Which strategies are more effective for international contractors during boom and recession periods?

Journal of Management in Engineering

Volumn 28, Issue 3, 2012, Pages 281-290

  Jung, Wooyong ^a,b   Han, Seung H ^b   Koo, Bonsang ^c   Jang, Woosik ^b  

^a 109 McLaughlin Hall   (United States)

^b Yonsei University   (South Korea)

^c Seoul National University of Science and Technology   (South Korea)

Author keywords

Diversification; Financial soundness; International construction; Localization; Resources allocation; Strategic alliance

Indexed keywords

DIVERSIFICATION; FINANCIAL SOUNDNESS; INTERNATIONAL CONSTRUCTION; LOCALIZATION; RESOURCES ALLOCATION; STRATEGIC ALLIANCE;

COMMERCE; COST ACCOUNTING; FINANCE;

CONTRACTORS;

EID: 84873386569     PISSN: 0742597X     EISSN: None     Source Type: Journal    
DOI: 10.1061/(ASCE)ME.1943-5479.0000087     Document Type: Article

References (69)

1. Aziz, A. M. A., and, Russell, A. D. (2006). " Generalized economic modeling for infrastructure and capital investment projects." J. Infrastruct. Syst. JITSE4 1076-0342, 12 (1), 18-32. 10.1061/(ASCE)1076- 0342(2006)12:1(18)
2. Bakatjan, S., Arikan, M., and, Tiong, R. L. K. (2003). " Optimal capital structure model for BOT power projects in Turkey." J. Constr. Eng. Manage. JCEMD4 0733-9364, 129 (1), 89-97. 10.1061/(ASCE)0733-9364(2003)129:1(89)
3. Bartlett, C. A., and, Ghoshal, S. (1989). Managing across borders: The transnational solution, Harvard Business School Press, Boston.
4. Bartlett, C. A., and, Ghoshal, S. (1992). Transnational management: Text, cases and readings in cross-border management, McGraw-Hill, NY.
5. Barton, S. L., and, Gordon, P. J. (1988). " Corporate strategy and capital structure." Strategic Manage. J. SMAJD8 0143-2095, 9 (6), 623-632. 10.1002/smj.4250090608
6. Bender, R., and, Ward, K. (2008). Corporate financial strategy, Elsevier Butterworth Heinemann, Burlington, MA.
7. Berger, P. G., and, Ofek, E. (1995). " Diversification's effect on firm value." J. Financ. Econ. JFECDT, 37 (1), 39-65. 10.1016/0304-405X(94) 00798-6
8. Berry, C. H. (1971). " Corporate growth and diversification." J. Law. Econ. 0022-2186, 14 (2), 371-383. doi:10.1086/466714
9. Betts, M., and, Ofori, G. (1992). " Strategic planning for competitive advantage in construction." Constr. Manage. Econ. 0144-6193, 10 (6), 511-532. 10.1080/01446199200000049
10. Bleeke, J., and, Ernst, D. (1993). Collaborating to compete, John Wiley and Sons, NY.
11. Bon, R., and, Luck, R. (1999). " Outsourcing of property-related management functions in Europe and North America, 1993-1998." Constr. Manage. Econ. 0144-6193, 17 (4), 409-412. 10.1080/014461999371321
12. Buckley, P. (1998). " Analyzing foreign market entry strategies: Extending the internalization approach." J. Int. Bus. Stud. 0047-2506, 29 (3), 539-551. 10.1057/palgrave.jibs.8490006
13. Cheah, C. Y. J., Garvin, M. J., and, Miller, J. B. (2004). " Empirical study of strategic performance of global construction firms." J. Constr. Eng. Manage. JCEMD4 0733-9364, 130 (6), 808-817. 10.1061/(ASCE)0733- 9364(2004)130:6(808)
14. Chen, C. (2008). " Entry mode selection for international construction markets: the influence of host country related factors." Constr. Manage. Econ. 0144-6193, 26 (3), 303-314. 10.1080/01446190701882382
15. Daniesls, J. D., Radebaugh, L. H., and, Sulliva, D. P. (2007). International business: Environments and operations, Prentice Hall, NJ.
