Localization patterns amongst foreign enterprises active in the Chinese construction industry

Martek, Igor (2012) Localization patterns amongst foreign enterprises active in the Chinese construction industry. PhD thesis, University of Melbourne, Australia.

Abstract

The successful globalization of enterprises is predicated on them finding the right balance between retaining the core competitive advantages of home-grown strengths while integrating the best of locally found resources and competitive circumstances to leverage those core competencies to maximum effect. Despite the great academic interest that exists in this research area, no comprehensive investigation has been yet attempted to profile the localization practices of enterprises in a foreign context. In this study this deficit is addressed with an investigation of the degree to which foreign firms active in the Chinese construction industry have adapted their business activities in response to local circumstances. Five localization parameters are considered. These are 1) Client Base, 2) Human Resources, 3) Factor Inputs, 4) Value Chain, and 5) New Capability Acquisition. Sixty foreign firms active within the Chinese construction industry were investigated. Broadly, Client Base and Human Resources prove to be highly localized, but with important exceptions, while New Capability Acquisition hardly at all. Factor Inputs localization varies by input type and industry, while Value Chain localization is polarized. Cluster analysis techniques were used to examine localization linkages and to identify generic localization patterns. Five major patterns of foreign firm localization and five minor patterns were generated. Evident within the ten localization cluster patterns are clear and strong trends suggestive of the central importance of enterprise 'knowledge capabilities' in determining international business strategies. Environmental factors limiting the boundaries of localization possibilities were also explored, as were the implications of the findings on shaping current understanding of the phenomenon of localization. The localization patterns uncovered offer important insights to construction industry practitioners, as well as significant data against which researchers may explore the validity of extant theories of localization.

Item Type: Thesis (Doctoral)
Thesis advisor: Chen, Chuan
Uncontrolled Keywords: constructors; China; strategy; localization; internationalization
Index terms: strategy, cluster analysis, human resource, globalization, practitioner, foreign firm, environmental factor, China, boundaries, value chain, international business, competitive advantage, linkage, internationalization, validity, acquisition, investigation, construction industry, localization
Subjects: economic factors, industry analysis, value chain strategy, management, data analysis and analytics, business, data collection methods, market analysis, Geography, economic analysis, environmental science, property law, urban planning, practitioner, evaluation and assessment methods, strategic management
Topics: Business Strategy, Research Practice, Roles and Professions, Governance, International Construction, Human Resources, Geographical Context, Sustainability, Legal Issues, Supply Chain Management
Descriptive scope: 4 PCTA

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