Jung, W; Han, S H; Park, H and Kim, D Y (2010) Empirical assessment of internationalization strategies for small and medium construction companies. Journal of Construction Engineering and Management, 136(12), pp. 1306-1316. ISSN 0733-9364
Abstract
In the wake of increased globalization, more small and medium construction companies (SMCCs) are expanding into the global market. However, the international construction industry is different from the domestic with respect to resource, regulations, culture, entry strategies, and risk levels among other factors. This paper explores various ways and modes of internationalization for SMCCs under 13 key hypotheses that are relevant to the issues of internationalization from the perspective of SMCCs. To verify these hypotheses, this study used actual data from 560 cases of SMCCs' overseas projects performed between 1990 and 2007. It was found that SMCCs' entry scheme as prime contractors was more rewarding than in the case of subcontractors. Moreover, SMCCs are likely to evolve from subcontractors engaged with home-country contractors to subcontractors engaged with foreign contractors. Also, cultural distance is positively related to performance, but the effects of cultural properties are not as strong compared to the international manufacturing industry. The results are expected to help SMCCs build internationalization strategies by determining promising entry modes, proposing possible evolutionary paths to enter overseas projects, and assessing cultural effects in reference to SMCCs' successful performance.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | cultural effects; entry mode; evolutionary paths; foreign experience; internationalization; small and medium construction companies |
| Index terms: | foreign contractor, manufacturing industry, strategy, construction company, regulation, globalization, subcontractor, internationalization, international construction industry, entry mode |
| Subjects: | practitioner, strategic management, organization, business, economic analysis, management, industry analysis, political science, economic factors, market analysis |
| Topics: | International Construction, Research Practice, Business Strategy, Governance, Roles and Professions |
| Descriptive scope: | 2 PC |
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