Franchising and sustainable development in Ghana’s hospitality sector

Abstract Globalisation has encouraged firms to adopt internationalisation strategies, with franchising emerging as a practical pathway for market entry, business growth and competitiveness in developing economies. This study investigates the motivations and challenges of hospitality franchising in Ghana and examines its implications for sustainable economic growth, decent work and industry development in line with Sustainable Development Goals 8, 9 and 12. Drawing on dynamic capability theory and the knowledge-transfer literature, integrated with the institution-based view of strategy, the study examines how the transfer of organisational capabilities from franchisors to franchisees interacts with the institutional environment to shape sustainability outcomes. A qualitative case study design was employed, using purposive and snowball sampling to collect data through twelve semi-structured interviews across four franchised hospitality firms in Accra, Ghana, with thematic analysis guided by an a-priori capability-coding framework supported by inter-coder reliability checks. The findings reveal that brand reputation, franchisor support services, franchisor expertise, proven business models, and identified market demand strongly influence decisions to engage in franchising. Key challenges identified include cultural adaptation tensions, financial constraints, infrastructural limitations, and legal and regulatory barriers. An analytical mapping of findings against the SDGs indicates that hospitality franchising in Ghana currently delivers verifiable SDG 8 outcomes through skills development and employment generation, partial SDG 9 outcomes through firm-level industrial upgrading offset by absorbed infrastructure burdens, and largely unrealised SDG 12 potential, as franchise standardisation in practice prioritises brand consistency over environmental responsibility. By identifying the conditional logic under which franchising contributes to sustainability in an institutionally constrained emerging market, the research provides valuable insights for investors, policymakers and practitioners seeking to develop sustainable hospitality models. The findings underscore the importance of supporting franchisees with training, regulatory guidance and operational resources to ensure long-term viability and promote sustainable business practices in the Ghanaian hospitality sector.