Risk-based entry decision into African construction markets: a proposed integrated model
Built Environment Project and Asset Management
ISSN: 2044-124X
Article publication date: 5 February 2018
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.
Keywords
Citation
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, Vol. 8 No. 1, pp. 91-111. https://doi.org/10.1108/BEPAM-05-2016-0021
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited