Crisis Management in the Brazilian Franchising Sector During the Covid-19 Pandemic
DOI:
https://doi.org/10.18568/internext.v17i2.675Keywords:
franchising, crisis management, covid-19Abstract
Objective: The objective of the article is to analyse the effects of the Covid-19 pandemic on the Brazilian franchise sector and to identify the main strategies adopted by companies to mitigate the negative impacts of the crisis.
Method: The empirical research, using qualitative exploratory methods, was based on three in-depth interviews with franchising sector stakeholders, in addition to the thematic analysis of six webinars promoted by the ABF from April 15 to 28, 2020.
Findings: Findings show that franchise chains had to rethink their relationships with various stakeholders such as customers, employees, suppliers, and the government. Besides, franchisors developed alternative sales channels such as websites, social networks, among others. Additionally, what sustained those companies during the crisis was their connection with their purpose.
Relevance: This study presents contributions to other companies in a similar situation by exploring the actions taken by the franchise chains during the crisis and identifying the best practices and paths taken.
Contribution: This article contributes to investigations on the effects of the Covid-19 public health crisis in the franchising sector, one of the most relevant economic sectors.
Downloads
References
ABF. (2020). Números do Franchising mostrando o desempenho do setor. Retrieved February 19, 2020, from ABF website: https://www.abf.com.br/numeros-do-franchising/
Akpan, I. J., Soopramanien, D., & Kwak, D.-H. (Austin). (2020). Cutting-edge technologies for small business and innovation in the era of COVID-19 global health pandemic. Journal of Small Business & Entrepreneurship, 0(0), 1–11. https://doi.org/10.1080/08276331.2020.1799294
Alharthi, M., Alamoudi, H., Shaikh, A. A., & Bhutto, M. H. (2021). “Your ride has arrived”–Exploring the nexus between subjective well-being, socio-cultural beliefs, COVID-19, and the sharing economy. Telematics and Informatics, 63, 101663.
Alon, I. (2004). Global Franchising and Development in Emerging and Transitioning Markets: Journal of Macromarketing. (Sage CA: Thousand Oaks, CA). https://doi.org/10.1177/0276146704269320
Anderson, R. M., Heesterbeek, H., Klinkenberg, D., & Hollingsworth, T. D. (2020). How will country-based mitigation measures influence the course of the COVID-19 epidemic? The Lancet, 395(10228), 931–934. https://doi.org/10.1016/S0140-6736(20)30567-5
Araújo, M.V.P., Pessanha, G.R.G., Alves, R.C.A, Silva Filho, A.M., (2021). Sentiment Analysis of Twitter users about the Havan, Madero and Giraffas brands: a study based on their owners' speeches about the covid-19 pandemic. NAMID/UFPB, 115-131. http://periodicos.ufpb.br/index.php/tematica/index
Bardin, L. (2011). Análise de conteúdo. São Paulo: Edições 70.
Bargain, O., & Aminjonov, U. (2020). Trust and compliance with public health policies in times of COVID-19. Journal of public economics, 192, 104316.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Brazil—KPMG Global. (2020, April 21). Retrieved April 23, 2020, from KPMG website: https://home.kpmg/xx/en/home/insights/2020/04/brazil-government-and-institution-measures-in-response-to-covid.html
Bretas, V. P. G., & Alon, I. (2020). The impact of COVID-19 on franchising in emerging markets: An example from Brazil. Global Business and Organizational Excellence, 39(6), 6–16. https://doi.org/10.1002/joe.22053
Castrogiovanni, G. J., Combs, J. G., & Justis, R. T. (2006). Resource Scarcity and Agency Theory Predictions Concerning the Continued Use of Franchising in Multi-outlet Networks. Journal of Small Business Management, 44(1), 27–44. https://doi.org/10.1111/j.1540-627X.2006.00152.x
Chen, C., Frey, C. B., & Presidente, G. (2021). Culture and contagion: Individualism and compliance with COVID-19 policy. Journal of economic behavior & organization, 190, 191-200.
