Search results

The construction programmes of developing countries have constituted a significant part of the international construction market. However, while international contractors seek to exploit these opportunities, the host nations also wish to develop their construction industries over time. This paper shows how conflicting objectives of international contractors and host countries can be correlated for mutual benefit. It outlines strategies adopted by international construction enterprises and contrasts the approaches they adopt in industrialised countries with those in developing ones. It then compares the objectives of international construction enterprises to those of host countries. It uses Singapore's experience to illustrate likely future developments in the construction industries of emerging countries. Finally, it offers suitable approaches that international and local construction enterprises, and governments, should adopt at various stages of development of host countries' construction industries.

Factors affecting bid/no-bid decisions of international projects are more complex than those of domestic projects. The purpose of this paper is to identify and rank decision factors considered by variously sized Chinese international contractors (CICs) and categorize those groups of factors important to experienced practitioners.

The analysis of factors identified by a literature review is conducted based on data derived from questionnaire results received from 119 CIC project and bidding managers. The relative importance of factors is measured by mean value and standard deviation. The discrepancy in rank and importance value perceived by variously sized CICs are explored by ranking disparity analysis, non-parametric test and Spearman’s rank correlation coefficient test. Finally, factor analysis is used to categorize the underlying groups of factors considered by CICs.

In sum, 41 factors are identified through the literature review as having an impact on the bid decision. Significant disparities in ranking and importance are found in several factors, which partially affect the consistency of the ranking of factors perceived between large and small-medium CICs. Ultimately, nine major factors are identified as impacting the bidding decision, with “contractor’s capability” and “country risk of the host country,” being the most important.

The weight of a factor considered in a decision varies across contractors as a function of contractor size. Whether using models or subjective judgment in making decisions, it is beneficial to fully understand the main groups of factors influencing the decision. Vulnerability to country risk emerges as the first criterion accessed in the bid decision.

A comprehensive set of factors is established for CICs, including both general factors common to domestic projects, and international factors unique to international projects. All factors are grouped by inferential analysis from the perspective of contractors, which reveals the underlying mechanism of the bid decision-making process. While the data were collected from CICs, the methodology in exploring factors, along with implications, is determined to be applicable internationally.

The purpose of this paper is to investigate the major challenges faced by Chinese international contractors (CICs) in the Malaysian construction industry.

An exploratory sequential mixed-methods research approach was adopted where following a detailed literature review and semi-structured interviews with local professionals, 20 prevalent challenges experienced by CICs are identified. Subsequently, a questionnaire survey was used to elicit the views of 100 construction practitioners. Descriptive statistics were used to prioritise the challenges, while exploratory factor analysis was conducted to uncover the underlying factors.

The five most crucial challenges identified relate to: changes of regulation, cost control, contract clauses, language barrier and quality control. Exploratory factor analysis revealed four major underlying dimensions of these challenges, in connection to financial and government policy management, organisational performance management, supplier relationship management and cross-cultural management.

The challenges are considered primarily involving CICs in the context of Malaysia; further work can be extended to Western or other East Asian, such as Japanese and Korean, international contractors undertaking construction projects in Malaysia or selected developing countries around the region.

This study will benefit professionals involved with China-backed construction projects in countries sharing demographics and socio-economic characteristics akin to Malaysia. The outcome of the study is expected to facilitate project managers to devise proactive risk-mitigation measures to reduce the impact of these challenges and to improve project delivery.

The paper examined the challenges faced by CICs in the Malaysian context. This is a timely study, as China’s Belt and Road Initiative will provide considerable opportunities for Chinese companies in Malaysia.

The paper aims to investigate the prevailing institutional logics that underpin the organisational behaviours of Chinese contractors and the institutional complexity they face across several strategic areas when they undertake projects abroad.

The paper draws mainly on industry literature, reports and government websites to develop a typology of two ideal types of institutional logics that prevail among Chinese international contractors. The configurations of institutional complexity in different strategic areas are analysed through pattern-matching.

Two main logics are identified, namely, construction and investment logics. These logics in turn lead to patterns of volatile complexity in the strategic areas of business, technology, human resources and marketing; patterns of aligned complexity in operational and information technology strategic areas; and patterns of segregated complexity in financial strategic area.

The paper presents an ongoing doctoral research. It provides a preliminary understanding of the institutional logics affecting Chinese international contractors and sets out the first step to understand the relationship between complex institutional environments and organisational responses.

Chinese international contractors commonly face resistance, and at times resentment, from the local industries in the countries they operate. The findings of this paper are a first step towards a better understanding of why this is the case and what can be done to rectify the situation and improve long and short-term project performance.

