Predicting business ethical tolerance in international markets: a concomitant clusterwise regression analysis

Abstract

The literature proposes a number of models explaining ethical behaviours but these are seldom of the kind which can be used by marketers in their day-to-day decision making. In this study based on data collected from 166 firms operating in overseas markets, a concomitant clusterwise regression approach is used to define clusters that display good homogeneity both in traits and in models of ethical tolerance, thus allowing an ‘ethical diagnostic’ of firms. Based on readily available and objective variables, namely size, dependence on overseas markets and overseas experience, the paper demonstrates that it is possible to cluster firms into groups of which the ethical tolerance can be predicted. The managerial implications of these findings for international marketers and directions for future research are also discussed.