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Entry and business strategies used by international architectural, engineering and construction firms in China

Author

Listed:
  • Florence Yean Yng Ling
  • C. William Ibbs
  • Javier Cuervo

Abstract

International architectural, engineering and construction (AEC) firms need to decide on the appropriate market entry mode and business strategies when undertaking projects overseas. The objectives of this research are to investigate the effective market entry modes for penetrating China and the effective business strategies for managing projects in China. The research method is based on a structured questionnaire and data were collected via postal survey. Interviews have been conducted to complement the survey. The results show that establishing a wholly owned subsidiary in China is the most effective entry mode. Foreign AEC firms need to adopt a differentiation strategy by providing niche and superior service. They must also pay great attention to customer satisfaction to gain competitive advantage and clinch and manage projects. To succeed in China, foreign AEC firms need to set up a physical office there, to develop a good understanding of local by-laws, understand client requirements better and therefore provide them with a superior product or service.

Suggested Citation

  • Florence Yean Yng Ling & C. William Ibbs & Javier Cuervo, 2005. "Entry and business strategies used by international architectural, engineering and construction firms in China," Construction Management and Economics, Taylor & Francis Journals, vol. 23(5), pages 509-520.
    • Handle: RePEc:taf:conmgt:v:23:y:2005:i:5:p:509-520
    DOI: 10.1080/01446190500040141
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    References listed on IDEAS

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    1. Tarun Khanna, 1998. "The Scope of Alliances," Organization Science, INFORMS, vol. 9(3), pages 340-355, June.
    2. S. Q. Wang & Robert Tiong & S. K. Ting & D. Ashley, 2000. "Evaluation and management of foreign exchange and revenue risks in China's BOT projects," Construction Management and Economics, Taylor & Francis Journals, vol. 18(2), pages 197-207.
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    Cited by:

    1. João Vasco Coelho, 2022. "Non‐linear internationalization processes in Portugal: Evidence across retail, construction and software development industries," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(3), pages 539-559, June.
    2. Scaringella, Laurent & Burtschell, François, 2017. "The challenges of radical innovation in Iran: Knowledge transfer and absorptive capacity highlights — Evidence from a joint venture in the construction sector," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 151-169.
    3. Maria João Sousa & Susana Costa e Silva, 2008. "THE USE of CONSORTIA for the INTERNATIONALIZATION of FIRMS – MOTA-ENGIL CASE STUDY," Working Papers de Gestão (Management Working Papers) 012008, Católica Porto Business School, Universidade Católica Portuguesa.
    4. M. Ahlbrecht & S. Eckert, 2013. "Venturing Early or Following Late?," Management International Review, Springer, vol. 53(5), pages 635-658, October.
    5. Canabal, Anne & White III, George O., 2008. "Entry mode research: Past and future," International Business Review, Elsevier, vol. 17(3), pages 267-284, June.
    6. Osabutey, Ellis L.C. & Williams, Karen & Debrah, Yaw A., 2014. "The potential for technology and knowledge transfers between foreign and local firms: A study of the construction industry in Ghana," Journal of World Business, Elsevier, vol. 49(4), pages 560-571.
    7. Alicia Lozano-Torró & Tatiana García-Segura & Laura Montalbán-Domingo & Eugenio Pellicer, 2019. "Risk Management as a Success Factor in the International Activity of Spanish Engineering," Administrative Sciences, MDPI, vol. 9(1), pages 1-20, February.

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