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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. 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.
    2. Eugenio Jose Silva Bitti & Muriel Fadairo & Cintya Lanchimba & Vivian-Lara Silva, 2016. "Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome," Working Papers 1614, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    3. repec:ehu:cuader:24429 is not listed on IDEAS
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.

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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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