Scandinavian Working Papers in Business Administration

Working Papers,
Copenhagen Business School, Department of International Economics and Management

No 5-1999: International Retailing Operations: Downstream Entry and Expansion via Franchising

Bent Petersen and Lawrence S. Welch
Additional contact information
Bent Petersen: Department of International Economics and Management, Copenhagen Business School, Postal: Department of International Economics and Management, Copenhagen Business School, Howitzvej 60, 2nd floor , DK-2200 Copenhagen N, Denmark
Lawrence S. Welch: Norwegian School of Management

Abstract: In this article, the shift into international franchising from other forms of operation, rather than the typical home market franchising base is explored. The focus is international retail franchising, based on a study of the Danish clothing and footwear industry. In this study it was found that Danish companies were moving into international franchising as an outcome of a more general shift from upstream wholesaling and subcontracting activities to downstream involvement in retailing activities. Preceding establishments of foreign subsidiaries and company owned retail operations seemed to be important in facilitating the move into franchising.

Keywords: international franchising; international retailing; internationalization; foreign operation mode

23 pages, May 29, 1999

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