Exploring Theoretical Framework: Propensity of Nigerian Indigenous Construction Firms for Expansion into the International Market
DOI:
https://doi.org/10.5281/zenodo.14995468Keywords:
Expansion, International construction market, theoretical framework, Nigeria indigenous construction firms.Abstract
Expansion of firms into the International Construction Market (ICM) is a well-established area of research in international construction literature. However, in Nigeria studies were mainly on the plight of Nigerian Indigenous Construction Firms (NICFs) and the dominance of the Nigerian construction industry by Multinational Corporations (MNCs). It is a matter of concern that there is no known study that explored the internationalisation of NICFs with a view to integrating NICFs into the ICM in view of the benefits which include prestige, opportunity for growth, increased profits, risk sharing among others. This paper presents a theoretical framework for expansion of NICFs into the ICM with a view to integrating NICFs into the ICM. The paper used the literature review approach and content analysis for the study and adopted three independent but interrelated theories; the Resource based view theory, the Network theory, and the Institutional theory to explain the internationalisation of NICFs, and to develop the theoretical framework. The research has implications on theory, policy and practice: It will elicit government’s support towards policy formulation on internationalisation and positively influence managers of NICFs to strategically consider expansion of NICFs into the ICM. It will also stimulate further research into this important area in Nigeria and the Diaspora.References
Abdul-Aziz, A-R. & Wong, S. S. (2010). Exploring the internationalisation of Malaysian contractors: The international entrepreneurship dimension. Journal of Construction Management and Economics, 28(1), 51–61.
Abisuga A. O, Amusu O. R. O, & Salvador K. A. (2014). Construction delay in Nigeria: A perception of indigenous and multinational construction firms. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 5, (3), 371-378.
Achuenu, E. Izam, Y. D. & Bustaini, S. A. (2000). An investigation into activities of indigenous contractors in Nigeria; Nigeria Journal of construction Technology and Management, 3(1), 55-64.
Affum, O. B. (2010). The key challenges Ghanaian contractors face in establishing branches in other West African countries. Unpublished Bachelor of Science Degree Dissertation, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.
Alashwal, A. M. & Alduais, H. S. (2018). Performance strategies of Malaysian international contractors during boom and recession periods. International Journal of Construction
Management, 19(5), 453-461.
Alashwal, A. M., & Ann, T. S. (2019). Application of home-country joint venture (HJV) for international construction contractors. International Journal of Construction Management, 16(13), 1-9.
Albtoush, A. M. F., Doh, S. I. Rahman, R. A. Al‑Momani, A. H. (2022). Critical success factors of construction projects in Jordan: An empirical investigation. Asian Journal of Civil Engineering. 1-13. https://doi.org/10.1007/s42107-022-00470-8
Andersen, O. (1997). Internationalisation and market entry mode: A review of theories and conceptual frameworks. Management International Review, (37), 27-42.
Aniekwu, A. N. & Audu, H. O. (2010). The effects of management on productivity: A comparative study of indigenous and foreign firms in the Nigerian construction industry In: Laryea, S., Leiringer, R. and Hughes, W. (Eds) Procs West Africa Built Environment Research (WABER) Conference, 27-28 July 2010, Accra, Ghana, 567-78.
Azman, M. A. B., Hon, C. X., Paul, L. B., & Skitmore, M. (2021). Product diversification and large construction firm productivity: The effect of institutional environments in Malaysia. Journal of Engineering, Construction and Architectural Management, 28(4), 994- 1013.
Bala, K., Bello, A., Kolo, B. A. & Bustani, S. A., (2009). Factors inhibiting the growth of local construction firms in Nigeria. In: A. Dainty, ed. 25th Annual ARCOM Conference, Nottingham 7-9 September 2009. UK: Association of Researchers in Construction Management, Pp. 351-359.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Cheong, C. S. (2010). Contractor business development for overseas markets. Unpublished PhD thesis, Loughborough University. UK.
Child, J., & Rodrigues, S. B. (2005). The internationalisation of Chinese firms: A case for theoretical extension? Management Organisational Review, (1), 381–410.
Ciravegna, L., Lopez, L., Kundu, S. (2014). Country of origin and network effects on internationalisation: A comparative study of SMEs from an emerging and developed economy. Journal of Business Research, 67(5), 916–923.
Coviello, N. E., & Munro, H. (1997). Network relationships and the internationalisation process of small software firms. International Business Review, 6, 361-386.
