■International projects involve both uncertainties raised domestically and external risks in international transactions. Through a questionnaire survey and case studies among architectural, engineering, and construction (AEC) firms operating in the Gulf, this study found 36.5% external risk factors that should be contemplated before the award of contracts and 53.9% afterward to ensure smooth running. An external risk breakdown structure (E-RBS) and a framework for foreign AEC firms operating in Gulf Cooperation Council (GCC) states were developed for users to identify and respond to external risks in a more systematic manner. International firms outside Malaysia are strongly advised to use the framework for risk forecasting and mitigation when operating in the Gulf.
The internationalization of construction companies is a subject of enduring interest among construction management scholars. The internationalization pattern of Malaysian contractors was explored, this time mainly using the international entrepreneurship body of literature as the theoretical basis. In doing so, the focus of the internationalization process was on the entrepreneurs or top management. Data were collected with a postal questionnaire survey and follow-up semi-structured interviews. The findings underscore the importance of the entrepreneurs' decision in the surveyed firms' internationalization trajectory. Top management's perception of how their companies might benefit from internationalization was the highest ranked foreign market entry consideration. Top managements' initial and subsequent motivation also fashioned their companies' degree of internationalization and tactics for securing contracts. The characteristics of the entrepreneurs which drove their companies to internationalize were also captured. The international entrepreneurship domain continues to expand into previously uncharted areas. As such there is potential to uncover even more interesting findings from future research endeavours on international contractors using the international entrepreneurship approach.Contracting, internationalization, entrepreneurship, Malaysia,
Purpose -Increasingly, construction companies from developing countries are succeeding in finding a space in the international market. Their progression deserves academic attention. Using Network Theory, this paper seeks to examine the role and extent of business networks in aiding contractors from Malaysia, as one such developing country, to penetrate foreign markets. Design/methodology/approach -The research adopted the mixed method approach. A postal questionnaire survey, complemented with desk research and interviews, was used to collect data. Findings -The findings show that in fact business networks can account for much of the surveyed contractors' overseas achievements, in terms of markets they entered, overseas projects they secured and market presence mode they adopted, although, without their competitive assets, the networks would have been meaningless. Research limitations/implications -A limitation was the small sample population, which is compensated by interviews to validate the inferences. Practical implications -Contractors from developing countries should fully cultivate, nurture, exploit and reconfigure their business networks in order to make their impact internationally. Originality/value -The paper has provided insight into the power of business networks in configuring competitiveness of contractors from a developing country in the international arena. The paper also draws attention to the limitations of the Network Perspective by highlighting the inseparability of the firms' own competitive strengths and business networks in explaining overseas success, and the dynamics of business networks as the contractors continuously reposition their competitive positions.
Venturing into foreign countries is highly risky. A study was conducted to examine the internationalisation of Malaysian contractors. Considerations that guide their decisions to enter particular foreign markets were examined. Data was collected using a postal questionnaire survey, interviews and secondary data. It was found that Malaysian contractors examine a whole range of market-entry considerations before entering a particular country. The collected data were analysed to determine the applicability of the premises embedded in certain extant models of firm internationalisation in the context of the subject. It is found that in these models more often than not, market-entry considerations can be termed as 'locational disadvantages' rather than locational advantages. This is because these contractors, by virtue of having to deliver their services on location, are not only marketseeking, but, in the process, also have to be resource-seeking, asset-seeking and efficiency-seeking. The study finds that psychic distance does not have a major influence on country market choice.
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