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Abstract
In contributing to achieve the Construction 2025 target to reduce the trade gap in construction products and services by 50% by 2025, UK transnational contractors (UKTCs) must seek key opportunities and improve their competitiveness overseas. The Singapore rail sector is a good case in point; the market is mature, rapidly growing and has a strong pipeline of rail projects scheduled for completion by 2030. Despite the strong historical link between the UK and Singapore, UKTCs have been outnumbered and outperformed in the past decade by their rivals within the Singapore rail sector. This study investigates the competitive strategies that are most significant for UKTCs to improve their competitiveness in the Singapore rail sector. Despite its popularity and generalisability, something is fundamentally missing from Porter’s generic typology because it places no emphasis on the entry strategies that are specifically essential for firms that compete overseas. Empirical results obtained from 75 questionnaires and validated in 35 interviews found a combination of Porter’s generic typology in addition to entry strategies to be most significant for UKTCs to compete in the Singapore rail sector. The perceived importance of some strategic practices varied significantly between interviewees from different organisation types. Significant correlations were also found between several strategic practices associated with cost leadership and differentiation, while focus and entry strategies appeared to be mutually exclusive. The findings appear to differ from Porter’s theoretical proposition that firms should adopt a single strategic approach to gain a competitive advantage and achieve superior performance. Instead, a combination of strategies is feasible and more suitable for the construction industry. A hybrid taxonomic framework that comprises the most significant strategic practices associated with Porter’s generic typology in addition to entry strategies is recommended for UKTCs to compete in the Singapore rail sector.
Acknowledgements
The authors would like to thank Ms. Kristen MacAskill, Senior Program Manager at the Laing O’Rourke Centre for Construction Engineering and Technology for facilitating this study conducted in the Department of Engineering, University of Cambridge.
Disclosure statement
No potential conflict of interest was reported by the authors.