Creswell, J. W., & Poth, C. N. (2018). Qualitative enquiry & research design: Choosing among five approaches (4th ed.). Thousand Oaks, CA: SAGE.
Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods. (4th ed.). Thousand Oaks, London: Sage Publication.
Crawford, L. M. (2020). Conceptual and theoretical framework in research. Thousand Oaks, CA: SAGE.
Dakas, A. I. I., (2014). Management of project stakeholders: Facilitating project success in public sector projects in Nigeria. Unpublished PhD thesis, The University of Leeds, UK.
Davis, J., Mengersen, K., Bennett, S., & Mazerolle, L. (2014). Viewing systematic reviews and meta-analysis in social research through different lenses. Springer Plus, 3(511), Retrieved from https://doi.org/10.1186/2193-1801-3-511.
Deloitte & Touche (2024). African Construction Trends Report 2024, Deloitte & Touche, Johannesburg. (806611/sue). Accessed September, 10th from: [https://www2.deloitte.com/content/dam/De...tion-trends-report-2024.PD.
Dunning, J. (1980). Towards an eclectic theory of international production: some empirical tests. Journal of International Business Studies, 11(1), 9-31.
Ekeledo, I., & Sivakumar, K. (2004). International market entry mode strategies of manufacturing firms and service firms: A resource-based perspective. International Marketing Review, 21(1), 68-101.
ENR (Engineering News-Record). (2020). The top 250 international contractors. McGraw-Hill, New York.
ENR (Engineering News-Record). (2017). The top 250 international contractors. McGraw-Hill, New York.
ENR (Engineering News-Record). (2021). The top 250 international contractors. McGraw-Hill, New York.
ENR (Engineering News-Record). (2023). The top 250 international contractors. McGraw-Hill, New York.
Goh, E., & Loosemore, M. (2016). The impacts of industrialisation on construction subcontractors: A resource based view, Journal of Construction Management and Economics, DOI: 10.1080/01446193.2016.1253856.
Goodnow, J. D., (1985). Developments in international mode of entry analysis. International Marketing Review, 2(3), 17–30.
Gunhan, S., & Arditi, D. (2005a). Factors affecting international construction. Journal of Construction Engineering and Management, 113(3), 273-282.
Gunhan, S., & Arditi, D. (2005b). International expansion decision model for construction companies. Journal of Construction Engineering and Management, 113(3), 447–467.
Gunhan, S. (2020). Factors affecting international contractors’ performance in the 21st century. Practice Periodical on Structural Design and Construction, 25(4), 1-6.
Hosseini, M. & Dadfar, H. (2012). Network-based theories and internationalisation of firms: applications to empirical studies. International Trade & Academic Research Conference (ITARC), London, UK, 7-8 November.
Hsieh, H., & Shannon, S. E. (2014). Three Approaches to Qualitative Content Analysis. Research Gate: Retrieved from https://www.researchgate.net7
Idoro, G. I., & Akinkumi, A. O. (2017). Quality culture orientation of construction firms as driver of project performance in Nigeria In: Laryea, S. and Ibem, E. (Eds) Procs 7th West Africa Built Environment Research (WABER) Conference, 16-18 August 2017, Accra, Ghana, 1144-1159.
Idoro, G. I. & Bamidele, E. O. (2017). Expatriate and indigenous consultants’ involvement in construction project delivery in Nigeria In: Laryea, S. and Ibem, E. (Eds) Procs 7th West Africa Built Environment Research (WABER) Conference, 16-18 August 2017, Accra, Ghana, 682-697.
Jang, Y., Y. Ahn, M. Park, H.-S. Lee, &. Kwon, N. (2019). Business models and performance of international construction companies. Sustainability, 11 (9), 25-45.
Jang, Y., N. Kwon, Y. Ahn, H. S. Lee, & M. Park. (2019). International diversification and performance of construction companies: Moderating effect of regional, product, and industry diversifications. Journal of Management in Engineering, 35 (5), 1-11.
Jang, Y., Song, K., Park, M., & Ahn, Y. (2020). Classifying the business model types of international construction contractors. Journal of Construction Engineering and Management, 146(6), 1-10.
Johanson, J., & Vahlne, J-E. (1977). The internationalisation process of the firms-A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, (8), 23–32.
Jung, W., Han, S. H., Koo, B., & Jang, W. (2012). Which strategies are more effective for international contractors during boom and recession periods? Journal of Management in Engineering, 28(3), 281-290.