This paper provides practical implications for Chinese contractors to understand their internal context of institutional complexity and provides the basis for further understanding of Chinese contractors’ strategic responses.

Given their interrelationship, international market selection (IMS) and entry mode selection (EMS) must be considered jointly if an optimal entry strategy is to be realized. However, researchers in the field of international construction have the tendency to consider IMS and EMS independently or sequentially. Therefore, this paper aims to explore a holistic framework that can accommodate IMS and EMS concurrently and test it using empirical data.

his study includes theoretical and empirical research. In theoretical part, an integrated decision model of IMS and EMS is proposed adopting literature review and theoretical derivation, then hypotheses are developed for the impact of decision-making factors. In the latter part, the IMS and EMS of 54 Chinese contractors in 67 countries were investigated, empirical data are collected according to hypotheses, an ordinal logistic regression model is established for statistics analysis. Finally, findings are drawn by comparing literature-based hypotheses with data-based analysis results.

Results show that empirical data fit theoretical model well. Findings are: IMS and EMS can be integrated into a holistic decision-making framework when be properly sequenced. When IMS and EMS are determined simultaneously, the decision can benefit from a sharing of common information. And the roles of at least 13 common factors are empirically demonstrated in this study.

The integrated decision sequence proposed in this study is applicable for a specific market, and cannot compare multiple alternative markets directly. The decision-making factors identified in this paper do not cover the enterprise strategic objectives and some other factors. Empirical data and some theoretical assumptions are based on the international market entry strategy of Chinese contractors. Therefore, the conclusions may not be completely applicable to global contractors though have certain reference value.

Based on the idea of holistic decision-making of IMS and EMS, this study proposes an international market entry strategy (IMES) sequence and an explicit model for determinants, then tests them with empirical data. This paper provides a new idea to manage IMS and EMS concurrently, which can improve the efficiency of IMES decision-making and avoid missing optimal alternatives. This study paves the way for a practical model and provides reference for contractors' international market entry strategy.

Corporate social responsibility (CSR) practice and research regarding construction contractors are comparatively limited. The purpose of this research is to identify a series of CSR issues that reflect the major components of CSR, and to determine the perceived importance of these factors in the context of construction contractors.

A CSR indicator framework was developed based on stakeholder theory. CSR stakeholders and their corresponding CSR performance issues in construction contractors are classified into two levels, i.e. project level and organizational level. This is followed by a questionnaire survey to investigate the perceptions on relative importance of CSR issues of four key stakeholders in typical construction projects in China, i.e. construction contractors, clients, design and engineering consultancy and supervision firms.

The study highlighted a number of factors, e.g. “quality and safety of construction”, “occupational health and safety” and “supplier/partner relationship” were highly regarded; however, their relative importance varied according to the type of responding organization.

The findings indicated the major concerns of the different parties in construction projects, thereby providing a pathway for construction contractors to improve their CSR practice.

The priorities of various stakeholders described in this paper provide a useful reference for construction contractors in the selection and adoption of criteria for CSR performance. A better understanding of perceived priorities of CSR factors from different participating parties also serves useful inputs to construction contractors in their stakeholder management process.

Besides ensuring traditional project objectives, expatriate construction professionals (EXCPs) working on international projects face challenges adapting to unfamiliar environments with varying construction standards, work practices and cultural values. This puts them at a high risk of job burnout. Thus, this study aims to investigate the antecedents and outcomes of EXCPs' job burnout in the international construction industry.

Based on the Job demands-resource model (JD-R), a theoretical framework was developed. Industry-specific stressors and expatriate management practices were identified using a literature review and interviews. The authors then used a questionnaire survey to collect data from Chinese EXCPs. Exploratory factor analysis, confirmatory factor analysis and structural equation modeling were then utilized to test hypotheses.

The findings indicate that early-career EXCPs experience the most severe levels of job burnout. The paths analysis proved the direct and indirect mitigating effects of expatriate management practices on job burnout, and EXCP's job burnout was associated with poor job performance and decreased intention to stay in the international assignment.

While prior research has explored job burnout among construction professionals working on domestic projects, little attention has been given to EXCPs and their unique challenges. This study aims to fill this critical gap in the literature by offering a unique perspective on the antecedents and outcomes of job burnout among EXCPs in international contexts and presents a significant contribution to understanding and addressing occupational health issues faced by EXCPs.

