Thesis (MPhil)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: This thesis emerges from the transdisciplinary work of the Enkanini Research Centre Association. Since 2011 this Association has focused on incremental informal settlement upgrading using Enkanini, Stellenbosch as a case study. This thesis explores whether management techniques and operational practises of microfranchising can support the establishment of alternative service delivery configurations in the context of in situ informal settlement upgrading. Following a transdisciplinary and multiple-case study research methodology, the theoretical argument is presented that a synthesis of the strengths and vulnerabilities of contemporary innovations from the urban development field augmented by the principles and management techniques of microfranchising could strongly influence future in situ informal settlement upgrading. In exploring this argument two sub-questions are analysed in two free standing journal articles. The first article explores the potential synthesis of the fields of microfranchising and incremental urbanism, specifically alternative service delivery configurations in the context of in situ informal settlement upgrading. The literature on incrementalism and microfranchising originate from diametrically opposite ideological traditions, namely contemporary urban development and the management sciences. However it is argued that convergent patterns highlighted by points of coherence and convergence between the fields indicate that the proposed amalgamation has strengths potentially useful in addressing mutual weaknesses inherent to both perspectives. The intersection between these two distinct theories has potential to stitch together a new community fabric, deliver basic services, promote economic and social development and integrate the oppressed into the formal economy. Building on this theoretical synthesis the second article explores potential best practice microfranchising cases. Three microfranchising cases are reviewed, Unjani Clinics NPC, African Honey Bee and Nuru Energy. Each case presents specific within-case lessons and microfranchising techniques. Cross-cutting themes from all three cases highlight knowledge, that when bolstered by everyday urbanism thinking, could be instrumental in developing a microfranchising consolidating, operating and scaling model for the iShack and the continued testing of the proposed synthesis. / AFRIKAANSE OPSOMMING: Hierdie tesis het ontstaan uit die transdissiplinêre werk van die Enkanini Research Centre Association. Sedert 2011 het hierdie vereniging gefokus op die inkrementele opgradering van informele nedersettings, deur van Enkanini wat net buite Stellenbosch geleë is, as 'n gevallestudie gebruik te maak. Die studie ondersoek of die bestuurstegnieke en operasionele praktyke van die mikrofranchisebedryf die vestiging van alternatiewe diensleweringskonfigurasies in die konteks van in situ opgradering van informele nedersettings kan ondersteun. Na afloop van 'n transdissiplinêre en meervoudige gevallestudie navorsingsmetodologie word „n teoretiese argument gevoer dat die samevoeging van beide die sterk- en swakpunte van die huidige innovasies van die stedelike ontwikkelingsveld aangevul sal word deur die beginsels en tegnieke van die mikrofranchisebedryf. Hierdie tegnieke en praktyke het die vermoë om in die toekoms in situ opgradering van informele nedersettings sterk te beïnvloed. In die verkenning van hierdie argument word twee sub-vrae in twee vrystaande tydskrifartikels ontleed. Die eerste artikel ondersoek die potensiële samevoeging van die velde van die mikrofranchisebedryf en inkrementele stedelikheid, met spesifieke fokus op alternatiewe dienslewerings konfigurasies in die konteks van in situ opgradering van informele nedersettings. Alhoewel daar in die literatuur oor inkrementalisme beweer word dat die mikrofranchisebedryf afkomstig is van lynregte teenoorgestelde ideologiese tradisies, word daar aangevoer dat konvergente patrone uitgelig word deur punte van samehang. Ooreenkomste tussen die velde dui daarop dat die voorgestelde samesmelting sterkpunte het wat potensieel nuttig kan wees om wedersydse swakhede wat inherent aan beide perspektiewe is, aan te spreek. Die samesmelting van hierdie twee afsonderlike teorieë het die potensiaal om ‟n gemeenskap te bou, basiese dienste te lewer, ekonomiese en maatskaplike ontwikkeling te bevorder, asook om die onderdruktes in die formele ekonomie te integreer. Geskoei op die voorafgaande teoretiese samevoeging, ondersoek die tweede artikel die potensiële beste praktyke in die mikrofranchisebedryf. Drie mikrofranchisebedryf-gevalle word hersien: UnjaniKliniekeNPC, Afrika Heuning By en Nuru Energie. Elke geval bied spesifieke binne-geval lesse en tegnieke in die mikrofranchisebedryf. Deurlopende temas van al drie gevalle beklemtoon kennis, wat met die ondersteuning van alledaagse stedelike denke, instrumentele waarde vir die ontwikkeling van 'n mikrofranchisingkonsolidasie, bedryfstelsel en skaalmodel vir die iShack, asook die deurlopende toets van die voorgestelde samevoeging, kan inhou.

