Abstract
The world has witnessed the dramatic expansion of international construction markets during the last decades, particularly around the developing economies and energy resource-rich countries. However, despite the booming markets, the risks of emerging regions have also increased under the rapidly changing environments confronting global contractors. Most of all, success in overseas business mainly depends on selecting a right market to enter. Accordingly, the right market selection requires global firms to carefully carry out the scientific market entry decision by evaluating country risks, market prospects, firm's capability, level of competition, and among others. This study aims at developing a market entry model by the use of real option analysis (ROA) and scenario planning, which places emphasize on firm's strategic flexibility against uncertainties encompassing the overseas construction markets. Based on the suggested approach, global contractors are expected to make a better decision rather than a widely used static NPV approach in pursuing, postponing, or abandoning a prospective market to their capacity with a consideration of uncertainties as well as its flexible option value. Copyright ASCE 2009.
| Original language | English |
|---|---|
| Title of host publication | Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress |
| Pages | 756-765 |
| Number of pages | 10 |
| DOIs | |
| Publication status | Published - 2009 Sep 11 |
| Event | 2009 Construction Research Congress - Building a Sustainable Future - Seattle, WA, United States Duration: 2009 Apr 5 → 2009 Apr 7 |
Publication series
| Name | Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress |
|---|
Other
| Other | 2009 Construction Research Congress - Building a Sustainable Future |
|---|---|
| Country | United States |
| City | Seattle, WA |
| Period | 09/4/5 → 09/4/7 |
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All Science Journal Classification (ASJC) codes
- Civil and Structural Engineering
- Building and Construction
Cite this
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Supporting market entry decision for global expansion using real option + scenario planning analysis. / Du Yon, Kim; Byungil, Kim; Seung, Heon Han.
Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress. 2009. p. 756-765 (Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
TY - GEN
T1 - Supporting market entry decision for global expansion using real option + scenario planning analysis
AU - Du Yon, Kim
AU - Byungil, Kim
AU - Seung, Heon Han
PY - 2009/9/11
Y1 - 2009/9/11
N2 - The world has witnessed the dramatic expansion of international construction markets during the last decades, particularly around the developing economies and energy resource-rich countries. However, despite the booming markets, the risks of emerging regions have also increased under the rapidly changing environments confronting global contractors. Most of all, success in overseas business mainly depends on selecting a right market to enter. Accordingly, the right market selection requires global firms to carefully carry out the scientific market entry decision by evaluating country risks, market prospects, firm's capability, level of competition, and among others. This study aims at developing a market entry model by the use of real option analysis (ROA) and scenario planning, which places emphasize on firm's strategic flexibility against uncertainties encompassing the overseas construction markets. Based on the suggested approach, global contractors are expected to make a better decision rather than a widely used static NPV approach in pursuing, postponing, or abandoning a prospective market to their capacity with a consideration of uncertainties as well as its flexible option value. Copyright ASCE 2009.
AB - The world has witnessed the dramatic expansion of international construction markets during the last decades, particularly around the developing economies and energy resource-rich countries. However, despite the booming markets, the risks of emerging regions have also increased under the rapidly changing environments confronting global contractors. Most of all, success in overseas business mainly depends on selecting a right market to enter. Accordingly, the right market selection requires global firms to carefully carry out the scientific market entry decision by evaluating country risks, market prospects, firm's capability, level of competition, and among others. This study aims at developing a market entry model by the use of real option analysis (ROA) and scenario planning, which places emphasize on firm's strategic flexibility against uncertainties encompassing the overseas construction markets. Based on the suggested approach, global contractors are expected to make a better decision rather than a widely used static NPV approach in pursuing, postponing, or abandoning a prospective market to their capacity with a consideration of uncertainties as well as its flexible option value. Copyright ASCE 2009.
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UR - http://www.scopus.com/inward/citedby.url?scp=69949084624&partnerID=8YFLogxK
U2 - 10.1061/41020(339)77
DO - 10.1061/41020(339)77
M3 - Conference contribution
AN - SCOPUS:69949084624
SN - 9780784410202
T3 - Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress
SP - 756
EP - 765
BT - Building a Sustainable Future - Proceedings of the 2009 Construction Research Congress
ER -