An entry mode decision-making model for the international expansion of construction enterprises

Li, Heng, Jin, Zhigang, Li, Vera, Liu, Guiwen, & Skitmore, Ronald Martin (2013) An entry mode decision-making model for the international expansion of construction enterprises. Engineering, Construction and Architectural Management, 20(2), pp. 160-180.

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Abstract

Purpose – The purpose of this paper is to provide a new type of entry mode decision-making model for construction enterprises involved in international business.

Design/methodology/approach – A hybrid method combining analytic hierarchy process (AHP) with preference ranking organization method for enrichment evaluations (PROMETHEE) is used to aid entry mode decisions. The AHP is used to decompose the entry mode problem into several dimensions and determine the weight of each criterion. In addition, PROMETHEE method is used to rank candidate entry modes and carry out sensitivity analyses.

Findings – The proposed decision-making method is demonstrated to be a suitable approach to resolve the entry mode selection decision problem.

Practical implications – The research provides practitioners with a more systematic decision framework and a more precise decision method.

Originality/value – The paper sheds light on the further development of entry strategies for international construction markets. It not only introduces a new decision-making model for entry mode decision making, but also provides a conceptual framework with five determinants for a construction company entry mode selection based on the unique properties of the construction industry.

Impact and interest:

5 citations in Scopus
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Full-text downloads:

481 since deposited on 21 Mar 2013
67 in the past twelve months

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ID Code: 58531
Item Type: Journal Article
Refereed: Yes
Keywords: Construction Industry, Market Entry, Internationalization, Decision Making, Entry Mode, Decision Making Model, Analytic Hierarchy Process, Preference Ranking Organisation Method for Enrichment Evaluations
DOI: 10.1108/09699981311303026
ISSN: 0969-9988
Subjects: Australian and New Zealand Standard Research Classification > ENGINEERING (090000)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2013 Emerald Group Publishing Limited
Deposited On: 21 Mar 2013 23:12
Last Modified: 14 Apr 2013 00:39

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