Decision-making framework for investing in emerging market: A demonstration on the cocoa industry in Ivory Coast

Dominic Hess, Roger Moser, Gopalakrishnan Narayanamurthy

Research output: Contribution to journalArticlepeer-review


The purpose of this paper is to identify and understand the obstacles and drivers of financial investors while deciding upon investment opportunities in emerging markets.

Relevant factors for financial investors in emerging markets were identified through a literature review and a series of expert interviews. Identified factors were broadly grouped into three categories, namely, microeconomic aspects, macroeconomic aspects, and aspects of the functionality of the local banking system. Finally, an expert panel (Delphi) technique is used to validate the findings in cocoa industry in Ivory Coast.

A decision-making framework that enables the evaluation of the attractiveness of an industry in emerging market from a financial investor perspective is developed and its application is demonstrated on the cocoa industry in Ivory Coast. Probability and consensus of the projections for the individual decision elements are tabulated along with the insights into both encouraging and discouraging aspects.

Research limitations/implications
Current study is a timely contribution to the call for papers in the research literature to develop frameworks that are contextualized in emerging markets. Similar to any other qualitative study, this study lacks the generalizability of results. But, the framework developed can act as a starting point toward the generalizability of the findings in future.

Practical implications
Decision elements identified in this study can act as a checklist for financial investors and top management to choose the elements that are relevant to the investment problem being dealt by them. Also, the study can act as a handy demonstration to practitioners for applying the framework using expert panel.

Social implications
A major challenge of the investment environment in emerging market is the non-availability of quality information on the potential investment opportunities. In this study, the authors suggest a framework to overcome this information asymmetry challenge and expect it to promote financial investments in emerging economies which in turn will improve the quality of life of people in these economies.

First study to present an approach to help financial investors to conduct profound evaluation and gain more in-depth insights into the future investment opportunity attractiveness of a particular industry in an emerging market.
Original languageEnglish
Pages (from-to)290-309
Number of pages20
JournalWorld Journal of Science, Technology and Sustainable Development
Issue number4
Publication statusPublished - 2 Oct 2017
Externally publishedYes


  • Emerging markets
  • Delphi study
  • Ivory Coast
  • Cocoa industry
  • Financial investment


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