An international competitiveness evaluation model in the global construction industry

Abstract

Total volumes of construction orders and the domestic construction markets are predicted to continue shrinking. To compensate, Korean construction companies have been trying to make inroads into the global construction market. Companies must determine their competitiveness and establish strategies to expand into overseas construction markets. The General Electric/McKinsey Matrix, introduced in the early Seventies, is a specific framework for evaluating investment opportunities and is still widely used to analyze competitiveness scenarios. In this study, we analyze the construction industry in 22 countries. We describe the procedure for creating the matrix and present each country with details of various construction environments. The results are relative to the two typical matrix dimensions: the competitiveness of a construction business and the attractiveness of the construction industry. This model can be used to conduct a comprehensive analysis of global construction markets and policies, thereby providing policy-making recommendations to countries or companies. This study fills a gap and describes the state of the industry, enriches the literature on the subject, and creates new points of inquiry. The results, although based on a limited selection of countries, provide an accurate demonstration of the methodology and highlight the ranking of countries.