Chinese International Contractors Research Articles

How Does the One Belt One Road Initiative Affect the Chinese International Architecture, Engineering, and Construction Firms? Empirical Analysis Based on Propensity Score Matching and Difference-in-Differences Method

With the proposal of the “One Belt One Road (OBOR) initiative”, the Chinese architecture, engineering, and construction (AEC) industry has increasingly been exploring the overseas markets. This paper adopted the propensity score matching and difference-in-differences (PSM-DID) method to evaluate the impact of the OBOR Initiative on Chinese international contractors and consulting firms, respectively. The results shows that the OBOR Initiative significantly stimulated the overseas market development of contractors, whereas it had no positive impact on consulting firms. The results may provide comprehensive guidance for industry practitioners, policymakers, and scholars to correctly understand the different characteristics of international contractors and consulting firms, thereby formulating a targeted development strategy.

What affects the corporate social responsibility practices of Chinese international contractors considering dynamic interactions? A hybrid structural equation modeling–fuzzy cognitive map approach

PurposeCorporate social responsibility (CSR) practices frequently result in increased costs for Chinese international contractors (CICs), where profitability is the primary objective; therefore, internal corporate drivers and external pressures play a crucial role in encouraging them to engage in sustainable CSR practices. This study systematically examines the dynamic impact of internal and external stakeholders on the CSR practices of CICs.Design/methodology/approachThis study adopted a structural equation model (SEM) to identify and validate a correlation between stakeholders and CSR practices. Standardized causal coefficients estimated in SEM were used to construct a fuzzy cognitive map (FCM) model to illustrate the effect of stakeholders on CSR practices with linkage direction and weights. Predictive, diagnostic, and hybrid analyses were performed to dynamically model the variation in stakeholders on the evolution of CSR practices.FindingsThe empirical results demonstrate that (1) employee participation in CSR has the greatest impact on CSR practices, followed by CSR strategies, partner and customer expectations, and finally government regulations. (2) In the early stage of CSR fulfillment, CSR strategies have the greatest influence on CSR practices; in the later stage of CSR fulfillment, employee participation in CSR has the greatest influence on CSR practices. (3) In the long run, the most effective and economical integrated interventions are those that address employee participation in CSR, partner expectations and customer expectations, and intervention in CSR strategies is needed if the level of CSR practice needs to be improved in the short term.Originality/valueThis study contributes to the research on the influence mechanisms of CSR practices of CICs and systematically analyzes their dynamic influence on CSR practices of CICs from the perspective of stakeholders.

Investigating the mechanism of international contractors' fraud from a moral perspective: evidence from Chinese international contractors

PurposeThis study aims to clarify the psychological mechanism of international contractors' fraud by linking performance pressure to fraudulent intention through the displacement of responsibility and addressing the moderating role of moral intensity.Design/methodology/approachBased on moral disengagement theory, performance pressure was hypothesized to be positively associated with fraudulent intention by mediating the displacement of responsibility. Drawing on the issue-contingent theory, moral intensity was hypothesized to inhibit the relationship between performance pressure and displacement of responsibility in three aspects: magnitude of consequences (MC), probability of effect (PE) and social consensus (SC). The scenario-based questionnaire was conducted to collect information from contractors spread across 50 countries. The partial least squares structural equation modeling was employed to assess the proposed model.FindingsThe results demonstrated that performance pressure was positively associated with the fraudulent intention, and displacement of responsibility exerted a positive partial mediating impact between performance pressure and fraudulent intention. Regarding moral intensity in the moderating analysis, the negative moderating role of MC and PE was significant, while that of SC was insignificant.Practical implicationsThis study provides international construction practitioners with a deep understanding of the formation mechanism of fraud at the psychological level.Originality/valueIt clarifies the psychological mechanism from performance pressure to fraudulent intention by integrating a mediation impact from the displacement of responsibility and a moderation effect from MC and PE. It contributes to the sparse research on how situational factors shape individuals' fraudulent intentions in the international context. It provides a fresh perspective on fraud by constructing a formation model from moral psychological theories.

