The international competitiveness of Chinese construction firms

Abstract

Many Chinese construction firms have strategically started to develop their overseas construction markets in line with the development of the integration of global economies, following China’s accession to the World Trade Organisation in 2001, and the Chinese government’s 2013 proposal for the “One Belt One Road”, which was an opportunity for Chinese construction firms to expand their global business. However, in the current dynamic global construction market there are factors, which may affect Chinese construction firms’ global expansion. However, the competitiveness theories, such as, Porter’s Competition theory, the Resources-Based Approach, and the Strategic Management Approach, had application limitations with respect to Chinese construction firms, because of the unique characteristics of China’s construction industry, which is a socialist market economy and is moving towards integration into the global market. It has been important for Chinese construction firms to focus on investigating those indicators, which have contributed to their international operations. Therefore, it was necessary to establish a framework to assess and improve Chinese construction firms’ international competitiveness.

A competitiveness framework was established through the application of mixed methods relating to a sequential explanatory strategy, with strong quantitative and qualitative considerations. For this sequential study, firstly, the key players in the competitive global construction market were identified through analysis of secondary quantitative data. Secondly, a total of 21 key competitiveness indicators were identified through analysis of secondary qualitative data, after which a draft conceptual competitiveness framework was proposed. Thirdly, Modified Delphi interviews were conducted, in order to refine and tighten the draft conceptual competitiveness framework, in all a total of 49 key competitiveness indicators were identified and a competitiveness framework was established. Finally, a case study was conducted through an analysis of both secondary data and structured interview results, which validated that the competitiveness framework was a strategy and a practical tool for assessing and improving Chinese construction firms’ international competitiveness. In addition, a mathematical method named Weighted Summation was employed in this research for calculating competitiveness. Chinese construction firms’ international competitiveness could then be calculated.

This research found that the meaning of competitiveness could not be precisely defined, but the indicators, which contributed to Chinese construction firms’ international competitiveness could be identified. This research provided a useful learning tool to assess and improve construction firms’ international competitiveness.

Date of Award	30 Aug 2017
Original language	English
Awarding Institution	Coventry University
Sponsors	Royal Agricultural University
Supervisor	Ali Parsa (Supervisor), Simon Huston (Supervisor) & Anil Kashyap (Supervisor)