Isa, C M M; Saman, H M; Preece, C N and Ibrahim, C K C (2016) Factors influencing Malaysian construction firm's entry mode decisions into international markets. In: Chan, P W and Neilson, C J (eds.) Proceedings of 32nd Annual ARCOM Conference, 5-7 September 2016, Manchester, UK.
Abstract
Market expansion is one of the most critical business strategies undertaken by firms to exploit opportunities in international markets. However, the inevitable uncertainties and complexities associated with the international business construction domain have proven the intricacy of market entry decisions. Thus, the issues of entry decisions have become imperative for top management in organisational survival and success, in that a firm commonly faces questions to select a suitable location, to plan the right time and to adopt an appropriate mode to enter the international markets. The research objective is to determine the Malaysian construction firm’s decision in choosing the entry mode (EM) in their international operations. Sixty 62 firms have responded to questionnaire survey administered. Descriptive findings from the descriptive analysis on the 62 experienced managers indicated that a majority of the firms entered international markets using combinations of equity (EQ) and non-equity (NEQ) modes. A logistic regression analysis was carried out to describe the predictive ability of the EM decision model. The contribution of the predictive variable and the impact of significant predictors on the likelihood of the firms' EM decision were also determined. A valid and fit predictive model was established incorporating the strongest predictors on the firm’s EM represented by Logit (p) =1.470 + 2.590Firm; where p is the probability of choosing to adopt BOTH modes with the firm factors as the strongest predictor variable. The EM decisions are of significance for firms to determine appropriate EM strategies, where the firms have to improve their managerial capabilities in quality and timely delivery of products/services and establish an effective international business network and strategic alliances with other firms. The EM strategies are effective under the conditions that the firms increase their knowledge, information and experience related to the firm factors to adopt suitable EM.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | entry mode; international markets; Malaysian construction firms |
| Index terms: | face, business strategy, strategy, strategic alliance, construction firm, survey, international business, manager, market entry, complexity, predictive variable, survival, top management, entry mode, logistic regression analysis, questionnaire, international market |
| Subjects: | statistical analysis, systems engineering, partnership management, market analysis, development economics, management, environmental science, psychology, practitioner, business, organization, data collection methods, strategic management |
| Topics: | Organizational Design, International Construction, Sustainability, Stakeholder Management, Roles and Professions, Engineering Principles, Research Practice, Business Strategy |
| Descriptive scope: | 4 PCEA |
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