Factors Affecting Internationalization of Indonesia Franchise Companies

Authors

  • Erwin Halim Bina Nusantara University

DOI:

https://doi.org/10.21512/bbr.v4i1.1033

Keywords:

internationalization, franchise company, growth, PESTEL analysis

Abstract

Franchise is one of successful business strategies in business expansion. Franchise format has been already adopted in all countries. The success is proven in the world and also in Indonesia. Franchise system can be implemented not only in franchisor country but also in other countries. The spirit of internalization is not only because of market saturated, but also to increase reputation of franchise companies and to follow competitors or customers. Important thing discussed in this research is the franchise life-cycle, franchise growth model, and franchise companies’ profile.  It is found that the Indonesia franchise companies are in the introduction stage. The stage in life-cycle shows its reputation. This study used literature review as methodology, and the purpose of this study is to give a big picture for Indonesia franchise companies to make internationalization. There are some Indonesia franchise business profiles in the discussion part. The factors affecting franchise internationalization were analyzed by PESTEL analysis. Some strategies should be prepared in making decision to go international.  At the end, there are some recommendations and future research relating to internationalize franchise business.
Dimensions

Plum Analytics

Author Biography

Erwin Halim, Bina Nusantara University

Management Department

References

Bradley, F. (2002). International Marketing Strategy. Fourth Edition. Prentice Hall.

Castrogiovanni, G. J., and Justis, R. T. (2002). Strategic and contextual influences on firm growth: An empirical study of franchisors. Journal of Small Business Management 40(2): 98-108.

Ehrmann, T., and Spranger, G. (2005). Why do Franchisors combine franchises and company-owned units?. Center for Entrepreneurship, University of Muenster. Social Science Research Network Electronic Paper Collection from http://ssrn.com/abstract=807346

Entrepreneur Magazine. (2007). www.entrepreneur.com

Halim, E. (2008). Factors Affecting Franchise growth: A comparison between Indonesia and The US data. Unpublished thesis. Jakarta: University of Indonesia.

Inma, C. (2002). Building Successful Franchises: The Influence of Franchise Heterogeneity and Relationship Management on Franchise Success. Murdoch University.

Justis, R. T., and Judd, R. J. (2002). Franchising. Second Edition. Thomas Learning.

Kostecka, A. (1983). Franchise Opportunities Handbook. US Department of Commerce. Bereau of Industrial Economics and Minority Business Development Agency. Washington, DC: US Government Printing Office.

Rachmadi, B. N. (2007). Franchising The Most Practical and Excellent Way of Succeeding, Jakarta: Gramedia Pustaka Utama.

Sharma, A., & Kesner, I. F. (1996). Diversifying entry: Some ex ante explanations for postentry survival and growth. Academy of Management Journal, 39 (3), 635-677

Sherman, A. J. (2004). Franchising & Licensing. Two Powerful Ways To Grow Your Business in Any Economy. Third Edition. American Management Association.

Sukandar, A. (2006a). Direktori Franchise Indonesia. Jakarta: Franchise Indonesia. Indonesian Franchise Association.

Sukandar, Anang. (2006b). Franchise or Business Opportunity. Info Franchise Magazine 03. March 10, 2006 edition, 28.

Downloads

Published

2013-05-31
Abstract 1077  .
PDF downloaded 1005  .