Chen, C; Wang, Q; Martek, I and Li, H (2016) International market selection model for large Chinese contractors. Journal of Construction Engineering and Management, 142(10): 04016044, ISSN 0733-9364
Abstract
An increasing number of construction contractors are actively participating in international markets. One of the most fundamental issues confronting contractors moving offshore is where to do business. Although international market selection is a much studied topic, the market choices made by construction firms have attracted little attention. This paper aims to identify factors that influence international market selection and to develop an international market selection model for construction firms. The market entry choices of 39 large international Chinese contractors across 87 countries were investigated through logistic regression analysis. The results indicate that international contractors prefer to enter countries with large market potential, small culture distance, and, surprisingly, high country risk and high competitive intensity. Moreover, large, experienced contractors are more willing to compete in international markets. Contrary to generally accepted belief, geographic distance is not revealed to have any significant influence on international market selections by Chinese contractors. This paper will be of interest to contractors considering international market selection as part of their global expansion strategy.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | China; construction firms; international construction; international market selection; organizational issues |
| Index terms: | logistic regression analysis, international market, international construction, market entry, organizational issue, strategy, construction firm, China, construction contractor |
| Subjects: | practitioner, business, organization, strategic management, development economics, Geography, management, statistical analysis |
| Topics: | Organizational Design, International Construction, Roles and Professions, Research Practice, Geographical Context, Business Strategy |
| Descriptive scope: | 3 PCA |
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