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The Effects of Headquarters' Levels of Control and Subsidiaries' Local Experiences on Competency in Foreign Subsidiaries: A Quadratic Model Investigation of Korean Multinational Corporations

  • Lee, Jae-Eun;Kang, Joo-Yeon;Park, Jung-Min
    • Journal of Korea Trade
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    • v.24 no.1
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    • pp.82-98
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    • 2020
  • Purpose - This study aims to overcome the limitations of existing studies, which linearly determine the precedence factors of competency in overseas subsidiaries. The research objectives are as follows. First, what kind of nonlinear effects does the level of control held by Korean headquarters over foreign subsidiaries have in terms of competency in the subsidiaries? Second, what kind of nonlinear effects do the local experiences of overseas subsidiaries have on their competency? Design/methodology - With data on Korean multinational corporations (MNCs), this paper analyzes the effects of control levels of headquarters (HQs) and host-country experiences of foreign subsidiaries regarding competency in overseas subsidiaries. In particular, this study focuses on nonlinear models, differentiating it from previous studies. In order to examine research hypotheses, this study conducted a survey of overseas subsidiaries of Korean corporations. Surveys were conducted through various methods including e-mail, online questionnaires, fax, and telephone calls. Copies of the questionnaire were distributed to a total of 2,246 overseas subsidiaries, and 409 completed responses were collected. Excluding 15 copies that were insufficiently answered, responses from a total of 394 copies were used for analysis. Findings - This study presents the following results. First, there is a U-shaped relationship between levels of HQ control and competency in foreign subsidiaries. This means that higher levels of HQ control negatively impact the competency levels of subsidiaries because strict control undermines autonomy in subsidiaries. However, if the level of HQ control exceeds a certain point, then the transfer of knowledge between HQs and subsidiaries is facilitated. Knowledge transferred from HQs can be used as prior knowledge by foreign subsidiaries to the benefit of all parties. Accordingly, knowledge transfer negates the negative effects of excessive HQ control and positively affects competency in subsidiaries. Second, there is an inverted U-shaped relationship between the local (host-country) experiences of subsidiaries and competency in foreign subsidiaries. This means that foreign subsidiaries can overcome the liabilities of foreignness and contribute to capability building by accumulating unique knowledge about their host countries. However, if local experiences accumulate excessively beyond a certain point, then the host country-specific experiences of foreign subsidiaries will offset the benefits discussed above. Excessive local experiences not only increase organizational inertia, but also create a problem of goal incongruence due to information asymmetry between HQs and subsidiaries. Therefore, excessive local experiences have negative effects on competency in foreign subsidiaries. Originality/value - This study suggests the following implications. First, unlike existing studies based mainly on linear models, this study presents important theoretical implications in its focus on nonlinear models and its analysis of the effects of HQ control and local experiences on competency in foreign subsidiaries from perspectives of organizational learning theory and agency theory. Second, in terms of practical implications, the results of this study suggest that optimally raising levels of HQ control and managing the local experiences of subsidiaries without increasing organizational inertia is important for enhancing competency in foreign subsidiaries.

The Effects of Serial Entrepreneurs' Failure Attribution on Subsequent Venture: Moderating Effect of Entrepreneurial Self-efficacy and Resilience (창업가의 실패 귀인 지향성이 재창업에 미치는 영향: 기업가적 자기 효능감과 회복 탄력성의 조절효과를 중심으로)

  • Lee, Jongseon;Kim, Nami
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.14 no.3
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    • pp.13-26
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    • 2019
  • There is a growing interest in the entrepreneurial activity that has long been considered essential for sustainable economic development and value creating. Although it is strongly encouraged by focusing on the positive aspects of venturing, less has been paid attention to entrepreneurial failure, which is the biggest cause of hesitation in starting a business. The uncertain and risky nature of entrepreneurship implies a considerable possibility of failure. Even if it fails, the experience and knowledge of entrepreneurs acquired through entrepreneurship indeed offers valuable lessons for the re-venturing, which can serve as an important social asset that should not be lost. It has been argued that re-entering the same industry for the subsequent venture maximizes the learning effect through utilizing potential benefits from industry-specific knowledge. Although the re-startup after entrepreneurial failure is a very important topic in the studies on serial entrepreneurs, there is a paucity of systematic empirical investigation. This study responds to calls for more research on the re-startup after entrepreneurial failure, and specifically complements existing studies on serial entrepreneurs. Focusing on the entrepreneurs' attribution for the failure, we conducted an empirical analysis of how this affects the re-startup process. Moreover, we also examined the moderating effects of entrepreneurial self-efficacy and resilience. For the analyses, we surveyed the entrepreneurs who tried to re-start the subsequent business after the entrepreneurial failure through the "Revitalization Center for Strained Entrepreneur". The results found that failed entrepreneurs who blamed internal factors for their previous venture failures were likely to keep the same industry for their subsequent business. In addition, the positive effect of internal attribution on maintaining the same industry for the re-startup was found to be stronger when entrepreneurial self-efficacy and resilience were high.

