Enablers for Singapore contractors to internationalize construction services

Abstract

With international trade liberalization, construction firms are expected to export their services to ensure continued growth. Some firms have been successful in the international arena, while many are still struggling to gain a foothold outside their domestic markets. The characteristics of construction firms that enable them to secure contracts outside their home countries are investigated. The characteristics of exporters and non-exporters are compared. Detailed characteristics of 60 exporters and 60 non-exporters were obtained from the database of registered contractors in Singapore. Significant variables that correlate with the number and value of international projects were identified. In order to win more overseas projects, firms should be well established, have stronger financial capability and have continued operations in the home market. When exporting, firms should be willing to play the role of both main and subcontractors, have the capability to handle different types of projects and venture into several geographical locations. Several differences between exporters and non-exporters based in Singapore are identified. Exporting firms are more likely to be public listed firms, and larger firms with higher paid up capital. Non-exporters are more likely to be principal contractors who are handling a wide variety of projects. Firms that want to export their services would need to develop their financial strength, and offer niche products or services.