scholarly journals SUBCONTRACTOR SELECTION PRACTICES IN INTERNATIONAL CONSTRUCTION PROJECTS

2010 ◽  
Vol 16 (1) ◽  
pp. 47-56 ◽  
Author(s):  
Serdar Ulubeyli ◽  
Ekrem Manisali ◽  
Aynur Kazaz
Keyword(s):  
Market Share ◽  
Construction Projects ◽  
International Market ◽  
Host Countries ◽  
Construction Companies ◽  
International Construction ◽  
Bid Price ◽  
International Projects ◽  
Detailed Questionnaire ◽  
Selection Practices

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.

scholarly journals A new framework for ranking Critical Success Factors for International Construction Projects

2021 ◽  
Vol 13 (2) ◽  
pp. 2505-2520
Author(s):  
Lana Lovrenčić Butković
Keyword(s):  
Construction Projects ◽  
Critical Success Factors ◽  
Success Factors ◽  
Construction Companies ◽  
International Construction ◽  
Critical Success ◽  
Wide Range ◽  
International Projects ◽  
Depth Interviews ◽  
New Framework

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.

Venturing Into International Construction Project: Malaysian Perspective

2014 ◽  
Vol 2 (1) ◽  
pp. 142-156
Author(s):  
Ali Alashwal ◽  
Kashan Pirzada
Keyword(s):  
Construction Projects ◽  
International Market ◽  
Local Economy ◽  
External Factors ◽  
Term Survival ◽  
Construction Firms ◽  
International Construction ◽  
Market Expansion ◽  
International Projects ◽  
Internal And External Factors

The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut cost. According to Mendelson and Greenfield (1996) the remaining part of the twentieth century would involve corporations, institutions and government in a race to survive. A tremendous demand of development worldwide has gained interest of Malaysian construction firms to venture into international construction domain. Identifying and analysing major determinants of the firm's internal and external factors are crucial in order to ease the complexity in global market expansion. This study identifies the factors that are involved in reduction of international projects and its implications on the local economy and contractor companies. Construction projects are currently progressing slowly around the world as a result of the recent global economic crisis. In order to accommodate public needs within the current economic situation, the Malaysian Government has restricted the procurement of public sector projects to "necessary to meet public need" projects only thus narrowing the number of domestic projects available. Consequently, most major contractors have decided to change their focus by looking into international projects outside Malaysia not only to ensure the viability of their businesses but also for long-term survival. Although some Malaysian contractors have managed to penetrate successfully into international construction projects, Finally, this study is of relevance to Malaysian construction firms as it systematically highlights the internal and external factors those may affect their performance in international market. Type of Paper: Review Keywords: International Market; Malaysian Perspective; Causes; Critical Factors.

An analytic hierarchy process based model for risk and opportunity assessment of international construction projects

2006 ◽  
Vol 33 (1) ◽  
pp. 58-68 ◽  
Author(s):  
Irem Dikmen ◽  
M Talat Birgonul
Keyword(s):  
Risk Assessment ◽  
Analytic Hierarchy Process ◽  
Construction Projects ◽  
Real Data ◽  
Analytic Hierarchy ◽  
Construction Companies ◽  
International Construction ◽  
Construction Risk ◽  
International Projects ◽  
Hierarchy Process

Risk assessment of international projects is a complicated task because of the sensitivity of project success related to country specific risks as well as project risks. Decision makers face the difficulty of weighing project opportunities against risks and determining attractiveness of projects while giving bidding decisions. The aim of this paper is to propose a methodology for risk and opportunity assessment of international projects. The proposed model uses an analytic hierarchy process for calculation of risk and opportunity ratings. A risk breakdown structure, specific to international construction projects, is proposed as well as a list of factors that affect the ability of construction companies to manage risk. An application of the proposed methodology is demonstrated by using real data supplied by a construction company that is experienced in international markets. Ranking of project options is made according to the opportunity and risk ratings that are calculated by using the proposed methodology based on the judgments of company professionals.Key words: international construction, risk assessment, analytic hierarchy process.

scholarly journals Social network analysis of construction companies operating in international markets: case of Turkish contractors

2016 ◽  
Vol 23 (3) ◽  
pp. 327-337 ◽  
Author(s):  
Bartug Kemal AKGUL ◽  
Beliz OZORHON ◽  
Irem DIKMEN ◽  
M. Talat BIRGONUL
Keyword(s):  
Social Network ◽  
Social Network Analysis ◽  
Network Analysis ◽  
Construction Projects ◽  
International Markets ◽  
Project Networks ◽  
Construction Companies ◽  
International Construction ◽  
Multiple Partners ◽  
Complex Projects

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.