Application of Google Search Queries for Predicting the Unemployment Rate for Koreans in Their 30s and 40s (한국 30~40대 실업률 예측을 위한 구글 검색 정보의 활용)

  • Jung, Jae Un;Hwang, Jinho
    • Journal of Digital Convergence
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    • v.17 no.9
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    • pp.135-145
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    • 2019
  • Prolonged recession has caused the youth unemployment rate in Korea to remain at a high level of approximately 10% for years. Recently, the number of unemployed Koreans in their 30s and 40s has shown an upward trend. To expand the government's employment promotion and unemployment benefits from youth-centered policies to diverse age groups, including people in their 30s and 40s, prediction models for different age groups are required. Thus, we aimed to develop unemployment prediction models for specific age groups (30s and 40s) using available unemployment rates provided by Statistics Korea and Google search queries related to them. We first estimated multiple linear regressions (Model 1) using seasonal autoregressive integrated moving average approach with relevant unemployment rates. Then, we introduced Google search queries to obtain improved models (Model 2). For both groups, consequently, Model 2 additionally using web queries outperformed Model 1 during training and predictive periods. This result indicates that a web search query is still significant to improve the unemployment predictive models for Koreans. For practical application, this study needs to be furthered but will contribute to obtaining age-wise unemployment predictions.

Effects of Communication Improvement on Caregivers Education and Training on Aphasia (보호자 교육과 경험학습 훈련이 실어증 환자의 의사소통 개선에 미치는 효과)

  • Park, Hee-June;Chang, Hyun-Jin
    • Therapeutic Science for Rehabilitation
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    • v.8 no.2
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    • pp.79-88
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    • 2019
  • Objective : Aphasia interferes with communication between the patient and conversation partner. Adequate communication is essential not only for the patient but also for caregiver education and training Method : This study examined the benefits of parental education and group training in terms of improving the communication of six aphasic patients and their caregivers(family members). Caregiver education provided caregivers with information on stroke and aphasia, and group training was conducted according to the experimental learning cycle. Result : As a result, communication increased in terms of sending and receiving messages or interactive communication. Furthermore, the questionnaire analysis showed that caregivers learned more about aphasia and had confidence in using facilitation strategies. Conclusion : Giving educational opportunities to patients and caregivers promotes caregiver's knowledge and positively interacts.

Information Technologies as an Incentive to Develop the Creative Potential of the Educational Process

