Benefits that foreign AEC firms derive when undertaking construction projects in China

Abstract

Purpose

The objectives of this paper are to investigate the reasons that motivate foreign architectural, engineering and construction (AEC) firms to undertake projects in China; whether foreign AEC firms derive significant benefits after working in China; and the strengths that foreign AEC firms need to possess in order to work in China.

Design/methodology/approach

The objectives were achieved through a postal survey, using a structured questionnaire. Data were collected from American and Singaporean firms.

Findings

Firms do indeed derive many benefits when undertaking projects in China. These include geographical diversification, monetary benefits, technical benefits and deepened relationships. Foreign AEC firms should possess strengths such as excellent track record, superior management capability and high product and service quality.

Research limitations/implications

The main limitation of this research is that it addresses motivations and benefits, but does not explain how to win and manage projects in China. Further research in these areas will be conducted.

Practical implications

Foreign practitioners should not ignore China market, but invest in China on a long term basis to reap many rewards.

Originality/value

This paper is original because it quantifies the benefits that foreign AEC firms will reap if they undertake projects in China.

Citation

Yean Yng Ling, F. (2005), "Benefits that foreign AEC firms derive when undertaking construction projects in China", Management Decision, Vol. 43 No. 4, pp. 501-515. https://doi.org/10.1108/00251740510593512