A study of national competitive advantage in construction: the European construction industry
Abstract
The international construction industry is highly
competitive with competition expected to further intensify.
However, the market remains essentially heterogeneous with
contractors able to express aspects of competitive advantage.
This research is concerned with the nature and application
of competitive advantage.
Relevant theories are reviewed in order to examine and
explain the general international market. From these theories,
a suitable method was adopted to accommodate the attributes of
international construction and to explain 'how, why, where and
when' internationalisation was viable. This is the Porter model
of national competitive advantage, adapted to accentuate the
consideration of locations.
Through research involving major construction contractors
from the UK and two competitor nations; France and Germany,
each nation's 'national diamond' profile of competitive
advantage was formed. This model was then applied to specific,
economically distinguished, locations; Portugal, Spain and
Italy, to examine the various characteristics of relative
competitive internationalisation.
The combination of theoretical prediction and practical
research revealed numerous elements of national competitive
differentiation. These influence internationalisation,
focussing consideration within a progressive framework of 'how
and why, where and when'.
The research shows that relative competitive advantage
enhances the area of viable internationalisation, through
allowing competition to be undertaken within more economically
mature nations. Further, this framework will also direct
contractors to key areas for improvement in their relative
competitive profile.