Internationalization Process of Pakistani Contractors: An Exploratory Study

Due to advances in technologies and protocols of the World Trade Organization (WTO), more contractors from developing countries are succeeding in finding a space in the global market. This paper identifies and analyzes the patterns and influences related to the Pakistani contractor's decision to internationalize, motivating factors, foreign market selection and entry mode selection. Multiple case study approach, based on the five Pakistan-based construction firms have been used in this research. The case studies are based on direct interviews with the company's chief executives, postal questionnaire survey and the corporate reports. The findings showed that the motives for the international expansion of the surveyed firms were both pro-active and re-active. Pakistani contractors have shown more interest in Gulf and African countries. They opted for the international joint ventures as their preferred choice of entry mode strategy as it was easier to establish, know local laws, required low resource commitments and can easily share risk.