Wang, Z; Shi, L and Cui, H (2024) Effects of the host-country institutional environment on the operation mode change of international construction enterprises. Engineering, Construction and Architectural Management, 31(7), pp. 2721-2739. ISSN 0969-9988
Abstract
Purpose: The operation mode of enterprises will affect its resource commitment in the host country, involving different costs and time, as well as risks. Yet, the current state of knowledge about how the institutional environment affects the operation mode change of international construction enterprises is equivocal. This study aims to explore the impact of a host country's institutional environment on the operation mode change of international construction enterprises. Design/methodology/approach: First, this study proposes a model on the impact of the institutional environment on the operation mode change of international construction enterprises. Second, this study used the Worldwide Governance Indicators (WGI) published by the World Bank and a questionnaire survey to collect data. Finally, the study employs a multiple regression methodology to test the hypothesis and discusses the results. Findings: Results highlight that the important impact of the institutional environment on the operation mode change of international construction enterprises. The results showed that enterprises are more willing to increase resource commitments under the condition of stable institutional environment. In addition, enterprises' market-specific experience and general international experience, as moderating variables, weaken the impact of the institutional environment on the operation mode change. However, general international experience has no significant moderating effect. Practical implications: The findings of this study provide practical implications for the investment risk assessment of international construction enterprises. Enterprises need to consider the change in institutional quality and institutional instability of the host country, as well as their own international experience when changing operation mode. Originality/value: This study extends internationalization theory to the international construction field and provided theoretical guidance for the mechanism of operation mode change of international construction enterprises.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | institutional environment; international experience; operation mode change |
| Index terms: | questionnaire, internationalization, international construction, commitment, survey, governance, risk assessment, World Bank, multiple-regression, methodology |
| Subjects: | psychology, statistical analysis, institutional frameworks, data collection methods, business, strategic management, financial risk, research methods, economic analysis |
| Topics: | Research Practice, Organizational Design, Governance, Cost Management, International Construction |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here