Performance of Chinese International Contractors in Sub-Saharan Africa: Evidence from Uganda

Performance of Chinese International Contractors in Sub-Saharan Africa: Evidence from Uganda

Incentive mechanisms for managing local subcontractors in international construction projects

In the domain of international construction projects, managing supply chains presents distinct challenges due to the intricate task of coordinating multiple stakeholders within diverse cultural, economic, and regulatory contexts. Prior research highlights the significance of incentive mechanisms and collaborative procurement practices, yet the effectiveness of these strategies in augmenting performance for international projects has not been extensively examined. This investigation explores the effects of financial and non-financial incentives on the performance of global construction projects, with a focus on the mediating role of cooperation. Data were gathered from Chinese international contractors and local suppliers and subsequently analyzed using Structural Equation Modeling. The results reveal two separate pathways of influence. Firstly, financial incentives exhibited substantial direct and indirect impacts on project performance; secondly, while non-financial incentives did not directly affect project performance, they significantly impacted cooperation levels, which in turn mediated the relationship between non-financial incentives and project performance. This study provides essential perspectives for managing international construction projects, emphasizing the critical need for the combined application of financial and non-financial incentives to foster cooperation and ultimately achieve superior project outcomes.

Analysis of Chinese international contractors and designers in 2020

Based on the list of top 250 international contractors and top 225 international designers released by Engineering News Record (ENR), this paper detailed the latest statistical analysis and comparison of the top 250 international contractors and the top 225 international designers from the three aspects of ranking, field and region. The seventy-four Chinese international contractors listed on the top 250 in 2020 have international revenues of US$120.01 billion, a slight increase of 0.87% over last year; the overseas design amount of the 24 Chinese designers on the top 225 list in 2020 was US $4.294 billion, a decrease of 15.92% over last year.

Key challenges faced by Chinese contractors in Malaysian construction industry

PurposeThe purpose of this paper is to investigate the major challenges faced by Chinese international contractors (CICs) in the Malaysian construction industry.Design/methodology/approachAn exploratory sequential mixed-methods research approach was adopted where following a detailed literature review and semi-structured interviews with local professionals, 20 prevalent challenges experienced by CICs are identified. Subsequently, a questionnaire survey was used to elicit the views of 100 construction practitioners. Descriptive statistics were used to prioritise the challenges, while exploratory factor analysis was conducted to uncover the underlying factors.FindingsThe five most crucial challenges identified relate to: changes of regulation, cost control, contract clauses, language barrier and quality control. Exploratory factor analysis revealed four major underlying dimensions of these challenges, in connection to financial and government policy management, organisational performance management, supplier relationship management and cross-cultural management.Research limitations/implicationsThe challenges are considered primarily involving CICs in the context of Malaysia; further work can be extended to Western or other East Asian, such as Japanese and Korean, international contractors undertaking construction projects in Malaysia or selected developing countries around the region.Practical implicationsThis study will benefit professionals involved with China-backed construction projects in countries sharing demographics and socio-economic characteristics akin to Malaysia. The outcome of the study is expected to facilitate project managers to devise proactive risk-mitigation measures to reduce the impact of these challenges and to improve project delivery.Originality/valueThe paper examined the challenges faced by CICs in the Malaysian context. This is a timely study, as China’s Belt and Road Initiative will provide considerable opportunities for Chinese companies in Malaysia.

Bid/no-bid decision factors for Chinese international contractors in international construction projects

Purpose Factors affecting bid/no-bid decisions of international projects are more complex than those of domestic projects. The purpose of this paper is to identify and rank decision factors considered by variously sized Chinese international contractors (CICs) and categorize those groups of factors important to experienced practitioners. Design/methodology/approach The analysis of factors identified by a literature review is conducted based on data derived from questionnaire results received from 119 CIC project and bidding managers. The relative importance of factors is measured by mean value and standard deviation. The discrepancy in rank and importance value perceived by variously sized CICs are explored by ranking disparity analysis, non-parametric test and Spearman’s rank correlation coefficient test. Finally, factor analysis is used to categorize the underlying groups of factors considered by CICs. Findings In sum, 41 factors are identified through the literature review as having an impact on the bid decision. Significant disparities in ranking and importance are found in several factors, which partially affect the consistency of the ranking of factors perceived between large and small-medium CICs. Ultimately, nine major factors are identified as impacting the bidding decision, with “contractor’s capability” and “country risk of the host country,” being the most important. Research limitations/implications The weight of a factor considered in a decision varies across contractors as a function of contractor size. Whether using models or subjective judgment in making decisions, it is beneficial to fully understand the main groups of factors influencing the decision. Vulnerability to country risk emerges as the first criterion accessed in the bid decision. Originality/value A comprehensive set of factors is established for CICs, including both general factors common to domestic projects, and international factors unique to international projects. All factors are grouped by inferential analysis from the perspective of contractors, which reveals the underlying mechanism of the bid decision-making process. While the data were collected from CICs, the methodology in exploring factors, along with implications, is determined to be applicable internationally.

