Business models for foreign firms offering construction-related consultancy services in China
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Pages (from-to) | 218-235 |
Journal / Publication | Construction Management and Economics |
Volume | 34 |
Issue number | 4-5 |
Online published | 9 Jun 2016 |
Publication status | Published - 2016 |
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Abstract
Many foreign firms are expected to enter China’s growing construction market. The objectives are to: (i) identify the extent to which Porter’s generic business strategies and practices are adopted by local Chinese architectural, engineering and construction firms (Chinese firms) and foreign firms offering construction-related consultancy services in China (foreign firms); (ii) investigate the extent to which Porter’s generic strategies contribute to firms’ competitiveness in China; and (iii) propose a business model framework for construction services in China. Using a structured questionnaire, data were collected via mail and face-to-face interviews. In total, 37 and 45 completed questionnaires were received from foreign and Chinese firms, respectively. Both foreign and Chinese firms adopt Porter’s differentiation and focus strategies to a significant extent. Foreign firms emphasize value offerings that incorporate superior design, technology and quality significantly more than Chinese firms. The findings show that Porter’s cost leadership and differentiation strategies are significantly correlated with firms’ competitiveness, especially the practices relating to cutting suppliers’ prices, reconfiguring the value chain, providing innovative services and offering comprehensive services. To help them succeed in China, it is recommended that foreign firms develop their business models based on the framework developed here.
Research Area(s)
- Business model, China, competitiveness, Porter’s generic strategies
Citation Format(s)
Business models for foreign firms offering construction-related consultancy services in China. / LING, Florence Yean Yng; LI, Shan.
In: Construction Management and Economics, Vol. 34, No. 4-5, 2016, p. 218-235.
In: Construction Management and Economics, Vol. 34, No. 4-5, 2016, p. 218-235.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review