pp. 244-267 ◽  
Author(s):  
Mehmet Civelek ◽  
Aleksandr Ključnikov ◽  
Peter Krištofík ◽  
Zoltán Rozsa
Keyword(s):  
Interest Rates ◽  
Business Environment ◽  
Policy Implications ◽  
Chi Square ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Ease Of Access ◽  
Spatial Autocorrelation Index ◽  
Rejection Rates

This paper compares how Czech and Slovak microentrepreneurs perceive the volume and ease of access to finance that they face. Having an adequate number of sources of finance and easier access to them can help improve both enterprise and country performance. Chi-square and Z score tests for population proportions were used to test hypotheses. 740 microenterprises from Czech Republic and 287 microenterprises from Slovakia were included for the analyses that were performed by this study. The results show that Czech microentrepreneurs feel they have more sources of finance and have easier access to them than their Slovak counterparts. These differences may in part be linked to other factors such as the experience and age of microentrepreneurs and micro-firms, amount of business loans and microfinancing organizations, credit interest rates and credit rejection rates, the relative degree of economic freedom, the volume of government guarantees, relative GDP levels, the quality of business environment and ease of doing business. Additionally, The Moran’s I spatial autocorrelation index was performed to evaluate influence of location on the perception of Czech and Slovak microenterprises that were located in different regions of both countries. The paper also discusses the results’ policy implications for governments and financial institutions.

Delhi’s arbitration policy may hit foreign investment

2018 ◽  
Keyword(s):  
Foreign Investment ◽  
Prime Minister ◽  
State Agencies ◽  
International Arbitration ◽  
Foreign Investors ◽  
Content Type ◽  
Doing Business ◽  
Legal Risks ◽  
Ease Of Doing Business

Subject India's policies on domestic and international arbitration. Significance The proposed Indian Arbitration Council Act seeks to institutionalise domestic arbitration procedures and make the country a centre for international arbitration practice. Delhi is seeking to protect its state agencies from future accountability before international arbitration courts. Impacts Accusations of partiality against India’s judiciary are likely to increase. Prime Minister Narendra Modi will appeal to foreign investors despite the legal risks they face in India. India’s reputation for ease of doing business is likely to improve only gradually.

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