Forming Mechanism of Political Risks in International Construction Projects: From the Perspective of Chinese Contractors

The performance is analysed from the perspective of the characteristics of overseas business of Chinese contractors and political risks. Based on the results of this research project, it further analyse the funds and pricing model of Chinese Contractors Overseas Projects, as well as their ability to withstand political risks and coping strategies. This study aims to explore the statistical analysis of the project system and transnational operations to political risks in international construction projects. This research is based on one belt and one road. The questionnaire was distributed to 100 Chinese international contractors in the form of emails. Of the 100 contractors, 50 are in the top 225 of the 2017 ENR. Researches based on the project, each project only fill in a questionnaire, the final recovery of 370 copies, and recovery rate of 37%. 370 respondents are from 46 Chinese international contractors, of which 28 (60.87%) are from top ENR225 enterprises and 18 (39.13%) are from other enterprises. This survey reflects the general situation of political risks of Chinese contractors in overseas project management. Generally speaking, Chinese contractors are facing higher political risks, and they do not attach enough importance to political risks, and their ability to deal with political risks. This research study is a useful reference for managing the political risks for international contractors when expanding into this emerging market.

Investigating Political Risk Paths in International High-Speed Railway Projects: The Case of Chinese International Contractors

Contracting in international high-speed railway (HSR) projects is a risky business. The success of these projects and the sustainable development of international contractors are inseparable from effective risk management. However, limited research has been conducted to investigate the political risk involved in international HSR projects. As HSR development is becoming a more major part of the global construction market, this paper investigates the political risk factors specific to the projects and the relationships among the factors. Through a literature review and a pilot interview conducted with five Chinese professionals, 26 political risk factors were proposed. A questionnaire was then administered to 112 experts from both academia and industry to assess the significance of the factors. By applying partial least-squares structural equation modeling (PLS-SEM) technology, the 26 factors were clustered into eight groups, and 10 significant risk paths were identified. Specifically, “government attitudes” can directly influence the “investment profile” and “social support” can directly influence “government attitudes,” while “government instability,” “economic climate,” “financing and costs,” “external interference,” and “contractors’ operations” can indirectly influence investment profile by directly influencing “government attitudes” or “social support.” The findings of this study can assist international contractors with gaining a clear understanding of the political risk involved in international HSR projects, which will lead to more effective political risk management as well as better business decisions. Furthermore, this paper will contribute to the global body of knowledge in the area of political risk management for large-scale international projects.

Comparing international contractors' CSR communication patterns: A semantic analysis

As corporate social responsibility (CSR) is attracting increased social attention, understanding and improving the patterns of CSR communication can improve corporate social performance, mitigate cultural conflicts, and facilitate the development of overseas markets for international contractors. Although researchers attempted to investigate the gaps in CSR communication from various perspectives, they tended to ignore how these communication patterns differ between various geographical regions from a collective perspective, i.e. they lacked the capacity to cover the entire population in an integrated geographical region, and thus could not identify the differences and directions for improvement accurately. Based on the agenda-building theory, this study analyzes international contractors' CSR communication patterns with their stakeholders in three regions, i.e. the US, the EU, and China. Through this comparative analysis, this study identifies similarities and differences in the communication patterns between Chinese international contractors and those of developed countries in a collective manner. To perform these analyses, empirical data from international contractors' CSR reports are firstly used to construct CSR semantic networks. The defining concepts of CSR in the US, the EU, and China are then identified, thereby allowing us to compare CSR communication patterns in China with those in developed countries. The results show that the stage of a country's CSR development is reflected by the areas on which its international contractors focus. For example, community involvement and development indicates that China is still in the initial stage of developing a CSR norm. Labor practices are important across all regions, but the reasons for their importance are different. These findings provide Chinese contractors with practical guidance for expanding their overseas markets and engaging in sound CSR practices while executing international projects. This study can also inform other international contractors about CSR communication patterns in China, thereby facilitating international cooperation.

