Rationale and Benefits Associated with International Alliances

Evolutionary analysis of the collaboration networks within National Quality Award Projects of China

“…The importance of collaboration, coordination and communication for effective project execution has been emphasized in the construction industry (de Saram and Ahmed, 2001;Morton et al, 2006;Shohet and Frydman, 2003). A number of collaborative forms including partnerships, strategic alliances and joint ventures (Alvarez and Barney, 2001;Anvuur and Kumaraswamy, 2007;Badger and Mulligan, 1995;Ozorhon et al, 2008;Walker and Johannes, 2003;Wong and Cheung, 2005;Xu et al, 2005) suggest that collaboration among heterogeneous construction contractors is increasing in a wide range of construction fields. One of the most important motivations for forming collaboration among contractors is that collaboration can provide sufficient financing strength to participate in capital-hungry projects.…”

A review of international construction research: Ranko Bon's contribution

“…For firms engaging in international construction business, one of the most effective risk mitigation strategies is establishing a joint venture (JV) with a local partner. Badger and Mulligan (1995) discussed why alliances are formed and the benefits that can be gained from them in international business. Bing and Tiong (1999) categorised critical success factors for joint venturing in international business as partner selection, agreement, employment, control, subcontracting, engineering contract, good relationship and renegotiation.…”

Types of collaboration between foreign contractors and their Chinese partners

“…A foreign contractor is unlikely to sustain its growth without support from local partners. Badger and Mulligan [2] theorise that US companies who tried to penetrate the global marketplace without the benefit of an alliance relationship would find achieving success to be extremely difficult in this highly competitive environment. In the formation of strategic alliances, the foreign contractor will not have any liability arising from the strategic partner.…”

“…Collaboration with local partners has been a very common strategy for foreign contractors to enter host countries [2]. The desire and search for complementarities to achieve synergistic competitiveness is the prime motive for companies to collaborate.…”