A Framework to Analyze International Competitiveness: The Case of Construction Firms of China
International Journal of Economics, Finance and Management Sciences
Volume 8, Issue 2, April 2020, Pages: 84-88
Received: Apr. 13, 2020; Published: Jun. 3, 2020
Views 310      Downloads 126
Authors
Liu Guozhi, Alpine Mayreder Construction Co., Ltd, Beijing, P. R. China
Li Lexuan, School of International Economics, China Foreign Affairs University, Beijing, P. R. China
Song Lu, School of International Economics, China Foreign Affairs University, Beijing, P. R. China
Article Tools
Follow on us
Abstract
With the rapid development of the Chinese construction industry, increasing support from the government, and China’s internationalization, Chinese construction firms have gained great opportunities in venturing abroad. Though Chinese construction firms played an important role in the international market, Chinese contractors’ share of the international market is still smaller in comparison with their competitors. As an important participant in the international market, Chinese construction firms are confronted with the tasks of keeping themselves competitive. The paper stated the development stages of Chinese construction firms, analyzed the current situation and challenges of Chinese construction firms in the international construction market. Drawing on the resource-based view and industry organization approach, this research builds a conceptual model to investigate the relationship among core capability, competitive strategy and market entry mode strategy within Chinese construction firms, and focuses on strategic analysis in affecting Chinese construction firms’ international performance. The conceptual model presented herein was a generic framework that allowed industry practitioners and academic researchers to understand, sustain and extend the international competitiveness of Chinese construction firms. To help construction firms maintain and improve their competitiveness, the conceptual model implied that Chinese construction firms’ international competitiveness depends upon the identification of appropriate strategy and industry structure as well as developing and creating core capability in order to exploit opportunities and neutralize the threats presented by competition.
Keywords
Core Capability, Competitive Strategy, Market Entry, China, International Competitiveness
To cite this article
Liu Guozhi, Li Lexuan, Song Lu, A Framework to Analyze International Competitiveness: The Case of Construction Firms of China, International Journal of Economics, Finance and Management Sciences. Vol. 8, No. 2, 2020, pp. 84-88. doi: 10.11648/j.ijefm.20200802.13
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
Engineering News Record (ENR). The top 225 international contractors [DB/OL]. Available: https://www.enr.com/ext/resources/static_pages/Top-600/Top-Lists/2019/Files/ENR_2019_Top250.pdf, 2019.
[2]
Chen, C. Orr, R. J. Chinese contractors in Africa: home government support, coordination mechanisms and market entry strategies [J]. Journal of Construction Engineering and Management, 2014 135 (11) 1201-1210.
[3]
Co, C. Y. Chinese contractors in developing countries [J]. Review of World Economics, 2014 150 (1) 149-171.
[4]
Zhao, Z.,Yao, J,Tang C. Chinese Contractors in the International Market: Business Distribution and Competitive Situation [C]. Proceedings of the 20th International Symposium on Advancement of Construction Management and Real Estate, 2017.
[5]
Barney, J. B. Firm resources and sustained competitive advantage [J]. Journal of Management, 1991 (17) 99–120.
[6]
Ahmad,S. Z. Kitchen, P. J. International expansion strategies of Malaysian construction firms: Entry mode choice and motives for investment [J]. Problems and Perspectives in Management, 2008 6 (3) 15-23.
[7]
Gaur, A. S., Kumar, V., & Singh, D. Institutions, resources, and internationalization of emerging economy firms [J]. Journal of World Business, 2014 49 (1) 12-20.
[8]
Porter, M. E. (1980). Competitive Strategy: Techniques for Analysing Industries and Competitors [M]. New York, NY: Free Press.
[9]
Kallia, M. A. Competitive strategies adopted by Chinese firms in the building and construction industry in Kenya [D], PhD thesis, University of Nairobl, 2012.
[10]
Parsa, A., Huston, S., Kashyap, A., Li, P. The international competitiveness of Chinese construction firms [C]. European Real Estate Society (ERES) Conference,24-27th June, 2015, Istanbul, Turkey.
[11]
Pan, Y., & Tse, D. K. The hierarchical model of market entry modes [J]. Journal of International Business Studies, 2000 31 (4) 535-554.
[12]
Cheah, C. Y. J., Kang, J., Chew, D. A. S. Strategic analysis of large local construction companies in China [J]. Construction Management and Economics, 2007 25 (1) 25-38.
[13]
Carpano, C., Chrisman, J. J., & Roth, K. International strategy and environment: An assessment of the performance relationship [J]. Journal of International Business Studies, 1994 25 (3) 639-656.
[14]
Pheng, L. S., Jiang, H. B., Christopher, H. Y. L. A comparative study of top British and Chinese international contractors in the global markte [J]. Construction Management and Economics, 2004 (22) 717-731.
[15]
Gunhan, S. Foreign market entry decision model for construction companies [D]. PhD thesis, Illinois Institute of Technology, USA, 2003.
[16]
Chen, H., Hu, M. Y.. An analysis of determinants of entry mode and its impact on performance [J]. International Business Review, 2002 (11) 193-210.
[17]
Leiringer, R. Technological Innovation in PPPs: Incentives, opportunities and actions [J]. Construction Management & Economics, 2006 24 (3) 301-308.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186