Comparative Analysis of Entrepreneurship and Franchising: CSR and Voluntarism Perspective

Abstract

Growth in businesses affects economic development. Over the last decade, the people looking for business opportunities, either establishing an enterprise or contracting franchise business, are also found impressed by corporate social responsibility (CSR) and voluntarism. This paper is aimed to critically analyze the literature on international entrepreneurship and franchising. Based on the analysis, this paper develops propositions related to differences and similarities between the two concepts. It uses the exploratory method to compare the entrepreneurship and franchising, across the national borders. Taking the international view, an association in the approaches can be benefited from this paper which highlights the key areas that can be useful for investment decisions of prospective investors. Theoretically, this paper contributes to strengthening the need to consider the tradeoff between inputs and outputs of both ways of investments and conceptualize innovative entrepreneurship with a CSR perspective.

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

References

  1. Acs, Z., Arenius, P., Hay, M., & Minniti, M. (2004). Global entrepreneurship monitor. Executive report. Babson: London Business School. Retrieved June 30, 2019 from http://www.lifelessordinary.com/emails/images/General/GEM-Global-Report-2004.pdf.

  2. Acs, Z. J., Braunerhjelm, P., Audretsch, D. B., & Carlsson, B. (2009). The knowledge spillover theory of entrepreneurship. Small Business Economics,32(1), 15–30.

    Article  Google Scholar 

  3. Acs, Z., Desai, S., & Klapper, L. (2008). What does “entrepreneurship” data really show? Small Business Economics,31, 265–281.

    Article  Google Scholar 

  4. Anderson, A., Park, J., & Jack, S. (2007). Entrepreneurial social capital: Conceptualizing social capital in new high-tech firms. International Small Business Journal,25(3), 245–272.

    Article  Google Scholar 

  5. Aparicio, S., Urbano, D., & Audretsch, D. (2016). Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence. Technological Forecasting and Social Change,102, 45–61.

    Article  Google Scholar 

  6. Arabiya, A. (2017). 7 facts about Japan’s economy, the third biggest in the world. Retrieved from Al Arabiya English. http://english.alarabiya.net/en/business/economy/2017/03/13/7-facts-about-Japan-s-economy-the-third-biggest-in-the-world.html.

  7. Asemota, J., & Chahine, T. (2017). Social Franchising as an option for scale. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations,28(6), 2734–2762.

    Article  Google Scholar 

  8. Audretsch, D. B., Bönte, W., & Keilbach, M. (2008a). Entrepreneurship capital and its impact on knowledge diffusion and economic performance. Journal of Business Venturing,23(6), 687–698.

    Article  Google Scholar 

  9. Audretsch, D. B., Bönte, W., & Keilbach, M. (2008b). Entrepreneurship capital and its impact on knowledge diffusion and economic performance. Journal of Business Venturing,23(6), 687–698.

    Article  Google Scholar 

  10. Avlonitis, G. J., & Salavou, H. E. (2007). Entrepreneurial orientation of SMEs, product innovativeness, and performance. Journal of Business Research,60(5), 566–575.

    Article  Google Scholar 

  11. Baum, J. R., Olian, J. D., Erez, M., Schnell, E. R., Smith, K. G., Sims, H. P., et al. (1993). Nationality and work role interactions: A cultural contrast of Israeli and US entrepreneurs’ versus managers’ needs. Journal of Business Venturing,8(6), 499–512.

    Article  Google Scholar 

  12. Baumol, W. J. (1996). Entrepreneurship: Productive, unproductive, and destructive. Journal of Business Venturing,11(1), 3–22.

    Article  Google Scholar 

  13. Beugelsdijk, S. (2007). Entrepreneurial culture, regional innovativeness and economic growth. Journal of Evolutionary Economics,17(2), 187–210.

    Article  Google Scholar 

  14. Brinkerhoff, J. M. (2003). Donor-funded government—NGO partnership for public service improvement: Cases from India and Pakistan. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations,14(1), 105–122.

    Article  Google Scholar 

  15. Bruton, G. D., Ahlstrom, D., & Li, H. L. (2010). Institutional theory and entrepreneurship: Where are we now and where do we need to move in the future? Entrepreneurship Theory and Practice,34(3), 421–440.

    Article  Google Scholar 

  16. Busenitz, L. W., West, G. P., III, Shepherd, D., Nelson, T., Chandler, G. N., & Zacharakis, A. (2003). Entrepreneurship research in emergence: Past trends and future directions. Journal of Management,29(3), 285–308.

