International markets: Malaysian construction contractors and the stage theory

Reduced demand for services, lack of finances for projects and idle resources at home have resulted in loss of business for Malaysian construction contractors. Among the options that are explored in this paper is internationalisation of services to help the contractors gainfully employ their resources and diversify their markets. Integration of world markets, faster transportation and improved means of communication have made it possiblefor contractors to undertake work in international markets. It was found that contractors were motivated to internationalise by need to make the firm a viable one by considering the long-term profitability. Reputation and size of the firm were found to be factors that help contractors in winning contracts overseas. Most non-exporters were concerned with provision of market intelligence and export credit finance. It was found thatproviding relevant market information, accessible to both exporter and non-exporters, can help firms make informed decisions. Any assistance provided should match the firm to the stage the firm has reached in exporting.