The Moderating Effect of Guanxi on the Dynamic Capacity and Competitive Advantage of Chinese International Contractors

With the active support of the national policy “One Belt and One Road” Initiative, Chinese contractors seized this historic opportunity to accelerate strategic globalization, and they gradually stood out in international construction projects owing to their low-cost advantage. However, despite China having large-scale contractors and wide-range business, compared to developed countries, a considerably large gap still exists. China is confronted with complex and changeable international projects filled with increasing competition. Thus, it is both a focus issue and a major task for Chinese international contractors, and many scholars, to consider how Chinese contractors can obtain and maintain long-term competitive advantages to improve their capabilities in response to dynamic environmental changes. Therefore, the objectives of this study are (1) to study the influence of the dynamic capability of Chinese contractors on competitive advantage in a project and (2) to explore the moderating effect of Chinese guanxi on the dynamic capability and competitive advantage of Chinese international contractors. This study primarily aimed at researching the impact of dynamic capacity of Chinese contractors on competitive advantage and the moderating effects of Chinese guanxi. The findings suggest that the environmental perception capability and the integration and coordination capability of the dynamic capability have a significant positive effect on the project competitive advantage; business guanxi positively moderates the relationship between the environmental perception capability and the competitive advantage. Business guanxi also negatively moderates the relationship between learning ability and competitive advantage, while political guanxi negatively moderates the relationship between the environmental perception capability and competitive advantage. This paper contributes to the construction management literature not only by providing empirical evidence on the dynamic capability and competitive advantage of Chinese contractors but also by expanding guanxi research. The results may also help Chinese contractors by providing strategic reform guidance and sustainable development in international construction projects.

Individual, Group, and Organizational Factors Affecting Group Bidding Decisions for Construction Projects

Deciding whether bid for the construction project is classic risk-based decision-making that is crucial to the survival and prosperousness of construction companies. More contractors are adopting group bidding decision-making to reduce the number of incorrect decisions. However, previous related studies mainly focus on project factors that overlook the members of bidding groups and the interaction between bidding group members. The aim of this paper, therefore, is to investigate the potential factors that influence group bidding decision-making for construction projects. Twenty factors relating to individual, group, and organizational levels are identified through a literature review and interviews with experienced practitioners. A questionnaire survey of 203 Chinese international contractors is conducted to obtain the importance of the factors involved. The results of the ranking analysis indicate 14 critical factors, among which “risk perception” and “team decision preference” are regarded as the two most significant. Moreover, 20 factors can be classified into five groupings: (1) values and strategic goals, (2) collaboration and learning orientation, (3) consensus reaching, (4) risk awareness, and (5) empowerment and development, with risk awareness having an especially strong influence. This research deepens the understanding of factors belonging to different organizational levels that need to be highlighted during the group bidding decision-making process and provides strategies for bidding groups and their companies to improve their decision performance.

Investigating the difficulties of implementing safety practices in international construction projects

Globalization facilitated the development of international construction. Construction safety issues have become a global problem. International construction projects lead to complexities and difficulties in safety management given the involvement of participants from different countries and regions. This study takes case of Chinese international contractors to explore and evaluate the difficulties of implementing safety practices in international construction projects. Mixed methods include qualitative (i.e., document analysis and structured interview) and quantitative methods (i.e., Delphi survey) were adopted. The most important difficulties of implementing safety practices in international construction projects identified in this study were labor-only subcontracting and complex labor structure, low safety awareness of local workers, high turnover rates of frontline workers, and the failure of Chinese workers who work far from home to adapt to a boring lifestyle in overseas projects. Eliminating these major difficulties can facilitate the implementation of safety practices in international construction projects and further improve safety performance.

Workers’ Perceptions of Safety Climate in International Construction Projects: Effects of Nationality, Religious Belief, and Employment Mode

AbstractSafety management has emerged as an important topic in the construction industry. The safety climate serves as an outline of the basic safety culture’s features and forewarns on safety-related problems. This study aims to investigate safety climate information in international construction projects, and find out specific factors affecting perceptions of safety climate in an international context. A questionnaire survey was administered on five construction sites contracted by Chinese international contractors. A total of 571 valid questionnaires were collected from this survey. Hierarchical logistic regression analysis reveals that nationality, religious beliefs, and employment mode can significantly affect perceptions of safety climate from different facets. In the present case, Chinese workers tend to have more positive perceptions of safety climate than their Vietnamese coworkers. Workers with religious beliefs tend to have more positive perceptions of safety climate than those without such bel...

