Skip to main content

Advertisement

Log in

Microfranchise emergence and its impact on entrepreneurship

  • Published:
International Entrepreneurship and Management Journal Aims and scope Submit manuscript

Abstract

Our investigation uses structuration theory to explore the emergence of a microfranchise whose aim is to raise the income of smallholder farmers in Kenya by enabling an increase in productivity. This longitudinal real time qualitative study tracks the key actions taken in developing the venture, beginning in the conception phase of startup and continuing through to the initial stage of operations. In doing so it focuses on how agency and structure reciprocally influence the resulting social enterprise. The findings indicate that agency is not exclusive to the founders. Rather it was distributed among the micro-franchisor’s stakeholders to significantly shape the nature and scope of the enterprise. While franchising, generally, is not noted to provide autonomy and independence to franchisees, we find the opposite in this emerging market context. Implications are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Notes

  1. The entire bank of interview questions can be obtained by contacting the author.

References

  • Amit, R., & Muller, E. (1995). ‘Push’ and ‘pull’ entrepreneurship. Journal of Small Business and Entrepreneurship, 12(4), 64–80.

    Article  Google Scholar 

  • Arend, R. J. (2013). A heart-mind-opportunity nexus: differentiating social entrepreneurship for entrepreneurs. Academy of Management Review, 38(2), 313–315.

    Article  Google Scholar 

  • Block, J., & Wagner, M. (2010). Necessity and opportunity entrepreneurs in Germany: Characteristics and earnings differentials. Schmalenbach Business Review, 62(2), 154–174.

    Google Scholar 

  • Block, J., Kohn, K., Miller, D., & Ullrich, K. (2015). Necessity entrepreneurship and competitive strategy. Small Business Economics, 44(1), 37–54. doi:10.1007/s11187–014-9589-x.

    Article  Google Scholar 

  • Bryan, E., Ringler, C., Okoba, B., Roncoli, C., Silvestri, S., & Herrero, M. (2013). Adapting agriculture to climate change in Kenya: Household strategies and determinants. Journal of Environmental Management, 114, 26–35.

    Article  Google Scholar 

  • Cappellin, R. (1992). Theories of local endogenous development and international cooperation. In M. Tykkylainen (Ed.), Development Issues and Strategies in the New Europe (pp. 1–19). Aldershot: Avebury.

    Google Scholar 

  • Cepeda, G., & Martin, D. (2005). A review of case studies publishing in Management Decision 2003–2004: Guides and criteria for achieving quality in qualitative research. Management Decision, 43(6), 851–876.

    Article  Google Scholar 

  • Choi, N., & Majumdar, S. (2014). Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research. Journal of Business Venturing, 29(3), 363–376.

    Article  Google Scholar 

  • Christensen, L. J., Parsons, H., & Fairbourne, J. (2010). Building entrepreneurship in subsistence markets: Microfranchising as an employment incubator. Journal of Business Research, 63(6), 595–601.

    Article  Google Scholar 

  • Combs, J. G., Ketchen, D. J., Shook, C. L., & Short, J. C. (2011). Antecedents and consequences of franchising: Past accomplishments and future challenges. Journal of Management, 37(1), 99–126.

    Article  Google Scholar 

  • Connor, S. (2011). Structure and agency: a debate for community development? Community Development Journal, 46(suppl 2), ii97–ii110.

    Google Scholar 

  • Cooper, A., & Dunkelberg, W. (1986). Entrepreneurship and paths to business ownership. Strategic Management Journal, 7(1), 53–68.

    Article  Google Scholar 

  • Defourny, J. (2001). Introduction - from third sector to social enterprise. In D. Borzaga, J. Defourny, S. Adam, & J. Callaghan (Eds.), The Emergence of Social Enterprise (pp. 1–28). London: Routledge.

    Google Scholar 

  • Duncan, S. (2000). Challenging rational action theory. In Workshop paper (No. 5). Prepared for Workshop One: Frameworks for understanding policy change and culture, CAVA, University of Leeds.

  • Fairbourne, J. S. (2006). Microfranchising: A new tool for creating economic self-reliance. ESR Review, 8(1), 18–23.

    Google Scholar 

  • Galloway, L., Kapasi, I., & Whittam, G. (2015). How not to do it!! A salutary lesson on longitudinal and qualitative research approaches for entrepreneurship researchers. International Journal of Entrepreneurial Behavior & Research, 21(3), 489–500.

    Article  Google Scholar 

  • Gartner, W. B., Bird, B. J., & Starr, J. A. (1992). Acting as if: Differentiating entrepreneurial from organizational behavior. Entrepreneurship: Theory and Practice, 16(3), 13–32.

    Google Scholar 

  • Giddens, A. (1984). The constitution of society. Outline of a theory of structuration. Cambridge: Policy Press.

    Google Scholar 

  • Glasson, J. (1992). The fall and rise of regional planning in the economically advanced nations. Urban Studies, 29(3/4), 505–531.

