Franchise fairs: a relevant signal in franchise choice in social activity

Potential franchisees encounter difficulties in gaining knowledge about a franchise before embarking on their first start-up venture. For this reason, it is necessary to research which information signals help potential franchisees choose the franchise chains with which they wish to enter into busin...

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Detalles Bibliográficos
Autores: Mastrangelo Silvera, Leonardo Martin, Calderón Monge, Esther, Huerta Zavala, Pilar Angélica
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2016
País:España
Institución:Universidad de Burgos (UBU)
Repositorio:Repositorio Institucional de la Universidad de Burgos (RIUBU)
OAI Identifier:oai:riubu.ubu.es:10259/9626
Acceso en línea:http://hdl.handle.net/10259/9626
Access Level:acceso abierto
Palabra clave:Entrepreneurship
Signals
Price
Franchising
GMM
Franchise fairs
Comercio
Commerce
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spelling Franchise fairs: a relevant signal in franchise choice in social activityMastrangelo Silvera, Leonardo MartinCalderón Monge, EstherHuerta Zavala, Pilar AngélicaEntrepreneurshipSignalsPriceFranchisingGMMFranchise fairsComercioCommercePotential franchisees encounter difficulties in gaining knowledge about a franchise before embarking on their first start-up venture. For this reason, it is necessary to research which information signals help potential franchisees choose the franchise chains with which they wish to enter into business. Working within the framework of signaling theory, this study’s aim is to analyze the relationship between franchise choice and brand, price and participation in franchise fairs. The dynamic signaling model deployed to achieve the study´s aim draws on panel data methodology. This methodology allows us to analyze franchise chains over the period in which their parent franchises were using signaling to reveal information about their quality to potential franchisees. The results show that franchise fairs and up-front entry fees influence franchisee´s decisions. Therefore, it is concluded that potential franchisees prefer to garner information directly from franchise fairs, as opposed to heeding the other signals under study, and that when macroeconomic variables are exerting a strong influence on potential franchisees, up-front entry fees also constitute a signal that they consider. Finally, the managerial implications of the study are that franchise chains seeking franchisees should participate in franchise fairs to ensure that they are among the chosen franchises. Additionally, a franchisor should appropriately manage up-front entry fees as a signal, especially during periods of economic turmoil and recession.University of Finance and Management in Warsaw202420242016info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttp://hdl.handle.net/10259/9626reponame:Repositorio Institucional de la Universidad de Burgos (RIUBU)instname:Universidad de Burgos (UBU)InglésContemporary Economics. 2016, v. 10, n. 3, p. 275-282https://doi.org/10.5709/ce.1897-9254.215Atribución 4.0 Internacionalhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:riubu.ubu.es:10259/96262026-05-28T07:56:11Z
dc.title.none.fl_str_mv Franchise fairs: a relevant signal in franchise choice in social activity
title Franchise fairs: a relevant signal in franchise choice in social activity
spellingShingle Franchise fairs: a relevant signal in franchise choice in social activity
Mastrangelo Silvera, Leonardo Martin
Entrepreneurship
Signals
Price
Franchising
GMM
Franchise fairs
Comercio
Commerce
title_short Franchise fairs: a relevant signal in franchise choice in social activity
title_full Franchise fairs: a relevant signal in franchise choice in social activity
title_fullStr Franchise fairs: a relevant signal in franchise choice in social activity
title_full_unstemmed Franchise fairs: a relevant signal in franchise choice in social activity
title_sort Franchise fairs: a relevant signal in franchise choice in social activity
dc.creator.none.fl_str_mv Mastrangelo Silvera, Leonardo Martin
Calderón Monge, Esther
Huerta Zavala, Pilar Angélica
author Mastrangelo Silvera, Leonardo Martin
author_facet Mastrangelo Silvera, Leonardo Martin
Calderón Monge, Esther
Huerta Zavala, Pilar Angélica
author_role author
author2 Calderón Monge, Esther
Huerta Zavala, Pilar Angélica
author2_role author
author
dc.subject.none.fl_str_mv Entrepreneurship
Signals
Price
Franchising
GMM
Franchise fairs
Comercio
Commerce
topic Entrepreneurship
Signals
Price
Franchising
GMM
Franchise fairs
Comercio
Commerce
description Potential franchisees encounter difficulties in gaining knowledge about a franchise before embarking on their first start-up venture. For this reason, it is necessary to research which information signals help potential franchisees choose the franchise chains with which they wish to enter into business. Working within the framework of signaling theory, this study’s aim is to analyze the relationship between franchise choice and brand, price and participation in franchise fairs. The dynamic signaling model deployed to achieve the study´s aim draws on panel data methodology. This methodology allows us to analyze franchise chains over the period in which their parent franchises were using signaling to reveal information about their quality to potential franchisees. The results show that franchise fairs and up-front entry fees influence franchisee´s decisions. Therefore, it is concluded that potential franchisees prefer to garner information directly from franchise fairs, as opposed to heeding the other signals under study, and that when macroeconomic variables are exerting a strong influence on potential franchisees, up-front entry fees also constitute a signal that they consider. Finally, the managerial implications of the study are that franchise chains seeking franchisees should participate in franchise fairs to ensure that they are among the chosen franchises. Additionally, a franchisor should appropriately manage up-front entry fees as a signal, especially during periods of economic turmoil and recession.
publishDate 2016
dc.date.none.fl_str_mv 2016
2024
2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10259/9626
url http://hdl.handle.net/10259/9626
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Contemporary Economics. 2016, v. 10, n. 3, p. 275-282
https://doi.org/10.5709/ce.1897-9254.215
dc.rights.none.fl_str_mv Atribución 4.0 Internacional
http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Atribución 4.0 Internacional
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv University of Finance and Management in Warsaw
publisher.none.fl_str_mv University of Finance and Management in Warsaw
dc.source.none.fl_str_mv reponame:Repositorio Institucional de la Universidad de Burgos (RIUBU)
instname:Universidad de Burgos (UBU)
instname_str Universidad de Burgos (UBU)
reponame_str Repositorio Institucional de la Universidad de Burgos (RIUBU)
collection Repositorio Institucional de la Universidad de Burgos (RIUBU)
repository.name.fl_str_mv
repository.mail.fl_str_mv
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