Chinese Contractors in Africa: Home Government Support, Coordination Mechanisms, and Market Entry Strategies
Publication: Journal of Construction Engineering and Management
Volume 135, Issue 11
Abstract
Africa is a traditional overseas market for Chinese contractors. Since the launch of “going out’ national strategy in the new century, and with the support and control of the government and subordinate agencies, associations and banks, and innovative approach such as Angola Mode, Chinese contractors’ presence in the emerging African market continues to grow. Based on original empirical data collected through interview and questionnaire surveys, this paper analyzes the mechanisms the Chinese government has established to facilitate Chinese contractors’ entry into Africa and the perspectives of Chinese contractors about the African market in terms of opportunities and threats. Regression analysis based on existing datasets indicates that despite perceived opportunities and threats, Chinese contractors’ performance in Africa in terms of business revenue actually hinges upon the availability of construction capital. The study also reviews the market entry modes used by Chinese contractors, concluding that they prefer to establish a long term presence and opt to commit large resources. Overall, the paper summarizes evidence about the status and innovative approaches of Chinese contractors in penetrating the African construction market, and also characterizes the potential of the African construction market for Chinese contractors.
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Acknowledgments
The writers are grateful to the assistance from Pi-Chu Chiu in coding the survey data and to PPIAF for providing funding for the study through a subcontract from Vivien Foster.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 135 • Issue 11 • November 2009
Pages: 1201 - 1210
Copyright
© 2009 ASCE.
History
Received: Oct 15, 2008
Published online: May 2, 2009
Accepted: May 18, 2009
Published in print: Nov 2009
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