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This study aims to develop an instrument that examines the franchisor as an entrepreneurial form. Although examining the entrepreneurial tendencies of the franchisors has been a central goal of the present research, the study also uncovers the factors that lead firms to offer franchises and promote franchisor growth.

Data was collected from the population of franchisor organizations in India by following a survey approach. Statistical techniques including descriptive and inferential statistics like correlation and structural equation modeling were used to analyze the data.

The study results show that franchisors possess entrepreneurship traits and reveal entrepreneurial behavior. The study also provides empirical evidence toward various dimensions that contribute to franchisor growth.

The results of the present study propose research implications toward clarification of the entrepreneurial position of the franchisors in the extensively unclear research area.

Considerable ambiguity surrounds franchisors’ activities running and managing their business as entrepreneurial firms. By indicating franchisors’ entrepreneurial traits, the study expatiates on major franchising and entrepreneurship literature arguments.

Although previous research has examined the role of franchising for the economic development of countries, no empirical study to date has investigated the importance of franchising for social, infrastructural, and institutional development. The authors address this research gap by applying research results from the field of sustainable entrepreneurship and highlight that franchising has a positive impact on economic, social, institutional and infrastructural development.

This study uses a fixed-effects model on a panel dataset for 2006–2015 from 49 countries to test the hypothesis that franchising positively influences various dimensions of country development such as economic social institutional and infrastructural development.

The findings highlight that franchising has a positive impact on the economic, social, infrastructural, and institutional development of a country. Specifically, the results show that the earlier and the more franchising systems enter a country, the stronger the positive impact of franchising on the country's economic, social, institutional, and infrastructural development.

This study has several limitations that provide directions for further research. First, the empirical investigation is limited by the characteristics of the data, which are composed of information from 49 countries (covering a period of 10 years). Because franchising is not recognized as a form of entrepreneurial governance in many emerging and developing countries, the available information is mainly provided by the franchise associations in the various countries. Hence, there is a need to collect additional data in each country and to include additional countries. Second, although the authors included developed and developing countries in the analysis, the authors could not differentiate between developed and developing countries when testing the hypotheses, because the database was not sufficiently complete. Third, future studies should analyze the causality issue between franchising and development more closely. The role of franchising in development may be changing depending on different unobserved country factors, economic sector characteristics, or development stages.

What are the practical implications of this study for the role of franchising in the development of emerging and developing economies? Because public policy in emerging and developing countries suffers from a lack of financial resources to improve the social, infrastructural and institutional environment, entrepreneurs, such as franchisors who expand into these countries, play an important role for these countries' development. In addition to their entrepreneurial role of exploring and exploiting profit opportunities, they are social, institutional, and political entrepreneurs who may positively influence country development (Schaltegger and Wagner, 2011; Shepard and Patzelt, 2011). Specifically, the findings highlight that countries with an older franchise sector (more years of franchise experience) may realize first-mover advantages and hence larger positive spillover effects on their economic, social, institutional and infrastructural development than countries with a younger franchise sector. Hence, governments of emerging and developing countries have the opportunity and responsibility to reduce potential market entry barriers and provide additional incentives for franchise systems in order to trigger these positive spillover effects. The authors expect that the spillover effects from the franchise sector on the economic, institutional, social and infrastructural development of a country are stronger in emerging and developing countries than in developed countries.

Previous research has focused on the impact of franchising on the economic development of a country, such as its growth of gross domestic product (GDP), employment, business skills, innovation and technology transfer. This study extends the existing literature by going beyond the impact of franchising on economic development: the results show that franchising as an entrepreneurial activity offers opportunities for economic, social, institutional, and infrastructural development, all of which are particularly important for emerging and developing economies. The findings of this study contribute to the international franchise and development economics literature by offering a better understanding of the impact of franchising on country development.

Social franchise chains have social goals rather than – or in addition to – commercial or profit-making goals. But are these social goals, disclosed by social franchisors, aligned with the Sustainable Development Goals (SDGs) and, if so, which ones?

The authors examine the disclosure of SDG-related information on websites of 69 social franchise chains operating in Africa.

The authors' main findings show that social goals disclosed by social franchisors are aligned with certain SDGs that are general in nature and not just sector-dependent, except in the case of education.

The authors' paper contributes to the practice by providing examples of the types and varieties of social goals social franchisors can pursue. Moreover, entrepreneurs might be encouraged to launch their franchise concept as franchisors who contribute to SDGs at an international, national or regional level or to join franchise chains as franchisees who contribute to SDGs at the local level.

