Pinnacle Business Management

(ISSN: 2360-946X)

July 2015, Vol. 3 (2).

© Author(s) 2015. This work is distributed under the Creative Commons Attribution 3.0 License.

Research Article

 

The Internationalization of the Service Franchising Operations: Decision Making During Internationalization Process: A View in International Consulting / Training Business

Hans Jörg Müller

Master of Science,
Zurich-Horgen, Switzerland.

Accepted 2 July, 2015; Available Online 7 July, 2015

Abstract:

This paper deals with service franchising concepts expanding to other countries. Many of the franchise systems are very successful on an international level. But during our investigation, it was found that only 50% are successful, i.e. their business still works 5 years after their decision to go abroad. So the questions arises which combination of factors led to success and which combination of factors will be non-successful. Exactly about the success factors we do not find any evidence in international literature. We want to close this gap with our research project using the example of consulting companies, e.g. so the process of their internationalization is our focus.
Assuming that the service franchising concept is already working in one country and they want to expand abroad to another country they will meet many questions and problems to adapt. We want to research on this very process of internationalization.
For this issue we develop a research model in the next step. In this process we define three processes: Phase 1: Decision Making, Phase 2: Project of Internationalization, Phase 3: Result.
In the first step we develop several research questions on the topic. Following this we develop a system of key success factors (KSF) for this internationalization processes: The first part is the decision making part, e.g. why and how we decide to go international. Which internal and external factors are key to make a going abroad decision? As a second step then the process going international starts, e.g. we ask which are the KSF during the project phase leading to success? And thirdly, after five years in the new country, e.g. at the end of the internationalization project we try to find out which KSF are the most important on the result side.
To make all the KSFs measurable we define then special variables. All variables for all KSFs in all phases will be set up in a special system of indicators.
To connect the indicators logically we define several hypothesis, e.g. we try to research how the indicators are related to each other. We want to know which hypothesis we expect to be supported /not supported in our study.
Then our research plan starts with review of the literature. Based on that we will develop a questionnaire and send it out to the headquarters of selected consulting companies. We will then focus on their experience going abroad from their home country.
The indepth analysis of our study using statistical methods will generate interesting results. Based on that we will develop conclusions, strategies and managerial recommendations for successful internationalization of a consulting company.



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