International Construction Companies Research Articles

Integrating creating shared value into competitive strategies: case studies of Chinese international construction companies

The concept of corporate social responsibility (CSR) has been considered as the key to tackle the dilemmas between business and society in the international construction market. However, CSR is too often placed at the peripheral rather than at the core of business. CSR has been evolved to the concept of creating shared value (CSV) with the consideration of its role to the companies’ value chain. This research aims to investigate how to integrate CSV into competitive strategies and develop CSV strategies for construction companies when operating in the international market. Chinese international construction companies are selected as the cases for this study. By using case studies with the assist of archival study, four general types of CSV strategies with regards to CSV issues are found: (1) products, (2) safety, health, and sustainable workforce, (3) local development, and (4) environmental protection. Construction companies are suggested to smartly select social and environmental issues and carefully exercise their CSV strategies to create shared value in the international market. The research gives views to international construction companies to develop CSV strategies from a strategic management perspective. It also provides valuable references to those companies which are facing similar dilemmas in the construction industry.

Beliefs, attitudes, values and engagement of generation X, Y employees

This study starts with employee opinion survey, which is a measurement tool of employee engagement and satisfaction. The result of the survey, performed among 1480 employees of international construction company, points at certain targets for improvement in well-being field. We strove to find a correlation within least contented employees, between such factors as their seniority status in the company, gender, age and their low satisfaction, thus we found out that generation X employees are more satisfied (9% more) and as a result more engaged in the company culture than Y employees. This article reveals the reasons of this difference in satisfaction level between employees of two generations. Our first hypothesis was that shift in value orientation caused inconsistency with corporate culture, but after having used method of values ranking (system of «Life Meanings» by V. Yu. Kotlyakov) for a group of 620 employees of both generations, we had to accept that our hypothesis was only partially true and value changes in two generations were not dramatic. Our second hypothesis stated that deeper changes in reality perception like beliefs and self-concept could lead to lower satisfaction of Y generation employees with their work. We supposed that these deeper changes include beliefs as the basic elements of any complicated construct. We applied method of collectivism and individualism orientation measuring by Pochebut L. G to the group of 248 respondents of both generations. The outcome of this study shows that generation X employees’ beliefs reflect collectivism orientation and beliefs of the generation Y employees reflect individualism in 50% of the sampling.

Major Barriers and Best Solutions to the Adoption of Ethics and Compliance Program in Chinese International Construction Companies: A Sustainable Development Perspective

Unethical behavior is one of the grand challenges facing international construction companies (ICCs) to move toward sustainable development when operating on an international basis. The ethics and compliance program (ECP) has played a significant role in addressing illegal and unethical behavior and avoiding liability in multinational companies. However, there have been few studies on the current status, major barriers, and best solutions to ECP adoption in ICCs. To fill this gap, an international questionnaire was conducted; 87 valid samples of Chinese ICCs located in 44 countries were filtered out for in-depth analysis. The survey results showed that only 36.8% of responding ICCs exercised compliance functions through the compliance department. The top five recognized barriers hampering ECP adoption were “lack of related laws and regulations”, “insufficient support from the government”, “lack of authorization to the compliance department”, “shortage of compliance professionals”, and “lack of case studies”. There was no disagreement about the barriers’ rankings among organizations of different firm ownerships, sizes, and locations, except the variable “great institutional distance”. Results also revealed the top five best solutions to help ICCs overcome the identified barriers. The findings would enhance the understanding of industry practitioners and policymakers, hence helping them address corresponding solutions to boost ECP adoption and promote the sustainable development of ICCs.

Measuring competitiveness with data-driven principal component analysis: a case study of Chinese international construction companies

PurposeDefining and measuring competitiveness has been a major focus in the business and competition literature over the past decades. The paper aims to use data-driven principal component analysis (PCA) to measure firm competitiveness.Design/methodology/approachA “3Ps” (performance, potential, and process) firm competitiveness indicator system is structured for indicator selection. Data-driven PCA is proposed to measure competitiveness by reducing the dimensionality of indicators and assigning weights according to the endogenous structure of a dataset. To illustrate and validate the method, a case study applying to Chinese international construction companies (CICCs) was conducted.FindingsIn the case study, 4 principal components were derived from 11 indicators through PCA. The principal components were labeled as “performance” and “capability” under the two respective super-components of “profitability” and “solvency” of a company. Weights of 11 indicators were then generated and competitiveness of CICCs was finally calculated by composite indexes.Research limitations/implicationsThis study offers a systematic indicator framework for firm competitiveness. The study also provides an alternative approach to better solve the problem of firm competitiveness measurement that has long plagued researchers.Originality/valueThe data-driven PCA approach alleviates the difficulties of dimensionality and subjectivity in measuring firm competitiveness and offers an alternative choice for companies and researchers to evaluate business success in future studies.