KPMG International (Klynveld; Peat; Marvick; Goerdeler) (2023). Sector report; Construction & infrastructure. Retrieved on 18th August, 2024 from: https//kpmg.com
Lindsay, V., Rod, M., & Ashill, N. (2015). SME entry into an emerging market: A resource-based and institutional approach. 1-16. https://ro.uow.edu.au/dubaipapers/650.
Lo, F-Y., Chiao, Y-C., & Yu, C-M. J. (2016). Network and institutional effects on SMEs’ entry strategies. Management International Review, 10(4), 1- 33.
Lozano-Torró, García-Segura, Montalbán-Domingo & Pellicer (2019). Risk management as a success factor in the international activity of Spanish engineering. Journal of Administrative Sciences, 5(15), 1-20.
Malhotra, N. K., Agarwal, J., & Ulgado, F. M. (2002). Internationalisation and entry modes: A multitheoretical framework and research propositions. Journal of International Marketing, 11(4), 20--33.
Maqsoom, A., Khan, A. Q., Ali, U., & Mehmood, F. (2016). Foreign market entry: An analysis of barriers and market entry modes adopted by Pakistani contractors. Creative construction conference, 2016. 25-28th June, Danubuis Health Spa Resort, Margitszigets, Budapest, Hungary. Pp. 290-295.
Marut J. J., Anigbogu, N. A., Daniel, M. M. (2020), Theoretical and conceptual framework for integrated approach to utilisation of alternative building materials in the Nigerian construction industry. Global Scientific Journals (GSJ), 8(12), Online: www.globalscientificjournal.com
Mat Isa, C. M., Saman, H. M., & Preece, C. N. (2015). Determining significant factors influencing Malaysian construction business performance in international markets. Journal of Construction in Developing Countries, 20(2), 1-23.
Mat Isa, C. M., Adnan, H., Endut, I. R., & Basrah, N. (2006). Malaysian contractors’ opinions towards international market expansion. Proceedings of the International Conference in the Built Environment in the 21st Century (ICiBE) 13-15 June. Theme bringing industry and academia together for the built environment in the 21st century. Renaissance Hotel, Kuala Lumpur, Malaysia, (1), 287– 98.
Miles, M. B., Huberman, A. M., & Saldana, j. (2014). Qualitative data analysis. Methods sourcebook (3rd ed.). Thousand Oaks, CA: SAGE.
Mjema, E. A. M. & Kessy, S. B. (2016). Internationalisation of Tanzanian contractors. African Journal of Applied Research (AJAR), 3(3), 1-13).
Mohamed, I. A. H. (2017). Some issues in the institutional theory: A critical analysis. International Journal of Scientific & Technology Research, 6(09), 150-156.
Ngowi, A.B., Pienaar, A., Talukhaba, A. & Mbachu, J. (2005). The Globalisation of the construction industry – A review. Building and Environment, (40), 135-141.
Nhabinde, V. N., Marrengula, C. P., & Ubisse, A. (2012). The challenges and the way forward for the construction industry in Mozambique. International Growth Centre Mozambique.
Odediran, S. J. (2016). A risk based entry decision model for South African construction companies venturing into African markets. Unpublished PhD thesis, Department of Construction Economics and Management, University of Cape Town.
Odediran, S. J., & Windapo, A. O. (2018). Risk-based entry decision into African construction markets: A proposed integrated model. Built Environment Project Asset Management, 8(1), 91–111. https://doi.org/10 .1108/BEPAM-05-2016-0021.
Ofori, G. (2003) Framework for analysing international construction. Journal of Construction Management and Economics, 21, 379-391.
Ogbu, C. P. (2011). Risk management practices of multinational and indigenous construction companies in Nigeria: A comparative analysis. Journal of Research and Nation Development, (9), 315–324.
Ogbu, C. P. (2017). Marketing strategies and performance of indigenous construction firms in Nigeria. Journal of Construction in Developing Countries, 22 (1), 1–19.
Okoli, C., & Schabram, K. (2017). A Guide to conducting a systematic literature review of information systems research. Retrieved from http://chitu.okoli.org
Omotayo, T. S. & Kulatunga, U. (2017). Re-thinking post-contract cost controlling techniques in the Nigerian construction industry. In Sandanayake, Y.G., Karunasena, G.I. and Ramachandra, T. Proceedings of the 5th world construction symposium 2016: greening environment, eco-innovations and entrepreneurship, 29-31 July 2016, Colombo, Sri Lanka. Colombo: University of Moratuwa, pages 380-388.
