International franchise partner selection and chain performance through the lens of organisational learning.

Catherine L. Wang and Levent Altinay

(2008)

Catherine L. Wang and Levent Altinay (2008) International franchise partner selection and chain performance through the lens of organisational learning.. The Service Industries Journal, 28 (2). pp. 225-238.. ISSN 0264-2069

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Abstract

This study aims to investigate how international franchisors engage in exploratory and exploitative learning in the partner selection process and the implications for chain performance. Based on a single embedded case study of a leading international hotel organisation, the findings reveal that the franchisor attempted at a balanced learning approach in response to challenges caused by high cultural distance in international markets. However, the ‘crowd-out’ effect of exploration and exploitation created a ‘tension’: exploration emphasising adaptation to local needs dominated the partner identification stage at country markets, whilst exploitation stressing standardisation and efficiencies dominated the partner decision-making stage at the division. As a result, a consistent brand image came at the cost of very cautious international expansion.

Information about this Version

This is a Published version
This version's date is: 2008
This item is peer reviewed

Link to this Version

https://repository.royalholloway.ac.uk/items/70c1d44d-2e60-ea69-6fcc-edb10834a8aa/1/

Item TypeJournal Article
TitleInternational franchise partner selection and chain performance through the lens of organisational learning.
AuthorsWang, Catherine
Altinay, Levent
DepartmentsFaculty of History and Social Science\Management

Identifiers

doi10.1080/02642060701842290

Deposited by Al Dean (ZSRA118) on 15-Mar-2010 in Royal Holloway Research Online.Last modified on 07-Jan-2011

Notes

(C) 2008 Taylor & Francis Ltd, whose permission to mount this version for private study and research is acknowledged.  The repository version is the author's final draft.

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