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

AbstractConstruction businesses expanding internationally often need to devise corporate social responsibility (CSR) as an indispensable component of their competitive strategies. Companies will cu...

Critical barriers for Chinese international construction companies under “One belt, One road” background: a case study

The strategy of “One Belt One Road” can not only promote common development and prosperity among countries, but also enhance mutual understanding and trust, strengthening all-round exchanges between countries. Based on the current situation that Chinese engineering enterprises lack experience in countries along the route, this paper mainly provides inspiration and conclusions for enterprises through the study and analysis of two cases.

Construction companies’ compliance to personal protective equipment on junior staff in Nigeria: issues and solutions

PurposeThe frequent occurrence of hazards, especially on junior staff in developing countries, is a major setback on project delivery. This is because the safety of the construction workers' environment influences their performance. Although a range of literature has addressed safety measures on construction sites, how far is their compliance with personal protective equipment (PPE) on junior staff is yet to receive in-depth studies in Nigeria. Therefore, this study investigated the level of Nigerian construction companies' compliance and proffered possible solutions that intend to improve the implementation of PPE on junior staff.Design/methodology/approachThe data were collected via observation and face-to-face interviews among the selected companies' staff in Lagos and Abuja. The interview is to determine their perceptions regarding compliance with PPE on construction sites.FindingsFindings show that compliance with PPE on junior staff, especially the indigenous construction companies, is poor. This is because monitoring and enforcement are lax by government regulatory agencies. Also, findings show that many international construction companies ensure that junior workers obey site safety measures those mitigate the chance of hazard occurrence during construction as a policy.Research limitations/implicationsThis paper data collection is limited to Abuja and Lagos, and a phenomenology type of qualitative research was employed, but this does not weaken the robustness. Future research is needed to consider adopting a mixed-methods approach.Practical implicationsAs part of this paper's implications, findings recommended that the construction company's safety regulations and policies should be robust and enriched to mitigate site-related hazards via a framework or mechanism, but the government agencies/ministries need to give the enabling direction, strict monitoring and enforcement of PPE on junior staff. This paper intends to stir up the appropriate government authorities for possibly passing the Labour, Safety, Health and Welfare Bill 2012 (updated in 2016) Act into law.Originality/valueThis study demonstrates that the government agencies concern with approval and enforcement of construction site safety needs to reawaken to their responsibilities because of the lax implementation in many sites, especially in indigenous construction sites.

Bridging the gaps for business growth among Indian construction companies

PurposeSuccessful handling and delivery of projects requires commensurate growth in the business capabilities of construction companies. The current scenario of exponential infrastructure boom in India necessitates scaling up to meet the challenges of competitiveness. The objectives of this study are to (1) identify the enablers of sustainable business growth among Indian construction companies, (2) identify gaps in the deployment of the enablers in comparison to competitive successful international construction companies and (3) suggest strategic initiatives to top management of companies and policymakers for promoting business growth and industry competitiveness.Design/methodology/approachA detailed literature review first identifies an adapted framework for enablers of growth and growth performance of successful international construction companies on basis of industry trends. Thereafter, a questionnaire survey was administered on the leading construction companies in India to assess the deployment of enablers and gaps thereof. A total of 108 valid responses were obtained from top management executives of the companies and analysed through descriptive statistics and hypothesis testing.FindingsStudies indicate that anticipation of new demands and capabilities; business opportunity scanning and human resource skills and capabilities are among the most important enablers of growth. The role of leadership vision and focus on development of human resources is critical to competitiveness and growth. The successful international construction companies have delivered growth utilising their ability to deploy multiple strategies, diversification and new business opportunities. These are sparingly deployed by Indian companies.Research limitations/implicationsThe study is limited to the opinion and perceptions of the top management personnel of the construction companies.Practical implicationsHigh economic growth context offers a unique opportunity for domestic Indian construction companies to leverage. The valuable insights gained from this study provide hints to the top management of these companies to draw managerial implications for facing the challenges ahead and delivering projects in the dynamic and hyper-competitive construction industry. The policymakers on their part are responsible to support and promote initiatives for sustainable growth.Originality/valueThe study suggests business growth enablers to construction companies in India to improve their international competitiveness.

