Internationalization of Construction-Related Consultants: Impact of Age and Size

Abstract

Studies on internationalization of the services sector are lacking. This is true for construction-related consultants (CRC). Studies on the impact of firm age and firm size on internationalization are even more lacking. A study on the internationalization of Malaysian CRCs (covering the civil engineering, cost engineering, and architecture disciplines) was conducted, with specific focus on five dimensions: motives for internationalization, modes of securing overseas projects, firm-specific competitive advantages, home country competitive advantages, and locational factors. Data were collected using the mixed methods of a postal questionnaire survey and follow-up interviews. Data between firms of different ages and sizes were compared. Firms of dissimilar sizes were in disagreement over a few firm-specific competitive advantages, whereas firms of dissimilar ages did not concur over several home country competitive advantages and locational factors. Small firms should form partnerships to overcome their size limitations. The Malaysian government should include young CRCs in its export promotion programs. Old firms that have yet to internationalize must overcome their inertia.