Differences and similarities between Pakistani and British construction contracting firms internationalization: application of REM Model

Abstract

ABSTRACT
Background: Various local construction firms are expanding their business to
overseas. Developed countries firms are considered more advance in their
internationalization process. The direct comparison between the
internationalization of emerging and developed countries firms remains an under-researched area.
Objectives: Using an integrated theoretical approach, this paper examines the
differences and similarities in the internationalization of construction contracting
firms (CCFs) from emerging and developed countries taking a comparative study
of Pakistani and British experience.
Methods: The data were collected through postal questionnaire survey. A
comparative analysis of the data was done for CCFs having significant involvement
in foreign markets originating from Pakistan and Britain.
Results: The main external motive for Pakistani CCFs is the competitive pressure
in home market whereas British CCFs have good proximity to their clients and
suppliers. The main internal motives for both Pakistani and British CCFs are
expansion of the business network of firm and availability of skilled labor. The main
barriers faced by Pakistani and British CCFs in foreign markets are inaccessible
market information and high start-up cost. The findings of the study show that
British CCFs have more developed and elaborated formal networks than Pakistani
CCFs. Whereas, Pakistani CCFs are more inclined towards the geographical
closeness of the host markets. In terms of operational modes, British CCFs are seen
at more advanced development stage than Pakistani CCFs.
Conclusions: The findings show that case firms provide empirical support to
various theories; however, the explanatory power of Stage theory is limited in
addressing the internationalization of British CCFs.