The recent advances in information technology and communication in general, have made it possible to access almost all parts of the world. Coupled with the principles of the World Trade Organization (WTO), the markets that were once insulated are now open to competition.
In the unfolding scenario, firm need to learn how to compete and adopt strategies that give them market shares that are no longer geographically limited. Small firms in the developing countries find themselves in a very precarious situation. Trying to emulate the strategies that large firms employ to create and sustain market positions is futile because of the large investments required.
This paper discusses possible strategies that the small construction firms in the developing countries could adopt so as to benefit from the globalization of the construction industry for their sustainability. Globalization could offer benefits to small firms in the developing countries if appropriate strategies are adopted (Williamson, 51-72).
Globalization rewards firms that are innovative and competitive, whether multinational or smaller enterprises. As global companies enter local markets, local companies enter global ones. The resulting competition increases product quality, widens the range of available goods and keeps prices low. Consumers everywhere are the big winners from the globalization process (Rodrik, 3-8).
Even before globalization, a goodly number of multinational firms had worldwide reach, most of them American, European and Japanese in origin. They had gone global the hard way, before governments adopted the raft of measures which facilitated globalization as it is today. It is only logical that such corporations are well placed to benefit from the additional advantages of globalization.
But this is not a zero-sum game. Multinationals - defined as companies which engage in international production - will not flourish at the expense of small firms and consumers; all will flourish together. For one thing.....
