The international evolution of engineering consulting firms: A strategy-tripod perspective

Abstract

This research investigates the internationalisation of engineering consulting firms. The study draws on the elements of the strategy tripod (industry factors, resources and capabilities, and institutional factors) combined with the stages of the internationalisation process (motivation to internationalise, market selection, mode of entry, and subsequent market operations). The factors that influence this process are identified using a longitudinal single case study of a New Zealand based engineering consulting firm with 40 years of international experience. The research identifies the five phases through which the case firm passed during that period, and highlights the different strategies that were apparent. Some of these strategies emerged out of practical coping, supporting the notion of wayfinding found in recent strategy literature. Individual actors lead to an adjustment of the modes of operation. This in turn leads to the emergence of a new phase of strategic focus in the context of internationalisation. The results demonstrate how sector specific industry factors influence the initial motivation for internationalisation and the motivation for further expansion. The entrepreneurial spirit of individuals, autonomous acting, and formal and informal networks were identified as firm-specific resources and capabilities. These are shown to be key drivers for market selections and permanent establishment in foreign markets. Informal institutional pressures such as client relationships were also shown to be partially influential in terms of market selections. The strategic patterns that were identified were largely influenced by firm-level institutions that in turn were shaped largely by these enthusiastic individuals. Overall, the role of individuals is emphasised.