    Article  Google Scholar 

  17. Carlos Díaz Casero, J., Almodóvar González, M., de la Cruz Sánchez Escobedo, M., Coduras Martinez, A., & Hernandez Mogollon, R. (2013). Institutional variables, entrepreneurial activity and economic development. Management Decision,51(2), 281–305.

    Article  Google Scholar 

  18. Carlsson, B., Braunerhjelm, P., McKelvey, M., Olofsson, C., Persson, L., & Ylinenpää, H. (2013). The evolving domain of entrepreneurship research. Small Business Economics,41(4), 913–930.

    Article  Google Scholar 

  19. Carree, M., Van Stel, A., Thurik, R., & Wennekers, S. (2007). The relationship between economic development and business ownership revisited. Entrepreneurship and Regional Development,19(3), 281–291.

    Article  Google Scholar 

  20. Culbertson, S. S., Smith, M. R., & Leiva, P. I. (2011). Enhancing entrepreneurship: The role of goal orientation and self-efficacy. Journal of Career Assessment,19(2), 115–129.

    Article  Google Scholar 

  21. Engelbrecht, H. J. (2015). A general model of the innovation-subjective well-being nexus. In The evolution of economic and innovation systems (pp. 69–90). Cham: Springer.

    Google Scholar 

  22. Estrin, S., Gozman, D., & Khavul, S. (2018). The evolution and adoption of equity crowdfunding: Entrepreneur and investor entry into a new market. Small Business Economics,1, 1–15.

    Google Scholar 

  23. Farooq, Q., Fu, P., Ahmad, S., Zhang, Y., & Hao, Y. (2019a). Assessing human factor in the adoption of computer-based information systems as the internal corporate social responsibility. SAGE Open,9(3), 2158244019868858.

    Article  Google Scholar 

  24. Farooq, Q., Hao, Y., & Liu, X. (2019b). Understanding corporate social responsibility with cross-cultural difference: A deeper look at religiosity. Corporate Social Responsibility and Environmental Management,26(4), 965–971. https://doi.org/10.1002/csr.1736.

    Article  Google Scholar 

  25. Feldman, M. P. (2014). The character of innovative places: Entrepreneurial strategy, economic development, and prosperity. Small Business Economics,43(1), 9–20.

    Article  Google Scholar 

  26. Freal, D. (2017). 14 amazing and impressive Japanese innovations. Retrieved from The HoliDaze. https://theholidaze.com/14-impressive-japanese-innovations/.

  27. Freytag, A., & Thurik, R. (2007). Entrepreneurship and its determinants in a cross-country setting. Journal of Evolutionary Economics,17(2), 117–131.

    Article  Google Scholar 

  28. Hao, Y., Farooq, Q., & Zhang, Y. (2018). Unattended social wants and corporate social responsibility of leading firms: Relationship of intrinsic motivation of volunteering in proposed welfare programs and employee attributes. Corporate Social Responsibility and Environmental Management,25(6), 1029–1038.

    Article  Google Scholar 

  29. Hayter, C. S. (2015). Public or private entrepreneurship? Revisiting motivations and definitions of success among academic entrepreneurs. The Journal of Technology Transfer,40(6), 1003–1015.

    Article  Google Scholar 

  30. He, C., Lu, J., & Qian, H. (2019). Entrepreneurship in China. Small Business Economics,52, 563. https://doi.org/10.1007/s11187-017-9972-5.

    Article  Google Scholar 

  31. Indriani, P., & Widyanti, Y. (2012). Prospects Franchise business developments in Indonesia (case studies of food businesses). In Lecture faculty of economics, University of Bina Darma, (pp. 143–146). Palembang, Indonesia.

  32. Kaufmann, P. J., & Dant, R. P. (1998). Franchising and the domain of entrepreneurship research. Journal of Business Venturing,14, 5–16.

    Article  Google Scholar 

  33. Kwon, S. W., Heflin, C., & Ruef, M. (2013). Community social capital and entrepreneurship. American Sociological Review,78(6), 980–1008.

    Article  Google Scholar 

  34. Naudé, W., Amorós, J. E., & Cristi, O. (2014). “Surfeiting, the appetite may sicken”: Entrepreneurship and happiness. Small Business Economics,42(3), 523–540.

    Article  Google Scholar 

  35. Panglaykim, J., & Palmer, I. (1970). Study of entrepreneurialship in developing countries: The development of one Chinese concern in Indonesia. Journal of Southeast Asian Studies,1(1), 85–95.