The inverse U-shaped relationship between corporate social responsibility and competitiveness: Evidence from Chinese international construction companies

The relationship between corporate social responsibility (CSR) and its material implications is a classic inquiry with tremendous academic and practical values. In recent years, the inquiry has shifted to the CSR-competitiveness link by viewing competitiveness as a more comprehensive construct that is able to capture more sustainable business success than traditional financial performance. This paper argued an inverse U-shaped relationship between CSR and competitiveness considering the complex interaction between both benefits and costs of CSR. Focusing on Chinese international construction companies (CICCs), it empirically tests the curvilinear relationship between the two constructs. By undertaking a panel data regression on 55 CICCs and 473 observations from 2010 to 2019, the inverse U-shaped relationship between CSR and competitiveness is confirmed: CICCs’ competitiveness will increase at first with their CSR engagement but will decline from a threshold level where CSR costs begin to gain priority. This study opens up a new avenue through which business executives and policymakers are inspired to wisely manage social responsibility resources and pursue a balance where the business and society should strike.

Identifying the Non-Traditional Safety Risk Paths of Employees from Chinese International Construction Companies in Africa.

In recent years, more and more construction enterprises are expanding into overseas markets, especially in underdeveloped regions such as Africa. Compared to domestic construction projects, international construction projects have been faced with more uncertainties and increased levels of safety risks to the employees in the context of political turmoil, racism, and religious conflict in the host country. This study aims to answer what risk factors contribute to the threat to the safety of overseas employees and how safety risk factors interact, using employees from Chinese international construction companies (CICCs) in Africa as an example. A total of 39 safety risk factors were selected by literature review and case study based on Heinrich’s Domino Theory of Accident Causation. To identify the critical safety risk sources and significant risk paths, a questionnaire survey was conducted among 208 professionals who have participated in construction projects in Africa. Using structural equation modeling (SEM), a total of twelve critical risk paths and five controllable risk sources were identified. The improper behaviors of the CICCs and their employees were shown to have the largest impact on the safety of Chinese employees, through the mediating effect of the criminal offense. This study provides some insights into safety risk management in international construction projects. Meanwhile, the quantitative approach proposed can also be used by other international companies or governments in identifying the safety risk paths of their overseas workers involved in international construction projects.

Comparative calculation of piles taking into account seismic impacts (example in Ho Chi Minh City)

The construction of high-rise building and structures has been widely developed recently in Vietnam. Pile foundations are considered one of the most suitable solutions when choosing the foundations for their construction, especially in difficult geological conditions, including seismic areas. According to many researches, geological conditions of Ho Chi Minh City are generally difficult. The occurrence of earthquakes there influences the conditions for the construction. Besides, many historical cases have shown that soil liquefaction is often manifested, negatively affecting the underground structures and foundation working. With an increase in investments of international construction companies and organizations in Vietnam, pile foundations can be designed according to domestic or foreign normative documents. Therefore, at present, a better understanding and detailed analysis of various existing normative documents and methods for designing pile foundations are required, especially when the influence of soil liquefaction is taken into account. This paper presents a review of various normative documents, including Russian, Vietnamese, American and Eurocode. The different methods in these normative documents for calculating the piles' bearing capacity are considered in 2 cases: with and without taking into account the soil liquefaction based on the hypothesis that the additional downward loads due to self-compaction of liquefiable soils affect piles. Finally, a comparison of the calculation results is presented. The comparison shows how these considering methods in these normative documents differ from each other and how much the pile's bearing capacity can be reduced when considering the soil liquefaction in calculations.

