Critical Success Factors for Malaysian Contractors in International Construction Projects using Analytical Hierarchy Process

Abstract

Construction projects are currently progressing slowly around the world as a result of the recent global economic crisis. In order to accommodate public needs within the current economic situation, the Malaysian Government has restricted the procurement of public sector projects to “necessary to meet public need” projects only thus narrowing the number of domestic projects available. Consequently, most major contractors have decided to change their focus by looking into international projects outside Malaysia not only to ensure the viability of their businesses but also for long-term survival. Although some Malaysian contractors have managed to penetrate successfully into international construction projects, their critical success factors (CSF) are purely unknown. This paper aims to determine the CSFs and provide some guidance for contractors interested in tapping international markets. This investigation is based on interviews with project managers, directors and key executives from Malaysian construction and engineering firms that have established an excellent reputation and worldwide success in the last decade. The CSFs are then presented in the form of AHP priority-ranking model, which prioritizes the success factors identified in sequential manner, from the most up to the less critical ones. The establishment of this kind of priority-ranking model enables contractors in Malaysia to not only identify the key elements or factors that need to be thoroughly considered and managed but also allow them to prepare appropriate mitigation strategies and contingency plans prior to entering into international construction projects.