IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v82y2025ics0969698924003928.html
   My bibliography  Save this article

Retail franchise ecosystem dynamics: Insights from countries of varied development levels

Author

Listed:
  • Welsh, Dianne H.B.
  • Lanchimba, Cintya
  • Bausch, Madeleine

Abstract

This study explores the influence of entrepreneurial ecosystems on international franchise expansion. We understand franchising as a part of retailing and reflect on various country-level factors that impact the international franchise growth in 52 developed and emerging markets. We classify developed and emerging markets based on the Human Development Index (HDI). Employing an entrepreneurial ecosystem framework initially applied to new business growth in cities, we investigate how cultural, institutional, economic, and infrastructure factors affect franchise growth. Our findings indicate that well-developed infrastructure, economic freedom, and supportive laws contribute to franchise expansion, while locations with high crime rates are less attractive to franchise expansion. Surprisingly, increased internet access or higher spending on research and development does not consistently further franchise expansion. Countries with higher levels of human development tend to have franchises that are expand more rapidly. However, we found little difference between countries with very high development and those with high development standards. This study helps us understand what makes franchise business expansion work and how they can succeed in different countries. Implications for businesses and governments looking to support franchise growth are explained. Finally, the results reflect the importance of understanding the unique dynamics of emerging markets and offers actionable insights for businesses and policymakers aiming to foster retail ecosystems and franchise on these specific markets entrepreneurship globally.