    Article  Google Scholar 

  • Grimes, M. G., McMullen, J. S., Vogus, T. J., & Miller, T. L. (2013). Studying the origins of social entrepreneurship: compassion and the role of embedded agency. Academy of Management Review, 38(3), 460–463.

    Article  Google Scholar 

  • Guesalaga, R., & Marshall, P. (2008). Purchasing power at the bottom of the pyramid: differences across geographic regions and income tiers. Journal of Consumer Marketing, 25(7), 413–418.

    Article  Google Scholar 

  • Gupta, S., Beninger, S., & Ganesh, J. (2015). A hybrid approach to innovation by social enterprises: lessons from Africa. Social Enterprise Journal, 11(1), 89–112.

    Article  Google Scholar 

  • Hammond, A. L., Kramer, W. J., Katz, R. S., Tran, J. T., & Walker, C. (2007). The next 4 billion: Market size and business strategy at the base of the pyramid. World Resources Institute International Finance Corporation.

  • Homans, G. (1961). Social behaviour: its elementary forms. London: Routledge and Kegan Paul.

  • Howorth, C., Tempest, S., & Coupland, C. (2005). Rethinking entrepreneurship methodology and definitions of the entrepreneur. Journal of Small Business and Enterprise Development, 12(1), 24–40.

    Article  Google Scholar 

  • ICSB Bulletin (1993). The job generation process revisited: An interview with author David L. Birch. International Council on Small Business, St. Louis, MO. Fall, 6.

  • Industry Canada (2013). Key small business statistics. Small business branch, Industry Canada, August 2013. http://www.ic.gc.ca/eic/site/061.nsf/eng/02809.html Accessed 15 March 2016. Accessed 23 May 2016.

  • Ketchen, D. J., Short, J. C., & Combs, J. G. (2011). Is franchising entrepreneurship? Yes, no, and maybe so. Entrepreneurship: Theory and Practice, 35(3), 583–593.

    Google Scholar 

  • Kibaara, B. (2006). Rural financial services in Kenya: what is working and why? Tegemeo Institute of Agricultural Policy and Development, Egerton, KE: Egerton University.

    Google Scholar 

  • Kinyua, J. (2004). Towards achieving food security in Kenya. Priorities for action: Perspectives for East and Central Africa Ministry of Agriculture, Kenya. Perspectives for East and Central Africa April 1–3, 2004 Kampala, Uganda. http://www.IfPri.Org/2020AfricaConference/Program/KinyuaPDF

  • Kistruck, G. M., Webb, J. W., Sutter, C. J., & Ireland, R. D. (2011). Microfranchising in base-of-the-pyramid markets: Institutional challenges and adaptations to the franchise model. Entrepreneurship: Theory and Practice, 35(3), 503–531.

    Google Scholar 

  • Liñán, F., & Fernandez-Serrano, J. (2014). National culture, entrepreneurship and economic development: Different patterns across the European Union. Small Business Economics, 42(4), 685–701.

    Article  Google Scholar 

  • London, T., & Hart, S. L. (2010). Next generation business strategies for the base of the pyramid: New approaches for building mutual value. India: Pearson Education India.

    Google Scholar 

  • Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172.

  • Lumpkin, T., Cogliser, C., & Schneider, D. (2009). Understanding and measuring autonomy: An entrepreneurial orientation perspective. Entrepreneurship: Theory and Practice, 33(1), 47–69.

    Google Scholar 

  • Maas, J., Seferiadis, A. A., Bunders, J. F.G., & Zweekhorst, M. B. M. (2014). Bridging the disconnect: How network creation facilitates female Bangladeshi entrepreneurship. International Entrepreneurship and Management Journal, 10(3), 457–470. doi:10.1007/s11365–014–0299-2

  • Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1), 36–44.

    Article  Google Scholar 

  • Mason, C., Kirkbride, J., & Bryde, D. (2007). From stakeholders to institutions: the changing face of social enterprise governance theory. Management Decision, 45(2), 284–301.

    Article  Google Scholar 

  • McClelland, D. C. (1961). Achieving society. New York: Simon and Schuster.

    Book  Google Scholar 

  • McClelland, D.C. (1975). Power: the inner experience. New York: Irvington Publishers.

  • McClelland, D. C. (1987). Characteristics of successful entrepreneurs. The. Journal of Creative Behaviour, 21(3), 219–233.

    Article  Google Scholar 

  • Miller, D. (2011). Miller (1983) revisited: a reflection on EO research and some suggestions for the future. Entrepreneurship. Theory Into Practice, 35(5), 873–894.

    Google Scholar 

  • Miller, D. (2015). A downside to the entrepreneurial personality?. Entrepreneurship. Theory Into Practice, 39(1), 1–8. doi:10.1111/etap.12130.

    Google Scholar 

  • Muñoz, S. A. (2010). Towards a geographical research agenda for social enterprise. Area, 42(3), 302–312.

