Strategic Entry Location Decisions by Using of Entry Location Decisions Modeling (ELDeMo)
摘要
Firms often ask several questions before entering the international market, ranging from “Where are the markets with potential?” to “What are the factors that influence the firm’s decision in choosing the location?”. It is important for researchers to continue investigating and developing strategies to address this issue. In this regard, models are less developed for helping construction firms choose strategic locations by continent. Hence, the scant knowledge and access model related to the global market make it difficult for Malaysian companies to win projects abroad. Additionally, local construction firms lack an in-depth understanding of the overseas market. Moreover, firms are unable to identify effective entry location strategies when selecting appropriate entry location decisions in international markets. In this regard, this study fills this knowledge gap by developing Entry Location Decisions Modeling (ELDeMo), which is expected to help Malaysian construction firms (Mcf) reach the international level. Subsequently, ELDeMo is a combination of key factors that influence Mcf to enter international markets and also six main continents based on hierarchy scales from poor to excellent decision-making that suit their respective companies’ capabilities to succeed in the host country. ELDeMo incorporates the six main factors, including firm-specific, firm-resource commitment, project-specific, target country, home country, and market-specific, as depicted through an integrative literature review and synthesized, and six continents comprised of Europe, Australia, the United States, Asia, Africa, and ASEAN. This study points the way forward for future work on developing strategic entry location models.