16. Dias, J. A., and, Ioannou, P. G. (1995). " Debt capacity and optimal capital structure for privately financed infrastructure projects." J. Constr. Eng. Manage. JCEMD4 0733-9364, 121 (4), 404-414. 10.1061/(ASCE)0733- 9364(1995)121:4(404)
17. Dikmen, I., and, Birgonul, M. T. (2003). " Strategic perspective of turkish construction companies." J. Manage. Eng. JMENEA 0742-597X, 19 (1), 33-40. 10.1061/(ASCE)0742-597X(2003)19:1(33)
18. Dikmen, I., Birgonul, M. T., and, Budayan, C. (2009). " Strategic group analysis in the construction industry." J. Constr. Eng. Manage. JCEMD4 0733-9364, 135 (4), 288-297. 10.1061/(ASCE)0733-9364(2009)135:4(288)
19. Dikmen, I., Birgonul, M. T., and, Ozorhon, B. (2007). " Project appraisal and selection using the analytic network process." Can. J. Civ. Eng. CJCEB8 0315-1468, 34 (7), 786-792. 10.1139/l07-006
20. Doukas, J. A., and, Lang, L. (2003). " Foreign direct investment, diversification and firm performance." J. Int. Bus. Stud. 0047-2506, 34 (2), 153-172. 10.1057/palgrave.jibs.8400014
21. Elazouni, A. M., and, Gab-Allah, A. A. (2004). " Finance-based scheduling of construction projects using integer programming." J. Constr. Eng. Manage. JCEMD4 0733-9364, 130 (1), 15-24. 10.1061/(ASCE)0733-9364(2004)130: 1(15)
22. Engineering News Records (ENR). (1994-2009). The top 225 international contractors. Eng. News-Rec.
23. Fleisher, C. S., and, Bensoussan, B. E. 2002). Strategic and competitive analysis, Prentice Hall, NJ.
24. Geringer, J. M., Beamish, P. W., and, Dacosta, R. C. (1989). " Diversification strategy and internationalization: implications for MNE performance." Strategic Manage. J. SMAJD8 0143-2095, 10 (2), 109-119. 10.1002/smj.4250100202
25. Global Insight. (2009). Global construction outlook, IHS Inc., Lexington.
26. Grasso, B., Rasdorf, W., and, Bridgers, M. (2008). " Nature and extent of domestic construction program outsourcing." J. Constr. Eng. Manage. JCEMD4 0733-9364, 134 (12), 1002-1010. 10.1061/(ASCE)0733-9364(2008)134: 12(1002)
27. Han, S. H., Kim, D. Y., Kim, H., and, Jang, W.-S. (2008). " A web-based integrated system for international project risk management." Autom. Constr. AUCOES 0926-5805, 17 (3), 342-356. 10.1016/j.autcon.2007.05.012
28. Han, S. H., Kim, D. Y., Jang, H. S., and, Choi, S. (2010). " Strategies for contractors to sustain growth in the global construction market." Habitat Int. 0197-3975, 34 (1), 1-10. 10.1016/j.habitatint.2009. 04.003
29. Hastak, M., and, Shaked, A. (2000). " ICRAM-1: Model for international construction risk assessment." J. Manage. Eng. JMENEA 0742-597X, 16 (1), 59-69. 10.1061/(ASCE)0742-597X(2000)16:1(59)
30. Hegazy, T. (1999). " Optimization of resource allocation and leveling using genetic algorithms." J. Constr. Eng. Manage. JCEMD4 0733-9364, 125 (3), 167-175. 10.1061/(ASCE)0733-9364(1999)125:3(167)
31. Hill, C. W. L. (2002). International business, McGraw-Hill, NY.
32. Hines, C. (2003). " Time to replace globalization with localization." Global Environ. Polit. 1526-3800, 3 (3), 1-7. 10.1162/152638003322469240
33. Hisey, K. (1985). " Diversification strategy and choice of country: Diversifying acquisition abroad by U.S. multinationals, 1970-1980." J. Int. Bus. Stud. 0047-2506, 16 (2), 51-64. 10.1057/palgrave.jibs.8490450
34. International Contractors Association of Korea (ICAK). (1997). Plan for efficient management and use of human resources for overseas construction and materials, Ministry of Construction and Transportation (MOCT), Seoul.