Suggested Citation

  • Welsh, Dianne H.B. & Lanchimba, Cintya & Bausch, Madeleine, 2025. "Retail franchise ecosystem dynamics: Insights from countries of varied development levels," Journal of Retailing and Consumer Services, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:joreco:v:82:y:2025:i:c:s0969698924003928
    DOI: 10.1016/j.jretconser.2024.104096
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698924003928
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2024.104096?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Muriel Fadairo & Cintya Lanchimba, 2017. "Franchising in Latin America," Post-Print halshs-01367372, HAL.
    2. Martin Hemmert & Adam R. Cross & Ying Cheng & Jae-Jin Kim & Florian Kohlbacher & Masahiro Kotosaka & Franz Waldenberger & Leven J. Zheng, 2019. "The distinctiveness and diversity of entrepreneurial ecosystems in China, Japan, and South Korea: an exploratory analysis," Asian Business & Management, Palgrave Macmillan, vol. 18(3), pages 211-247, July.
    3. Zoltán J. Acs & David B. Audretsch & Erik E. Lehmann & Georg Licht, 2017. "National systems of innovation," The Journal of Technology Transfer, Springer, vol. 42(5), pages 997-1008, October.
    4. Bengt-Åke Lundvall, 1999. "National Business Systems and National Systems of Innovation," International Studies of Management & Organization, Taylor & Francis Journals, vol. 29(2), pages 60-77, June.
    5. Maribel Guerrero & Francisco Liñán & F. Rafael Cáceres-Carrasco, 2021. "The influence of ecosystems on the entrepreneurship process: a comparison across developed and developing economies," Small Business Economics, Springer, vol. 57(4), pages 1733-1759, December.
    6. Frazer, Lorelle, 2001. "Causes of disruption to franchise operations," Journal of Business Research, Elsevier, vol. 54(3), pages 227-234, December.
    7. Cherrier, Hélène, 2024. "Barriers to resolving institutional complexity in access-based service innovation," Journal of Retailing and Consumer Services, Elsevier, vol. 81(C).
    8. Zhe Cao & Xianwei Shi, 2021. "A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies," Small Business Economics, Springer, vol. 57(1), pages 75-110, June.
    9. David B. Audretsch & Maksim Belitski, 2017. "Entrepreneurial ecosystems in cities: establishing the framework conditions," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1030-1051, October.
    10. Gérard Cliquet & Thierry Pénard, 2012. "Plural form franchise networks: A test of Bradach's model," Post-Print halshs-00656104, HAL.
    11. Cliquet, Gérard & Pénard, Thierry, 2012. "Plural form franchise networks: A test of Bradach’s model," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 159-167.
    12. Kaciak, Eugene & Welsh, Dianne H.B., 2020. "Women entrepreneurs and work–life interface: The impact of sustainable economies on success," Journal of Business Research, Elsevier, vol. 112(C), pages 281-290.
    13. Welsh, Dianne H.B. & Kaciak, Eugene & Fadairo, Muriel & Doshi, Vijayta & Lanchimba, Cintya, 2023. "How to erase gender differences in entrepreneurial success? Look at the ecosystem," Journal of Business Research, Elsevier, vol. 154(C).
    14. Salvatore Corrente & Salvatore Greco & Melita Nicotra & Marco Romano & Carmela Elita Schillaci, 2019. "Evaluating and comparing entrepreneurial ecosystems using SMAA and SMAA-S," The Journal of Technology Transfer, Springer, vol. 44(2), pages 485-519, April.
    15. Corentin Le Bot & Rozenn Perrigot & Frédérique Déjean & Bruno Oxibar, 2022. "Corporate Social Responsibility in franchise chains: Specificities, insights from French franchise chains’ CSD, and avenues for future research," Post-Print hal-03574741, HAL.
    16. Le Bot, Corentin & Perrigot, Rozenn & Déjean, Frédérique & Oxibar, Bruno, 2022. "Corporate Social Responsibility in franchise chains: Specificities, insights from French franchise chains’ CSD, and avenues for future research," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    17. Audretsch, David Bruce & Belitski, Maksim & Guerrero, Maribel, 2022. "The dynamic contribution of innovation ecosystems to schumpeterian firms: A multi-level analysis," Journal of Business Research, Elsevier, vol. 144(C), pages 975-986.
    18. Fong, Cher-Min & Chang, Hsing-Hua Stella & Lin, Mong-Ching & Chen, I-Hung, 2022. "Reexamining emerging market animosity toward western developed countries: A social dilemma in physical retailing consumption under normative influence," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    19. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    20. Grace, Debra & Weaven, Scott, 2011. "An Empirical Analysis of Franchisee Value-in-Use, Investment Risk and Relational Satisfaction," Journal of Retailing, Elsevier, vol. 87(3), pages 366-380.
    21. Abdul Waheed & Qingyu Zhang, 2022. "Effect of CSR and Ethical Practices on Sustainable Competitive Performance: A Case of Emerging Markets from Stakeholder Theory Perspective," Journal of Business Ethics, Springer, vol. 175(4), pages 837-855, February.
