Significance of location factors for Singapore transnational construction corporations

Abstract

Dunning's eclectic paradigm of international production, which focuses on the ownership, location and internalisation factors, presents a useful framework to explain the foreign value-added activities of transnational corporations, "Eclectic paradigm" means a general framework or model chosen from what is preferred from various theories, systems or doctrines. The present study extends the eclectic paradigm to a study of Singapore transnational construction corporations (STCCs) and examines what location factors are viewed as the most significant for STCCs engaged in foreign value-added construction-related activities in their major international construction market. This study examines if these location factors vary significantly according to firm-specific contextual variables in the STCCs, such as size, international age, multinationality and extent of specialisation/ diversification, as well as the major reasons for STCCs to export their services overseas. The most important host location factors identified by STCCs operating in other Southeast Asian countries are: the host governments' attitudes, policies and regulatory framework; the social, political, cultural and geographic factors; and the cost of doing business factors.