CONSTRUCTION BUSINESS & PROJECT MANAGEMENT CONFERENCE · Vol. 2021

Entry modes used by multi-national firms in crossing borders into the Nigerian construction market

Olorunoje Lukman Olarewaju, Odediran Sunday Julius and Amuda-Yusuf Ganiyu

Keywords: construction market, entry modes, foreign market, multi-national firms, Nigeria

Abstract

The contribution of multi-national firms to the Nigerian construction market is significant due to the huge demands for basic infrastructure in the country. However, multi-national firms seeking entry into the Nigerian construction market need to decide which entry mode to use in entering the market. This paper examines the profiles of multi-national firms operating in the Nigerian construction market and assesses the entry modes used by the multi-national firms to access the market. A quantitative research approach was adopted where data were collected through copies of questionnaires administered on directors, chief executives, managers, and senior personnel working for the multi-national construction firms in Nigeria. Descriptive and inferential statistics were used to analyse the data collected. The study reveals that some multi-national firms have established themselves in the Nigerian construction market because of their financial capabilities, technical know-how, manpower, equipment and machines to participate in the market. The study also established that multi-national construction firms in Nigeria have used entry modes like licensing, branch office/company, joint venture company, sole venture company and built operate transfer/equity project to enter the market and these entry modes were effective. The paper concludes that the multi-national firms that are working in the Nigerian construction market are competent and the entry modes they used to access the market are effective.