35. International Contractors Association of Korea (ICAK). (2004). Overseas construction trends, The Ministry of Construction and Transportation (MOCT), Seoul.
36. Johanson, J., and, Vahlne, J. (1990). " The mechanism of internationalism." Int. Mark. Rev., 7 (4), 11-24.
37. Jones, M. V., and, Coviello, N. E. (2005). " Internationalisation: Conceptualising an entrepreneurial process of behaviour in time." J. Int. Bus. Stud. 0047-2506, 36 (3), 284-303. 10.1057/palgrave.jibs.8400138
38. Kim, S. I., Kim, M. C., and, Jang, H. S. (2008). Competiveness reinforcement plan for international construction resurrection, Korea Research Institute for Human Settlements, Gyeonggi-do, Korea.
39. Kogut, B. (1988). " Joint ventures: Theoretical and empirical perspectives." Strategic Manage. J. SMAJD8 0143-2095, 9 (4), 319-332. 10.1002/smj.4250090403
40. Kong, D., Tiong, R. L. K., Cheah, C. Y. J., Permana, A., and, Ehrlich, M. (2008). " Assessment of credit risk in project finance." J. Constr. Eng. Manage. JCEMD4 0733-9364, 134 (11), 876-884. 10.1061/(ASCE)0733-9364(2008) 134:11(876)
41. Ling, F. Y. Y., Ibbs, C. W., and, Chew, E. W. (2008). " Strategies adopted by international rchitectural, engineering, and construction firms in Southeast Asia." J. Profl. Issues Eng. Educ. Pract. JPEPE3 1052-3928, 134 (3), 248-256. 10.1061/(ASCE)1052-3928(2008)134:3(248)
42. Ling, F. Y. Y., Ibbs, C. W., and, Cuervo, J. C. (2005). " Entry and business strategies used by international architectural, engineering and construction firms in China." Constr. Manage. Econ. 0144-6193, 23 (5), 509-520. 10.1080/01446190500040141
43. Ling, F. Y. Y., Ibbs, C. W., and, Hoo, W. Y. (2006). " Determinants of international architectural, engineering, and construction firms' project success in China." J. Constr. Eng. Manage. JCEMD4 0733-9364, 132 (2), 206-214. 10.1061/(ASCE)0733-9364(2006)132:2(206)
44. Low, P. S., and, Leong, C. H. Y. (2000). " Cross-cultural project management for international construction in China." Int. J. Proj. Manage. IPMAEL 0263-7863, 18 (5), 307-316. 10.1016/S0263-7863(99)00027-7
45. Louis, C., Lawrence, M., and, Keith, M. (2007). Research methods in education, 6th edition, Routledge, NY.
46. Makino, S., and, Beamish, P. W. (1998). " Performance and survival of joint ventures with non-conventional ownership structures." J. Int. Bus. Stud. 0047-2506, 29 (4), 797-818. 10.1057/palgrave.jibs.8490054
47. Miller, K. D. (1998). " Economic exposure and integrated risk management." Straregic Manag. J. SMAJD8 0143-2095, 19 (5), 497-514. 10.1002/(SICI)1097-0266(199805)19:5<497::AID-SMJ958>3.0.CO;2-M
48. Muchhala, Bhumika., ed. (2007). Ten years after: Revisiting the Asian financial crisis, Woodrow Wilson International Center for Scholars, Asia Program, Washington, DC.
49. Neves, J. C., and, Bugalho, A. (2008). " Coordination and control in emerging international construction firms." Constr. Manage. Econ. 0144-6193, 26 (1), 3-13. 10.1080/01446190701793670
50. Ofori, G. (1996). " International contractors and structural changes in host country construction industries: case of Singapore." Eng. Construct. Architect. Manage. 0969-9988, 3 (4), 271-288. 10.1108/eb021035
51. Ozorhon, B., Arditi, D., Dikmen, I., and, Birgonul, M. T. (2008). " Effect of partner fit in international construction joint ventures." J. Manage. Eng. JMENEA 0742-597X, 24 (1), 12-20. 10.1061/(ASCE)0742-597X(2008)24: 1(12)
52. Porter, M. E. (1985). Competitive advantage, Free Press, NY.