Looking through the African lenses: a critical exploration of the CSR activities of Chinese International Construction Companies (CICCs) in Africa

The importance of Chinese International Construction Companies (CICCs) within the construction sector in Africa can no longer be ignored, as these firms hold a considerable amount of market share within the African continent. The construction industry is of high importance to African economic renaissance, and Corporate Social Responsibility (CSR) is becoming a key issue in business processes on the developing continent. Narratives around the implementation of CSR within construction in African economies have been largely one-sided, viewed from foreign perspectives and outsider anecdotes, without engaging locals in evaluating these initiatives. As a result, this paper explores CSR as a critical component of the continued penetration and dominance of Chinese contractors in the highly competitive African construction markets. The paper adopts a quantitative survey to explore the areas of implementation of CSR by CICCs, how they line up against current local and international counterparts and the future of these firms in Africa using CSR as a metric. Residents of Africa’s largest economy, Nigeria, who have Chinese-led projects ongoing in their communities, were surveyed for the study, and the findings used to propose solutions for future CSR policy-making in local African communities where Chinese contractors carry out business. The study found that in terms of CSR strategy implementation, CICCs were ranked highly on quality of construction and respect for local laws and customs, but ranked low in perception of employee welfare and environmental protection. The study highlighted that African governments taking responsible leadership by formulating a CSR policy for all international contractors might stem the tide of increasing anti-Chinese rhetoric within the construction sector on the African continent.

Meta-Modeling of Complexity-Uncertainty-Performance Triad in Construction Projects

Although conceptualized in various ways within the project management literature, complexity is usually identified as one of the drivers of uncertainty, which may result in deviations from the expected project performance in the construction industry. Effective strategies to manage risk and complexity can only be formulated by understanding the complexity-uncertainty-performance triad in construction projects and modeling the non-linear interactions between these factors. In this study, a meta-modeling approach was utilized for understanding complex interactions within the triad. Using a database of projects from the seed scenarios developed by experts, a Bayesian Belief Network (BBN) meta-model was constructed for capturing complex interactions across the triad. Shapley value from Game Theory was adapted to assess the output of the BBN meta-model for establishing the relative contribution of complexity and uncertainty factors to project performance while considering the efficacy of potential strategies. The output of the Shapley value analysis was used to develop an Artificial Neural Network (ANN) model for predicting project performance. The application of the proposed methodology was demonstrated through a case study involving experts from an international construction company. The results clearly manifest the merits of integrating these approaches in a unique order in that BBNs are useful for understanding the holistic account of complex interdependencies involved in construction projects, utilization of Shapley value helps in establishing the relative importance of factors across a BBN meta-model and allocating limited resources to manage project complexity and uncertainty, and ANNs exhibit an improved accuracy in predicting the project performance given the relative importance established across complexity and uncertainty factors. The findings from the case study demonstrate that the proposed methodology can be used to understand how performance may change with respect to different combinations of implemented strategies, complexity and uncertainty factors.

Tahsin Yücel’in Gökdelen’i bağlamında sinema ve reklam filmlerinde yeni yaşam mimarlarının izinden gitmek

Dilbilim ve göstergebilim alanının en önemli temsilcilerinden biri olmakla birlikte, çok sayıda öykü, roman ve deneme türünde eserler yazan Prof. Dr. Tahsin Yücel’in 2006’da yayımlanan ve 2073 yılını anlattığı “Gökdelen” adlı yapıtı özellikle mekânın insan ve toplum üzerindeki etkisini vurgulaması bağlamında önemlidir. Öte yandan özelleştirilen yargı sistemini ele alan “Gökdelen”, iktidar-medya ve yargı ilişkilerinin kurgusal aktarımı açısından da son derece değerli bir yapıttır. Makalede seçilen reklam ve sinema filminin öykü ve karakterleri, Gökdelen’in temel izleği ve ana karakterlerinin üstlendiği roller bağlamında ele alınmıştır. Bu düşünceden hareketle yapımcılığını Ağaoğlu Şirketler Grubu Başkanı Ali Ağaoğlu’nun inşaat firmasının üstlendiği “AĞAOĞLU MASLAK 1453 İSTANBUL” Projesi reklam filminde ve 2015 yılında gösterime giren “Bana Masal Anlatma” sinema filmindeki müteahhit karakterleri ve bu karakterlerin hedefe yönelik eylemlerinde izledikleri yol ve yöntemleri, her üç anlatı arasındaki “benzer ve farklılıklar” metinlerarası yaklaşımla analiz edilmiştir. Gökdelenin simgesel olarak kullanıldığı her üç anlatıda da (roman, reklam, sinema filmi) zaman, mekân ve eyleyenin/karakterin değişmesine karşın, gerçek ve kurgusal dünyada amacın aynı olduğu görülmektedir. Çünkü kendilerini bir “yaşam mimarı” olarak sunan Ali Ağaoğlu da (reklam-konut), uluslararası bir inşaat firmasıyla ortaklaşa yürüttüğü proje kapsamında eski evleri yıkarak yerine gökdelenler dikmeyi hayal eden müteahhit Timur Arslan da (film-konut) romanın ana karakterlerinden Temel Diker gibi tüm gücünü ve enerjisini İstanbul’u “baştan yaratmaya” adamıştır.

