An entry mode decision‐making model for the international expansion of construction enterprises

Abstract

Purpose

The purpose of this paper is to provide a new type of entry mode decision‐making model for construction enterprises involved in international business.

Design/methodology/approach

A hybrid method combining analytic hierarchy process (AHP) with preference ranking organization method for enrichment evaluations (PROMETHEE) is used to aid entry mode decisions. The AHP is used to decompose the entry mode problem into several dimensions and determine the weight of each criterion. In addition, PROMETHEE method is used to rank candidate entry modes and carry out sensitivity analyses.

Findings

The proposed decision‐making method is demonstrated to be a suitable approach to resolve the entry mode selection decision problem.

Practical implications

The research provides practitioners with a more systematic decision framework and a more precise decision method.

Originality/value

The paper sheds light on the further development of entry strategies for international construction markets. It not only introduces a new decision‐making model for entry mode decision making, but also provides a conceptual framework with five determinants for a construction company entry mode selection based on the unique properties of the construction industry.

Citation

Li, H., Jin, Z., Li, V., Liu, G. and Skitmore, R.M. (2013), "An entry mode decision‐making model for the international expansion of construction enterprises", Engineering, Construction and Architectural Management, Vol. 20 No. 2, pp. 160-180. https://doi.org/10.1108/09699981311303026