Title: Modelling a technology push by using hybrid franchising

Authors: Jan W.S. Fredriks; Bartjan J.W. Pennink; Togar M. Simatupang; Joko Siswanto

Addresses: Faculty of Economics and Business, University of Groningen, 9700AV Groningen, Netherlands ' Faculty of Economics and Business, University of Groningen, 9700AV Groningen, Netherlands ' School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia ' Industrial Management Research Group, Faculty of Industrial Technology, Bandung Institute of Technology, Bandung, Indonesia

Abstract: Introducing a technology push to stimulate entrepreneurship in remote areas in developing countries can be examined in the context of a franchising model (social or commercial franchising). The results of this study (fieldwork in Kalimantan, Indonesia) point to a high feasibility of introducing a technology push by a franchising model. The results indicate that the smallholder rubber farmers (community level) and the head of villages, head of district and the government departments (low, middle and high institutional level) support a technology push and are willing to participate. Furthermore almost all stakeholders prefer a franchising model to introduce a technology push with social franchising elements. Additionally, empirical evidence confirmed the main theoretical argument of this research: a technology push carried out by a franchising model can stimulate (social) entrepreneurship in remote villages. This study thus concluded that in order to stimulate (social) entrepreneurship in local communities and with that local economic development, a hybrid franchising (a combination of both commercial and social franchising) model should be used to carry a technology push.

Keywords: local economic development; technology push; commercial franchising; social franchising; entrepreneurship; energy; biodiesel; biofuels; Kalimantan; Indonesia; remote areas; developing countries; franchising models; smallholder rubber farmers; village heads; district heads; government departments.

DOI: 10.1504/IJESB.2014.062131

International Journal of Entrepreneurship and Small Business, 2014 Vol.22 No.1, pp.64 - 88

Published online: 07 Jun 2014 *

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