53. Ranasinghe, M. (1999). " Private sector participation in infrastructure projects: a methodology to analyse viability of BOT." Constr. Manage. Econ. 0144-6193, 17 (5), 613-623. 10.1080/014461999371222
54. Rugman, A. (1976). " Risk reduction by international diversificaton." J. Int. Bus. Stud. 0047-2506, 7 (2), 75-80. 10.1057/palgrave.jibs.8490702
55. Sacks, R., and, Harel, M. (2006). " An economic game theory model of subcontractor resource allocation behavior." Constr. Manage. Econ. 0144-6193, 24 (8), 869-881. 10.1080/01446190600631856
56. Samprit, C., and, Ali, S. H. (2006). Regression analysis by example, 4th Ed., John Wiley & Sons, NJ.
57. Sillars, D. N., and, Kangari, R. (1997). " Japanese donstruction alliances." J. Constr. Eng. Manage. JCEMD4 0733-9364, 123 (2), 146-152. 10.1061/(ASCE)0733-9364(1997)123:2(146)
58. Sillars, D. N., and, Kangari, R. (2004). " Predicting organizational success within a project-based joint venture alliance." J. Constr. Eng. Manage. JCEMD4 0733-9364, 130 (4), 500-508. 10.1061/(ASCE)0733-9364(2004)130: 4(500)
59. Wailerdsak, N., and, Suehiro, A. (2002). " Management localization of a global automobile enterprise case study of toyota motor Thailand." Globalization, innovation and human resource development for competitive advantage, proceedings, Asian Institute of Technology, Bangkok.
60. Wang, S. Q., Dulaimi, M. F., and, Aguria, M. Y. (2004). " Risk management framework for construction projects in developing countries." Constr. Manage. Econ. 0144-6193, 22 (3), 237-252. 10.1080/0144619032000124689
61. Warszawski, A. (1996). " Strategic planning in construction companies." J. Constr. Eng. Manage. JCEMD4 0733-9364, 122 (2), 133-140. 10.1061/(ASCE)0733-9364(1996)122:2(133)
62. Warszawski, A. (2003). " Parametric analysis of the financing cost in a building project." Constr. Manage. Econ. 0144-6193, 21 (5), 447-459. 10.1080/0144619032000049638
63. Wiersema, M. (2007). " Corporate diversification: the impact of foreign competition, industry globalization, and product diversification." Strategic Manage. J. SMAJD8 0143-2095, 29 (2), 115-132. 10.1002/smj.653
64. Wooldridge, S. C., Garvin, M. J., and, Miller, J. B. (2001). " Effects of accounting and budgeting on capital allocation for infrastructure projects." J. Manage. Eng. JMENEA 0742-597X, 17 (2), 86-94. 10.1061/(ASCE)0742-597X(2001)17:2(86)
65. Xu, T., Smith, N. J., and, Bower, D. A. (2005). " Forms of collaboration and project delivery in Chinese construction markets: Probable emergence of strategic alliances and design/build." J. Manage. Eng. JMENEA 0742-597X, 21 (3), 100-109. 10.1061/(ASCE)0742-597X(2005)21:3(100)
66. Yee, C. Y., and, Cheah, C. Y. J. (2006 a). " Fundamental analysis of profitability of large engineering and construction firms." J. Manage. Eng. JMENEA 0742-597X, 22 (4), 203-210. 10.1061/(ASCE)0742-597X(2006)22:4(203)
67. Yee, C. Y., and, Cheah, C. Y. J. (2006 b). " Interactions between business and financial strategies of large engineering and construction firms." J. Manage. Eng. JMENEA 0742-597X, 22 (3), 148-155. 10.1061/(ASCE)0742-597X(2006)22:3(148)
68. Yun, S., Han, S. H., Kim, H., and, Ho Ock, J. (2009). " Capital structure optimization for build-operate-transfer (BOT) projects using a stochastic and multi-objective approach." Can. J. Civ. Eng. CJCEB8 0315-1468, 36 (5), 777-790. 10.1139/L08-134
69. Zhang, H., and, Tam, C. M. (2003). " Fuzzy decision-making for dynamic resource allocation." Constr. Manage. Econ. 0144-6193, 21 (1), 31-41. 10.1080/0144619032000065108