The Development of a Conceptual Framework for Hybridity and Sustainability in Social (Micro-) Franchises

In recent years, social enterprises have emerged as critical actors addressing social challenges that governments and traditional NGOs often cannot sustainably meet. However, achieving financial self-sufficiency while preserving social purpose remains a persistent tension. This duality of purpose has given rise to hybrid organisational forms, such as social (micro-)franchises, that combine business efficiency with social impact. Despite their potential, there is limited theoretical guidance on how these hybrid systems can balance competing logics, scale effectively, and remain sustainable—particularly in developing contexts like South Africa. The main research question guiding this study is: How can social (micro-) franchises achieve hybridity and sustainability? The study aims to develop a conceptual framework that guides these enterprises toward sustainability by identifying the mechanisms, structures, and governance processes that manage hybrid tensions. Using a Design Science Research Methodology (DSRM) within a pragmatic paradigm, the research followed a multi-stage process: (1) a scoping and conceptual review of hybrid organising, franchising, and sustainability literature; (2) framework construction through synthesis of theoretical insights; (3) evaluation via expert interviews and ranking exercises; and (4) empirical grounding through event history analysis (EHA) of selected South African social franchise. The resulting Conceptual Framework for Hybridity and Sustainability in Social (Micro-) Franchises comprises three interlinked layers. The Franchise System Layer focuses on structure, replication, and standardisation; the Social Franchise Layer integrates inclusivity, social impact measurement, and mission alignment; and the Hybridity Layer bridges the two by embedding adaptive governance, stakeholder collaboration, and mechanisms for financial-social balance. Together, these layers provide a holistic tool that enables social enterprises to manage hybrid tensions, align mission and market goals, and achieve long-term sustainability. This study contributes theoretically by extending hybrid organisation and social franchising scholarship through a multi-layered systems perspective. Methodologically, it demonstrates the utility of DSRM for hybrid business model design. Practically, it provides a management framework and diagnostic tool for social entrepreneurs, policymakers, and intermediaries to design, evaluate, and strengthen hybrid franchise systems in resource-constrained contexts.

Grantor dc:publisher

Stellenbosch : Stellenbosch University

Year dc:date.issued

2026

Author dc:creator

• Ntloko, Welekazi S’thandwa

Advisors dc:contributor.advisor

• Grobbelaar, Sara Saartjie
• Herrmann-Fankhanel, Anja

Language dc:language.iso

en

Repository record dc:identifier.uri

https://scholar.sun.ac.za/handle/10019.1/136078

OAI identifier oai:identifier

oai:scholar.sun.ac.za:10019.1/136078