    Article  Google Scholar 

  36. Pesek, W. (2013). Koreans find breaking up with chaebol hard to do. Retrieved from Bloomberg: https://www.bloomberg.com/view/articles/2013-07-08/koreans-find-breaking-up-with-chaebol-hard-to-do.

  37. Porter, M. (2013). Social progress index. Social Progress Imperative. Retrieved June 30, 2019 from https://www.socialprogress.org/.

  38. Ranjan. (2012). What are the theories of entrepreneurship? Retrieved from all out digital. http://www.alloutdigital.com/2012/09/what-are-the-theories-of-entrepreneurship/.

  39. Reynolds, P., Bosma, N., Autio, E., Hunt, S., De, B. N., Servasis, I., et al. (2005). Global entrepreneurship monitor: Data collection design and implementation 1998–2003. Small Business Economics,24(3), 205–231.

    Article  Google Scholar 

  40. Sadeh, F., & Kacker, M. (2018). Quality signaling through ex-ante voluntary information disclosure in entrepreneurial networks: Evidence from franchising. Small Business Economics,50(4), 729–748.

    Article  Google Scholar 

  41. Schumpeter, J. (1911). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle. New Brunswick: Transaction Publishers.

    Google Scholar 

  42. Shane, S. (1993). Cultural influences on national rates of innovation. Journal of Business Venturing,8(1), 59–73.

    Article  Google Scholar 

  43. Sohn, K. (2017). The risk preferences of entrepreneurs in Indonesia. Bulletin of Economic Research,69(3), 271–287.

    Article  Google Scholar 

  44. Soriano, D. R., & Peris-Ortiz, M. (2011). Subsidizing technology: How to succeed. Journal of Business Research,64(11), 1224–1228.

    Article  Google Scholar 

  45. Stiglitz, J., Sen, A., & Fitoussi, J. (2009). The measurement of economic performance and social progress revisited. Reflections and overview. Commission on the Measurement of Economic Performance and Social Progress. Paris. Retrieved November 10, 2018, from https://www.ofce.sciences-po.fr/pdf/dtravail/WP2009-33.pdf.

  46. Teece, D. J. (1986). Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy,15(6), 285–305.

    Article  Google Scholar 

  47. Turró, A., Urbano, D., & Peris-Ortiz, M. (2014). Culture and innovation: The moderating effect of cultural values on corporate entrepreneurship. Technological Forecasting and Social Change,88, 360–369.

    Article  Google Scholar 

  48. Uhlaner, L., & Thurik, R. (2010). Postmaterialism influencing total entrepreneurial activity across nations. In Entrepreneurship and culture (pp. 301–328). Berlin: Springer.

  49. Urbano, D., & Aparicio, S. (2016). Entrepreneurship capital types and economic growth: International evidence. Technological Forecasting and Social Change,102, 34–44.

    Article  Google Scholar 

  50. Van Stel, A., Carree, M., & Thurik, R. (2005). The effect of entrepreneurial activity on national economic growth. Small Business Economics,24(3), 311–321.

    Article  Google Scholar 

  51. Vullings, R., & Heleven, M. (n.d.). 15 cool examples of cross-industry innovation in action. Retrieved from cross industry innovation. http://www.crossindustryinnovation.com/15-examples/.

  52. Wang, Z. J., Zhu, M., & Terry, A. (2008). The development of franchising in China. Journal of Marketing Channels,15(2–3), 167–184.

    Article  Google Scholar 

  53. Watson, A., Dada, O. L., Grünhagen, M., & Wollan, M. L. (2016). When do franchisors select entrepreneurial franchisees? An organizational identity perspective. Journal of Business Research,69(12), 5934–5945.

    Article  Google Scholar 

Download references

Acknowledgements

This research was supported by the Natural Science Foundation of Zhejiang Province (No. LQ19G020004), the Science and Technology Project of Zhejiang Province (No. LGF18G010002), and the Humanities and Social Sciences Foundation of the Ministry of Education (No. 17YJA630015).

Author information

Affiliations

Authors

Corresponding author

Correspondence to Xuan Liu.

Ethics declarations

Conflict of interest

The authors declare that they have no conflict of interest.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Farooq, Q., Liu, X., Ahmad, S. et al. Comparative Analysis of Entrepreneurship and Franchising: CSR and Voluntarism Perspective. Voluntas 31, 581–586 (2020). https://doi.org/10.1007/s11266-019-00152-1

Download citation

Keywords

  • Global entrepreneurship
  • Chinese economy
  • Cross-cultural relations
  • Corporate social responsibility
  • Sustainability
  • Cross-cultural franchising