    Google Scholar 

  • Peacock, V., & Kao, P. (2013). Introduction: Transcending Structure–Agency in the Study of Organizations. Anthropology in Action, 20(2), 1–5.

    Article  Google Scholar 

  • Pecqueur, B., & Silva, M. R. (1992). Territory and economic development: The example of diffuse industrialization. In G. Garofoli (Ed.), Endogenous Development and Southern Europe (pp. 17–29). Aldershot: Avebury.

    Google Scholar 

  • Poschke, M. (2013). Entrepreneurs out of necessity: a snapshot. Applied Economics Letters, 20(7), 658–663.

    Article  Google Scholar 

  • Reynolds, P. D., Bosma, N., Autio, E., Hunt, S., de Bono, N., Servais, I., & Chin, N. (2005). Global entrepreneurship monitor: Data collection design and implementation 1998–2003. Small Business Economics, 24(3), 205–231.

    Article  Google Scholar 

  • Rindova, V., Barry, D., & Ketchen, D. (2009). Entrepreneuring as emancipation. Academy of Management Review, 34(3), 477–491.

    Article  Google Scholar 

  • Roethlisberger, F. J. (1977). The elusive phenomena: An autobiographical account of my work in the field of organized behavior at the Harvard Business School. In Boston: Division of Research, Graduate School of Business Administration, Harvard University. Cambridge: Mass. Harvard University Press.

    Google Scholar 

  • Rural Poverty Portal (2015) Rural poverty in Kenya http://www.ruralpovertyportal.org/country/home/tags/kenya Accessed 14 Aug 2015.

  • Sarason, Y., Dean, T., & Dillard, J. F. (2006). Entrepreneurship as the nexus of individual and opportunity: A structuration view. Journal of Business Venturing, 21(3), 286–305.

    Article  Google Scholar 

  • Sarason, Y., Dillard, J. F., & Dean, T. (2010). How can we know the dancer from the dance?: Reply to “Entrepreneurship as the structuration of individual and opportunity: A response using a critical realist perspective”.(Mole and Mole, 2008). Journal of Business Venturing, 25(2), 238–243.

    Article  Google Scholar 

  • Schild, V. (2007). Empowering ‘consumer-citizens’ or governing poor female subjects? Journal of Consumer Culture, 7(2), 179–203.

    Article  Google Scholar 

  • Seawright, K. W., Smith, I. H., Mitchell, R. K., & McClendon, R. (2013). Exploring entrepreneurial cognition in franchisees: A knowledge-structure approach. Entrepreneurship: Theory and Practice, 37(2), 201–227.

    Google Scholar 

  • Sexton, D. L., & Bowman, N. (1986). The entrepreneur: A capable executive and more. Journal of Business Venturing, 1(1), 129–140.

    Article  Google Scholar 

  • Sheth, J. N. (2011). Impact of emerging markets on marketing: rethinking existing perspectives and practices. Journal of Marketing, 75(4), 166–182.

    Article  Google Scholar 

  • Siqué, S. (2012). The promises of franchising in Africa: the need for a critical examination. Journal of African Business, 13(3), 168–171.

    Article  Google Scholar 

  • Solymossy, E. (1997). Push/pull motivation: Does it matter in terms of venture performance? In P. Reynolds, W. D. Bygrave, N. C. Carter, S. Manigart, C. Mason, G. Meyer, &K. Shaver (Eds.), Frontiers of entrepreneurship research (pp.204–217). Babson Park: Babson College.

  • Subrahmanyan, S., & Gomez-Arias, J. T. (2008). Integrated approach to understanding consumer behavior at bottom of pyramid. Journal of Consumer Marketing, 25(7), 402–412.

    Article  Google Scholar 

  • The World Bank (2015) http://www.worldbank.org/en/country/kenya/overview Accessed 22 Mar 2016.

  • The World Bank. (n.d.). Poverty & Equity Data. Retrieved from http://povertydata.worldbank.org/poverty/country/KEN.

  • UNICEF (2015) Kenya at a Glance http://www.unicef.org/kenya/overview_4616.html Accessed 14 Aug 2015.

  • Welsh, D. H., Alon, I., & Falbe, C. M. (2006). An examination of international retail franchising in emerging markets. Journal of Small Business Management, 44(1), 130–149.

    Article  Google Scholar 

  • Zhu, F., Chen, R., & Li, M. (2011). The divergent effects of autonomy and passion on persistence in new venture creation. In Academy of management proceedings 2011 (1) (Academy of Management) 1–6.

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Monica C. Diochon.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Diochon, M.C., Anderson, A.R. & Ghore, Y. Microfranchise emergence and its impact on entrepreneurship. Int Entrep Manag J 13, 553–574 (2017). https://doi.org/10.1007/s11365-016-0414-7

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11365-016-0414-7

Keywords

Navigation