Strategic analysis of large local construction companies in China

Kang, Julian

doi:10.32657/10356/11852

Cited by 7 publications

(43 citation statements)

References 55 publications

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“…They vary from simple counts of number of businesses (Jin et al 2013;yee, Cheah 2006) to measures which assign weights to the relative importance of each business within the company portfolio. Examples of such variables include the entropy measure (Kim, Reinschmidt 2011 or the concentration ratio (Kang 2006). In this study, it was used a continuous variable representing the number of core businesses to measure diversification.…”

Section: Truncated Regression To Analyze the Impact Of Strategies On mentioning

confidence: 99%

The Impact of Internationalization and Diversification on Construction Industry Performance

Horta

Kapelko

Camanho

2016

International Journal of Strategic Property Management

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This paper investigates the impact of internationalization and diversification strategies on the financial performance of construction industry companies. The results obtained can guide the design of strategies to pursue company growth and achieve competitive advantage. The evaluation of companies' performance is based on the use of the Data Envelopment Analysis technique to aggregate financial indicators using optimized weights. The impact of internationalization and diversification on company performance is explored using truncated regression, controlling for the effect of contextual factors such as company age, size and time. Data Envelopment Analysis and truncated regression were complemented with bootstrapping to ensure the robustness of the results obtained. The activity of Portuguese and Spanish contractors in the period 2002 to 2011 is used as case study. The empirical results show that internationalization has a positive impact on financial performance, although this effect is only statistically significant for Spanish contractors. Diversification has a nonlinear relationship with performance, benefiting companies with either a small number of core activities or companies with a broad scope of activities.

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Section: Truncated Regression To Analyze the Impact Of Strategies On mentioning

confidence: 99%

The Impact of Internationalization and Diversification on Construction Industry Performance

Horta

Kapelko

Camanho

2016

International Journal of Strategic Property Management

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“…Organization structure is not proved to be significantly related to performance in sales and profit. This result is consistent with the findings of Kale (1999), Kang (2006) and Liu (2007) which indicated the least relevance of organization structure to the performance of construction firms. According to Rang (2006), the formalisation of organization structure had a positive impact on project management capability.…”

Section: Hypothesis 2: Foreign Aec Firms' Capabilities and Their Perfsupporting

confidence: 92%

“…Therefore, these six capabilities are the most suitable ones for foreign AEC firms governed by the existing restrictive regulatory framework. In contrast, organizational structure has the least relevance to the performance of construction firms (Kale, 1999;Kang, 2006;Liu, 2007). This is consistent with the statistical analysis result presented in Chapter 6.…”

Section: Summary Of Hypothesis 2: the Relationship Between Foreign Aesupporting

confidence: 84%

“…The above-mentioned seven skills/abilities are consistent with Liu (2007)'s research on international strategic management on Chinese construction firms. Liu (2007) identified eight firm-specific capabilities by incorporating the research findings of Seymour (1987), Ekeledo (2000), Cheah (2002), Cuervo and Low (2003a), Claver and Quer (2005) and Kang (2006) Table 4.1. Therefore, the set of skills/abilities identified by Shen et al (2004) is used in this research as firm-specific capabilities to study the relationship between capabilities, regulatory risks and firm's performance.…”

Section: "mentioning

confidence: 99%

“…In this research, financial performance is measured using growth in international sales and growth in net profits of foreign AEC firms in China. The sales and profit performance indicators have been widely adopted by researchers (Kale, 1999;Kang, 2006;Li, 1998).…”

Section: Contract Modesmentioning

confidence: 99%

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China's construction regulatory framework and its effects on the performance of foreign AEC firms

Ding¹

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Foreign-invested Construction Enterprises (FICEs) 27 2.5.2 Regulations on Foreign-invested Construction Engineering Design Enterprises (FIDEs) 28 ii ATTENTION: The Singapore Copyright Act applies to the use of this document. Nanyang Technological University Library 2.5.3 Regulations on Foreign-invested Construction Engineering Service Enterprises (FISEs) 30 2.6 Literatures on Construction Regulatory Risks Faced by Foreign AEC Firms in China 31 2.6.1 Market Entry 32 2.6.2 Establishment of Local Entity 34 2.6.3 Skill Qualification Application 34 2.6.4 Contracting Issues 2.6.5 Operation-Code and Standard Issues 2.7 Chapter Summary Chapter 3 Review and Comparative Studies of Construction Regulations Affecting Foreign AEC firms in China 3.

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Strategic analysis of large local construction firms in China

Cheah

Kang

Chew

2007

Construction Management and Economics

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The many transitory changes in China have raised the intensity level of competition among construction firms. Despite having a high growth economy, some construction firms continue to suffer from low profitability. Meanwhile, practical cases and empirical findings related to Chinese construction firms remain lacking. This research develops a conceptual model for improving the competitiveness of large construction firms in China. The model integrates two main streams of strategic management theories—the industrial organisation theories, and the resource-based and competence-based views. Critical variables that form the model are initially identified from an environmental analysis and the case studies of 12 large Chinese construction companies. The relationships between competitive strategies, important resources and competencies, and competitive advantage are then verified using survey results. The statistical findings suggest that two strategies—differentiation and market/product diversification, and three important resources and competencies—technological innovative capabilities, financial capabilities and guanxi (relationship), directly affect firm performance as measured by revenue and profit growth.China, competence, competitiveness, construction companies, strategic analysis,

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Strategic analysis of large local construction companies in China

Cited by 7 publications

References 55 publications

The Impact of Internationalization and Diversification on Construction Industry Performance

The Impact of Internationalization and Diversification on Construction Industry Performance

China's construction regulatory framework and its effects on the performance of foreign AEC firms

Strategic analysis of large local construction firms in China

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