Internationalization Strategies and Financial Performance in Multinational Construction Companies

Kiran Kumar Srinivasan

Master's thesis

Abstract:

This master's thesis explores the relationship between internationalization strategies and the financial performance of multinational construction companies, emphasizing the impact of technology advancements, trends and regional factors on their global financial success, particularly in the French and Austrian markets. The thesis provides insights into the primary internationalization strategies, factors influencing decision-making for international expansion, and financial risk assessment strategies. The comparative analysis of VINCI, Bouygues, and Strabag SE reveals the significant influence of internationalization strategies on financial performance. Companies are urged to adapt to local market conditions and technological advancements for success in the global construction market. Market diversification, mergers, acquisitions, and joint ventures emerge as key strategies for international expansion and that companies that prioritize these strategies tend to outperform those that do not. The findings also show that companies that effectively manage financial risks, such as debt-to-equity ratios, are more likely to achieve financial success in their international operations.

Abstract:

This master's thesis explores the relationship between internationalization strategies and the financial performance of multinational construction companies, emphasizing the impact of technology advancements, trends and regional factors on their global financial success, particularly in the French and Austrian markets. The thesis provides insights into the primary internationalization strategies, factors influencing decision-making for international expansion, and financial risk assessment strategies. The comparative analysis of VINCI, Bouygues, and Strabag SE reveals the significant influence of internationalization strategies on financial performance. Companies are urged to adapt to local market conditions and technological advancements for success in the global construction market. Market diversification, mergers, acquisitions, and joint ventures emerge as key strategies for international expansion and that companies that prioritize these strategies tend to outperform those that do not. The findings also show that companies that effectively manage financial risks, such as debt-to-equity ratios, are more likely to achieve financial success in their international operations.

Keywords

Decision-Making, Financial Performance, Internationalization Strategies, Regional Factors, Technological Advancements, Trends.

Language used: English

Date on which the thesis was submitted / produced: 6. 5. 2024

Thesis defence

• Supervisor: Ing. Lenka Strýčková, Ph.D.

Technical University of Liberec

Faculty of Economics

Master programme / field:
International Management / International Management