Preferred Entry Mode Choices and Transformation of Indonesian Contractors' Strategy in International Markets
2019
The selection of an appropriate entry strategy is an essential stage to expand
business to overseas markets. Few studies have been undertaken to investigate this issue
in the context of construction industry from the developing economies. This study aims to
empirically investigate the entry strategy adopted by Indonesian contractors and observe
the transformation of strategy to enter overseas construction markets (OCMs). Combination
quantitative and qualitative research approaches was adopted to achieve the objectives.
Data were obtained from survey of 103 Indonesian large contractors from 317 samples.
Descriptive statistic and relative importance index (RII) were employed to analyse the data
in which the results were then triangulated with interview findings. The results indicated
those joint venture projects (JVP), branch office (BO) and representative office (RO) are
the preferred entry mode choice adopted by Indonesian contractors. Four types of entry
strategy transformation were identified. Each types of transformation showed that JVP or sole
venture project (SVP) is directly used to pursue projects while BO or RO is set after operating
for several projects. This study may provide a profound insight based on developing industries'
experiences. For future research direction, the selection of entry mode by investigating the
considerations influencing entry mode choice is encouraged.
Keywords: International expansion, Construction project, Market entry strategy, Entry mode,
Indonesian contractor
- Correction
- Source
- Cite
- Save
- Machine Reading By IdeaReader
0
References
2
Citations
NaN
KQI