Risk Paths in International Construction Projects: Case Study from Chinese Contractors

AbstractContracting in overseas construction markets involves not only the typical risks at home, but also the complex and diverse risks peculiar to international transactions. In addition, international construction project risks are highly interdependent. The objectives of this study are to (1) explore the risk paths in the international construction projects performed by Chinese contractors, and (2) examine the risk effects on the objectives of these projects. To achieve the research objectives, a total of 60 risks were identified from literature review and a questionnaire survey was conducted with 104 professionals from Chinese international contractors. Adopting the structural equation modeling technique, this study proposed a networking of 20 significant risk paths. Specifically, host government–related risk, contractor’s lack of experience, and contractors’ lack of managerial skills had significant effect on project cost, quality, and schedule objectives, respectively. Moreover, host government–rel...

Core competency model for mega Chinese international contractors

Core competency model for mega Chinese international contractors

Perception of corporate social responsibility: the case of Chinese international contractors

The poor performance of Chinese international contractors in terms of corporate social responsibility can impair their growth and internationalization in overseas markets. This study aims to probe into these contractors' perception of corporate social responsibility, diagnose perception distortions (if any), and identify approaches to improving this perception. A benchmarking analysis based on the stakeholder theory is conducted against the perception of international prominent contractors (assumed to represent international best practices). A questionnaire survey is administered to evaluate corporate social responsibility perceptions of both Chinese international contractors and international prominent contractors. The results of the gap analysis validate that Chinese international contractors' perception of corporate social responsibility is distorted and incomplete. Significant perception gaps between the two categories of contractors are found, mainly due to poor health and safety management, low compliance and ethical standards, and insufficient consideration of corporate social responsibility-related aspects in business decision making and implementation on the part of the Chinese international contractors. The findings indicate that Chinese international contractors ought to pay more attention to labor protection, environmental protection and anti-corruption issues; they should improve their compliance and ethics levels in their overseas operations to effectively identify and create shared values between the corporation and the society. The findings of this study could also lead other contractors and organizations in the international construction industry to a better understanding of the Chinese construction industry and the associated sociocultural environment, which could reduce business conflicts and disputes, and lead to more effective business activities. By utilizing the stakeholder perspective of corporate social responsibility, this paper can lead practitioners and the academia to a balanced and unbiased view on corporate social responsibility efforts.

BIM-Risk System for Chinese International Contractors

As the external environment of the international construction project has become increasingly complex, risk management is emphasized in the project management. BIM(Building Information Model) has bring change to the Construction Industry in China. It has contributed to the schedule and cost management. However, BIM is not widely used to solve the problem of risk management. This thesis cites the possibility about BIM application to risk management and evaluates the progress it may bring to the process of risk management. Furthermore, a BIM-Risk System is proposed for Chinese international contractors to solve some major risks the international contractors may face. By using this system, the level of the project risk management will significantly improve. Then the barriers and the potential problems of applying BIM to risk management in China are analyzed. The BIM application to risk management has great value to be further researched.

International Chinese Contractors in Small Geographic Markets: 2005/2009 Evolution

The importance of understanding international business management has become imperative for companies and other organizations. This broad range of relationships is the paradigm of world living for contemporary societies, where the various legal persons, regardless of their size, have more and more information about the world as a whole, and even not being aware of this, they are affected by decisions and events that are, or seem to be, geographically distant from them. The public works are one of the components of the building industry. The analysis of enterprises internationalization, of this activity sector, implies to understand how and why companies are addressing more other markets than the domestic ones, to bid in public tenders, and when they get success, to work in these different regions or countries. Public works are an economic activity linked with sovereignty, because the main customer is the state. This paper studies Chinese international contractors' presence in geographic small markets, namely Caribbean Islands and Oceania. Considering the data from 2005 to 2008, gathered from McGraw Hill Construction Reports-Engineering News Record. We analyse the evolution of the presence of referred companies in the targeted market, consider the main internationalization models, and we try to identify the main variables explaining the international contractors' options. Then, we conclude that Chinese companies are increasing their international activity, and geographic proximity has no significant importance and it is not as relevant as to other foreign companies.