Microfranchising in Base-of-The-Pyramid Markets: Institutional Challenges and Adaptations to the Franchise Model

29 Pages Posted: 25 Apr 2011

See all articles by Geoffrey M. Kistruck

Geoffrey M. Kistruck

Ohio State University (OSU) - Fisher College of Business

Justin W. Webb

Oklahoma State University - Stillwater

Christopher J. Sutter

affiliation not provided to SSRN

R. Duane Ireland

Texas A&M University - Department of Management

Date Written: May 2011

Abstract

Microfranchising has attracted interest as a potential strategy for rapid scaling within base-of-the-pyramid (BOP) markets. However, our findings suggest that while microfranchising might provide a number of social benefits to microfranchisees and underserved communities, the institutional contexts that characterize BOP markets create a number of significant challenges to the economic sustainability of the microfranchisor and the overall microfranchising model. Simultaneously, our data also suggest several unique adaptations to the microfranchising model that might help mitigate the institutional challenges associated with agency concerns, resource scarcity, and branding/standardization within BOP markets.

Suggested Citation

Kistruck, Geoffrey M. and Webb, Justin W. and Sutter, Christopher J. and Ireland, R. Duane, Microfranchising in Base-of-The-Pyramid Markets: Institutional Challenges and Adaptations to the Franchise Model (May 2011). Entrepreneurship Theory and Practice, Vol. 35, Issue 3, pp. 503-531, 2011, Available at SSRN: https://ssrn.com/abstract=1818689 or http://dx.doi.org/10.1111/j.1540-6520.2011.00446.x

Geoffrey M. Kistruck (Contact Author)

Ohio State University (OSU) - Fisher College of Business ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

Justin W. Webb

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555
United States

Christopher J. Sutter

affiliation not provided to SSRN ( email )

No Address Available

R. Duane Ireland

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States

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