  • Natalia, Vdovychenko;Volodymyr, Kukorenchuk;Alina, Ponomarenko;Mykola, Honcharenko;Eduard, Stranadko
    • International Journal of Computer Science & Network Security
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    • v.22 no.4
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    • pp.408-416
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    • 2022
  • The new millennium is characterized by an unprecedented breakthrough in knowledge and information and communication technologies, and the challenges of the XXI century require modernized paradigms of interaction in all spheres of life. Education continues to play a key role in national and global growth. The key role of education and its leadership in developing creative potential, as the main paradigm of the countries' stability, have significantly influenced educational centers. The developers of educational programs use information technologies as an incentive to develop creative potential of educational process. Professional training of the educational candidate is enhanced by the use of information technologies, so the educational applicants should develop technological skills to be productive members of society. Using the latest achievements in the field of information technologies for the organization of the educational process helps to form the operational style of education applicants' thinking, which provides the ability to acquire skills of processing information, that is presented in the text, graphic, tabular form, and increase the level of general and informational culture necessary for better orientation in the modern information space. The purpose of the research is to determine the effectiveness of information technologies as an incentive to develop creative potential of educational process on the basis of the survey, to establish advantages and ability to provide high-quality education in the context of using information technologies. Methods of research: comparative analysis; systematization; generalization, survey. Results. Based on the survey conducted among students and teachers, it has been found out that the teachers use the following information technologies for the development of creative potential of the educational process: to provide video and audio communication process (100%), Moodle (95,6%), Duolingo (89,7%), LinguaLeo (89%), Google Forms (88%) and Adobe Captivate Prime (80,6%). It is determined that modular digital learning environments (97,9%), interactive exercises tools (96,3%), ICT for video and audio communication (96%) and interactive exercises tools (95,1%) are most conducive to the development of creative potential of the educational process. As a result of the research, it was revealed that implementation of information technologies for the development of creative potential of educational process in educational institutions is a complex process due to a large number of variables, which should be taken into account both on the educational course and on the individual level. It has been determined that the using the model of implementation information technologies for the development of creative potential in educational process, which is stimulated due to this model, benefits both students and teachers by establishing a reliable bilateral connection between teacher and education applicant.

A Study on Customer Review Rating Recommendation and Prediction through Online Promotional Activity Analysis - Focusing on "S" Company Wearable Products - (온라인 판매촉진활동 분석을 통한 고객 리뷰평점 추천 및 예측에 관한 연구 : S사 Wearable 상품중심으로)

  • Shin, Ho-cheol
    • The Journal of the Korea Contents Association
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    • v.22 no.4
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    • pp.118-129
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    • 2022
  • The purpose of this report is to study a strategic model of promotion activities through various analysis and sales forecasting by selecting wearable products for domestic online companies and collecting sales data. For data analysis, various algorithms are used for analysis and the results are selected as the optimal model. The gradation boosting model, which is selected as the best result, will allow nine independent variables to be entered, including promotion type, price, amount, gender, model, company, grade, sales date, and region, when predicting dependent variables through supervised learning. In this study, the review values set as dependent variables for each type of sales promotion were studied in more detail through the ensemble analysis technique, and the main purpose is to analyze and predict them. The purpose of this study is to study the grades. As a result of the analysis, the evaluation result is 95% of AUC, and F1 is about 93%. In the end, it was confirmed that among the types of sales promotion activities, value-added benefits affected the number of reviews and review grades, and that major variables affected the review and review grades.

Role of soy lecithin combined with soy isoflavone on cerebral blood flow in rats of cognitive impairment and the primary screening of its optimum combination

  • Hongrui Li;Xianyun Wang;Xiaoying Li;Xueyang Zhou;Xuan Wang;Tiantian Li;Rong Xiao;Yuandi Xi
    • Nutrition Research and Practice
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    • v.17 no.2
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    • pp.371-385
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    • 2023
  • BACKGROUND/OBJECTIVES: Soy isoflavone (SIF) and soy lecithin (SL) have beneficial effects on many chronic diseases, including neurodegenerative diseases. Regretfully, there is little evidence to show the combined effects of these soy extractives on the impairment of cognition and abnormal cerebral blood flow (CBF). This study examined the optimal combination dose of SIF + SL to provide evidence for improving CBF and protecting cerebrovascular endothelial cells. MATERIALS/METHODS: In vivo study, SIF50 + SL40, SIF50 + SL80 and SIF50 + SL160 groups were obtained. Morris water maze, laser speckle contrast imaging (LSCI), and hematoxylin-eosin staining were used to detect learning and memory impairment, CBF, and damage to the cerebrovascular tissue in rat. The 8-hydroxy-2'-deoxyguanosine (8-OHdG) and the oxidized glutathione (GSSG) were detected. The anti-oxidative damage index of superoxide dismutase (SOD) and glutathione (GSH) in the serum of an animal model was also tested. In vitro study, an immortalized mouse brain endothelial cell line (bEND.3 cells) was used to confirm the cerebrovascular endothelial cell protection of SIF + SL. In this study, 50 µM of Gen were used, while the 25, 50, or 100 µM of SL for different incubation times were selected first. The intracellular levels of 8-OHdG, SOD, GSH, and GSSG were also detected in the cells. RESULTS: In vivo study, SIF + SL could increase the target crossing times significantly and shorten the total swimming distance of rats. The CBF in the rats of the SIF50 + SL40 group and SIF50 + SL160 group was enhanced. Pathological changes, such as attenuation of the endothelium in cerebral vessels were much less in the SIF50 + SL40 group and SIF50 + SL160 group. The 8-OHdG was reduced in the SIF50 + SL40 group. The GSSG showed a significant decrease in all SIF + SL pretreatment groups, but the GSH showed an opposite result. SOD was upregulated by SIF + SL pretreatment. Different combinations of Genistein (Gen)+SL, the secondary proof of health benefits found in vivo study, showed they have effective anti-oxidation and less side reaction on protecting cerebrovascular endothelial cell. SIF50 + SL40 in rats experiment and Gen50 + SL25 in cell test were the optimum joint doses on alleviating cognitive impairment and regulating CBF through protecting cerebrovascular tissue by its antioxidant activity. CONCLUSIONS: SIF+SL could significantly prevent cognitive defect induced by β-Amyloid through regulating CBF. This kind of effect might be attributed to its antioxidant activity on protecting cerebral vessels.

