Overview of the international competitiveness of Chinese construction firms Puying Li Ali Parsa Simon Huston Anil Kashyap

Ph.D. flow diagram Conceptual RO1: pathway RO2: competitiveness on construction RO3: global construction market Exploratory RO4: Methodology RO5: primary data analysis RO6: model Operation RO7: model test Reflexive RO8: Corroboration RO9: Conclusion

Data\Methodology Literature review of the China and global construction market Secondary statistical data analysis (the China statistical yearbook, Engineering news records and government reports) SWOT analysis

The current issues of Chinese construction firms (CCFs)  CCFs have captured the market lead in the African construction market, but challenges in the European and American markets still remain.  The CCFs’ international revenue still lower than Western counterparts.

Global construction market Source: 1. Top 225 international contractors (ENR ) 2. Top 250 international contractors (ENR )

Global construction market Figure 2: The international revenue of region by top international contractors in last decades. Source: 1. Top 225 international contractors (ENR ) 2. Top 250 international contractors (ENR )

The historical developments of Chinese construction firms Worked on a non- profit basis on agreed projects to satisfy target plans Reform of company structure and ownership to meet the demands of international construction markets Emergence in global construction markets Pre-1970s 1970s – 1990s Post-2000s

Case: Chinese Communication Construction Company Ltd.takeover of John Holland Ranking No.10 of top international contractors Subsidiary of GRUPO ACS, Spain, which is ranking No. 1 of top international contractors

Case: WestConnex M4 East Motorway project in Australia

Chinese construction firms’ share in the global market Figure 5: The market share of top 250 international contractors in 2013 Source: top 250 international contractors (ENR, 2014:8)

Chinese construction firms’ share in the global market Figure 6: Annual turnover value of CCFs in different global construction market Source: China Statistical Yearbook ( )

SWOT analysis of Chinese construction firms in global market Helpful Harmful Strengths Human resource capabilities Lower bidding price Advanced technology Good relationship with developing countries Financial support by state-owned banks Weaknesses Lack of professional project managers Absence of design capability Opportunities Government encouragement and promotion Good relationship with developing countries Asian Infrastructure Investment Bank (AIIB) was initiated by China Threats High business risk High political risks Internal External

The international competitiveness of Chinese construction firms  Cheaper project cost  Experienced in working abroad  The high level of productivity  Advancement technologies  The special loan interest from the China State- owned bank  The Bilateral and Multilateral agreements supported by the Chinese government

Suggestions  Improve technology to support excellent project quality;  Innovate in finance to achieve more international revenue and turnover value, thus improve rank/position in the global market.  Develop project management skills to control energy saving, risk avoidance and project progress.

Further research steps Analytical review of portfolio management (finance, human resource, technology etc. ) to compare performance of top international and Chinese construction firms Develop competitiveness model and benchmarking tool Expert interviews (Delphi method) and intensive research on selective firms (case studies)

References:  China Statistical Yearbook ( ).  Engineering News Records ( ). The top 250 international contractors.  Ministry of Commerce of China (2014).  Pheng, L. S. and Jiang, H. B. (2003). Internationalization of Chinese construction enterprises. Journey of Construction Engineering and Management, 129(6):  State Council of China (2014)  Yan, Z. K. (2005). Human Resource Management under the strategy of Chinese construction enterprises going overseas. Railway Construction Technology. 22(4):  Zhao, Z. Y. and Shen, L. Y. (2008). Are Chinese contractors competitive in international market? Construction Management and Economics, pp  Zhu, Y. (2006). Making the international contraction enterprise. Construction Economy, 27(1):