REGIONAL DEVELOPMENT AND INSTITUTIONAL ENVIRONMENT: REGIONAL EXPANSION OF FRANCHISE CHAINS IN BRAZIL

MELO, PEDRO L. R.; DELGADO, RENATA T.; CORRÊA, VICTOR S.; BORINI, FELIPE M.

doi:10.1590/1678-6971/eRAMR200088

PEDRO L. R. MELO

Paulista University (Unip), São Paulo, SP, Brazil.

AUTHOR NOTES Pedro L. R. Melo, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP); Renata T. Delgado, master from the Postgraduate Program in Administration, Paulista University (Unip); Victor S. Corrêa, Ph.D. from the Postgraduate Program in Administration, Pontifical Catholic University of Minas Gerais (PUC Minas); Felipe M. Borini, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP).

http://orcid.org/0000-0002-5947-6279

RENATA T. DELGADO

Paulista University (Unip), Santana de Paranaíba, SP, Brazil.

AUTHOR NOTES Pedro L. R. Melo, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP); Renata T. Delgado, master from the Postgraduate Program in Administration, Paulista University (Unip); Victor S. Corrêa, Ph.D. from the Postgraduate Program in Administration, Pontifical Catholic University of Minas Gerais (PUC Minas); Felipe M. Borini, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP).

http://orcid.org/0000-0002-9543-2820

VICTOR S. CORRÊA

Paulista University (Unip), São Paulo, SP, Brazil.

AUTHOR NOTES Pedro L. R. Melo, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP); Renata T. Delgado, master from the Postgraduate Program in Administration, Paulista University (Unip); Victor S. Corrêa, Ph.D. from the Postgraduate Program in Administration, Pontifical Catholic University of Minas Gerais (PUC Minas); Felipe M. Borini, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP).

FELIPE M. BORINI

University of São Paulo (USP), São Paulo, SP, Brazil.

AUTHOR NOTES Pedro L. R. Melo, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP); Renata T. Delgado, master from the Postgraduate Program in Administration, Paulista University (Unip); Victor S. Corrêa, Ph.D. from the Postgraduate Program in Administration, Pontifical Catholic University of Minas Gerais (PUC Minas); Felipe M. Borini, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP).

http://orcid.org/0000-0003-1389-136X

Correspondence concerning this article should be addressed to Pedro L. R. Melo, Rua Doutor Bacelar, 1212, 4º andar, Vila Clementino, São Paulo, São Paulo, Brasil, CEP 04026-002. E-mail: pedro.melo@docente.unip.br

AUTHOR NOTES

Pedro L. R. Melo, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP); Renata T. Delgado, master from the Postgraduate Program in Administration, Paulista University (Unip); Victor S. Corrêa, Ph.D. from the Postgraduate Program in Administration, Pontifical Catholic University of Minas Gerais (PUC Minas); Felipe M. Borini, Ph.D. from the Faculty of Economics, Administration, Accounting and Actuaries (FEA), University of São Paulo (USP).

Pedro L. R. Melo is now full professor at the Postgraduate Program in Administration of Unip; Renata T. Delgado is now professor at the Department of Technological Degree in Logistics of Unip; Victor S. Corrêa is now full professor at the Postgraduate Program in Administration of Unip; Felipe M. Borini is now associate professor at the FEA-USP.

City	State	Franchise units	Population	Percent
Ribeirão Preto	SP	588	666.323	0.7%
São José dos Campos	SP	579	688.597	0.7%
Sorocaba	SP	509	644.919	0.6%
São José do Rio Preto	SP	467	442.548	0.6%
Uberlândia	MG	456	662.362	0.6%
Maringá	PR	377	397.437	0.5%
Jundiaí	SP	373	401.896	0.5%
Bauru	SP	318	366.992	0.4%
Piracicaba	SP	309	391.449	0.4%
Juiz de Fora	MG	272	555.284	0.3%
Caxias do Sul	RS	249	474.853	0.3%
Imperatriz	MA	218	253.123	0.3%
Blumenau	SC	214	338.876	0.3%
Cascavel	PR	212	312.778	0.3%
Taubaté	SP	212	302.331	0.3%

Dimension	Variable	Description	Authors	Source
Socioeconomic dimension	Employed persons	This corresponds to the number of workers in the municipality. Empirical market-based studies reveal critical links between the level of employment, wages, and consumption of the population.	Carpenter and Moore (2006)Carpenter, J. M., & Moore, M. (2006). Consumer demographics, store attributes, and retail format choice in the US grocery market. International Journal of Retail & Distribution Management, 34(6), 434-452. doi:10.11108/09590550610667038 https://doi.org/10.11108/095905506106670... and Shugan (2007)Shugan, S. M. (2007). Does good marketing cause bad unemployment? Marketing Science, 26(1), 1-17.	Atlas do desenvolvimento humano (Pnud, 2013)
	Proportion of poor people	It is the proportion of the poor population, considering residents with monthly household income below 1/2 minimum wage per capita, in relation to the total population of the municipality. This variable gained more relevance after the recent wave of consumption in the national market reached the poorest sections of the Brazilian population. Therefore, because of the need to know and differentiate the municipalities, this variable started to receive attention from companies interested in the most diverse segments and social classes.	Prahalad (2006), Pereira, Maia, Joseph, Freitas, and Oyamada (2010)Pereira, B., Maia, J., Joseph, L., Freitas, A., & Oyamada, G. (2010). Pobreza e desigualdade de renda entre famílias da zona rural de Mato Grosso de 2004 a 2006. Revista Ciência Agronômica, 41(4), 536-545., Montenegro and Contel (2017)Montenegro, M., & Contel, F. (2017). Financeirização do território e novos nexos entre pobreza e consumo na metrópole de São Paulo. Revista Latinoamericana de Estudios Urbano Regionales, 43(130), 115-139., Cabral and Araujo (2012), Dias and Chiavegatto (2013)Dias, A., & Chiavegatto, P. (2013). How to include the characteristics of the districts of the Municipality of São Paulo in epidemiologic studies: An income inequality analysis using the propensity score matching approach. Saúde Soc., 22(4), 1145-1153., Souza, Souza, and Pinto (2014)Souza, T. S., Souza, E. R., & Pinto, L. W. (2014). The evolution of mortality by homicide in the State of Bahia in the period from 1996 to 2010. Ciência & Saúde Coletiva, 19(6), 1889-1900.	Atlas do desenvolvimento humano (Pnud, 2013)
	The number of shopping malls in the municipalities	This corresponds to the number of malls in the municipality, in units. The location, quantity, and format of stores are essential to combine retail opportunities with serving individuals in a community. The changes that have taken place in urban society are related to the expansion and modernization of tertiary activities, in which case shopping centers stand out. These have become important retail centers, acting in the way of life in cities, as well as boosting regional development and serving as an economic indicator of a given location.	Meneely, Burns, and Strugnell (2009)Meneely, L., Strugnell, C., & Burns, A. (2009). Age associated changes in older consumers retail behavior. International Journal of Retail & Distribution Management, 37(12), 1041-1056. and Ortigoza (2010)Ortigoza, S. A. G. (2010). Paisagens do consumo: São Paulo, Lisboa, Dubai e Seul. São Paulo: Editora Unesp.	Abrasce
Geographical dimension	Distance from capitals	Distance from municipalities to the capitals of their states, measured in kms.	Jackson (2001)Jackson, C. A. (2001). Model of spatial patterns across local retail property markets in Great Britain. Urban Studies, 38(9), 1445-1471., Buzzacchi and Valletti (2006)Buzzacchi, L., & Valletti, T. M. (2006). Firm size distribution: Testing the “independent submarkets model” in the Italian motor insurance industry. International Journal of Industrial Organization, 24(4), 809-834. and Lobo and Matos (2011)Lobo, C., & Matos, R. (2011). Migrações e a dispersão espacial da população nas regiões de influência das principais metrópoles brasileiras. Revista Brasileira de Estudos de População, 28(1), 81-101.	Google Maps
Human resources dimension	The percentage of employed persons with a complete degree	This corresponds to the percentage of workers in the municipality with complete higher education. Some authors affirm that education is a variable related to income, by showing that areas with higher income have higher education and vice versa. Additionally, the increase in the educational level of people equals wages between regions. This is because people tend to migrate to regions that pay better wages, although the capital may migrate to regions that offer cheaper qualified labor. The result, therefore, would be a better income distribution.	Carpenter and Moore (2006)Carpenter, J. M., & Moore, M. (2006). Consumer demographics, store attributes, and retail format choice in the US grocery market. International Journal of Retail & Distribution Management, 34(6), 434-452. doi:10.11108/09590550610667038 https://doi.org/10.11108/095905506106670... , Yang and Li (2008)Yang, J. Y., & Li, J. (2008). The development of entrepreneurship in China. Asia Pacific Journal of Management, 25(2), 335-359. and Mendes et al. (2016)	Atlas do desenvolvimento humano (Pnud, 2013)
	The percentage of employed persons in the service sector	This pertains to the percentage of workers in the municipality working in the service sector. The index shows the ratio between the number of persons over 18 years of age who are employed in the service sector and the total number of employed persons. With this, it is possible to identify the area of activity and the segment of workers, the degree of qualification, and the percentage of people working, in addition for this percentage to be an economic indicator.	Carvalho and Schoiozer (2012)Carvalho, C., & Schiozer, R. F. (2012). Working capital management: A comparative study between the practices of Brazilian and UK Firms. Revista de Administração Contemporânea, 16(4), 518-543. and Pnud (2013)	Atlas do desenvolvimento humano (Pnud, 2013)
	The percentage of employed persons in the trade sector	This corresponds to the percentage of workers in the municipality who work in commerce. This index shows the ratio between the number of people over 18 years of age who are employed in the trade sector and the total number of employed persons. The index is important for understanding the profile of workers and the segment in which the municipalities operate, the type of qualification, the level of employability in the city, and the degree of heating up of the economy.	Carvalho and Schoiozer (2012)Carvalho, C., & Schiozer, R. F. (2012). Working capital management: A comparative study between the practices of Brazilian and UK Firms. Revista de Administração Contemporânea, 16(4), 518-543. and Pnud (2013)	Atlas do desenvolvimento humano (Pnud, 2013)
	The percentage of self-employed workers	This is the percentage of self-employed workers. Many municipalities, with many responsibilities to fulfill and few opportunities to attract large companies, need alternative ways to guarantee socioeconomic development. More important than the installation of industries is the possibility for each municipality to develop certain talents and capabilities of its population to encourage innovation and entrepreneurship.	Jackson (2001)Jackson, C. A. (2001). Model of spatial patterns across local retail property markets in Great Britain. Urban Studies, 38(9), 1445-1471. and Yang and Li (2008)Yang, J. Y., & Li, J. (2008). The development of entrepreneurship in China. Asia Pacific Journal of Management, 25(2), 335-359.	Atlas do desenvolvimento humano (Pnud, 2013)

