[Excerpt] Contractual arrangements such as franchises and management contracts have long been popular means by which hotel companies enter international markets. This study examines the factors that hotels consider in making the choice between expanding via franchises or with management contracts. The study takes into consideration a firm’s resources and skills, as well as some environmental factors that influence this choice.
Dev, C. S., Erramilli, M. K., & Agarwal, S. (2002). Brands across borders: Determining factors in choosing franchising or management contracts for entering international markets. Cornell Hotel and Restaurant Administration Quarterly, 43(6), 91-104.