The authors' findings show the potential for social franchise chains in developing countries to target and contribute to achieving SDGs.

The authors' paper adds to the limited literature on SDGs and, more specifically, on the role of the private sector, in particular social franchisors, in targeting and achieving SDGs.

That social franchising programs induce favorable outcomes is readily taken for granted, albeit lacking robust empirical support. Addressing this situation, this paper takes a closer look at a fractional social franchising program in the public health-care sector in Vietnam to better understand how such programs work. This paper aims to expand the nascent body of empirical research that has examined the inner workings of social franchising programs from the perspective of clients by focusing on the health professionals who work there.

Using an exploratory qualitative research design, the authors conducted 25 semistructured interviews with health professionals of a fractional franchising program called Sisterhood, which introduced reproductive health and family planning services into existing health facilities in Vietnam. Interviews were triangulated with Sisterhood’s internal documents as well as with publicly available reports.

The analysis highlights two pathways through which the social franchising program brought about positive change. On the one hand, the analysis suggests that many of the positive outcomes reported by public health professionals were consistent with the stated goals and measures used by the Sisterhood program, providing evidence that improving the quality of health care for disadvantaged communities can be achieved through careful design and execution. On the other hand, the analysis revealed beneficial outcomes that were outside the scope of the Sisterhood program and, in this sense, “unexpected.” Specifically, the paper sheds light on unintended knowledge spillover effects in which nonfranchised health professionals began to adopt new practices and principles introduced by the social franchising program.

The paper taps into a largely under-researched phenomenon – fractional social franchising – from the perspective of health professionals. Unpacking how the social franchising program created favorable outcomes, some by design and others by accident, the paper opens new empirical and policy insights into how social franchising can improve public health in hard-to-reach communities in the global South. Based on the findings, the authors argue for the intentional promotion and institutionalization of knowledge transfers from franchised to nonfranchised health facilities to reinforce and scale up the positive impact of social franchising. The authors conclude by emphasizing the need for future research to adopt a complexity-sensitive approach that accounts for the dynamic, nonlinear adoption pathways social franchising can take. Such an approach is essential to uncover the beneficial outcomes that can result from social franchising programs but cannot be readily predicted by program design.

The purpose of this study is to examine whether variation in franchising across US states can be explained by differences in state regulatory burdens.

Three years of US state-level panel data is used on measures of franchising activity published by the International Franchise Association. The authors measured variation in regulatory burdens across state governments using the regulatory freedom index, developed by the Cato Institute. Multiple regression analysis was the statistical technique used.

Controlling for state-level per capita personal income, educational attainment, unemployment and share of population identifying as non-white, the authors find states with fewer regulatory burdens for business owners have more franchises and franchise jobs per 100,000 residents, higher franchise output per capita and a larger share of small businesses are franchises. These results were robust to alternative econometric specifications. The results support our hypothesis that states with lower regulatory burdens will have more franchising activity.

Only three years of data are currently available; however, our research provides some practical avenues for managers and policy makers to explore when considering new franchise opportunities or developing policies that impact regulatory burdens for small businesses.

This study contributes to the literature by providing supporting evidence for the relationship between US state institutional factors and franchised small businesses, and it adds a cross-state study to the existing literature using cross-country and cross-city data.

This case study outlines the strategic and organisational issues faced by an entrepreneurial firm operating in an emerging economy. This case study has been written to equip students with how entrepreneurs can overcome certain barriers and use technology to achieve product–market fit, taking the Indian laundry sector as an example. The following are the key learnings for the case: start-ups need to continuously assess the product–market fit to organise a highly unorganised sector; market entry and expansion modes require proper evaluation of available entry and expansion modes before pursual; franchising decisions require firm-specific and location-specific considerations; and careful consideration given to celebrity endorsement will result in increased sales.

The Indian laundry market was a highly unorganised market and presented an untapped opportunity. While the market opportunity was enormous, the existing solutions comprised local vendors that may not provide end-to-end services (washing, ironing, etc.). The case study described how a young entrepreneur, Arunabh Sinha, overcame certain challenges to achieve a product–market fit for metro cities and later expanded to Tier 2 and Tier 3 cities in India as well. However, the challenges remained, as the firm expanded by using a franchise model, and other modes of business were required to be evaluated as well.

The case study is suitable for students pursuing MBA courses in marketing, service marketing and entrepreneurship development.

Teaching notes are available for educators only.

CSS3: Entrepreneurship.