Innovations as a Factor for the Sustainable Functioning of a Construction Company

Competitive threats from international and domestic construction companies compel construction industry participants to intensify innovative processes with a view to improving the profitability of construction operations, expanding their offerings and upgrading the quality of their products.The introduction of assorted innovations is thus a way of enhancing the efficiency of construction operations.In terms of development levels, innovations may be classified into global, national, regional and industrywide.A construction company can introduce innovations by:- Consuming or using materials, machinery or equipment;- Making construction products in the form of units, buildings or structures;- Applying products to control corporate organizational structures and construction operations. Focused on technological innovations, this paper identifies those in the heaviest demand, used most frequently in construction operations, exploring the impacts of construction operation innovations on the sustainable functioning of a construction company. The authors propose a research and engineering hypothesis to the effect that the expert assessment method is instrumental in identifying innovations with positive impacts on construction operations, while ensuring the sustainable functioning of a construction company, subject to the correct selection of experts and assessment criteria.

Evaluation of Implementation Preparation for CE based on BEACON model —Taking Construction Enterprises in Yemen as a Case of Illustration

After decades of civil war, Yemen is in a desperate situation, and the construction industry has been suffering from low productivity and poor performance. In order to improve the productivity for the Yemeni construction industry, Construction enterprises must adopt the best and new technologies, new management concepts and philosophies such as Total Quality Management (TQM) and concurrent engineering (CE) owing to achieve improvements in the process of product development. To ensure the successful implementation of CE in the Yemeni construction industry, it is necessary to assess the readiness of those companies to implement CE. In this paper, the BEACON model is used to assess the readiness of the Yemeni companies to implement the concept of CE, that assist in overcoming the construction industry's poor productivity and performance. A study assessing CE implementation readiness will help to promote successful CE implementation in the construction industry and enhance the efficiency of construction companies. The results show that most of the construction companies in the Yemen are not ready to implement CE. The main reason is that the enterprises rely heavily on traditional management methods, and need to improve the organization and management technology. The research results can provide theoretical support for construction companies, especially Yemen companies, to establish basis in implementing an appropriate CE approach for improving performance, and also help international construction companies entering the Yemen construction market to cooperate and implement CE.

IDENTIFICATION AND ASSESSMENT OF KEY POLITICAL RISK FACTORS INFLUENCING CORPORATE PERFORMANCE OF MULTINATIONAL CONSTRUCTION COMPANIES IN NORTH-EASTERN, NIGERIA

Multinational construction companies settled in African countries, especially Nigeria, to compete for infrastructural projects, in a bid to extend their services across their borders. The trans-border extension of the services offered by these multinationals exposes them to the political risk factors pertinent within the host-country. In order to survive the harsh realities of the political risk indicators operational in Nigeria, especially the North-eastern part of the country that has been plagued with civil unrest associated with the terrorist operations of Boko haram, it has become necessary to identify and manage these risk factors, to ensure the continuous survival of international construction companies in Nigeria. This paper seeks to identify and assess the prevalence of political risk factors influencing the corporate performance of international companies operating in the North-east of Nigeria. Data for the study was collected through structured questionnaires administered to 78 expatriate project managers from 6 international construction companies in 6 states in the North East of Nigeria. Collected data was analyzed using relative importance index and factor analysis. Findings revealed that terrorism, corruption, insurrections, sabotages and kidnapping were the top five risk factors with the highest frequency of occurrence. It was also revealed that terrorism, kidnappings, sabotages, corruption and change in government are the risk factors with the highest impact on operations in the region. It is therefore recommended that the federal, state and local governments should provide security for the lives, properties and investments in the region, companies should do more corporate social responsibilities and purchase political risk insurance cover to minimize their losses.
 Adebiyi, O. J. | Department of Quantity Surveying, University of Benin (UNIBEN), Benin City, Edo State, Nigeria.

