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Title: Social franchising: a transitional solution for organisational growth of social entrepreneurial organisations?

Authors: Arne Bergfeld; Eva Lutz; Barbara Scheck

Addresses: Department of Entrepreneurship and Finance, Heinrich Heine University Düsseldorf, Universitätsstraße 1, D-40225 Düsseldorf, Germany ' Department of Entrepreneurship and Finance, Heinrich Heine University Düsseldorf, Universitätsstraße 1, D-40225 Düsseldorf, Germany ' Department of Entrepreneurship, Munich Business School, Elsenheimerstraße 61, D-80687 Munich, Germany

Abstract: The aim of our study is to investigate factors influencing organisational growth of social entrepreneurial organisations in the context of social franchising. In particular, we examine whether and how the amount of a franchise fee and the degree of standardisation can enhance or hinder organisational growth. We use an exploratory qualitative research approach to take account of the entire context of social franchise relations. Our analysis is based on semi-structured interviews with social franchisors and social franchisees as well as an analysis of written social franchise agreements. We develop a theoretical framework showing two nonlinear relations: between the amount of the franchise fee and organisational growth and between the degree of standardisation and organisational growth. Overall, our results suggest that social franchising is only a transitional solution for social entrepreneurs in generating organisational growth.

Keywords: social entrepreneurship; organisational growth; social enterprise; social franchising; franchise fee; standardisation; compassion.

DOI: 10.1504/IJEV.2020.105136

International Journal of Entrepreneurial Venturing, 2020 Vol.12 No.1, pp.17 - 38

Received: 01 Mar 2019
Accepted: 18 Apr 2019

Published online: 07 Feb 2020 *

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