Chinese Contractors in the International Market: Business Distribution and Competitive Situation
The past decades have witnessed the dramatic development of Chinese International Contractors (CICs) in the global market. With an increasing number of contractors entering into International Construction Project Contracting (ICPC) market, the CICs has be
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Chinese Contractors in the International Market: Business Distribution and Competitive Situation Zhenyu Zhao, Jiahui Yao and Chao Tang
Abstract The past decades have witnessed the dramatic development of Chinese International Contractors (CICs) in the global market. With an increasing number of contractors entering into International Construction Project Contracting (ICPC) market, the CICs has been facing fierce competition environment. The business layout and competitive positioning have significant impacts for the CICs to choose and develop the international market. According to the data collected from the Engineering News Record and other cases, the paper analyzes the structure of ICPC market and the diversified development process of the CICs in overseas different regions. From the perspective of enterprise ecology theory, international contractor populations are classified by countries. The “Market Population Concentration Index” is proposed to calculate the concentration of international construction market; the “Niche Width” is defined to describe the utilization of international market resources; and the “Niche Overlap” is introduced to reflect the competitive level among contractors. Assessment methods are proposed to quantitatively analyze enterprises niche status of international contractors. The results find the dynamic changes of the business market structure of the CICs and their competitiveness characteristics compared with those of other countries. The study supports both Chinese and other countries’ contractors to understand the development pattern and competitive structure of the global market, and helps them to select target markets and appropriate strategies for ICPC business. Keywords International contractors China Enterprise ecology
International market
Competition
Z. Zhao (&) J. Yao C. Tang School of Economics and Management, North China Electric Power University, Beijing, China e-mail: [email protected] © Springer Science+Business Media Singapore 2017 Y. Wu et al. (eds.), Proceedings of the 20th International Symposium on Advancement of Construction Management and Real Estate, DOI 10.1007/978-981-10-0855-9_111
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Introduction
Chinese International Contractors (CICs) are one of the largest and fastest expanding groups in the world. According to the statistics from the Ministry of Commerce of China, the annual growth rate of the CICs is more than 20 % over the past 15 years. The official statistics indicates that the amount of overseas contracts was reported to be US$142.4 billion, and the new contracts signed by CICs are worth US $191.76 billion in 2014 [1]. Particularly, the international revenues of CICs, which are included in the top 250 international contractors list of the Engineering News Record 2013, reached US$79 billion. The share of the revenues has exceeded that of the United States’ contractors [2]. The CICs are becoming one of the most influential contractor groups next to the European contractors. With the scale of Internationa
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