Ling, F Y Y; Ibbs, C W and Cuervo, J C (2005) Entry and business strategies used by international architectural, engineering and construction firms in China. Construction Management and Economics, 23(5), pp. 509-520. ISSN 01446193
Abstract
International architectural, engineering and construction (AEC) firms need to decide on the appropriate market entry mode and business strategies when undertaking projects overseas. The objectives of this research are to investigate the effective market entry modes for penetrating China and the effective business strategies for managing projects in China. The research method is based on a structured questionnaire and data were collected via postal survey. Interviews have been conducted to complement the survey. The results show that establishing a wholly owned subsidiary in China is the most effective entry mode. Foreign AEC firms need to adopt a differentiation strategy by providing niche and superior service. They must also pay great attention to customer satisfaction to gain competitive advantage and clinch and manage projects. To succeed in China, foreign AEC firms need to set up a physical office there, to develop a good understanding of local by-laws, understand client requirements better and therefore provide them with a superior product or service.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | China; foreign firms; international construction; market entry mode; strategies |
| Index terms: | entry mode, international construction, customer satisfaction, client requirements, market entry, competitive advantage, questionnaire, foreign firm, differentiation, China, interview, strategy, business strategy, survey, construction firm |
| Subjects: | strategic management, data collection methods, organization, business, market analysis, management, service delivery, Geography, professional development |
| Topics: | Organizational Design, International Construction, Stakeholder Management, Business Strategy, Geographical Context, Research Practice, Information Management |
| Descriptive scope: | 4 PCEA |
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