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Adaptive Strategies and Sustainable Innovations of Chinese Contractors in the Belt and Road Initiative: A Social Network and Supply Chain Integration Perspective

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  • Jiaxin Huang

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Kowloon, Hong Kong, China)

  • Shui Ming Li

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Kowloon, Hong Kong, China)

Abstract

As global economic integration and rapid technological advancements transform international business, international engineering contracting has become essential for achieving sustainable development goals (SDGs). This paper investigates the significant impact of China’s strategic initiatives, notably the “Going Global” strategy and the Belt and Road Initiative (BRI), on the operational practices of Chinese enterprises involved in overseas investments. Central to this transformation is the Engineering, Procurement, and Construction (EPC) model, which emphasizes the integration of supply chain management and stakeholder collaboration to enhance performance in international EPC projects and underscores the crucial role of these elements in promoting sustainability. Incorporating insights from social network data analysis, this study reveals that contractors collaborating with various stakeholders—such as owners/consulting engineers, domestic and foreign customs departments, and group headquarters/design parties—exhibit a high degree of similarity in personnel profiles. This suggests that the internal organizational structure and personnel allocation of contractors could be optimized to enhance operational efficiency, aligning with the collaborative patterns identified. This study addresses a critical research gap by exploring how effective supply chain management and collaborative stakeholder engagement within multinational EPC projects contribute to sustainable outcomes. Employing advanced social network analysis software, the research examines the complex interactions among stakeholders and their influence on procurement dynamics. Findings indicate that strong relational networks and strategic collaborations significantly enhance procurement efficiency and project success, underscoring the importance of supply chain integration. Ultimately, integrating supply chain management principles into the EPC model not only offers innovative perspectives for advancing sustainability in international projects but also provides actionable insights for improving project outcomes within the BRI framework. This research underscores the pivotal role of supply chain organization and stakeholder cooperation in achieving sustainability objectives, thereby enriching the discourse on sustainable enterprise operation and supply chain management in the context of global initiatives.

Suggested Citation

  • Jiaxin Huang & Shui Ming Li, 2024. "Adaptive Strategies and Sustainable Innovations of Chinese Contractors in the Belt and Road Initiative: A Social Network and Supply Chain Integration Perspective," Sustainability, MDPI, vol. 16(20), pages 1-22, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:8927-:d:1499331
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    References listed on IDEAS

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    4. Qi Fu & Chung-Yee Lee & Chung-Piaw Teo, 2010. "Procurement management using option contracts: random spot price and the portfolio effect," IISE Transactions, Taylor & Francis Journals, vol. 42(11), pages 793-811.
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