Exploring Theoretical Framework: Propensity of Nigerian Indigenous Construction Firms for Expansion into the International Market

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.