Strategic considerations for construction in the People’s Republic of China: the case of German contractors in the 1990s


The construction industry has been struggling to integrate business strategies that are anticipating the internationalisation and infiltration of international markets. This article attempts to evaluate the China operations of German contractors from a strategic management decision perspective in the period between 1990 and 2000. Existing internationalisation theories have appeared to be inappropriate to explain international construction due to the unique project nature of construction business. The Ownership, Location and Internationalisation (OLI)-paradigm was initially developed to explain international production pattern was revised to form the basis for the evaluation of the Construction contractors’ market activities. The interviews indicate an industry-specific culture that affects how companies approach foreign markets. Some exceptional companies illustrated a higher degree of openness towards a more strategic and consistent approach in terms of the development of overseas markets

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