International construction management: the cultural dimension

Cultural differences at the national level are a challenge for all companies operating beyond their own national borders. They change the way business is done in the most fundamental ways. A subject thoroughly researched in other fields, the literature indicates that, beyond a small number of very specific studies, there is a paucity of research into the impact and effects of cultural differences on the international construction industry. The international construction industry began with the Victorian railway magnates but, today, has become a sophisticated, global market, with construction enterprises operating in both developing and developed countries worldwide. When this is seen in light of the complex, project-based arrangements involved in production of the built environment, the potential impact of national cultural differences is, arguably, more pronounced than in any other industry. From the literature, it was established that while the cultural dimension is recognised as being important within the international construction industry, there was no mention of how culture is considered at either the operational or strategic level beyond anecdote. Thus, the research sought to establish the ways in which both British expatriate construction professionals, and the companies for whom they work, respond to the cultural dimension. A questionnaire, comprising both qualitative and quantitative elements, was devised to gather the views of British construction professionals working outside the UK. This was supplemented by interviews with key decision-makers in eight, diverse construction enterprises, all of which had operations outside Britain. It was found that both British construction expatriates and the companies they work for adopted an ethnocentric response to the differences that they encountered when working overseas. However, while the expatriates were moving towards a more synergistic approach, the companies (both consultancies and contractors) were moving towards parochialism. It is argued that in an increasingly globalised and culturally diverse market, both at home and overseas, British construction enterprises will need to focus far more on the esoteric aspects of their business, such as culture, to maintain their competitive edge. One of the organisations studied was identified as epitomising 'best practice' in their treatment of cultural diversity, and their approach is recommended as a way to manage cultural differences throughout the industry.