Abstract
ABSTRACT Purpose: This paper aims to analyze the attractiveness of the markets in the inland of Brazil to franchise chains based on the characteristics of institutional environment, referring to the socioeconomic, geographical, and human resources dimensions. Originality/value: Interiorization is a theme that has been hardly explored in franchise chains’ growth strategies. This paper contributes to this debate through the institutional theoretical perspective, contributing to the clarification and ordering of the decision-making factors for the regional expansion of franchises. For regional development, it calls for municipal management to direct actions aimed at socioeconomic development and human resources. Design/methodology/approach: The quantitative method using secondary data - from Brazilian Association of Franchising (Associação Brasileira de Franchising [ABF]), Brazilian Association of Shopping Centers (Associação Brasileira de Shopping Centers [Abrasce]), Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística [IBGE]) and Google Maps - was employed in this study for the analysis of franchise location and for municipalities. The sample comprised 458 municipalities with a populaion of above 50 thousand inhabitants. The statistical techniques used were factor analysis and multiple regression analysis. Findings: The results show that the socioeconomic and human resources factors of the municipalities are essential for the attractiveness of franchises chains to the inland of the country. In turn, the geographical distance of the inland municipality in relation to the state capital did not present adherence to the model as an explanation for the attraction of franchises.
Highlights
Brazil has 4,619 municipalities located in the interior, which can be described as cities that are neither state capitals nor part of metropolitan regions
This paper aims to analyze the attractiveness of the markets in the inland of Brazil to franchise chains based on the characteristics of institutional environment, referring to the socioeconomic, geographical, and human resources dimensions
Among the franchise chains associated with Brazilian Association of Franchising (Associação Brasileira de Franchising [ABF]), 25% are in cities in the interior of the country, whereas the remaining 75% are in capitals and metropolitan regions
Summary
Brazil has 4,619 municipalities located in the interior, which can be described as cities that are neither state capitals nor part of metropolitan regions. Among the franchise chains associated with Brazilian Association of Franchising (Associação Brasileira de Franchising [ABF]), 25% are in cities in the interior of the country, whereas the remaining 75% are in capitals and metropolitan regions. From the perspective of retail ventures, the selection of the location is decisive for its success, and because of this, the concern primarily focuses on places with relevant population concentration (Barringer & Greening, 1998). This is considered a crucial process when it comes to the expansion of franchise chains. Smaller cities create opportunities for new ventures and reduce models of franchise chains because of its increased purchasing power and lower level of competition (Moita & Guerra, 2012; Cunha et al, 2015; Bitti, Aquino, & Amato, 2010; Portal do Franchising, 2015)
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