Microfranchising is emerging as a potentially powerful strategy for reaching the enormous markets at the base of the pyramid (BOP). Microfranchising also represents an effective and sustainable way to contribute to poverty alleviation and economic growth. However, we know little about how organizations maneuver contradictory forces as they use this innovative business model to engage the BOP. To address this gap, I offer a longitudinal case study of an emerging microfranchise effort by a successful Mexican agribusiness—one whose ambitions to continue growing were challenged by multinational agrochemicals suppliers. As this project shows, companies and BOP markets can realize mutual benefits from a value co-creation strategy. Specifically, I adopted a dialectical approach to analyze the tensions and competing forces that arose as business managers and local BOP distributors and producers collaborated in this emerging microfranchising venture. As a result, the research offers three contributions. First, it provides a detailed empirical account of how contradictory forces shaped the Mexican agricultural firm’s implementation of microfranchising to engage with BOP farmers. Second, it presents a conceptual synthesis that describes the major contradictory forces a company faces as it implements microfranchising as part of its BOP strategy. Finally, it offers lessons for how business managers can maneuver contradictory forces to co-create value with the BOP through microfranchising.

Microfranchising is emerging as a potentially powerful strategy for reaching the enormous markets at the base of the pyramid (BOP). Microfranchising also represents an effective and sustainable way to contribute to poverty alleviation and economic growth. However, we know little about how organizations maneuver contradictory forces as they use this innovative business model to engage the BOP. To address this gap, I offer a longitudinal case study of an emerging microfranchise effort by a successful Mexican agribusiness—one whose ambitions to continue growing were challenged by multinational agrochemicals suppliers. As this project shows, companies and BOP markets can realize mutual benefits from a value co-creation strategy. Specifically, I adopted a dialectical approach to analyze the tensions and competing forces that arose as business managers and local BOP distributors and producers collaborated in this emerging microfranchising venture. As a result, the research offers three contributions. First, it provides a detailed empirical account of how contradictory forces shaped the Mexican agricultural firm’s implementation of microfranchising to engage with BOP farmers. Second, it presents a conceptual synthesis that describes the major contradictory forces a company faces as it implements microfranchising as part of its BOP strategy. Finally, it offers lessons for how business managers can maneuver contradictory forces to co-create value with the BOP through microfranchising.

PhD (Business Management) / Department of Business Management / Microfranchising’ is one of the new innovative entrepreneurial concepts that has gained traction in the past few years and potentially can provide a livelihood to the three billion people that live at the Bottom of the Pyramid (BoPInnovationCenter, 2020) on less than US$2 a day. While microfranchising is a strategy meant to rapidly scale-up entrepreneurship behaviour, very little is known about the microfranchising processes as well as its ability to enhance entrepreneurship in South Africa. Resultantly, the latter is ignored from entrepreneurship discussion and discourse at both academic and policy levels. To address this gap the study assessed microfranchising practices in South Africa, with the aim of proposing a microfranchising framework that will enhance entrepreneurship development. The study used the interpretivism research paradigm to achieve the study objectives. Primary and secondary data were employed to collect data on the microfranchising practices in South Africa. The study sampled five microfranchise entrepreneurs (four microfranchisee and one microfranchisor using the in-depth structured interview format while secondary data (microfranchisees and microfranchisors success stories) and was employed to collect data on the former and current practices of microfranchising in South Africa. The collected data was analysed using the ATLAS.ti. The study results show that microfranchisees exhibit traits of successful entrepreneurs. As a result, the study concludes that microfranchising can be used as a tool for entrepreneurship development using the proposed microfranchising framework developed in Chapter 6 of this study. The value of this work is among the first in seeking to propose a framework for developing entrepreneurship through microfranchising. The implication of the study is that it potentially provides policymakers with valuable tools to understand microfranchising practices and its efficacy in stimulating entrepreneurship development in South Africa. The study recorded and established microfranchising practices in South Africa to enhance the extinct academic literature on microfranchising and entrepreneurship ventures operating at the BoP. / NRF