ASSESSMENT OF INTERNATIONAL EXPANSION STRATEGIES FOR INDIGENOUS CONSTRUCTION FIRMS IN NIGERIA

Abstract

Business expansion is the bravery for the survival of any business activity in the world. The aim of the study is to assess the international expansion strategy for indigenous construction firms in Nigeria with a view to proffering an informed knowledge for such business expansion. A number of measures have been formulated and implemented by successive Nigerian government to improve the performance of indigenous construction firms in Nigeria which have proved futile. With the many opportunities provided by globalization in the international construction market, Nigerian indigenous contractors can avail themselves with the knowledge of the international entry modes and other sustainable strategies provided by the study without which can lead to significant consequences. A field study was conducted using a sample of 69 medium and large indigenous construction firms selected by census sampling while the in-depth interview was carried out through convenient sampling technique to strengthen it. The data were collected using structured questionnaire and personal interview and analysed using descriptive, percentile and mean item score. The result revealed high level of awareness of joint venture mode of entry over others; sole venture project as the most preferred international mode of entry for Nigeria indigenous contractors; contractor’s financial capital base as the most international expansion strategic measure; political environment of the host country as the most critical environmental factor; and the shortage of project capital as the most challenging factor hindering the indigenous contractor’s international business expansion. The findings indicate the need for sensitization of the effective operational international entry modes and the other international sustainable strategies by the Federation of Construction Industry (FOCI); establishment of construction information data bank and the full government support to encourage indigenous contractors’ expansion capacity.