TY - JOUR

T1 - Franchising as a Strategy for Combining Small and Large Group Advantages (Logics) in Social Entrepreneurship

T2 - A Hayekian Perspective

AU - Beckmann, Markus

AU - Zeyen, Anica

PY - 2014/6

Y1 - 2014/6

N2 - This article develops a Hayekian perspective on social franchising that distinguishes between the end-connected logic of the small group and the rule-connected logic of the big group. Our key claim is that mission-driven social entrepreneurs often draw on the small-group logic when starting their social ventures and then face difficulties when the process of scaling shifts their operations toward a big-group logic. In this situation, social franchising offers a strategy to replicate the small group despite systemwide scaling, to mobilize decentrally accessible social capital, and to reduce agency costs through mechanisms of self-selection and self-monitoring. By employing a Hayekian perspective, we are thus able to offer an explanation as to why social franchising is a suitable scaling strategy for some social entrepreneurship organizations and not for others. We illustrate our work using the Ashoka Fellow Wellcome.

AB - This article develops a Hayekian perspective on social franchising that distinguishes between the end-connected logic of the small group and the rule-connected logic of the big group. Our key claim is that mission-driven social entrepreneurs often draw on the small-group logic when starting their social ventures and then face difficulties when the process of scaling shifts their operations toward a big-group logic. In this situation, social franchising offers a strategy to replicate the small group despite systemwide scaling, to mobilize decentrally accessible social capital, and to reduce agency costs through mechanisms of self-selection and self-monitoring. By employing a Hayekian perspective, we are thus able to offer an explanation as to why social franchising is a suitable scaling strategy for some social entrepreneurship organizations and not for others. We illustrate our work using the Ashoka Fellow Wellcome.

KW - Sustainability sciences, Management & Economics

KW - agency theory

KW - scaling

KW - social entrepreneurship

KW - social franchising

KW - volunteer involvement

KW - agency theory

KW - scaling

KW - social entrepreneurship

KW - social franchising

KW - volunteer involvement

UR - http://www.scopus.com/inward/record.url?scp=84901922428&partnerID=8YFLogxK

U2 - 10.1177/0899764012470758

DO - 10.1177/0899764012470758

M3 - Journal articles

AN - SCOPUS:84901922428

VL - 43

SP - 502

EP - 522

JO - Nonprofit and Voluntary Sector Quarterly

JF - Nonprofit and Voluntary Sector Quarterly

SN - 0899-7640

IS - 3

ER -