Franchising Opportunity: Corruption Indices as Measures of Risk and Economic Development in Emerging Markets

Wilhelm, Paul G., Milewicz, John C., Journal of Business and Entrepreneurship

ABSTRACT

A saturated franchise marketplace is developing nationally. American franchising is therefore setting its sights internationally. Even though opportunities in emerging markets are huge, so are the risks. One way of assessing the risk of franchising in emerging markets is to consider the perceived level of corruption in those countries. Three recently developed measures of international corruption are validated and shown to correlate very significantly with gross domestic product per capita. Franchisors need to advise potential franchisees of the differing corruption levels in the various countries they are considering. Corruption can adversely affect product and service …

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Publication information: Article title: Franchising Opportunity: Corruption Indices as Measures of Risk and Economic Development in Emerging Markets. Contributors: Wilhelm, Paul G. - Author, Milewicz, John C. - Author. Journal title: Journal of Business and Entrepreneurship. Volume: 12. Issue: 2 Publication date: July 2000. Page number: 57+. © Association for Small Business and Entrepreneurship Oct 2008. Provided by ProQuest LLC. All Rights Reserved.

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