Practical Framework for Measuring Performance of International Construction Firms
Publication: Journal of Construction Engineering and Management
Volume 139, Issue 9
Abstract
The internationalization of construction companies has become of significant interest as the global construction market continues to be integrated into a more competitive and turbulent business environment. However, due to the complicated and multifaceted nature of international business and performance, there is as yet no consensus on how to evaluate the performance of international construction firms (ICFs). The purpose of this paper, therefore, is to develop a practical framework for measuring the performance of ICFs. Based on the balanced scorecard (BSC), a framework with detailed measures is developed, investigated, and tested using a three-step research design. In the first step, 27 measures under six dimensions (financial, market, customer, internal business processes, stakeholders, and learning and growth) are determined by literature review, interviews with academics, and seminar discussions. Subsequently, a questionnaire survey is conducted to investigate weights of these 27 performance measures. The questionnaire survey also supports the importance of measuring intangible aspects of international construction performance from the practitioner’s viewpoint. Additionally, a case study is described to test the framework’s robustness and usefulness. This is achieved by benchmarking the performance of a Chinese ICF with nine other counterparts worldwide. It is found that the framework provides an effective basis for benchmarking ICFs to effectively monitor their performance and support the development of strategies for improved competitiveness in the international arena. This paper is the first attempt to present a balanced and practically tested framework for evaluating the performance of ICFs. It contributes to the practice of performance measurement and related internationalization in the construction industry in general.
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Acknowledgments
We would like to thank those who participated in the early stage of the study, and special thanks are given to the case study company for its enthusiastic support. We would also like to acknowledge the useful contributions of the editor and four reviewers.
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Published In
Journal of Construction Engineering and Management
Volume 139 • Issue 9 • September 2013
Pages: 1154 - 1167
Copyright
© 2013 American Society of Civil Engineers.
History
Received: Jun 13, 2012
Accepted: Mar 19, 2013
Published online: Mar 20, 2013
Discussion open until: Aug 20, 2013
Published in print: Sep 1, 2013
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