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Can franchising be an economic development strategy? An empirical investigation

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  • Steven Michael

Abstract

Prior research has examined why franchisors expand abroad, but no paper has empirically examined the role of franchising in the macroeconomy of developing nations. In this paper, the pattern of franchising development is statistically analyzed within the context of the general economic development of Latin America. It is found that franchising leads, rather than follows, economic development. Implications for theory and policy are considered. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Steven Michael, 2014. "Can franchising be an economic development strategy? An empirical investigation," Small Business Economics, Springer, vol. 42(3), pages 611-620, March.
    • Handle: RePEc:kap:sbusec:v:42:y:2014:i:3:p:611-620
    DOI: 10.1007/s11187-013-9500-1
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    References listed on IDEAS

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    Cited by:

    1. Farhad Sadeh & Manish Kacker, 2018. "Quality signaling through ex-ante voluntary information disclosure in entrepreneurial networks: evidence from franchising," Small Business Economics, Springer, vol. 50(4), pages 729-748, April.
    2. Esther Calderón-Monge & Pilar Huerta-Zavala & Jannett Ayup-González, 2019. "Effects of brand-related and market signals on franchisees’ entrepreneurial decisions: a multi-country panel data analysis," International Entrepreneurship and Management Journal, Springer, vol. 15(2), pages 573-588, June.
    3. Eugenio Jose Silva Bitti & Muriel Fadairo & Cintya Lanchimba & Vivian-Lara Silva, 2016. "Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome," Working Papers halshs-01292057, HAL.
    4. Lanchimba, Cintya & Welsh, Dianne H.B. & Fadairo, Muriel & Silva, Vivian-Lara D.S., 2021. "The impact of franchisor signaling on entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 131(C), pages 337-348.
    5. Hsu, Liwu & Kaufmann, Patrick & Srinivasan, Shuba, 2017. "How Do Franchise Ownership Structure and Strategic Investment Emphasis Influence Stock Returns and Risks?," Journal of Retailing, Elsevier, vol. 93(3), pages 350-368.
    6. Mark D Easton & Andrea M Noack & Leah F Vosko, 2021. "Are franchisees more prone to employment standards violations than other businesses? Evidence from Ontario, Canada," The Economic and Labour Relations Review, , vol. 32(1), pages 39-64, March.
    7. Navarro Sanfelix, Guillermo & Puig, Francisco, 2017. "New challenges in franchisor-franchisee relationship. An analysis from agency theory perspective," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    8. Begoña López-Fernández & Susana López-Bayón, 2018. "Antecedents of early terminations in franchising: franchisor versus franchisee cancelations," Small Business Economics, Springer, vol. 50(4), pages 677-695, April.

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    More about this item

    Keywords

    Franchising; Economic development; Organizational form; Competition; International business; L26;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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