Oxford Business Group (2023). The report 2023: Africa Data Centre Report. Retrieved on 19th August, 2024 from: https//oxfordbusinessgroup.com
Ravitch, S. M., & Riggan, M. (2017). Reason and Rigor: How conceptual Framework guides research (2nd ed.). Thousand Oaks, CA: SAGE.
Rutashobya, L., & Jaensson, J. E. (2004). Small firms’ internationalisation for development in Tanzania: Exploring the network phenomenon. International Journal of Society and Economics, (31), 159–172.
Robinson, C., & McCartan, K. (2016). Real world research (4th ed.). Chichester, U.K: Wiley.
Setiawana, H., Erdogan, B., & Ogunlana, S. O. (2015). Competitive aggressiveness of contractors: A study of Indonesia. The 5th International Conference of Euro Asia Civil Engineering Forum (EACEF-5). Procedia Engineering, (125), 68 - 74.
Suberu, J. O. (2019). Factors that influence the patronage and performance of (Local) indigenous construction contractors in Jos metropolis. Unpublished B.Sc. Building thesis, Department of Building, University of Jos. Plateau State, Nigeria.
Sunindijo, R. Y., Loosemore, M., Lestari, F., Kusminanti, Y., Widanarko, B., Febrina, C., & Amelia, F. (2019). Comparing safety climate in infrastructure and building projects in Indonesia. (2019) MATEC Web of Conferences 258, 02024, PP. 1-17.
Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, (104), 333–339. Retrieved fromhttps://doi.org/10.1016/j.jbusres.2019.07.039
Tunji-Olayeni, P. F., Mosaku, T. O., Fagbenle, O. I., & Omuh, I. O. (2017). Competitive strategies of indigenous Construction firms. International Journal of Civil Engineering and Technology (IJCIET), 8 (10), 350–362.
Utama, W. P, Chan, A. P., Zahoor, H., & Gao, R. (2016). Review of research trend in international construction projects: A bibliometric analysis. Journal of Construction Economics and Building, (16), 71–82.
Utama, W. P., Chan, A. P. C., Gao, R., & Zahoor, H. (2017). Making international expansion decision for construction enterprises with multiple criteria: A literature review approach. International Journal of Construction Management, 18(3), 221–231. https://doi.org/10.1080/15623599.2017.1315527.
Utama, W., Chan, A., Zahoor, H., Gao, R., & Peli, M. (2018). Exploring the strategic motivation of internationalisation: Indonesian contractors’ perspectives. Journal of Construction Economics and Building ,18(4), 64-83.
Veerasanai, R., & Alias, A. (2020). A review of foreign construction firm presence in the Malaysian construction industry, International Journal of Construction Management, DOI: 10.1080/15623599.2020.1742635.
Vigelius, A. (2017). Drivers and Barriers for SMEs in the light of entry mode choice into an emerging market - A systematic literature review. Unpublished Master Thesis, Double Degree Program BOWACO Wageningen University & University of Bonn.
Viswanatha, S. K., & Jha, K. N. (2020). Entry mode sequencing model for emerging international construction firms. Journal of Management in Engineering, 2020, 36(3), 1-16.
Wang, T., Chan, A. P. C., He, Q., & Xu, J. (2020). Identifying the gaps in construction megaproject management research: A bibliographic analysis, International Journal of Construction Management, 10(17), 1- 11.
Whitelock, J. (2002). Theories of internationalisation and their impact on market entry, International Marketing Review, 19(4).
Yusuf, M. I. (2023). Framework for expansion of Nigerian indigenous construction firms into the international construction market. Ph.D., seminar series, Department of Building, University of Jos, Nigeria.
Yusuf, M. I., Anigbogu, N. A., & Dakas, A. I. I. (2024a). Conceptual framework for expansion of Nigerian indigenous construction firms into the international construction market. African Journal of Earth and Environmental Sciences (ajees@buk.edu.ng), 5(1), (June, 2024).
Yusuf, M. I., Anigbogu, N. A., & Dakas, A. I. I. (2024b). Evaluating the experiences of selected countries in expanding into international construction markets. FUTY Journal of the Environment, 18 (1), (March, 2024) 1-19.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Mohammed Isa YUSUF, Natalia A. ANIGBOGU, Audu Ibrahim Isa DAKAS
This work is licensed under a Creative Commons Attribution 4.0 International License.
