Motives and competitive assets for internationalization: a comparison between emerging and developed economy international construction contracting firms

ABSTRACT

This study aims to evaluate the differences in the internationalization of emerging and developed economies firms. Using an integrated theoretical approach, this paper examines the motives and competitive assets (firm and home country-specific) that enabled the international expansion of Pakistani and British international construction contracting firms (ICCFs) into Middle East markets. The data for the current study were collected through questionnaire-based survey. Further, the statistical analysis of the collected data was accomplished by applying the Man Whitney-U test, using Statistical Package for the Social Sciences (SPSS). Findings show that Pakistani ICCFs have a reactive approach for their internationalization as compared to British ICCFs. In order to get the recognition of global players, Pakistani ICCFs need to enhance their firm-specific competitive assets, specifically international reputation, quality of services, internationally experienced management and financing capital. Further, the results also revealed that the home country support in the form of good image, economic development, government encouragement, and availability of funding from local banks has contributed significantly towards British ICCFs expansion. Pakistani ICCFs have an advantage in terms of supportive industries and multicultural workforce availability. However, local governmental encouragement and friendly business policies are needed to enhance their competitiveness in international markets.

KEYWORDS:

• Internationalization
• motives
• competitive assets
• emerging economies
• developed economies

Disclosure statement

No potential conflict of interest was reported by the authors.