Clustering of host countries to facilitate learning between similar international construction markets

2019 ◽  
Vol 27 (1) ◽  
pp. 66-82
Author(s):  
Beste Ozyurt ◽  
Irem Dikmen ◽  
M. Talat Birgonul
Keyword(s):  
Cluster Analysis ◽  
Construction Projects ◽  
Lessons Learned ◽  
Extensive Literature ◽  
Host Countries ◽  
Related Factors ◽  
Content Type ◽  
International Construction ◽  
Country Factors ◽  
Country Clusters

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.

Risk mitigation modelling of international construction projects executed by Indian firms: a structural equation modelling approach

2020 ◽  
Vol 27 (9) ◽  
pp. 2687-2713
Author(s):  
Satish Kumar Viswanathan ◽  
Kumar Neeraj Jha
Keyword(s):  
Risk Factors ◽  
Structural Equation ◽  
Construction Projects ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Content Type ◽  
Construction Firms ◽  
International Construction ◽  
Equation Modelling ◽  
International Projects

PurposeA number of previous studies have investigated international construction project risks and have proposed risk mitigation measures without examining their interdependence. The purpose of the current study is to identify the influence of various risk mitigation measures on macro-level risk factors in the international marketplace.Design/methodology/approachThe authors initially identified 26 risk variables and nine risk mitigation measures through a literature review, which were then verified for their pertinence to international projects by three experts. Subsequently, 105 questionnaire survey responses were collected and analysed using factor analysis and structural equation modelling to test the interrelations between the risk variables and mitigation measures.FindingsThe findings suggest that joint ventures with local partners is emerged as the most critical risk mitigation measure that influences the international projects, which are exposed to political, project and firm-specific risk factors. Further, it is worth noting that among the recognised risk mitigation measures in international projects, offering more local employment is the least critical mitigation measure in the international projects.Research limitations/implicationsThe findings of this study are based on the macro-risk factors encountered by Indian construction firms in international projects, mostly from specific Asian and African regions. Thus, the opinions of construction firms from the developed countries might be different.Originality/valueThe main contribution of this study to existing knowledge is empirical evidence of the interrelationships between risk mitigation measures and risk factors that are portrayed as latent variables of different manifest risk variables. The generated model can assist construction firms in emphasising several risk mitigation methods, in order to reduce risk and enhance performance in international construction projects.

Critical risk factors in international construction projects

2020 ◽  
Vol 27 (5) ◽  
pp. 1169-1190 ◽  
Author(s):  
Satish Kumar Viswanathan ◽  
Kumar Neeraj Jha
Keyword(s):  
Risk Factors ◽  
Risk Factor ◽  
Construction Projects ◽  
International Market ◽  
The Body ◽  
Content Type ◽  
Specific Risk Factor ◽  
International Construction ◽  
Specific Risk ◽  
Overall Performance

Purpose International construction projects encompass various risks, and it is essential to evaluate and manage them to achieve project and firms’ success. As approaches to addressing international market risks vary from one country to another, the purpose of this paper is to identify the critical risk factors of embarking on international construction projects according to Indian experiences. Design/methodology/approach After primarily verifying the identified 26 risk variables, a questionnaire survey was conducted to draw upon the views of experts who possess international project experience. The 105 responses were analyzed using univariate and multivariate techniques. An analysis of variance identified the significant variables that influence overall performance on international construction projects, which were then grouped according to underlying relationships using factor analysis to determine the specific risk factors. Furthermore, considering these risk factors as independent variables and overall project performance as a dependent variable, a stepwise regression analysis was carried out to identify relatively critical risk factors. Findings The results revealed that of the identified four risk factors, the project-specific risk factor emerged as the foremost critical risk factor, the economic and market-specific risk factor was the second most critical risk factor, the firm-specific risk factor was the third most critical risk factor and the political-specific risk factor was the least critical risk factor. These findings were also validated appropriately. Research limitations/implications This study was limited to the data acquired from Indian construction firms, predominantly consultants and contractors. Though the survey respondents possessed adequate familiarity in international construction, commonly perceived limitations in self-reported surveys such as the lack of conscientious responses and reporting bias were not an exception in this research. Practical implications The risk factors and their criticality – as identified in this study – can aid the multinational firms and international aspirants to prioritize the critical aspects and develop a suitable risk mitigation strategy to achieve greater project success in international market. Originality/value By investigating the various risk factors that influence overall performance of international construction projects, this research considerably contributes to the body of knowledge pertaining to international construction risk management that will enable firms from India and similar developing nations to emphasize on critical risk factors.

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