The Challenges for Micro, Small and Medium Sized Construction Enterprises Operating in the International Construction Markets

The paper is about international construction, and the nature of how companies that ventures overseas, face the challenge of operating in changing environments, because of the way that micro, small, and medium sized enterprises (MSME) are integrated into the supply chain for international projects using outdated processes. MSME play an important role in the international construction industry. They are a source of entrepreneurial skills, employment opportunities, and innovation. Large companies receive all the publicity on international projects, all the industry awards, and all the credit, but for most projects, they rely upon their supply chain comprising both local and overseas MSME’s to build the project and provide the work force. Principal contractors have become organisers and managers of complex supply chains, particularly when working on overseas projects. The old world was about directly employing a workforce; the new world is about managing complex supply chains. The change presents new challenges for the design, procurement, and management of construction projects in the international construction market. The fundamentals of managing cost, time, quality, and compliance need new organisational, financial, and management models when operating internationally. Human and financial capital, and productivity are at the root of the challenge. The research considers the challenge of how MSME can improve performance on the job site when operating internationally; the hypothesis is that the contribution by the MSMEs’ uses outdated and inappropriate organisation, financial, and management systems. Observation, semi-structured interviews, document reviews within selected case studies have been chosen for this research. MSMEs’ characteristics, challenges and their reflection to supply chain management have been considered to set up the main outcome of the research.