Developing the International Construction Contracting Market: Enterprise Niche Approach

Zhao, Zhen; Xu, Ke; Zuo, Jian; Tang, Chao

doi:10.1061/(asce)me.1943-5479.0000470

Cited by 28 publications

(8 citation statements)

References 33 publications

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“…However, in the construction market, the two general mechanisms do not adequately account for the "thickening" transformation of the construction market's competition network. This could be as a result of overlapping niche markets [7] or as a result of a bid-rigging organization perpetuating the competitive illusion [50]. These findings lend credence to the notion that as market commonalities fluctuate and competitive advantage persists, strong enterprises become more reliant on and appreciative of rival behavior [36].…”

Section: Network Growth: Topology and Thickeningmentioning

confidence: 61%

“…On the contrary, in Australia [21], Portugal [22], and the United States, small and medium-sized construction enterprises have a much broader survival space. Scholars also found that the phenomenon of the clustering of international construction enterprises, in which European construction enterprises were concentrated in Europe, was a form of competition that Asian construction enterprises rarely participated in [7].…”

Section: Competition In the Construction Marketmentioning

confidence: 99%

“…The global industrial chain and supply chain have been reformed, competitive products have grown more flexible, and the competitive frontiers of firms have grown blurred since the beginning of the 21st century. In many nations, strong competition has compelled local construction firms to investigate and compete in the international construction industry [7]. As information exchange technology advances, a broader market for service outsourcing develops, firms gain more integrable competitive resources and opportunities for engagement in non-core business competitiveness [8].…”

Section: Introductionmentioning

confidence: 99%

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Market Commonality and Competition in Communities—An Empirical Study Based on Bidding Data of the Construction Market

Chen¹,

Ye²

2021

Buildings

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In contrast to traditional enterprise rivalry, the construction market competition is irregular on the surface due to the randomization of client targets and the one-time competition organization, which conflicts with construction businesses’ perceptions of the nature and future trend of rivalry. Therefore, contractors urgently need to accurately understand the competitive environment in which they will operate. In construction, few empirical studies exist on competitive environments from the standpoint of enterprise-to-enterprise competitive interactions. Based on market commonality, several hypotheses concerning the competitive pattern of the construction market have been proposed. To test these, a model of competing relationship networks is created using 7402 bid-winner notices for construction projects in Chongqing, China, from 2015 to 2018, followed by quantitative analysis and discussion of the model’s characteristic features. The findings suggest that there is a “community-type” rivalry in the building market, which represents the essential characteristics of market commonality. The research shows that the competitive action of construction enterprises is affected by construction technology, industrial division of labor and regional markets, and the competitive relationship between them tends to be “strong-strong”. This study reveals that the “community” competitive relationship in the construction industry may be a unique phenomenon, expands the application and development of market commonality and enterprise clusters in the construction economy, and provides theoretical guidance for construction enterprises to accurately recognize competitive behavior and decision making.

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Section: Network Growth: Topology and Thickeningmentioning

confidence: 61%

Section: Competition In the Construction Marketmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Market Commonality and Competition in Communities—An Empirical Study Based on Bidding Data of the Construction Market

Chen¹,

Ye²

2021

Buildings

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“…Likewise, market growth in host countries can attract foreign businesses (Kirsch et al, 2002). However, markets with excessive competition can negatively affect international business (Zhao et al, 2016), and they will be less attractive for foreign companies (Sullivan & Bauerschmidt, 1990). Finally, the economy of the industrial organization assumes that the level of agglomeration in an industry increases competition, so that profitability and business sales will decrease (Scherer & Ross, 1990).…”

Section: Market In the Host Countrymentioning

confidence: 99%

Competitive Advantages and Barriers in International Construction: An Origin-Host Market Approach

Lozano-Torró

García-Segura

Montalbán-Domingo

et al. 2020

Journal of Civil Engineering and Management

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The growing importance of international construction activity forces companies to find out what competitive advantages to provide and barriers to overcome to achieve success, considering the particular characteristics of their origin and destination countries. Seventy six articles regarding success in the international construction market in the period 2008–2017 are reviewed to identify the barriers and the competitive advantages that most affect the international success of contractors. The Chi-Square (χ²) statistical test is used to verify the influence of the origin and destination countries on these variables. The literature identifies the provision of trained human resources as the most important competitive advantage and cultural differences and political risks as the main barriers. The Chi-Square (χ²) test indicates a dependency relationship between the origin country and the competitive advantage “managerial ability” to achieve international success, and between the external barriers “link between countries”, “political environment” and “economic environment” with the target market. Results of this paper provide valuable information for any construction company seeking international success.

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“…Zilke and Taylor (2015) demonstrated the utilisation of international market data to make predictions about the global construction market. Zhao, Xu, Zuo and Tang (2017) determined the niche width and niche overlap indicators of international contractors and provided new insights into the theories about enterprise niche that can be utilised in the domestic, regional and international construction markets.…”

Section: Introductionmentioning

confidence: 99%

Clustering of host countries to facilitate learning between similar international construction markets

Ozyurt

Dikmen

Birgönül

2019

ECAM

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Purpose In the global construction industry, experience gained in various countries is a major source of competitive advantage. By transferring the knowledge gained in previous projects using an effective knowledge management strategy, they can increase their competitiveness by adopting best practices and by not repeating the same mistakes under similar conditions. The purpose of this paper is to demonstrate how similar countries can be clustered to facilitate learning in global markets. Design/methodology/approach Initially, country factors that can affect success in international projects and can be used to assess the similarity of markets were identified by an extensive literature review and prioritised by a web-based questionnaire. A country evaluation form was prepared to collect country-specific data to be used in the cluster analysis of 39 countries where the Turkish contractors have been frequently working since the last 45 years. Cluster analysis was performed with SPSS 23.0. Findings Three country clusters were obtained and validated. Ultimately, how obtained country clusters may be used to facilitate learning from international construction projects was demonstrated by using an illustrative example. Research limitations/implications The findings depend on the experience and perspective of Turkish contractors doing business abroad. Thus, the identified clusters are not generic. Moreover, country clusters were not identified considering only the country factors such as economy, culture, politics, etc.; thus, countries in the same cluster do not necessarily represent “similar” countries in terms of macro-factors. Clusters were identified so that the lessons learned can be effectively transferred within the same cluster considering construction and project-related factors as well as country-related factors. Although the findings cannot be generalised and clusters are not static, it is believed that the methodology used in this research is repeatable for different countries considering different timeframes. Originality/value Theoretical contributions include the identification of factors that can be used for similarity assessment of countries for transferring lessons learned as well as a methodology for clustering. Findings may also have a practical value for the Turkish contractors.

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Developing the International Construction Contracting Market: Enterprise Niche Approach

Cited by 28 publications

References 33 publications

Market Commonality and Competition in Communities—An Empirical Study Based on Bidding Data of the Construction Market

Market Commonality and Competition in Communities—An Empirical Study Based on Bidding Data of the Construction Market

Competitive Advantages and Barriers in International Construction: An Origin-Host Market Approach

Clustering of host countries to facilitate learning between similar international construction markets

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