Assessing strategic choices of South African construction companies for internationalisation in the African continent

Abstract

In the context of increasing market saturation, South African construction companies are managing the complexities of internationalisation within Africa's evolving markets. In particular, the study discusses how traditional internationalisation frameworks (Uppsala Model and OLI Paradigm) can be adjusted to fit with dynamic African markets that are difficult to forecast. Based on 14 in-depth interviews with senior managers from different construction companies, the study gains significant insights into their experiences and requirements concerning practical challenges and strategic adaptations for a successful market entry or long-term presence. The findings illuminate the considerable role of cultural adaptation, the need for agile risk management strategies, and the importance of innovative logistical approaches in overcoming substantial political, legal, and infrastructural barriers. This study proposes an enhanced internationalisation framework that incorporates these elements, emphasizing the necessity for South African firms to integrate local market insights and cultural nuances into their business strategies. By doing so, companies may effectively navigate and competently compete in the construction industry in African, which is known for its fast-paced nature and fierce competition, particularly from companies with foreign goverments backing.This thesis contributes to the broader discourse on international business strategy, offering a detailed understanding of multinational operations in high-risk emerging markets.