Abstract
PurposeThis paper aims to demonstrate how franchising firms can manage system expansion by weathering the economic effects of a location (i.e. country-level economic cycles) by shifting their resources.Design/methodology/approachThe authors use a comprehensive database of 151 US hybrid franchising organizations, including observations for the years between 2001 and 2008. Data analysis is conducted with count model panel data with a Poisson distribution.FindingsThe model reveals a curvilinear U-shaped relationship between location (i.e. economic cycles) and franchising expansion.Originality/valueThis study contributes to competitiveness literature by showing how franchising firms respond to changing local conditions.
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