International Market Selection Model for Large Chinese Contractors
Publication: Journal of Construction Engineering and Management
Volume 142, Issue 10
Abstract
An increasing number of construction contractors are actively participating in international markets. One of the most fundamental issues confronting contractors moving offshore is where to do business. Although international market selection is a much studied topic, the market choices made by construction firms have attracted little attention. This paper aims to identify factors that influence international market selection and to develop an international market selection model for construction firms. The market entry choices of 39 large international Chinese contractors across 87 countries were investigated through logistic regression analysis. The results indicate that international contractors prefer to enter countries with large market potential, small culture distance, and, surprisingly, high country risk and high competitive intensity. Moreover, large, experienced contractors are more willing to compete in international markets. Contrary to generally accepted belief, geographic distance is not revealed to have any significant influence on international market selections by Chinese contractors. This paper will be of interest to contractors considering international market selection as part of their global expansion strategy.
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Acknowledgments
The authors would like to acknowledge the financial support from the Sichuan University Humanities and Social Sciences Hundred Young Talents Program, the Sichuan Province Hundred Talents Program, and the National Natural Science Foundation of China (NSFC), under Project No. 71371131.
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Published In
Journal of Construction Engineering and Management
Volume 142 • Issue 10 • October 2016
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© 2016 American Society of Civil Engineers.
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Received: May 20, 2015
Accepted: Nov 9, 2015
Published online: Mar 29, 2016
Discussion open until: Aug 29, 2016
Published in print: Oct 1, 2016
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