Skip to main content
Log in

Exploring the Sources of Contractors’ Competitive Advantage on International HSR Construction Projects

  • Research paper
  • Published:
International Journal of Civil Engineering Aims and scope Submit manuscript

Abstract

This paper aims to identify the sources of competitive advantage for contractors on international high-speed railway (HSR) construction projects, to help them understand these sources, and to provide an integrated way of orienting their competitive position by measuring these driving variables. Based on an in-depth literature review and case analysis, 24 initial variables were identified. Following the pilot study, experience mining was merged into knowledge management. Structural questionnaires, including 23 final variables, were then distributed to professionals from academia and industry. A total of 202 valid responses were received. Mean score ranking and exploratory factor analyses were conducted to reveal the relative important variables and the underlying groupings, respectively. In the last section, a case study with five international contractors was conducted to show the method for assessing their comprehensive competitiveness. According to mean score ranking, the variable “construction safety” was the most important, with a mean value of 4.25. Following an exploratory factor analysis, six underlying factors from the SCA dimension (including management ability, strategic capital, and social influence) and the TCA dimension (including technical skills, operational performance, and financing ability) were identified as significant underlying sources of competitive advantage for contractors on international HSR projects. This study provides an in-depth understanding of sources of competitive advantage for contractors on international HSR projects, and it helps them in precisely orienting their competitive position.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

References

  1. UIC (2015) What is high speed rail? The Worldwide Railway Organisation. https://uic.org/highspeed#What-is-High-Speed-Rail. Accessed 18 Dec 2017

  2. Song M, Zhang G, Zeng W, Liu J, Fang K (2016) Railway transportation and environmental efficiency in China. Transp Res D Trans Environ 48:488–498. https://doi.org/10.1016/j.trd.2015.07.003

    Article  Google Scholar 

  3. Chou J-S, Tserng HP, Lin C, Yeh C-P (2012) Critical factors and risk allocation for PPP policy: comparison between HSR and general infrastructure projects. Transp Policy 22:36–48. https://doi.org/10.1016/j.tranpol.2012.05.009

    Article  Google Scholar 

  4. Lu W, Li H, Shen L, Huang T (2009) Strengths, weaknesses, opportunities, and threats analysis of Chinese construction companies in the global market. J Manag Eng 25(4):166–176. https://doi.org/10.1061/(asce)0742-597x(2009)25:4(166)

    Article  Google Scholar 

  5. Robert C (2015) Twenty years later, Palo Alto Claims HSR is moving too fast. California High Speed Rail Blog. http://www.cahsrblog.com/2015/10/twenty-years-later-palo-alto-claims-hsr-is-moving-too-fast/. Accessed 15 Mar 2018

  6. Wikipedia (2018) Ankara–Istanbul high-speed railway. https://en.wikipedia.org/wiki/Ankara%E2%80%93Istanbul_high-speed_railway. Accessed 23 Sept 2018

  7. Zhu L, Cheung SO (2017) Harvesting competitiveness through building organizational innovation capacity. J Manag Eng 33(5):04017020. https://doi.org/10.1061/(asce)me.1943-5479.0000534

    Article  Google Scholar 

  8. Porter (1980) Competitive strategy. Free Press, New York

    Google Scholar 

  9. Barney JB (1991) Firm resources and sustained competitive advantage. J Manag 17:99–120

    Google Scholar 

  10. Teece DJ (2007) Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strateg Manag J 28(13):1319–1350. https://doi.org/10.1002/smj.640

    Article  Google Scholar 

  11. Larsson R, Finkelstein S (1999) Integrating strategic, organizational, and human resource perspectives on mergers and acquisitions: a case survey of synergy realization. Organ Sci 10(1):1–26. https://doi.org/10.1287/orsc.10.1.1

    Article  Google Scholar 

  12. French SA, Story M, Jeffery RW, Snyder P, Eisenberg M, Sidebottom A, Murray D (1997) Pricing strategy to promote fruit and vegetable purchase in high school cafeterias. J Am Diet Assoc 97(9):1008–1010. https://doi.org/10.1016/s0002-8223(97)00242-3

    Article  Google Scholar 

  13. Reinhardt FL (1998) Environmental product differentiation: implications for corporate strategy. Calif Manag Rev 40(4):43–43+. https://doi.org/10.2307/41165964

    Article  Google Scholar 

  14. Foss NJ, Knudsen T (2003) The resource-based tangle: towards a sustainable explanation of competitive advantage. Manag Decis Econ 24(4):291–307

    Article  Google Scholar 

  15. Huang K-F, Dyerson R, Wu L-Y, Harindranath G (2015) From temporary competitive advantage to sustainable competitive advantage. Br J Manag 26(4):617–636. https://doi.org/10.1111/1467-8551.12104

    Article  Google Scholar 

  16. Zahra SA, Sapienza HJ, Davidsson P (2006) Entrepreneurship and dynamic capabilities: a review, model and research agenda. J Manag Stud 43(4):917–955. https://doi.org/10.1111/j.1467-6486.2006.00616.x

    Article  Google Scholar 

  17. D’Aveni RA, Dagnino GB, Smith KG (2010) The age of temporary advantage. Strateg Manag J 31(13SI):1371–1385. https://doi.org/10.1002/smj.897

    Article  Google Scholar 

  18. Shen LY, Lu WS, Yam M (2006) Contractor key competitiveness indicators: a China study. J J Constr Eng Manag ASCE 132(4):416–424. https://doi.org/10.1061/(asce)0733-9634(2006)132:4(416)

    Article  Google Scholar 

  19. Shen L, Lu WS, Shen QP, Li H (2003) A computer-aided decision support system for assessing a contractor’s competitiveness. Autom Constr 12(5):577–587. https://doi.org/10.1016/s0926-5805(03)00020-7

    Article  Google Scholar 

  20. Drew D, Skitmore M, Lo HP (2001) The effect of client and type and size of construction work on a contractor’s bidding. Build Environ 36(3):393–406. https://doi.org/10.1016/s0360-1323(00)00009-3

    Article  Google Scholar 

  21. Gunhan S, Arditi D (2005) Factors affecting international construction. J Constr Eng Manag 131(3):273–282. https://doi.org/10.1061/(asce)0733-9364(2005)131:3(273)

    Article  Google Scholar 

  22. Tiong R (1996) CSFs in competitive tendering and negotiation model for BOT projects. J Constr Eng Manage ASCE 122(3):205–211. https://doi.org/10.1061/(asce)0733-9364(1996)122:3(205)

    Article  Google Scholar 

  23. Castellacci F, Miguel Natera J (2013) The dynamics of national innovation systems: a panel cointegration analysis of the coevolution between innovative capability and absorptive capacity. Res Policy 42(3):579–594. https://doi.org/10.1016/j.respol.2012.10.006

    Article  Google Scholar 

  24. Rabbi F, Ahad N, Kousar T (2015) Talent management as a source of competitive advantage. J Asian Bus Strategy 9(5):208

    Google Scholar 

  25. Dave B, Koskela L (2009) Collaborative knowledge management—a construction case study. Autom Constr 18(7):894–902. https://doi.org/10.1016/j.autcon.2009.03.015

    Article  Google Scholar 

  26. Tan Y, Shen L, Yao H (2011) Sustainable construction practice and contractors’ competitiveness: a preliminary study. Habitat Int 35(2):225–230. https://doi.org/10.1016/j.habitatint.2010.09.008

    Article  Google Scholar 

  27. Davies A, Dodgson M, Gann DM, Macaulay SC (2017) Five rules for managing large, complex projects. MIT Sloan Manag Rev 59(1):73–78

    Google Scholar 

  28. Tan Y (2009) Contractor's competitiveness and competitive strategy in Hong Kong[D]. The Hong Kong Polytechnic University, Hong Kong

    Google Scholar 

  29. Davila A, Wouters M (2004) Designing cost-competitive technology products through cost management. Account Horizons 18:13–16

    Article  Google Scholar 

  30. Bolton P, Scharfstein DS (1990) A theory of predation based on agency problems in financial contracting. Am Econ Rev 80(1):93–106

    Google Scholar 

  31. Sun L, Wang Y (2015) Identifying the core competitive intelligence based on enterprise strategic factors. J Shanghai Jiaotong Univ (Sci) 1(20):118–123

    Article  Google Scholar 

  32. Rouach D, Santi P (2001) Competitive intelligence adds value: Five intelligence attitudes. Eur Manag J 19(5):552–559. https://doi.org/10.1016/S0263-2373(01)00069-X

    Article  Google Scholar 

  33. Freidina IA (2017) International experience of infrastructure projects financing. Econ Policy (in Russian) 12(4):196–203. https://doi.org/10.18288/1994-5124-2017-4-08

    Article  Google Scholar 

  34. Wang T, Tang W, Du L, Duffield CF, Wei Y (2016) Relationships among risk management, partnering, and contractor capability in international epc project delivery. J Manag Eng. https://doi.org/10.1061/(asce)me.1943-5479.0000459

    Article  Google Scholar 

  35. Tixier AJP, Hallowell MR, Rajagopalan B, Bowman D (2016) Automated content analysis for construction safety: a natural language processing system to extract precursors and outcomes from unstructured injury reports. Autom Constr 62:45–56. https://doi.org/10.1016/j.autcon.2015.11.001

    Article  Google Scholar 

  36. Zhao D, Lucas J (2015) Virtual reality simulation for construction safety promotion. Int J Injury Control Safe Promot 22(1):57–67. https://doi.org/10.1080/17457300.2013.861853

    Article  Google Scholar 

  37. Tournois L (2015) Does the value manufacturers (brands) create translate into enhanced reputation? A multi-sector examination of the value-satisfaction-loyalty-reputation chain. J Retail Consum Serv 26:83–96. https://doi.org/10.1016/j.jretconser.2015.05.010

    Article  Google Scholar 

  38. Du S, Bhattacharya CB, Sen S (2011) Corporate social responsibility and competitive advantage: overcoming the trust barrier. Manag Sci 57(9):1528–1545. https://doi.org/10.1287/mnsc.1110.1403

    Article  Google Scholar 

  39. Agustí-Juan I, Müller F, Hack N, Wangler T, Habert G (2017) Potential benefits of digital fabrication for complex structures: environmental assessment of a robotically fabricated concrete wall. J Clean Prod 154:330–340. https://doi.org/10.1016/j.jclepro.2017.04.002

    Article  Google Scholar 

  40. Lloret Kristensen E, Gramazio F, Kohler M, Langenberg S (2013) Complex concrete constructions—merging existing casting techniques with digital fabrication. In: Proceedings of the 18th international conference on computer-aided architectural design research in Asia, pp 613–622

  41. Saeidi SP, Sofian S, Saeidi P, Saeidi SP, Saaeidi SA (2015) How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. J Bus Res 68(2):341–350. https://doi.org/10.1016/j.jbusres.2014.06.024

    Article  Google Scholar 

  42. Cheng B, Ioannou I, Serafeim G (2014) Corporate social responsibility and access to finance. Strateg Manag J 35(1):1–23. https://doi.org/10.1002/smj.2131

    Article  Google Scholar 

  43. Björkman I, Stahl GK, Vaara E (2007) Cultural differences and capability transfer in cross-border acquisitions: the mediating roles of capability complementarity, absorptive capacity, and social integration. J Int Bus Stud 38(4):658–672. https://doi.org/10.1057/palgrave.jibs.8400287

    Article  Google Scholar 

  44. Deephouse DL, Newburry W, Soleimani A (2016) The effects of institutional development and national culture on cross-national differences in corporate reputation. J World Bus 51(3):463–473. https://doi.org/10.1016/j.jwb.2015.12.005

    Article  Google Scholar 

  45. Gürlek M, Tuna M (2018) Reinforcing competitive advantage through green organizational culture and green innovation. Serv Ind J 38(7–8):467–491

    Article  Google Scholar 

  46. Lu W, Shen L, Yam MC (2008) Critical success factors for competitiveness of contractors: China study. J Constr Eng Manag 134(12):972–982. https://doi.org/10.1061/(ASCE)0733-9364(2008)134:12(972)

    Article  Google Scholar 

  47. Simatupang TM, Sridharan R (2016) A critical analysis of supply chain issues in construction heavy equipment. Int J Constr Manag 16(4):326–338. https://doi.org/10.1080/15623599.2016.1142250

    Article  Google Scholar 

  48. Korytarova J, Hanak T, Kozik R, Radziszewska-Zielina E (2015) Exploring the contractors’ qualification process in public works contracts. Proc Eng 123:276–283. https://doi.org/10.1016/j.proeng.2015.10.090

    Article  Google Scholar 

  49. Hosny O, Nassar K, Esmail Y (2013) Prequalification of Egyptian construction contractors using fuzzy-AHP models. Eng Constr Arch Manag 4(20):381–405

    Article  Google Scholar 

  50. Wehrmann C, Turcan RV (2017) In search of new relationship between internationalization and firm performance: a ‘test of concept’ based on financial statement data from Austrian-listed companies. In: Academy of international business (UK & Ireland chapter) conference

  51. Kraus S, Mitter C, Eggers F, Stieg P (2017) Drivers of internationalization success: a conjoint choice experiment on German SME managers. Rev Manag Sci 11(3):691–716. https://doi.org/10.1007/s11846-016-0201-4

    Article  Google Scholar 

  52. Li S, Ragu-Nathan B, Ragu-Nathan TS, Subba Rao S (2006) The impact of supply chain management practices on competitive advantage and organizational performance. Omega 34(2):107–124. https://doi.org/10.1016/j.omega.2004.08.002

    Article  Google Scholar 

  53. Wong A, Fung P (1999) Total quality management in the construction industry in Hong Kong: a supply chain management perspective. Total Qual Manag 10(2):199–208

    Article  Google Scholar 

  54. Joia LA (2000) Measuring intangible corporate assets: linking business strategy with intellectual capital. J Intellect Cap 1(1):68–84. https://doi.org/10.1108/14691930010371636

    Article  Google Scholar 

  55. Moses OS, Ekwutosi OC (2018) Implication of strategic fit and sustainability on organizational effectiveness. The 2018 international academic research conference in Vienna, pp 194–213

  56. Santos-Vijande ML, López-Sánchez J, Trespalacios JA (2012) How organizational learning affects a firm’s flexibility, competitive strategy, and performance. J Bus Res 65(8):1079–1089

    Article  Google Scholar 

  57. Tarhan A, Turetken O, Reijers HA (2016) Business process maturity models: a systematic literature review. Inf Softw Technol 75:122–134. https://doi.org/10.1016/j.infsof.2016.01.010

    Article  Google Scholar 

  58. Deng X, Low SP, Zhao X, Chang T (2018) Identifying micro variables contributing to political risks in international construction projects. Eng Constr Arch Manag 25(3):317–334. https://doi.org/10.1108/ECAM-02-2017-0042

    Article  Google Scholar 

  59. Neely A (2008) Exploring the financial consequences of the servitization of manufacturing. Oper Manag Res 1(2):103–118. https://doi.org/10.1007/s12063-009-0015-5

    Article  Google Scholar 

  60. Nguyen T (2005) One stop shopping: providing today’s competitive cardiovascular service. J Interv Cardiol 18(2):107–110. https://doi.org/10.1111/j.1540-8183.2005.4046a.x

    Article  Google Scholar 

  61. Jerman D, Završnik B (2006) Can marketing capabilities lead to the competitive advantage of the firm? Ekonomska istraživanja 1(19):53–64

    Google Scholar 

  62. Kahle LR (1994) Marketing-research—an applied orientation. J Mark Res 31(1):137–139. https://doi.org/10.2307/3151953

    Article  MathSciNet  Google Scholar 

  63. Shen L, Yan H, Zhang X, Shuai C (2017) Experience mining based innovative method for promoting urban sustainability. J Clean Prod 156:707–716. https://doi.org/10.1016/j.jclepro.2017.04.074

    Article  Google Scholar 

  64. Grover R, Froese TM (2016) Knowledge management in construction using a socio BIM platform: a case study of AYO Smart Home Project. Proc Eng 145:1283–1290. https://doi.org/10.1016/j.proeng.2016.04.165

    Article  Google Scholar 

  65. Deng X, Low SP, Li Q, Zhao X (2014) Developing competitive advantages in political risk management for international construction enterprises. J Constr Eng Manag. https://doi.org/10.1061/(asce)co.1943-7862.0000836

    Article  Google Scholar 

  66. Singhaputtangkul N, Zhao X (2016) Effects of firm characteristics on enterprise risk management: case study of Chinese construction firms operating in Singapore. J Manag Eng 32(4):5016008. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000434

    Article  Google Scholar 

  67. Chang T, Deng X, Hwang B-G, Zhao X (2018) Political risk paths in international construction projects: case study from Chinese construction enterprises. Adv Civ Eng 2018:1–11. https://doi.org/10.1155/2018/6939828

