Development of Entry Mode Assessment Criteria (EMAC) Model for Malaysian Construction Companies to Sustain in International Operations

• Published in: Lecture Notes in Civil Engineering
• Main Author: Ibrahim N.; Isa C.M.M.
• Format: Conference paper
• Language: English
• Published: Springer Science and Business Media Deutschland GmbH 2022
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85128789891&doi=10.1007%2f978-981-16-7924-7_75&partnerID=40&md5=b148d3cdc936c439adad0802a8ef9f6a

Many Malaysian construction companies are looking for opportunities to generate revenues through international projects. However, not many of the previous studies examined the companies’ strengths related to entry mode decision to sustain in international markets. It is important for construction companies to make the right decision in selecting the right entry mode before operating worldwide. Therefore, this study examines the strength factors for companies to sustain in international operations focusing on evaluating the strength factors that enable construction companies to survive and sustain in foreign countries. A quantitative method using questionnaire survey is adopted to get feedbacks on company’s strength factors from 30 managers involved in international projects. This paper presents the Entry Mode Assessment Criteria (EMAC) Model that has been developed as a diagnostic instrument to measure various dimensions of strength factors to assist the companies in the selection of entry mode to operate projects abroad. In addition, the Internal Readiness Test (IRT) has been used in the EMAC models to test whether the company is capable or fit to operate in international market. The EMAC formula was developed through the Hierarchical Analytical (AHP) process and the improved Delphi study by adding analysis applied to construction companies in Malaysia. Results from the EMAC formula indicate that the companies with the highest ranking (value of 633.2) used a wide variety of entry modes including Intermediary and Exporting entry modes to obtain technology resources, expertise and manpower to carry out construction activities abroad. This study will guide the construction companies that are interested in exploring foreign business opportunities based on analysis of the companies’ strength before expanding into international markets. © 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.