The purpose of this paper is to investigate whether a few leading Hong Kong construction firms are also efficient contractors. Theoretically, market leaders can exploit the virtue of economy of scale, learning curve and cost leadership to consolidate their competitiveness. However, if market share is key success factor for firms to become and stay competitive, smaller contractors will be further marginalized if the construction market continues to shrink as Hong Kong's economy approaches maturity. Hence the research question is: Have a few leading contractors been taking advantage of their market size to be efficient in Hong Kong?

Based on the Data Envelopment Analysis Assurance Region (DEA_AR) model, the efficiency scores of 17 major Hong Kong contractors are compiled over the last ten years. DEA is a non‐parametric approach to examine the relative efficiency among different firms, in terms of output/input ratios. Unlike traditional I‐O analysis which relies on a static table of coefficients, DEA does not require any priori and usually subjective weights for inputs or outputs.

The results identify efficient contractors, among which the three leading ones (China State Construction, Shui On Construction and Yau Lee Holdings) have captured the majority of housing construction contract values. Nevertheless, only China State Construction has ranked consistently as most efficient over time. The efficiency scores of Shui On Construction have decreased successively from 2002 to 2009, and it has been the least efficient contractor from 2006 to 2009. Yau Lee Holdings has a V‐curve of efficiency scores.

This study represents the first attempt to adopt a DEA_AR model to evaluate construction contractors' efficiency, which reduces the number of zeroes and the variation in weights for estimation and enhances the adequacy for individual contractor's efficiency scores, compared to other types of DEA models such as the CCR model and the BCC model.

The purpose of this study is to investigate and rank the critical factors influencing the bid/no bid criteria and their importance in the Australian construction industry.

The research study has been undertaken by conducting an extensive literature review on bid/no bid decision-making criteria. As a result, the researchers identified 26 most common bid/no bid decision-making criteria that are accordingly grouped into five distinct categories, namely, “project”, “market”,“contractor”, “client” and “contract”. The literature review was followed by a national survey that was designed and utilised by the researchers to collect data for this purpose. The survey was sent to potential 450 Australian construction companies in various locations and responses were received from 81 Australian construction companies. Response data were subjected to descriptive and inferential statistics. Kruskal Wallis one-way analysis of variance (ANOVA) was applied to detect significant differences between the mean score grouped according to the organisation size (contract value).

The descriptive and empirical analysis demonstrated a disparity of ranking of the 26 bid/no bid criteria factors among the groups; however no statistically significant differences among the 26 bid/no criteria factors despite the absolute differences in the rankings and mean scores in the following four factors: (1) “bidding condition”, (2) “strength/weaknesses”, (3) “contract payment terms” and (4) “number of competitors/bidders”. Based on the overall sample, the highly ranked four factors were “client financial capability”, “project risk”, “project future benefits and profitability” and “number of competitors/bidders”. The following were the least ranked: “contractors’ financial situation”, “project duration” and “contractors’ material availability”. “Client financial capability”and “project risk” were jointly ranked as the most important by large, whereas “client financial capability” was also rated highly for smaller Australian construction contractors (ACCs). The medium ACCs had “project risk”as highly ranked.

The majority of the participants were small construction contractors in Australia. The reason is that the researchers were not aware of the contractors’ size prior to inviting them for participation in the research study. Second, the findings may not generalise to other industries or to organisations operating in other countries.

The identified “bid/no bid criteria” increase the awareness of existing decision-making practices and play a critical role in the future decisions of the construction companies, where decision makers need to evaluate the next opportunities encountered. Furthermore, knowledge and possession of these identified “bid/no bid” criteria would enable contractors to select a project with a higher probability of success in the future, which will accordingly result in long-term financial benefits and higher performance. Finally, the awareness of these factors could contribute to changing the contractor’s behaviours when bidding in a competitive environment or market conditions.

The study contributes to the body of knowledge on tendering and bidding practices among contractors in Australia, an area previously under explored. Second, this study provides some insights on the factors influencing the bid/no bid decisions among the ACCs.

The potentially lucrative construction market in Asia is obviously the target of many international contractors from the west. However, in their clamour for a share of the Asian construction market, international contractors must recognize the peculiarities of Chinese societies while structuring their marketing plans. A clear understanding of these peculiarities and an ability to align themselves with Chinese customs, beliefs and practices would go a long way in helping international contractors win building projects in China. An understanding of the Chinese mind is an important factor for penetrating the Asian business culture. Highlights the “thick face, black heart” concept as an important phenomenon for marketing to the Chinese. It also analyses how an understanding of “thick face, black heart” can help international contractors from the west market their services more effectively in China.