Cleeren, K., van Heerde, H. J., & Dekimpe, M. G. (2013). Rising from the Ashes: How Brands and Categories Can Overcome Product-Harm Crises. Journal of Marketing, 77(2), 58–77. https://doi.org/10.1509/jm.10.0414
Coombs, W. T. (2007, October 30). Crisis Management and Communications. Retrieved October 21, 2020, from Institute for Public Relations website: https://instituteforpr.org/crisis-management-and-communications/
Croda, J., Oliveira, W. K. de, Frutuoso, R. L., Mandetta, L. H., Baia-da-Silva, D. C., Brito-Sousa, J. D., … Lacerda, M. V. G. (2020). COVID-19 in Brazil: Advantages of a socialized unified health system and preparation to contain cases. Revista Da Sociedade Brasileira de Medicina Tropical, 53. https://doi.org/10.1590/0037-8682-0167-2020
Dant, R. P., & Grünhagen, M. (2014). International Franchising Research: Some Thoughts on the What, Where, When, and How. Journal of Marketing Channels, 21(3), 124–132. https://doi.org/10.1080/1046669X.2014.917012
FASA. (2020, February 12). Franchising’s massive contribution to global economic output. Retrieved May 5, 2020, from FASA Franchise Association of South Africa website: https://www.fasa.co.za/franchisings-massive-contribution-to-global-economic-output/
Ferreira, C. F. F., & Maradei, A. Narrativas organizacionais por lives na pandemia: uma análise crítica.
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.
Godoy, A. S. (1995). Pesquisa qualitativa: Tipos fundamentais. Revista de Administração de Empresas, 35(3), 20–29. https://doi.org/10.1590/S0034-75901995000300004
Harrison, J. S. (2005). Administração estratégica de recursos e relacionamento. Porto Alegre: Bookman.
Hofsted, G. (2022, April 5). Retrieved from https://www.hofstede-insights.com/fi/product/compare-countries/
Kim, S., & Woo, H. (2021). Global fashion retailers’ responses to external and internal crises during the COVID-19 pandemic. Fashion and Textiles, 8(1), 1-26.
Kongsompong, K., Green, R. T., & Patterson, P. G. (2009). Collectivism and social influence in the buying decision: A four-country study of inter-and intra-national differences. Australasian Marketing Journal (AMJ), 17(3), 142-149.
Krippendorff, K. (2004). Content Analysis: An Introduction to Its Methodology. SAGE.
Langley, A. (1999). Strategies for Theorizing from Process Data. The Academy of Management Review, 24(4), 691–710. https://doi.org/10.2307/259349
Marona, B., & Tomal, M. (2020). The COVID-19 pandemic impact upon housing brokers’ workflow and their clients’ attitude: Real estate market in Krakow. Entrepreneurial Business and Economics Review, 8(4), 221–232. https://doi.org/10.15678/EBER.2020.080412
Neves, R. de C. (2002). Crises empresariais com a opinião pública: Como evitá-las e administrá-las : casos e histórias. Rio de Janeiro: Mauad.
Opitz, A., Mateus, C., Sakellarides, C., George, F., Martins, H., Gomes, I. L., … Nunes, R. (2020). COVID-19 e Segurança Sanitária: O que muda? IDN Brief. Retrieved from http://comum.rcaap.pt/handle/10400.26/32055
Ozdemir, V. E., & Hewett, K. (2010). The effect of collectivism on the importance of relationship quality and service quality for behavioral intentions: A cross-national and cross-contextual analysis. Journal of International Marketing, 18(1), 41-62.
