Success factors for Taiwanese contractors collaborating with local Chinese contractors in construction projects

Abstract

Regional trade cooperation has become an important component of construction industry due to the Free Trade Agreement. This segment of the market presents many challenges for construction firms. Establishing suitable international partnering relations is an effective strategy for adapting to the additional unpredictability of international markets. This research integrates the Balanced Scorecard system with Fuzzy Analytic Hierarchy Process for comprehensive and quantitative evaluation of the relevant bilateral cooperation. Commercial cooperation across the Taiwan Strait is selected as a case study for determining the evaluating methodology. After examining data from Chinese firms, 12 factors for partner selection are identified. The factors are compared with practical conditions of worldwide and local markets to establish their viability. The methodology provides a framework for evaluating potential partners when attempting to enter foreign markets. Additionally, it identifies critical factors for developing optimal market entrance strategies, contracts, and risk management; results can also be golcally (globally and locally) tailored to promote the efficiency of international cooperation.

Keywords:

• partnering relationship
• Balanced Scorecard
• Fuzzy Analytic Hierarchy Process
• Chinese construction market
• Taiwan
• contractor
• regional economic

JEL Classification:

• F23

Additional information

Notes on contributors

Chih-Han Kao

Chih-Han KAO (Dr) received the PhD degree from Construction Engineering from National Taiwan University of Science & Technology in 2007. He is an Assistant Professor of the Department of Civil Engineering and Engineering Management of National Quemoy University, Kinmen, Taiwan. His areas of research include construction management, decision making and data mining embedded Soft Computing.

Cheng-Han Huang

Cheng-Han HUANG (Dr) is a civil engineer specializing in construction industry and economics. He received PhD degree from University of Chung-Hsing in 2014, he works for Taiwan Construction Research Institute and the government of Taiwan as a director researcher to participate in several projects related to infrastructure system and feasibility and economic analysis.

Mark Shu-Chien Hsu

Mark Shu-Chien Hsu (Dr) was a postdoctoral research associate at the University of Maryland in the Project Management Centre for Excellence prior to joining The Hong Kong Polytechnic University. His primary research goals are using computational modelling techniques, to help understand and analyze complex systems in the fields of project organization and human behaviour, sustainable management, and disaster management.

I-Hung Tsai

I-Hung TSAI received the M.S. degree from Civil Engineering and Engineering Management Department from National Quemoy University in 2011. He services in the Cathay Real Estate Development Company as an engineer.