Motives and competitive assets of Pakistani international construction contracting firms

Abstract

Purpose– This paper aims to study the impact of a firm’s size and international experience on its internationalization because it remains an under-researched area. Using an integrated theoretical approach, this study examines the motives and (firm-specific and home country-specific) competitive assets, that enable the internationalization of Pakistan-based construction contracting firms (CCFs) having varied sizes and international experiences.Design/methodology/approach– Data were collected through a postal questionnaire survey. A comparative analysis of these data was undertaken for firms of varied sizes and international experiences.Findings– Findings show that firms of varied sizes did not concur over several firm-specific and home country-specific competitive assets, whereas firms of varied international experiences were in disagreement over fewer motives and home country-specific competitive assets. Small CCFs need to overcome weakness in their firm-specific competitive assets, especially international reputation and internationally experienced management. Government and home country support are needed to promote internationalization of emerging economies’ CCFs, especially younger and smaller ones that are more vulnerable due to an unstable business environment and lack of opportunities in domestic markets.Research limitations/implications– The firms included in this study represent only one service sector, i.e. the emerging economy scenario of Pakistan’s construction industry. Future research may be conducted with a deeper analysis of the differences between emerging and developed economies’ CCFs as well as other service sectors.Originality/value– The study will be helpful to those CCFs from emerging economies which are considering whether or not to internationalize and, to the regulatory bodies helping create a level playing field to nurture the internationalization process for their CCFs.