Internationalization has been an important strategy for many restaurants, and decisionmaking process to internationalize is complicated. This study includes a firm's financial performance, degree of franchising, and restaurant-type as factors to influence a restaurant's expansion into international markets. The generalized least squares (GLS) random-effect model was employed to examine the relationships including publicly traded U.S. restaurants during 1990-2010. The findings suggest a curvilinear, inverted, U-shape relationship between the industry-relative Tobin's q and the degree of internationalization (DOI), and a positive impact of franchising on the DOI. Regarding restaurant-type, compared to the mix-type restaurants, full-service restaurants are less likely to expand operations to international markets. Based on the results, this study provides theoretical and practical implications and suggestions for future research.
All Science Journal Classification (ASJC) codes
- Tourism, Leisure and Hospitality Management
- Strategy and Management