Odediran, S J and Windapo, A O (2018) Risk-based entry decision into african construction markets: A proposed integrated model. Built Environment Project and Asset Management, 8(1), pp. 91-111. ISSN 2044-124X
Abstract
Purpose The purpose of this paper is to propose a risk-based entry decision model to mitigate the impact of risk and ease the entry of multinational construction companies (MNCCs) into African construction market (ACM). Design/methodology/approach A review of extant literature helps identify risks in the international construction market (ICM) and entry modes used by MNCCs to enter into the ICM. A conceptual model is designed for a risk-based entry decision. Data for validating the proposed model are sourced from multiple sources - survey, interview and financial and annual report of companies surveyed. Findings Findings reveal significant risks in the ICM and different modes of MNCCs entry to foreign market. Experience of MNCCs shows that the perceived impact of risk influence decisions made to enter into foreign markets, and interactive relationships between resources and entry decisions made to mitigate the perceived impact of risks. Originality/value Significant risks are expected in the ACM. However, adequate perception of risks based on resources levels of MNCCs and strategic entry decisions would assist in mitigating the potential impacts of risk.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | entry mode; resources; risk mitigation; risk perception; african construction market; multinational construction companies |
| Index terms: | international construction, entry mode, methodology, construction market, markets, risk mitigation, multinational construction company, interview, integrated model, survey, annual report, risk perception |
| Subjects: | economic analysis, analytical methods, strategic management, data collection methods, business, environmental hazards, market analysis, financial risk, research methods |
| Topics: | International Construction, Sustainability, Governance, Research Practice, Information Management, Cost Management, Business Strategy |
| Descriptive scope: | 4 PCTE |
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