    22. Christina Theodoraki & Léo-Paul Dana & Andrea Caputo, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Post-Print hal-04676716, HAL.
    23. Van Tonder, E. & Fullerton, S. & De Beer, L.T. & Saunders, S.G., 2023. "Social and personal factors influencing green customer citizenship behaviours: The role of subjective norm, internal values and attitudes," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    24. Lanchimba, Cintya & Welsh, Dianne H.B. & Fadairo, Muriel & Silva, Vivian-Lara D.S., 2021. "The impact of franchisor signaling on entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 131(C), pages 337-348.
    25. Iheanachor, Nkemdilim & Umukoro, Immanuel & Yela Aránega, Alba, 2023. "Ecosystem emergence in emerging markets: Evidence from the Nigerian digital financial services ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    26. Sun, Sunny Li & Chen, Victor Z. & Sunny, Sanwar A. & Chen, Jie, 2019. "Venture capital as an innovation ecosystem engineer in an emerging market," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    27. David J. Ketchen Jr. & Jeremy C. Short & James G. Combs, 2011. "Is Franchising Entrepreneurship? Yes, No, and Maybe So," Entrepreneurship Theory and Practice, , vol. 35(3), pages 583-593, May.
    28. Zoltan J. Acs & Erik Stam & David B. Audretsch & Allan O’Connor, 2017. "The lineages of the entrepreneurial ecosystem approach," Small Business Economics, Springer, vol. 49(1), pages 1-10, June.
    29. Cintya Lanchimba & Hugo Porras & Yasmin Salazar & Josef Windsperger, 2021. "Franchising and country development: evidence from 49 countries," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 19(1), pages 7-32, October.
    30. Battisti, Sandro & Agarwal, Nivedita & Brem, Alexander, 2022. "Creating new tech entrepreneurs with digital platforms: Meta-organizations for shared value in data-driven retail ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    31. Holmberg, Stevan R. & Morgan, Kathryn Boe, 2003. "Franchise turnover and failure: New research and perspectives," Journal of Business Venturing, Elsevier, vol. 18(3), pages 403-418, May.
    32. Gupta, Rohit & Rathore, Bhawana & Biswas, Baidyanath & Jaiswal, Mahadeo & Singh, Raunak Kumar, 2024. "Are we ready for metaverse adoption in the service industry? Theoretically exploring the barriers to successful adoption," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    33. Shaikh, Ateeque, 2016. "Conceptualizing fairness in franchisor–franchisee relationship: Dimensions, definitions and preliminary construction of scale," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 28-35.
    34. Rosado-Serrano, Alexander & Paul, Justin & Dikova, Desislava, 2018. "International franchising: A literature review and research agenda," Journal of Business Research, Elsevier, vol. 85(C), pages 238-257.
    35. Dianne H.B. Welsh & Orlando Llanos-Contreras & Manuel Alonso-Dos-Santos & Eugene Kaciak, 2021. "How much do network support and managerial skills affect women’s entrepreneurial success? The overlooked role of country economic development," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 33(3-4), pages 287-308, March.
    36. Han, Xiaoyun & Chen, Shuping & Chen, Bing, 2022. "From employee engagement to customer engagement: A multilevel dual-path model of engagement spillover effects in service ecosystems," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    37. Erik Stam & Andrew Ven, 2021. "Entrepreneurial ecosystem elements," Small Business Economics, Springer, vol. 56(2), pages 809-832, February.
    38. World Bank, 2022. "The Little Data Book on Financial Inclusion 2022," World Bank Publications - Books, The World Bank Group, number 38148, April.
    39. Michael G. Jacobides & Carmelo Cennamo & Annabelle Gawer, 2018. "Towards a theory of ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2255-2276, August.
    40. Denise M. Cumberland & William R. Meek & Richard Germain, 2015. "Entrepreneurial Self-Efficacy And Firm Performance In Challenging Environments: Evidence From The Franchise Context," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-19.
    41. Wilden, Ralf & Leiblein, Michael J. & Lin, Nidthida, 2024. "Exploring performance heterogeneity: Integrative insights from strategic management and marketing," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    42. Andreas Hein & Maximilian Schreieck & Tobias Riasanow & David Soto Setzke & Manuel Wiesche & Markus Böhm & Helmut Krcmar, 2020. "Digital platform ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 87-98, March.
    43. David B. Audretsch & James A. Cunningham & Donald F. Kuratko & Erik E. Lehmann & Matthias Menter, 2019. "Entrepreneurial ecosystems: economic, technological, and societal impacts," The Journal of Technology Transfer, Springer, vol. 44(2), pages 313-325, April.
    44. Steven Michael, 2014. "Can franchising be an economic development strategy? An empirical investigation," Small Business Economics, Springer, vol. 42(3), pages 611-620, March.
