chapter  8
16 Pages

Strategic issues in entering emerging markets


Although international construction activities help construction firms to mitigate the risk of adverse change in domestic market conditions, taking advantage of opportunities in emerging markets and increasing competencies as a result of lessons learned in international markets poses serious threats due to instability of competitive conditions and difficulties specific to international construction projects. Mahalingam and Levitt (2007) argue that in addition to the complexities present in construction projects, global projects are distinct from domestic construction projects in that global projects involve interactions among individuals, organisations and agencies from diverse national backgrounds and cultural contexts. Global projects carried out in emerging markets are even more complex than others, as the “instability” characterised in these markets when coupled with “differences” between home and host country practices tend to create major problems that significantly affect the success of construction projects. The purpose of this chapter is to discuss how strategic issues should be taken into account when entering emerging markets and propose a generic market entry decision making process for organisations that encompasses these issues.