    Article  Google Scholar 

  68. Chang T, Hwang B-G, Deng X, Zhao X (2018) Identifying political risk management strategies in international construction projects. Adv Civ Eng 2018:1–11. https://doi.org/10.1155/2018/1016384

    Article  Google Scholar 

  69. Rochon J, Kieser M (2011) A closer look at the effect of preliminary goodness-of-fit testing for normality for the one-sample t-test. Br J Math Stat Psychol 64(3):410–426. https://doi.org/10.1348/0007-1102.002003

    Article  MathSciNet  MATH  Google Scholar 

  70. Hallowell MR, Hinze JW, Baud KC, Wehle A (2013) Proactive construction safety control: measuring, monitoring, and responding to safety leading indicators. J Constr Eng Manag. https://doi.org/10.1061/(asce)co.1943-7862.0000730

    Article  Google Scholar 

  71. Wanberg J, Harper C, Hallowell MR, Rajendran S (2013) Relationship between construction safety and quality performance. J Constr Eng Manag. https://doi.org/10.1061/(asce)co.1943-7862.0000732

    Article  Google Scholar 

  72. Campos J, de Rus G (2009) Some stylized facts about high-speed rail: a review of HSR experiences around the world. Transp Policy 16(1):19–28. https://doi.org/10.1016/j.tranpol.2009.02.008

    Article  Google Scholar 

  73. Gillen D, Lall A (2004) Competitive advantage of low-cost carriers: some implications for airports. J Air Transp Manag 1(10):41–50

    Article  Google Scholar 

  74. Teece D, Pisano G (1994) The dynamic capabilities of firms: an introduction. Ind Corp Change 3(3):537–556

    Article  Google Scholar 

  75. Zhao X, Hwang B-G, Low SP, Wu P (2015) Reducing hindrances to enterprise risk management implementation in construction firms. J Constr Eng Manag. https://doi.org/10.1061/(asce)co.1943-7862.0000945

    Article  Google Scholar 

  76. Shan M, Chan APC, Le Y, Hu Y, Xia B (2017) Understanding collusive practices in Chinese construction projects. J Prof Issues Eng Educ Pract. https://doi.org/10.1061/(asce)ei.1943-5541.0000314

    Article  Google Scholar 

  77. Li Y, Liu J, Zhao X (2017) Exploring the factors inducing contractors’ unethical behavior: case of China. J Prof Issues Eng Educ Pract 143(3):4016023. https://doi.org/10.1061/(ASCE)EI.1943-5541.0000316

    Article  Google Scholar 

  78. MacCallum RC, Widaman KF, Preacher KJ, Hong S (2001) Sample size in factor analysis: the role of model error. Multivar Behav Res 36(4):611–637. https://doi.org/10.1207/s15327906mbr3604_06

    Article  Google Scholar 

  79. Reise SP, Waller NG, Comrey AL (2000) Factor analysis and scale revision. Psychol Assess 12(3):287–297. https://doi.org/10.1037//1040-3590.12.3.287

    Article  Google Scholar 

  80. Deng X, Pheng LS, Zhao X (2014) Project system vulnerability to political risks in international construction projects: the case of Chinese contractors. Proj Manag J 45(2):20–33. https://doi.org/10.1002/pmj.21397

    Article  Google Scholar 

  81. Li D-y, Liu J (2014) Dynamic capabilities, environmental dynamism, and competitive advantage: evidence from China. J Bus Res 67(1):2793–2799. https://doi.org/10.1016/j.jbusres.2012.08.007

    Article  Google Scholar 

  82. Mukta M (2016) Efficiency of commercial banks in India: a DEA approach. Pertanika J Soc Sci Hum 24(1):151–169

    Google Scholar 

Download references

Acknowledgements

The authors would like to thank the respondents from both industry and academia who completed the survey questionnaires. We thank the anonymous reviewers for their helpful comments and suggestions in enhancing this paper.

Funding

This research study is funded by the National Natural Science Foundation of China (NSFC-71372199 and NSFC-71771052).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Xiaopeng Deng.

Ethics declarations

Conflict of interest

The authors declare no conflict of interest.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Zhang, N., Deng, X., Zhao, X. et al. Exploring the Sources of Contractors’ Competitive Advantage on International HSR Construction Projects. Int J Civ Eng 17, 1115–1129 (2019). https://doi.org/10.1007/s40999-018-0373-1

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40999-018-0373-1

Keywords

Navigation