Code	Variable
P_SUPER	The percentage of employed persons with a complete degree
P_COM	The percentage of employed persons in the trade sector
P_SERV	The percentage of employed persons in the service sector
POP	Proportion of poor people
Shopping	The number of shopping malls in the municipalities
KM Capital	Distance from capitals
Occupied total	Employed persons
CPR	The percentage of self-employed workers

Matriz de componente rotativa
	Factors
	1 - Socioeconomic	2 - Human resources	3 - Geographical
Occupied total	0.94	0.26	-0.06
POP	0.94	0.18	0.06
Shopping	0.92	0.13	-0.07
P_SERV	0.22	0.87	0.00
P_SUPER	0.39	0.76	-0.15
P_COM	0.09	0.64	0.45
CPR	-0.05	-0.64	0.50
KM Capital	-0.05	-0.03	0.80
Variância explicada fator	35.14%	28.58%	14%
Variância explicada total	77.75%

	Dependent variable Franchise units	Standardize d beta	t	Sig	VIF
Independent variable	Constant		45.678	0.000
	Socioeconomic	0.919	66.014	0.000	1.000
	Human resources	0.259	18.641	0.000	1.000
	Geographical	-0.019	-1.338	0.181	1.000
	R2 adjusted	0.911
	Durbin-Watson	1.883
	F	1,569.02

Hypothesis	Dimensions	Results
H1: The higher the indexes of the socioeconomic dimension of the municipalities, the more attractive the municipality is for franchise chains.	Socioeconomic	Confirmed
H2: The higher the human resource dimension indexes, the more attractive the municipality is for franchise chains.	Human resources	Confirmed
H3: The shorter the distance between the municipality and the state capital, the more attractive the municipality is for franchise chains.	Geographic	Not confirmed

[1] Correspondence concerning this article should be addressed to Pedro L. R. Melo, Rua Doutor Bacelar, 1212, 4º andar, Vila Clementino, São Paulo, São Paulo, Brasil, CEP 04026-002. E-mail: pedro.melo@docente.unip.br

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REGIONAL DEVELOPMENT AND INSTITUTIONAL ENVIRONMENT: REGIONAL EXPANSION OF FRANCHISE CHAINS IN BRAZIL

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