Sharpening Competitive Edge through Procurement Innovation: Perspectives from Chinese International Construction Companies

Abstract

AbstractThe international construction business is witnessing a trend toward the delivery of projects through the adoption of innovative procurement systems that allow companies to gain competitive advantages and to potentially deliver enhanced value to society. Notably, Chinese companies are making steady inroads into the international construction market by enhancing competitiveness. However, little is known about how Chinese international construction companies (CICCs) perceive procurement innovation and how this factor may relate to their recent success. This research aims to fill the void based on interviews with nine CICC key decision makers and experts in this area. It is found that CICCs are gradually adopting procurement innovation as a competitive strategy. Although procurement innovation leads to competitive advantage in the long run, CICCs must pay the cost of entering a new market. Thus a “wait-and-see” attitude exists with respect to a long-term vision. Unlike the traditional win-lose compet...