Choice of GCC Construction Market Entry Mode

The international construction sector is one essential organ of the global economic body. More construction companies target international construction markets and would need to make a decision as the most appropriate mode to enter a particular market. This purpose of the study is to develop a framework to guide the decision making process for contractors considering entry to Gulf Cooperation Council (GCC) construction markets. This market emphasis the delivery of innovation and creating smart facilities and infrastructure. The study analyzed data from 86 international contractors who are listed as the most successful international contractors in the GCC countries. The paper examined the key factors that have influenced contractors’ entry strategy. The paper presents the results from the analysis of the proposed selection framework through interviews with a sample of top management executives in contracting firms. The study found that firms’ initial choice of a specific entry mode is a key strategic decision made to ensure successful investment. Firms believed that the option of entry mode adjustment is hard without incurring significant losses of time and money. Further, it was found that construction unique characteristics imply different priorities than those in other industries to enter foreign markets. Furthermore, The study concluded that most of GCC markets require the entry using permanent modes (branches or sole venture companies), eventually a set of recommendations were introduced to facilitate the entry process and ensure successful entry to GCC construction markets.