Gunhan, S M (2003) Foreign market entry decision model for construction companies. PhD thesis, Illinois Institute of Technology, USA.
Abstract
There exist several reasons for construction firms to expand their business into international markets. But these markets entail many risks. International construction is much riskier than domestic construction. The complex international environment is affected by diverse variables that are not part of the domestic markets; this complex environment creates risks never encountered in domestic conditions. That is the reason why a disciplined and well-informed strategy is essential when deciding whether to enter international markets. The complex variables that affect the performance of construction companies in overseas markets need to be considered in this decision. Interactions between complex factors can be structured in a model that can help to make a judgment and/or decision. Since the variables involved in the decision-making problem have social, economic, political values, in other words tangible and intangible values, the chosen model must be convenient for the measurement of these factors. The model in this research is based on the Analytic Hierarchy Process, which is based on the innate human ability to use information and experience to estimate relative magnitudes through paired comparisons. The Analytic Hierarchy Process is improved by the addition of a Delphi survey. The main objective of this research study is to develop an evaluation and decision-making model for construction firms that want to expand their business into the international arena. This research has resulted in the development of a Foreign Market Entry Decision Model which allows construction companies to test themselves for international business expansion. It sensitizes U.S. construction companies to possibilities in the international markets and highlights the importance of various factors in international construction. It should be noted that the model is company-specific rather than project-specific. An important original contribution is the use of the combined AHP/Delphi approach in the development of the model.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Arditi, D |
| Uncontrolled Keywords: | measurement; construction firms; international construction; decision making; domestic construction; international business; markets; analytic hierarchy process; market |
| Index terms: | construction firm, construction company, market entry, markets, decision-making, domestic construction, estimate, judgment, international business, Delphi survey, interaction, strategy, international market, international construction |
| Subjects: | construction type, strategic management, decision analysis, business, dispute resolution, data collection methods, organization, economic analysis, management, development economics, behavioral psychology, financial and cost management |
| Topics: | Research Practice, Legal Issues, Business Strategy, Risk Management, Organizational Design, International Construction, Construction Technology, Cost Management |
| Descriptive scope: | 3 PCE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here