Key Strategies in Undertaking International Construction Project: Contractors’ Perspective

Norliana Sarpin,Narimah Kasim,Hamidun Mohd Noh,Yi Ling Chia,Rozlin Zainal,Roshartini Omar,E Mohd Ahnuar,N.A Abdul Rahman,R Mohd Nordin,J Yunus

doi:10.1051/matecconf/201926603019

Norliana Sarpin, Narimah Kasim + Show 8 more

Open Access

https://doi.org/10.1051/matecconf/201926603019

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Abstract

The pressures of internationalisation have generated a high competitive market on Malaysian construction industry. However, the competitive and saturated of domestic market has driven many Malaysian contractor to undertake international projects. Without any denial, participation in international projects is a challenging task. It requires Malaysian contractors to develop strategy to enable them to operate successfully abroad. Therefore, the objectives of this research is to examine the key challenges for Malaysian contractors to undertake international construction projects thus identify strategies for Malaysian contractors to undertake international construction projects. To achieve the objectives of this research, quantitative method were adopted by using questionnaires. Questionnaire were distributed to participants from well experienced management team of G6 and G7 companies that have vast involvement in international projects. The findings of this research revealed that skilled worker shortage, high cost of financing of international project and limited experience with similar projects are the top three key challenges encountered by the Malaysian contractors in international construction project. The research identifies risk management and forming joint venture are the key strategies for Malaysian contractor to undertake international projects. In conclusion, this research can assist Malaysian contractor who wish to embark in international projects in supporting the current Construction Industry Transformation Programme (CITP) and the 4th Industrial Revolution in construction industry.

Highlights

Construction industry has become more competitive in 21st century, there was a trend of internationalisation for Malaysian contractors to expand their business at outside of Malaysia in order to ensure their viability and long term survival in international market [1]
The result shows that the respondents for this research were key players in international project with various roles and responsibilities, held managerial positions and have vast experience in construction industry
Based on the finding of the questionnaire survey, the results demonstrated that skilled worker shortage in category of human resources is the most critical challenges faced by Malaysian contractors to undertake international project

Summary

Introduction

Construction industry has become more competitive in 21st century, there was a trend of internationalisation for Malaysian contractors to expand their business at outside of Malaysia in order to ensure their viability and long term survival in international market [1]. International construction project provides opportunities for Malaysian contractor, there was complex risk, and uncertainties and challenges when Malaysian contractor accepting and contracting a project from outside of homeland [2]. This is due to lack of international construction experiences and business operating environmental information [3].Without any denial, today’s international construction is more complicated than ever [4]. There are obviously more challenges for international projects as compared to local project due to variety of difficulties [7]

Objectives

Methods

Results

Conclusion