In 2023, the New England Journal of Entrepreneurship (NEJE) reached its 25th anniversary. To commemorate this major milestone as well as entrepreneurship’s growth as an academic field, the study employs bibliometric methods to provide key trends and research suggestions for entrepreneurship scholars using all original research published in the journal.

The authors perform two predominant bibliometric techniques, performance analysis and science mapping, using all 251 articles published by NEJE from 1998 to 2022.

The authors find that the impact of entrepreneurship research published at NEJE is growing consistently and that the challenge of the future will be to maintain this growth in tandem with greater publication productivity. The authors also find that although most contributions come from authors affiliated with institutions in the USA, there is a global representation from authors who have published in NEJE. Further, the authors found that the major entrepreneurship research themes of articles published in NEJE revolve around general entrepreneurship, entrepreneurial behavior, gender, technology, entrepreneurship education, innovation and value creation and sustainability.

The analysis is restricted to articles published in NEJE and therefore may not be representative of the entrepreneurship field. However, it can serve as a useful resource, particularly for prospective NEJE authors, to gain empirical insights about entrepreneurship research trends and rising topics of interest.

The authors’ work represents the first effort to synthesize research published in NEJE through bibliometric techniques and offers insights about important trends and themes in this rising outlet of the entrepreneurship field.

Entrepreneurship literature recognizes the founder’s involvement as a salient factor in determining the success of startups. Nevertheless, its role in conjunction with the marketing roles of founders has been relatively unexplored. Very little is known about how founder’s involvement in marketing tasks (i.e. developing products, sales and customers) helps attain success in early startups. To fill this knowledge gap, this study aims to qualitatively investigate the founder’s involvement under three vital functional areas (i.e. sales, customer development and product development) and also explain their entwined nature of the relationship as the early-stage startups grow to become a scalable businesses.

This study used purposive sampling for conducting in-depth interviews with 11 startup founders in the midwestern city of the USA. A constant comparative method was used to code the interview transcripts, while juxtaposing them with extant literature.

Using three levels of axial coding, this study identified 32 descriptive codes, 11 aggregate codes and 2 interpretive codes. Following this, the authors present five propositions that illustrate the relationship between founders’ involvement, customer development, product development and sales.

This study offers guidelines to founders on how they could generate initial sales, identify early customers and build and sustain mutually beneficial relationships with them.

This study contributes to the extant literature on entrepreneurship and innovation literature. It presents motivation and potential processes, including systematic activities performed by founders in generating sales in conjunction with customer development and product development, thereby making a novel contribution.

This article examines the influence of market opportunity, risk, and distance on the choice of destination country for Mexican franchises.

The research hypotheses are developed under the theoretical approaches of institutional theory, agency theory, and transaction costs theory and were contrasted on the data obtained from 52 Mexican international franchisors operating in 37 countries as of 2016. This study uses linear regression with ordinary minimums using the STATA 13.1 software.

The results reveal that a larger market size, a greater level of economic freedom, and a smaller geographic distance are determining factors in the choice of destination country. No statistical significance was found in the variables GDP per capita, level of democracy and cultural distance.

This research contributes to the theoretical and practical field. On the theoretical side, this study integrates institutional theory, agency theory, and transaction cost theory to evaluate the factors of the destination country that influence the internationalization process of the franchise. Another contribution of this study is to apply theories and models of developed economies to the process of internationalization of franchises in an emerging economy. Additionally, this study is based on a model that considers the distance, opportunities and risks that are considered by Mexican franchisors in the selection of the international markets in which they maintain operations. This study contains important practical implications that can serve as relevant information for decision-making in the franchise sector and its internationalization. This data is valuable for new models of Mexican franchises that decide to start their internationalization process.

This study aims to provides the insights on the advantages and disadvantages of international franchising and licensing from the perspectives of legal and business considerations in the Gulf Cooperation Council (GCC).

Using a quantitative research approach, the authors conducted a survey with 150 business owners and franchisees in the GCC and analyzed the data using descriptive statistics, structural equation modeling and frequency analysis.

The findings reveal that while international franchising and licensing offer significant benefits for business expansion and revenue growth, they also pose risks related to legal compliance, cultural differences and intellectual property protection. Indeed, the results of this study provide valuable insights into the advantages and disadvantages of international franchising and licensing in the GCC from both legal and business perspectives.

There is limited research on the legal and business perspectives of international franchising and licensing in the GCC. This study contributes to the literature by providing a comprehensive analysis of the legal and business perspectives of international franchising and licensing in the GCC.