Review article
https://doi.org/10.38190/ope.14.1.3
Geographical distance, cultural differences, and digitalization: critical determinants for franchise expansion on international markets
Saša Petar
; University North
*
Ljiljana Kukec
Esad Turković
* Corresponding author.
Abstract
This study examines the impact of geographical distance,
cultural differences, and digitalization on the internationalization of
Croatian franchise businesses, incorporating a thorough analysis based
on the 2022 Global Market Potential Index. Covering 97 countries, the
research specifically focuses on 22 European Union nations, which are
evaluated for their potential to expand franchising operations. The
analysis delves into various dimensions, including market potentials,
geographical proximity, and the degree of digitalization, with
particular emphasis on access to digital public services.
Notable findings highlight those countries like Ireland, Germany,
Switzerland, and the Netherlands, with their robust market sizes,
significant trade volumes, and high economic growth, rank among
the top ten on the global index. This underscores the substantial
impact of the European market on the franchising internationalization
processes, with ten EU countries featuring prominently among the top
twenty positions.
The study also discusses the positioning of Germany, Ireland, and
Belgium at the top of the list, contrasting with countries such as
Bulgaria, Greece, and Latvia, which exhibit lower potential for
franchising expansion. The proximity of markets like Serbia, Bosnia
and Herzegovina, and North Macedonia is recognized; however,
these countries are not extensively analyzed due to their geographical
closeness and presumed familiarity to Croatian entrepreneurs, which
poses fewer challenges in market expansion decisions.
To facilitate informed decision-making in the internationalization
process, this paper extends the analysis to include cultural factors,
geographical distances, and the level of digitalization in target markets.
Keywords
franchise; internationalization; market potential; digita lization; cultural differences
Hrčak ID:
321214
URI
Publication date:
2.11.2024.
Visits: 216 *