The Realities and Problems of Master Teacher System in China (중국 특급교사제(特級敎師制) 운영실태 분석 및 시사점)

  • Kim, Ee-Gyeong;LI, Jia-Yi
    • Korean Journal of Comparative Education
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    • v.24 no.6
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    • pp.163-185
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    • 2014
  • Along with concerns about deteriorating social and economic status of teachers around the world, Master Teacher System(MTS) has been considered as one of the alternatives to transform teaching profession into a more attractive job. In this study, the conditions and problems associated with the MTS in China is analyzed to draw implications for South Korea, which recently legalized the MTS. Research framework including four research questions is developed based on the controversies surrounding MTS of South Korea. The main findings show that the MTS in China was introduced to improve teachers' social and economic status along with the quality of prospective teachers. A very small number of master teachers are selected through rigorous standards including longer service period. They are given additional monetary and non-monetary compensations in return for their teaching-learning leadership and responsibilities. As highly respected educators, they enjoy the lifelong benefits, although they are annually evaluated. It is evident that the MTS has contributed to improving the attractiveness of teaching profession in China. Nevertheless, there are many problems associated with selection standards and methods of master teachers, their roles, compensation, evaluation and terms of service. Recent criticism due to changing circumstances surrounding education in China makes the MTS more questionable. Based on the findings, major implications for future directions of MTS of South Korea are drawn and suggested.

A Study on the Experiences of Picture Book Bibliotherapy, Reading Habit Formation, and Intergenerational Interactions in a Book Club Between Middle-Aged and Young People (중년과 청년이 함께하는 독서모임의 그림책 치료, 독서습관 형성 및 세대교류 경험 연구)

  • Jiyoung Kim;SooJin Yoon
    • Journal of the Korean Society for information Management
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    • v.41 no.1
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    • pp.211-240
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    • 2024
  • This study focuses on an intergenerational book club with middle-aged and young people as a follow-up study on a book club with older people and young people. The book club program was designed to help people develop a reading habit and experience picture book bibliotherapy. The researcher hosted a picture book reading group between middle-aged and young participants, had individual interviews, and conducted a qualitative study to analyze research data and present implications. For middle-aged participants, the intergenerational book club was an opportunity to understand young people and their children and learn from the young people, and for young participants, it helped them understand middle-aged people and their parents and learn from the middle-aged people, allowing them to feel a sense of connection rather than a generation gap. In addition, positive effects of picture book bibliotherapy were seen while reducing stress and learning important lessons in life. The participants received help in forming a reading habit. This paper provides constructive suggestions for book clubs where different generations interact. It is hoped that through this study, intergenerational book clubs that can be used to understand other generations will be more popular and people will be able to discover the benefits of reading books including picture books and make reading a habit.

