Abstract—International market expansion involves a strategic process of market entry decision through which a firm expands its operation from domestic to the international domain. Hence, entry timing choices require the needs to balance the early entry risks and the problems in losing opportunities as a result of late entry into a new market. Questionnaire surveys administered to 115 Malaysian construction firms operating in 51 countries worldwide have resulted in 39.1 percent response rate. Factor analysis was used to determine the most significant factors affecting entry timing choices of the firms to penetrate the international market. A logistic regression analysis used to examine the firms’ entry timing choices, indicates that the model has correctly classified 89.5 per cent of cases as late movers. The findings reveal that the most significant factor influencing the construction firms’ choices as late movers was the firm factor related to the firm’s international experience, resources, competencies and financing capacity. The study also offers valuable information to construction firms with intention to internationalize their businesses. Keywords—Factors, early movers, entry timing choices, late movers, Logistic Regression Model, Principal Axis Factorial Analysis, Malaysian construction firms. I. BACKGROUND OF THE STUDY LOBALIZATION and liberalization have huge implications and bring along potentials to the new world economies which have become integrated widely in the past few decades. Abundant opportunities of investment have attracted many venture capital firms to make their ways into foreign countries [1]. This situation is also apparent for construction firms as international construction is not a new phenomenon. Hence, the cross-border expansion of firms from one country to another evidently shows that no market is ever safe from foreign competition, and it can no longer be seen as a localized industry. Luo and Peng [2] asserted that entry timing decision of foreign direct investment (FDI) plays an important role in the multinational corporations’ (MNCs) international expansion strategies. However, Dacko [3] Mat Isa C.M. is with the Synergistic Innovative Management Research Centre, Institute of Infrastructure Engineering and Sustainability Management, and a senior lecturer at the Faculty of Civil Engineering, Universiti Teknologi MARA, UiTM, Shah Alam 40450 Selangor, Malaysia (Phone: 603-5543 6163; e-mail: chema982@salam.uitm.edu.my). Mohd Saman, H. and Mohd Nasir, S.R. are senior lecturers with the Faculty of Civil Engineering, Universiti Teknologi MARA, UiTM, Shah Alam, Malaysia (Phone: 603-5543 6432; e-mail: hamid929@salam.uitm. edu.my, sitir015@salam.uitm.edu.my). Jaapar, A is a senior lecturer with the Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, UiTM, Shah Alam, Malaysia (e- mail: ainijaapar@salam.uitm.edu.my). claimed that entry timing decisions are very difficult where firms commonly face a particularly challenging decision to plan when it is best to enter a foreign market. In general, late timing of entry can be referred as when a firm enters a foreign market after other foreign firms have already established themselves in the host country. Previous studies of the entry timing revealed that early entrants may have advantages in achieving market growth and economic benefits ([4], [5]). However, in their study, Rodríguez-Pinto et al. [6] argued that the disadvantages and advantages of being the early entrants are still debatable, where further research is necessary to evaluate the contingent nature of the entry timing decision. Hence, the ideal entry timing into the market depends upon the strengths and weakness of a firm’s resources and capabilities [4], when they have to decide whether they are strong enough to be the early movers or they have to wait to be the late movers. Dacko [3] cautioned that when competitive stakes are high, the firms must plan carefully their entry timing decision by considering a wide array of internal and external factors that affect the firm’s interests. Research has consistently shown that adopting suitable market entry strategies is crucial in the firms’ decision to enter and most importantly grow and sustain in the international market. Nonetheless, the strategies on entry timing have received very limited attention in the international business research, specifically in investigating the entry timing choices such as being pioneers (first entrants), first mover, early followers, late mover or late entrants ([2], [5], [7]-[11]). So far, only few of the previous research have been conducted on the factors affecting the entry timing choices to expand into the international market [12]. In addition, most of the research focused on entry timing studies, which involved non-related construction business in the international market. Jiang [12] investigated the differences between factors affecting the early entrants and late entrants for the international pharmaceutical industry. Various factors that are widely considered as important motivation for foreign market entry timing were identified from the literature reviews related to market or country, firm, project, performance and management factors. Even though countries with significant market growth potentials have attracted many foreign investors to participate, the distance between both countries (home and host) also plays an important role in the firm’s timing decision. Gallego et al. [10] hypothesized and proved that the farther the host country chosen, the later the timing of entry of the firms. However, Mat Isa, C. M., Mohd Saman, H., Mohd Nasir, S. R., Jaapar, A. Factors for Entry Timing Choices Using Principal Axis Factorial Analysis and Logistic Regression Model G World Academy of Science, Engineering and Technology International Journal of Mechanical, Aerospace, Industrial and Mechatronics Engineering Vol:7, No:12, 2013 1492 International Scholarly and Scientific Research & Innovation 7(12) 2013 International Science Index Vol:7, No:12, 2013 waset.org/Publication/9996902