Análisis de redes para la transferencia de tecnologías sostenibles entre firmas de construcción internacional

Resumen 
 La transferencia de tecnología sostenible es compleja para las firmas de construcción. Una posible solución es analizar esa clase de transferencia como una red social ya que, si se identifican las diferentes relaciones entre los actores del sector construcción, es posible evaluar la capacidad de adaptación tecnológica de dichos actores. El objetivo fue evaluar la transferencia de tecnología sostenible entre empresas constructoras internacionales que se dedican a construir vivienda social o accesible. Para esto, se identificaron dos países con capacidad de transferencia de tecnología sostenible (Reino Unido y Estados Unidos) y dos países de menor capacidad tecnológica y con potencial de adaptarse a dichas tecnologías (Brasil y Colombia); posteriormente, se seleccionaron cinco firmas constructoras por cada país, con las cuales se hizo un análisis de redes (grado, intensidad, cercanía y densidad), y luego, procesos de simulación. Como resultado se identificó la capacidad de transferencia tecnológica que tienen las empresas latinoamericanas para aceptar y adaptar tecnologías de empresas de países industrializados, y se espera poder desarrollar indicadores de medición del proceso de transferencia tecnológica que permitan comprender mejor la complejidad de este proceso en el área de la vivienda social.
 Palabras clave: adaptación tecnológica, edificaciones sostenibles, industria de la construcción, sector de la construcción, transferencia tecnología, vivienda accesible, vivienda social
 
 Abstract
 The transfer of Green technology is complex for construction firms. A possible solution is to analyze it as a social network since, if the different relationships between the actors in the construction sector are identified, it is possible to evaluate the technological adaptation capacity of these actors. The objective was to evaluate the transfer of sustainable technology between international construction companies that are dedicated to building social or accessible housing. For this, two countries with the capacity to transfer sustainable technology (United Kingdom and the United States) and two countries with less technological capacity and with the potential to adapt to these technologies (Brazil and Colombia) were identified, then 5 construction firms were selected for each country with which an analysis of networks (degree, intensity, proximity and density) and then simulation processes was carried out. As a result, the technological transfer capacity of Latin American companies to accept and adapt technologies from companies in industrialized countries was identified and it is hoped to be able to develop indicators of measurement of the technology transfer process that allows a better understanding of the complexity of this process in the area of Social Housing
 Keywords: technological adaptation, sustainable buildings, construction industry, construction sector, technology transfer, accessible housing, social housing
 
 Recibido: enero 3 / 2019 Evaluado: julio 9 / 2019 Aceptado: noviembre 4 / 2019
 Publicado en línea: noviembre de 2019 Actualizado: noviembre de 2019

Improving Quantitative Assessment of Political Risk in International Construction Projects: The Case of Chinese Construction Companies

AbstractPolitical risk is one of the most prominent dangers for International Construction Companies (ICCs) to deal with in overseas countries. Despite considerable studies on political risk manage...

A fuzzy synthetic evaluation analysis of time overrun risk factors in highway projects of terrorism-affected countries: the case of Pakistan

Time overrun has detrimental effects on the performance of construction projects, especially highway projects which are associated with higher capital investment, complex stakeholder profile and longer construction duration. The effects are multiplied in terrorism-affected countries (TACs). However, there are limited studies on the time overrun risk factors (TRFs) in highway projects in the TACs. Consequently, this article examined TRFs in highway projects in the FATA region, a severe terrorism-affected province in Pakistan using a questionnaire survey. A fuzzy synthetic evaluation (FSE) modelling of the TRFs showed that stakeholder interference and insecurity threats is the most critical factor grouping, followed by inexperienced contractors and unproductive workforce, ineffective project planning and contractual arrangement, and construction materials shortages and force majeure. These critical TRFs are important to practitioners and international construction companies because risks abound in highway projects in TACs and require prioritization. Thus, the critical TRFs could be used to develop a decision support system for managing the risks and improving the performance of highway projects in TACs.