Foreign Market Entry Decision Model for Construction Companies

There exist several reasons for construction firms to expand their business into international markets. But these markets entail many risks. The complex international environment is affected by diverse variables that are not part of the domestic markets; this complex environment creates risks never encountered in domestic conditions. That is the reason why a disciplined and well-informed strategy is essential when deciding whether to enter international markets. The main objective of this research study is to develop an evaluation and decision-making model for construction firms that want to expand their business into the international arena. This research has resulted in the development of a Foreign Market Entry Decision Model which allows construction companies to test themselves for international business expansion. It sensitizes U.S. construction companies to possibilities in the international markets and highlights the importance of various factors in international construction. It should be noted that the model is company-specific rather than project-specific.