Research Framework for International Franchising (국제프랜차이징 연구요소 및 연구방향)

  • Kim, Ju-Young;Lim, Young-Kyun;Shim, Jae-Duck
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.4
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    • pp.61-118
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    • 2008
  • The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework. Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service. It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is. International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country. International franchising is growing fast for last four decades but academic research on this is quite limited. Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory. Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field. International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives. First, motives of international franchising are fee collection from franchisee. Also it provides easier way to expanding to foreign country. The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency. Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/or home countries. In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract. Final decision to enter foreign country via franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, industry characteristics of franchisor. After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising. Within contractual mode, there are master franchising and area developing franchising, licensing, direct franchising, and joint venture. Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost. The next step after entrance decision is operation strategy. Operation strategy starts with selecting a target city and a target country for franchising. In order to finding, screening targets, franchisor needs to collect information about candidates. Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis. After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner. The first important criteria for selecting partners are financial credibility and capability, possession of real estate. And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries. Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research. Legal documents have definitions of terminology, territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising. Also, legal documents could have terms about softer elements like training program and operation manual. And harder elements like law competent court and terms of expiration. Next element in operating strategy is about product and service. Especially for business format franchising, product/service deliverable, benefit communicators, system identifiers (architectural features), and format facilitators are listed for product/service strategic elements. Another important decision on product/service is standardization vs. customization. The rationale behind standardization is cost reduction, efficiency, consistency, image congruence, brand awareness, and competitiveness on price. Also standardization enables large scale R&D and innovative change in management style. Another element in operating strategy is control management. The simple way to control franchise contract is relying on legal terms, contractual control system. There are other control systems, administrative control system and ethical control system. Contractual control system is a coercive source of power, but franchisor usually doesn't want to use legal power since it doesn't help to build up positive relationship. Instead, self-regulation is widely used. Administrative control system uses control mechanism from ordinary work relationship. Its main component is supporting activities to franchisee and communication method. For example, franchisor provides advertising, training, manual, and delivery, then franchisee follows franchisor's direction. Another component is building franchisor's brand power. The last research element is performance factor of international franchising. Performance elements can be divided into franchisor's performance and franchisee's performance. The conceptual performance measures of franchisor are simple but not easy to obtain objectively. They are profit, sale, cost, experience, and brand power. The performance measures of franchisee are mostly about benefits of host country. They contain small business development, promotion of employment, introduction of new business model, and level up technology status. There are indirect benefits, like increase of tax, refinement of corporate citizenship, regional economic clustering, and improvement of international balance. In addition to those, host country gets socio-cultural change other than economic effects. It includes demographic change, social trend, customer value change, social communication, and social globalization. Sometimes it is called as westernization or McDonaldization of society. In addition, the paper reviews on theories that have been frequently applied to international franchising research, such as agent theory, resource-based view, transaction cost theory, organizational learning theory, and international expansion theories. Resource based theory is used in strategic decision based on resources, like decision about entrance and cooperation depending on resources of franchisee and franchisor. Transaction cost theory can be applied in determination of mutual trust or satisfaction of franchising players. Agent theory tries to explain strategic decision for reducing problem caused by utilizing agent, for example research on control system in franchising agreements. Organizational Learning theory is relatively new in franchising research. It assumes organization tries to maximize performance and learning of organization. In addition, Internalization theory advocates strategic decision of direct investment for removing inefficiency of market transaction and is applied in research on terms of contract. And oligopolistic competition theory is used to explain various entry modes for international expansion. Competency theory support strategic decision of utilizing key competitive advantage. Furthermore, research methodologies including qualitative and quantitative methodologies are suggested for more rigorous international franchising research. Quantitative research needs more real data other than survey data which is usually respondent's judgment. In order to verify theory more rigorously, research based on real data is essential. However, real quantitative data is quite hard to get. The qualitative research other than single case study is also highly recommended. Since international franchising has limited number of applications, scientific research based on grounded theory and ethnography study can be used. Scientific case study is differentiated with single case study on its data collection method and analysis method. The key concept is triangulation in measurement, logical coding and comparison. Finally, it provides overall research direction for international franchising after summarizing research trend in Korea. International franchising research in Korea has two different types, one is for studying Korean franchisor going overseas and the other is for Korean franchisee of foreign franchisor. Among research on Korean franchisor, two common patterns are observed. First of all, they usually deal with success story of one franchisor. The other common pattern is that they focus on same industry and country. Therefore, international franchise research needs to extend their focus to broader subjects with scientific research methodology as well as development of new theory.

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