Shen, W; Zhai, X; Wan, L and Ren, X (2026) Unlocking internationalization success in construction: A configurational analysis of firm strategies and market dynamics. Journal of Construction Engineering and Management, 152(2): 04025249, ISSN 0733-9364
Abstract
The internationalization of construction firms is crucial for sustaining long-term growth and enhancing global competitiveness. However, how internal and external factors interact to shape internationalization outcomes in terms of depth and scope remains unexplored. Grounded in the resource-based view and institutional theory, this study used a fuzzy-set qualitative comparative analysis (fsQCA) to examine key drivers of internationalization among construction firms, focusing on joint venture partnerships; enterprise scale environmental, social, and governance (ESG) performance; competitive intensity; and governance efficiency of the host country (i.e., host countries' regulatory transparency, political stability, and transaction cost efficiency). By analyzing data from 101 Chinese international construction firms, this study identified 9 configurations that explain varying levels of internationalization in both depth and scope. Four configurations indicate high internationalization, with enterprise scale and competitive intensity consistently emerging as core conditions, whereas joint venture partnerships serve as a supportive factor. ESG performance influences internationalization depth but is not essential for achieving a broad international scope. Conversely, five configurations explain low to moderate internationalization levels. In these cases, joint venture partnerships alone provide limited support, because smaller enterprise scale or lower governance efficiency in host countries constrains the scope of internationalization. This configurational analysis offers a nuanced view of how diverse combinations of internal capabilities and external conditions lead to varying internationalization outcomes. The findings provide valuable strategic insights for construction firms aiming to expand in complex global markets.
| Item Type: | Article |
|---|---|
| Index terms: | configuration, strategy, qualitative comparative analysis, stability, construction firm, resource-based view, transaction cost, markets, transparency, dynamics, international construction, competitiveness, partnership, internationalization, efficiency, institutional theory, governance, joint venture |
| Subjects: | business, systems engineering, partnership management, sociology, professional development, management, performance management, economic analysis, strategic management, organization, financial analysis, market analysis, structural engineering, research methods |
| Topics: | Quality Management, Engineering Principles, International Construction, Research Practice, Information Management, Business Strategy, Cost Management, Governance, Stakeholder Management |
| Descriptive scope: | 3 PCT |
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