    45. Corentin Le Bot & Rozenn Perrigot & Frédérique Déjean & Bruno Oxibar, 2022. "Corporate Social Responsibility in franchise chains: Specificities, insights from French franchise chains’ CSD, and avenues for future research," Post-Print hal-03591215, HAL.
    46. Shockley, Jeff & Turner, Tobin, 2016. "A relational performance model for developing innovation and long-term orientation in retail franchise organizations," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 175-188.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alejandro Almeida & Antonio A. Golpe & Juan Manuel Martín-Álvarez & Jose Carlos Vides, 2025. "New England’s Pinnacle: fostering quality entrepreneurial ecosystems," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(1), pages 243-271, March.
    2. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    3. Ferreira, João J.M. & Fernandes, Cristina I. & Mota Veiga, Pedro, 2023. "The role of entrepreneurial ecosystems in the SME internationalization," Journal of Business Research, Elsevier, vol. 157(C).
    4. Dionisio, Eduardo Avancci & Inácio Júnior, Edmundo & Fischer, Bruno Brandão, 2021. "Country-level efficiency and the index of dynamic entrepreneurship: Contributions from an efficiency approach," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    5. Bejjani, Melissa & Göcke, Lutz & Menter, Matthias, 2023. "Digital entrepreneurial ecosystems: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    6. Conor O’Kane & James A. Cunningham & Matthias Menter & Sara Walton, 2021. "The brokering role of technology transfer offices within entrepreneurial ecosystems: an investigation of macro–meso–micro factors," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1814-1844, December.
    7. Quoc Hoang Thai & Khuong Ngoc Mai & Tung Thanh Do, 2023. "An Evolution of Entrepreneurial Ecosystem Studies: A Systematic Literature Review and Future Research Agenda," SAGE Open, , vol. 13(1), pages 21582440231, March.
    8. Robert Huggins & Max Munday & Piers Thompson & Chen Xu, 2023. "Entrepreneurial ecosystems, agency and regional development: Emergence and new path creation in the Cardiff city region," Local Economy, London South Bank University, vol. 38(6), pages 538-561, September.
    9. Abootorabi, Hooman & Wiklund, Johan & Johnson, Alan R. & Miller, Cameron D., 2021. "A holistic approach to the evolution of an entrepreneurial ecosystem: An exploratory study of academic spin-offs," Journal of Business Venturing, Elsevier, vol. 36(5).
    10. Rabelo Neto, José & Figueiredo, Claudia & Gabriel, Bárbara Coelho & Valente, Robertt, 2024. "Factors for innovation ecosystem frameworks: Comprehensive organizational aspects for evolution," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    11. Sanjay Chaudhary & Puneet Kaur & Hind Alofaysan & Jantje Halberstadt & Amandeep Dhir, 2023. "Connecting the dots? Entrepreneurial ecosystems and sustainable entrepreneurship as pathways to sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5935-5951, December.
    12. Chaudhary, Sanjay & Kaur, Puneet & Ferraris, Alberto & Bresciani, Stefano & Dhir, Amandeep, 2024. "Connecting entrepreneurial ecosystem and innovation. Grasping at straws or hitting a home run?," Technovation, Elsevier, vol. 130(C).
    13. Reis, Germano Glufke & Villar, Eduardo Guedes & Prado Gimenez, Fernando Antonio & Maiolino Molento, Carla Forte & Ferri, Priscila, 2022. "The interplay of entrepreneurial ecosystems and global value chains: Insights from the cultivated meat entrepreneurial ecosystem of Singapore," Technology in Society, Elsevier, vol. 71(C).
    14. Haider Alvi, Farzad & Ulrich, Klaus, 2023. "Innovation finance ecosystems for entrepreneurial firms: A conceptual model and research propositions," Journal of Business Research, Elsevier, vol. 156(C).
    15. Wendy D. Chen & Zoltan Acs & Siri Terjesen, 2024. "Adolescent entrepreneurial learning ecosystem and a tech entrepreneurial career—inspiration from theblack swan stories," Small Business Economics, Springer, vol. 62(3), pages 1157-1176, March.
    16. Ying Song & Octavio Escobar & Unai Arzubiaga & Alfredo De Massis, 2022. "The digital transformation of a traditional market into an entrepreneurial ecosystem," Review of Managerial Science, Springer, vol. 16(1), pages 65-88, January.
    17. Shi, Xianwei & Shi, Yongjiang, 2022. "Unpacking the process of resource allocation within an entrepreneurial ecosystem," Research Policy, Elsevier, vol. 51(9).
    18. Bessagnet, Arnauld & Crespo, Joan & Vicente, Jérôme, 2021. "Unraveling the multi-scalar and evolutionary forces of entrepreneurial ecosystems: A historical event analysis applied to IoT Valley," Technovation, Elsevier, vol. 108(C).
    19. Jianhong Zhang & Désirée Gorp & Henk Kievit, 2023. "Digital technology and national entrepreneurship: An ecosystem perspective," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1077-1105, June.
    20. Francesco Perugini, 2023. "Space–time analysis of entrepreneurial ecosystems," The Journal of Technology Transfer, Springer, vol. 48(1), pages 240-291, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:82:y:2025:i:c:s0969698924003928. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.