Performance strategies of Malaysian international contractors during boom and recession periods

ABSTRACT

The performance of Malaysian international contractors has been deteriorated due to different factors including fluctuations of the global economy. Previous studies highlighted strategies for international contractors to sustain business such as diversification of product and region, localization, joint ventures and entry time. However, the influence of these strategies on contractors’ performance has not been studied extensively. The purpose of this paper is to identify strategies of the international Malaysian contractors and determine the influence of these strategies on their performance during different periods of economic fluctuations. The data of this study was collected from the records of 452 overseas construction projects completed between 1993 and 2016, which covered five periods of booms and recessions. Based on the regression analysis, the results showed that localization influences contractors’ performance during boom periods. Joint venture with home-country contractors may have a positive impact during both boom and recession periods. Product diversification has a positive influence during one recession period. The findings of this study provide an insight for contractors to make critical decisions pertaining to their long-term survival and growth in the international market.

KEYWORDS:

• Diversification
• entry time
• international construction
• localization
• strategic alliances

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the University of Malaya Research Grant [grant number RG307-14AFR].