Innovation in service internationalization: the crucial role of the frantrepreneur

Abstract

This paper introduces the concept of a new entrepreneurial role in services that we call the frantrepreneur. This is based on two case studies of the internationalization of two US franchisors, one in temporary services (Sweden) and the other in computer training (Australia). The frantrepreneur is defined as a franchisee who innovates by adapting a standard service concept to meet local conditions. This role is a further refinement of a series of earlier concepts concerning entrepreneurship roles such as the intrapreneur. This paper provides an indepth evaluation of the roles adopted by the frantrepreneurs and how they changed the original service concept. They did not passively accept the standard service concept and they developed an unusual partnership role with their franchisors with a two-way influence over the business. Although the innovations of frantrepreneurs were mostly in the form of small and incremental changes they standardized their developments to facilitate further adoption. The frantrepreneurs appear to play an important role in smoothing the adaptation and adoption of innovation in the internationalization of a franchise operation.