Impact of Institutional Distance on Environmental and Social Practices in Host Countries: Evidence from International Construction Companies

Author(s):  
Meng Ye ◽  
Weisheng Lu ◽  
Fan Xue
2010 ◽  
Vol 16 (1) ◽  
pp. 47-56 ◽  
Author(s):  
Serdar Ulubeyli ◽  
Ekrem Manisali ◽  
Aynur Kazaz

This paper presents a study of subcontractor selection practices of Turkish contractors in international projects. The results highlight the current subcontracting practices of main contracting firms that have resulted in a long‐lasting market share abroad. Toward this aim, a detailed questionnaire was administered to 96 construction companies. Turkish and host countries’ subcontractors were shown to be frequently employed in international projects. However, subcontracting firms from other countries were found to not be used. Main contracting companies generally select subcontractors in the periods after the main tender or after the project's start. Although many of them often work with previously known subcontracting companies and do not take into account the lowest bid price as the primary criterion, systematic processes or models are not used to select the best subcontractor. Most importantly, main contractors not only use subcontractors but also carry out activities using their in‐house resources. Hence, this study will not only be a step for further works that can be performed by potential researchers who may find interesting similarities or differences between their countries and Turkey, but also assist contractors who plan to strengthen their positions and to increase work opportunities in the international market. Santrauka Straipsnyje pateikiami Turkijos generaliniu rangovu praktiniai subrangovu parinkimo tyrimai, vykdant tarptautinius pro‐jektus. Akcentuojama dabartine generalinio rangovo imoniu subrangos praktika, kuri sudaro ilgalaike ir plačia rinkos dali. Šiam tikslui buvo išsamiai apklausta iki 96 statybos imoniu. Turkijos ir kitu vadovaujančiaja pozicija užimančiu šaliu subrangovai teige, kad dažnai dirba su tarptautiniais projektais. Tačiau kitu šaliu subrangos imones nedalyvauja toje veik‐loje. Generalines rangovo imones paprastai pasirenka subrangovus pateikus pagrindini pasiūlyma arba projekto pradžioje. Nors daugelis iš ju dažnai dirba su jau anksčiau žinomomis subrangos imonemis ir pasirinkdamos geriausia subrangova neatsižvelgia i pagrindini rodikli‐ žemiausia siūloma kaina, nenaudoja sisteminiu procesu ar modeliu. Svarbiausia, kad generaliniai rangovai naudojasi ne tik subrangovu paslaugomis, bet ir vykdo veikla, naudodamiesi ju turimais vidaus ištekliais. Taigi šis tyrimas bus ne tik potencialiu tyreju žingsnis igyvendinti ir rasti idomiu panašumu bei skirtumu tarp šiu šaliu ir Turkijos, bet ir padeti rangovams stiprinti savo pozicijas bei didinti isidarbinimo galimybes tarptautineje rin‐koje.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Akunyumu ◽  
Frank D.K. Fugar ◽  
Emmanuel Adinyira

Purpose The purpose of this study was to assess the readiness of construction companies in Ghana to partner with foreign companies in international construction joint ventures (ICJVs). Design/methodology/approach Using the Verify End-User e-Readiness using a Diagnostic Tool (VERDICT) model, a survey with 31 construction companies was conducted to assess their readiness through four pre-defined elements of readiness. Findings The results indicated the readiness of construction companies to collaborate with potential foreign partners in ICJVs. Notwithstanding, certain areas such as management commitment to change, employee buy-in, process flexibility and technology infrastructure need improvement in some firms to achieve readiness. Government has a role in ensuring the readiness of domestic firms for the international market. Originality/value This study applies the VERDICT model, a tool originally designed to assess construction organizations’ readiness for e-commerce, to assess the readiness of Ghanaian construction companies for ICJVs.


2016 ◽  
Vol 23 (3) ◽  
pp. 327-337 ◽  
Author(s):  
Bartug Kemal AKGUL ◽  
Beliz OZORHON ◽  
Irem DIKMEN ◽  
M. Talat BIRGONUL

Investigation of market entry strategies is critical for the success of international contractors. Establishing partnerships is among the most effective vehicles of operating in international markets. The major objective of this paper is to analyze the partnership behavior of contractors in overseas projects. In this respect, social network analysis (SNA) was used to better understand the collaborative project networks in different markets and for projects of differing sizes. A database was developed based on the collaborative international construction projects where Turkish firms and their non-Turkish partners were involved. A total of 449 projects carried out in 46 countries were used for the analysis. The findings of the study suggest that contractors adopt different strategies depending on the market and project character­istics. The majority of the companies tend to remain in the same markets; they keep working with the same partners or choose local partners; and engage with multiple partners in more complex projects. This study is expected to help contractors reflect on their internationalization decisions and devise appropriate strategies to establish project networks.


2017 ◽  
Vol 33 (3) ◽  
pp. 04016058 ◽  
Author(s):  
Ruoyu Jia ◽  
Qiming Li ◽  
Xiaopeng Deng ◽  
Xianbo Zhao ◽  
Jingfeng Yuan

2019 ◽  
Vol 27 (1) ◽  
pp. 66-82
Author(s):  
Beste Ozyurt ◽  
Irem Dikmen ◽  
M. Talat Birgonul

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.


Author(s):  
Lana Lovrenčić Butković

Abstract Due to the wide range of opportunities, collaborations, and challenges offered by the international construction sector, interest in international construction is on the rise. Construction companies must be able to carry out international construction projects (ICPs) more effectively and efficiently. However, executing ICPs is more challenging than executing domestic construction projects. Considering the peculiarities of the construction industry and the associated complexity of construction projects, construction companies should decide on international capability and the selection of an ICP through a careful evaluation of their critical success factors (CSFs). Most of the previous research deals with the concept of CSFs in the context of project management in general, but few studies have identified CSFs for ICPs. To fill that gap in current research, the main objective of this study was to identify and group CSFs for ICPs. A total of 37 CSFs were identified after conducting a detailed literature review and a pre-pilot study. A new framework of CSFs for ICPs was proposed following primary research, which was conducted through in-depth interviews with leading experts in international projects. Although the constructability/complexity factor of the project received the highest rating in terms of importance to the success of the ICP, the next most critical factors were found to be external factors, such as local contractor/subcontractor, investor, and presence of a foreign partner. The results of this research may help participants involved in ICPs to improve their understanding of the international construction environment and deliver more successful ICPs.


This chapter provides an understanding of why strategies are important to businesses. It begins with defining strategy, what it was before and what it is now, and the steps that it consists of that can be taken to realize that future desired state for the business. The direct relationship between competition and strategy is described to emphasize to businesses how competitive forces shape strategy. An overview of strategic planning, as well as the process of managing it, is presented to explain why businesses need to plan, what stages are there in the strategic management process, and how businesses can achieve their goal through adopting a formalized strategic management process. The two main categories of strategy—business and corporate strategies—are described to explain that the actions to be taken by businesses in order to gain competitive advantages from them are different in scope and purpose. In the context of the construction industry, the nature of business activities that take place during a cycle of economic expansion and contraction is explained. The topic of strategy is discussed further, making reference to its application as business strategies, as well as corporate strategies, by construction companies. Focusing on the global construction market, the business and corporate strategies practiced by some international construction companies are described in the form of case studies. The chapter concludes with a summary of the main points covered on strategic planning and strategy.


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