Handbook of Research on Franchising
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Handbook of Research on Franchising

Edited by Frank Hoy, Rozenn Perrigot and Andrew Terry

Franchising is one of the major engines of business expansion and job creation globally. The Handbook of Research on Franchising offers new insights into entrepreneurial behavior, organizational forms, regulation, internationalization, and other contemporary issues relating to this dynamic business strategy. The Handbook challenges both practitioners and scholars to give attention to the conclusions of scholarly research on this business model. Practitioners can benefit from the results of high quality scientific research, and scholars can find exciting opportunities for contributing to the body of knowledge of a subject that has not received sufficient attention in educational institutions.
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Chapter 24: The entrepreneur-franchisor in an emerging economy

Audhesh Paswan, María de los Dolores Santarriaga Pineda and Francisco Carlos Soto Ramirez

Abstract

Although the notion of a franchisor being an entrepreneur is generally accepted in the franchising field, little research has been done to investigate how and why entrepreneurs become franchisors, especially in emerging markets. Using a qualitative approach (subjective personal introspection) this chapter investigates the evolution of a homegrown entrepreneur-franchisor in Mexico. Specifically, this chapter tries to understand the challenges faced by local entrepreneur-franchisor on their journey towards becoming a significant player in this market. The resultant emerging themes corroborate resource constraint theory, agency theory, and the institutional learning perspective. Finally, this chapter traces an evolutionary path of a local entrepreneur-franchisor and some of the unique factors that influence this evolution in Mexico.

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