Mat Isa, C M B; Saman, H M and Preece, C N (2017) Development of OLI+S entry decision model for construction firms in international markets. Construction Economics and Building, 17(4), pp. 66-91. ISSN 2204-9029
Abstract
The paper aims to provide a holistic approach to address how construction firms make decisions covering all three domains (location, timing and mode) across country, market, firm and project factors within the Ownership, Locational and Internalisation plus Specialty (OLI+S) paradigm. Questionnaires were administered to 62 project managers based on a sampling frame provided by the Construction Industry Development Board Malaysia. The findings provide empirical and theoretical insights on how the OLI+S model addresses firms' entry decisions to penetrate international markets. It suggests that the ownership-entry decision factors focus on firms' internal transferable advantages. The locational-entry decision factors emphasise attractiveness of certain locations where firms decided to invest and operate. The internalisation– entry decision factors emphasise the extent to which firms were able to manipulate their internal competitive assets (firm’s resources and capabilities). Finally, the specialty-entry decision factors emphasise on firms' competency in project management and specialist expertise to handle complex projects based on their previous project experience. An example of construction firms' unique characteristics, namely, specialty advantages based on the original Dunning’s OLI eclectic paradigm has been adopted. The established OLI+S entry decision model could be investigated to further refine other related internationalisation theory.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction firms; entry decision model; international markets |
| Index terms: | internationalization, eclectic paradigm, complex project, construction firm, project management, construction industry development, paradigm, competitive asset, Malaysia, international market, project manager, ownership, questionnaire, holistic approach, sampling |
| Subjects: | project management theory and practice, development economics, Geography, economics, organization, business, profession, education and knowledge transfer, data collection methods, economic analysis, strategic project management, economic theory, asset management |
| Topics: | Roles and Professions, Business Strategy, Project Management, Geographical Context, Research Practice, Organizational Design, International Construction |
| Descriptive scope: | 5 PCTEA |
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