Empirical Investigation into Factors Affecting Exporting Construction Services in SMEs in Singapore

Abstract

The Singapore government is encouraging construction enterprises to venture abroad for exporting their services and become global players since the local construction pie is shrinking and the global market is growing. The Building and Construction Authority of Singapore has revamped the contractors registration system with the hope of bringing about merger and acquisition of companies for improving the local contractors’ standing in the global construction scene. To diversify into new markets in a new environment, which is very different from local environment, requires diversification vis-à-vis exporting strategy. This study examines the attitudes and views of contractors, operating in Singapore (excluding foreign contractors), on how the strategic move should be focused for diversification vis-à-vis exporting services. The aim of this study is to establish the survival skills necessary for Singapore’s construction small and medium sized enterprises (SMEs) to venture abroad. A postal questionnaire survey was conducted and the results show that local construction SMEs who have diversified have reaped the benefits derived from diversification into new markets abroad. The main conclusions are that construction SMEs have to export their services in order to survive and they can enhance their export capabilities by forming a consortium with the help of local government.