Investigating The Internationalisation Of Malaysian Construction Firms Using The Integrated E3r Model

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Date
2010-11
Authors
Wong, Sing Sing
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Publisher
Universiti Sains Malaysia
Abstract
As a WTO signatory, construction market in Malaysia has become more open to foreign construction firms. Malaysian CIDB has launched a master plan to drive the growth of the construction industry. Furthermore, the trend shows the increasing involvement of Malaysian construction firms in international markets. But limited studies have been conducted. Previous studies investigated the internationalisation of construction firms by applying a single theory. This study examines it with the integrated E3R Model. This model consists of Eclectic Paradigm, Resource-Based View, Diamond Framework, Network Approach, Stage Growth Theory and International Entrepreneurship Theory. The entrepreneur is the key character in this model. He makes decision by considering resource factors, regional factors and relationship factors. This study adopted the mixed methods with the triangulation of data. Postal questionnaires were sent to 74 internationalised construction firms. 14 of them returned the questionnaire. Seven respondents agreed to be interviewed. This study found that firm-specific ownership advantages were more important for the internationalisation compared to country-specific ownership advantages. Malaysian construction firms will consider a wide range of regional factors before selecting overseas locations. International business networks were more important than local business networks. The network distance prevailed over the psychic distance. The important role of top management for the firm’s internationalisation was highlighted. Top management’s subjective characteristics prevail over objective characteristics.
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The internationalisation of construction firms , with the integrated E3R Model
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