Ortega, R. P., Melo, P. L. de R., Boaventura, J. M. G., & Mascena, K. M. C. de. (2016). Atendimento dos interesses do stakeholder franqueado e sua relação com o desempenho financeiro em redes de franquias. Attendance of Franchisee Stakeholder’s Interests and Its Relationship to Financial Performance in Franchise Networks, 9, 24–38. https://doi.org/10.5902/1983465922118
Rodriguez-Morales, A. J., Gallego, V., Escalera-Antezana, J. P., Méndez, C. A., Zambrano, L. I., Franco-Paredes, C., … Cimerman, S. (2020). COVID-19 in Latin America: The implications of the first confirmed case in Brazil. Travel Medicine and Infectious Disease. https://doi.org/10.1016/j.tmaid.2020.101613
Rosa, M. (2004). A era do escândalo: Lições, relatos e bastidores de quem viveu as grandes crises de imagem. São Paulo: Geração Editorial.
Sandelowski, M., & Barroso, J. (2016). Classifying the Findings in Qualitative Studies: Qualitative Health Research. (world). https://doi.org/10.1177/1049732303253488
Sapriel, C. (2003). Effective crisis management: Tools and best practice for the new millennium. Journal of Communication Management, 7(4), 348–355. https://doi.org/10.1108/13632540310807485
Sebrae. (2017). Gestão de crise e resolução de conflitos em franquias. Retrieved October 21, 2020, from Sebrae RS - Empreendedorismo que Transforma website: https://sebraers.com.br/franquias-cooperacao/gestao-de-crise-e-resolucao-de-conflitos-em-franquias/
Secretariat for International Economic Affairs. (2020, April 14). Brazil’s Policy Responses to COVID-19. Retrieved April 23, 2020, from Ministério da Economia website: https://www.gov.br/economia/pt-br/centrais-de-conteudo/publicacoes/publicacoes-em-outros-idiomas/covid-19/brazil2019s-policy-responses-to-covid-19/view
Siomkos, G., Triantafillidou, A., Vassilikopoulou, A., & Tsiamis, I. (2010). Opportunities and threats for competitors in product‐harm crises. Marketing Intelligence & Planning, 28(6), 770–791. https://doi.org/10.1108/02634501011078156
Surico, P., & Galeotti, A. (2020, March). The economics of a pandemic: The case of Covid-19. Presented at the International Council for Small Business, London Business School. Retrieved from https://icsb.org/theeconomicsofapandemic/
Sresnewsky, K. B. G. B., Yojo, A. S., Veloso, A. R., & Torresi, L. (2020). Rapport-building in luxury fashion retail: a collectivist culture case. Journal of Fashion Marketing and Management: An International Journal.
Teixeira, R. (2020, March 24). FIAF: Efectos del COVID-19 sobre la industria de franquicias en Ibero-América. Retrieved April 23, 2020, from ABF website: https://www.abf.com.br/fiaf-efectos-del-covid-19-sobre-la-industria-de-franquicias-en-ibero-america/
Vaismoradi, M., Turunen, H., & Bondas, T. (2013). Content analysis and thematic analysis: Implications for conducting a qualitative descriptive study. Nursing & Health Sciences, 15(3), 398–405. https://doi.org/10.1111/nhs.12048
Welsh, D. H. B., Alon, I., & Falbe, C. M. (2006). An Examination of International Retail Franchising in Emerging Markets. Journal of Small Business Management, 44(1), 130–149.
Żak, M., & Garncarz, J. (2020). Economic policy towards the challenges of the COVID-19 pandemic in selected European Union countries. International Entrepreneurship Review, 6(4), 21–34. https://doi.org/10.15678/IER.2020.0604.02
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Internext - Review of International Business
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
- The author(s) authorize the publication of the article in the journal;
- The author(s) ensure that the contribution is original and unpublished and is not being evaluated in other journal(s);
- The journal is not responsible for the opinions, ideas and concepts expressed in the texts because they are the sole responsibility of the author(s);
- In case an article will be approved for publication, the author will sign the term of Cession of Copyright to the journal, according to the download form.