Loo, S C; Wang, C; Yap, J B H; Abdul-Rahman, H and Wood, L C (2020) Globalisation entry decision-supporting tool for international construction risks. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 175(4), pp. 151-166. ISSN 17514304
Abstract
Having made a globalisation decision, a contracting firm subsequently needs to make market selection decisions that are influenced by the level of uncertainty or the risks involved, the probability of winning the bid and the expected profitability, or based on generally expected utility. This paper aims to develop a globalisation entry decision-supporting tool integrating resource-based view (RBV), dynamic capabilities and Porter's generic value chain for international project selection. Through the combination of a questionnaire survey and an interview survey analysed by partial least squares structural equation modelling, a globalisation entry decision-supporting tool for facilitating project selection decision for contractors venturing internationally was developed. This study attempts the usage of an anomaly-seeking method in combining theories from three streams of strategic management concepts-namely, RBV, dynamic capabilities and Porter's generic value chain theories-into an integrated decision-supporting tool for risk forecasting and project selection in the international construction market. This study contributes to the knowledge of risk assessment by enhancing the current international entry decision tools with a firm's capability component. The model developed enables a firm to be informed of the combination of the firm's capabilities needed to lower the exposure to certain risks.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction management; offshore engineering; risk & probability analysis |
| Index terms: | partial least square, exposure, international project, globalization, questionnaire, dynamic capability, strategic management, stream, survey, structural equation modelling, offshore engineering, probability analysis, resource-based view, interview, profitability, international construction, project selection, risk assessment, forecasting, value chain |
| Subjects: | data collection methods, value management, prediction and forecasting, management, public and environmental health, water management, value chain strategy, infrastructure and transport systems, economic factors, statistical analysis, strategic management, economic analysis, financial risk |
| Topics: | International Construction, Research Practice, Business Strategy, Cost Management, Supply Chain Management, Sustainability, Engineering Principles, Project Management, Health and Safety |
| 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