Internationalization and performance of Chinese construction companies

Thèmes abordés

Internationalization, performance, Chinese construction companies, China, Chinese companies, business in China, multinationals

Résumé du document

Since the open door policy, Chinese construction industry, after nearly thirty years' development, we would like to know whether the globalization process has accelerated the step of the industry performance.
The framework and empirical results in this paper propose the following implications.
First, the study clarifies the theoretical basis on which the tests are explored. In the empirical study part for Chinese higher internationalized leading multinationals, I have identified that the correlation between internationalization level and performance is positive and when the data is generalized into all construction companies scattered in all regions of china, namely lower level of internationalization, the relationship tend to be negative. Multiple regression results show tendency of an inverted U-shaped relation between global integration and firm performance.

Extraits

[...] If a model is built to limit the subjectivity at maximum, the notation may be optimized. To simply the study, certain controlling variables are ignored such as diversification, period effect, state control, openness, etc. In further researches to the I-P ratio of Chinese construction companies, these variables are also very interesting to be explored Appendix CHINA WU YI CO. LTD., Fuzhou, Fujian, CHINA NATIONAL COMPLETE PLANT IMP. & EXP. Metallurgical Corporation of China Ltd. Sinoma International Engineering Co.,Ltd Shanghai Construction Group Co., Ltd. [...]

[...] Problem: Is there a positive or negative impact of internationalization on Chinese construction multinationals' performance? A comparison to the developed countries' construction multinationals, do they conclude (same/different) I-P relationship as Chinese contractors. The aim is to trace a linear correlation between level of internationalization and performance, and identify if the variable has same effect on developed countries and China Hypothesis The level of internationalization is positively correlated to the performance of the Chinese Multinational Construction Company. Hypothesis Construction multinationals in developed countries generate the same tendency of correlation as developing country Construction Companies' I-P Relationship The data are calculated according to the mathematical average of the net profit margin and international revenue/ total revenue during the period of 2008 and Chinese Contractors' I-P Relation I-P relationship for Construction Companies in China Performance Net Margin Linéaire (Net Margin Level of Internationalization Source of Table Authors' adaptation and calculation according to the samples financial report from 2008- 2010 Table 1 refers to the linear regression between performance (net profit margin) and level of internationalization (international revenue / total revenue) for group 1 samples. [...]

[...] J. (2007). Is international business good for companies? The evolutionary or multistage theory of internationalization vs. the transaction cost perspective. Management International Review, 453–475 George Boykin. (2012). ROS Vs. Net Profit Margin. Available: http://yourbusiness.azcentral.com/ros-vs-net-profit-margin-1411.html. Last accessed 31th mars 2013. Geringer, J. [...]

[...] New York, Geneva: United Nations. World Investment Report. Unknown Author ( 2009 China Statistical Yearbook on Construction. Beijing: Chinese National Bureau of Statistics. 40-70. Yong Yang, Nigel Driffield. (2012). Multinationality-Performance Relationship A Meta-analysis. Management International Review. 23-47 Zaheer, S. (1995). Overcoming the liability of foreignness. [...]

[...] Jiangsu Zhongnan Construction Group CO.,LTD CHINA RAILWAY ERJU Co.,Ltd. XINJIANG BEIXIN CONSTRUCTION & ENG'G GROUP CHINA STATE CONSTRUCTION ENGINEERING CORP., Beijing, China CHINA RAILWAY GROUP LTD., Beijing, China CHINA RAILWAY CONSTRUCTION CORP. LTD., Beijing, China CHINA NATIONAL MACHINERY INDUSTRY CORP., Beijing, China CHINA NATIONAL CHEMICAL ENG'G GROUP CORP., Beijing, China CHINA GEZHOUBA GROUP CO. LTD., Wuhan, Hubei, China China Communications Construction Group Ltd., Beijing, China Net Margin CITIC CONSTRUCTION, Beijing, China intl/total DONGFANG ELECTRIC CORP CHENGDU Company Name Zhongyuan Special Steel Co Ltd of each company. [...]