IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i18p13836-d1241802.html

Market Structure Analysis of Revenue of International Construction Professional Service (I-CPS): A Country-Level Analysis

Author

Listed:
  • Kang-Wook Lee

    (Post-Construction Evaluation and Management Center, Department of Construction Policy Research, Korea Institute of Civil Engineering and Building Technology, Goyang-si 10223, Republic of Korea)

Abstract

International construction professional service (I-CPS) refers to a knowledge-intensive professional service (KIPS), such as architecture, engineering, and consultancy, which uses technology/human capital as its major input and is better positioned to create new market opportunities and profitability. While the I-CPS market has recently stagnated owing to political, economic, and social uncertainties, the continuous growth and survival of I-CPS firms are becoming an issue, and a country’s competitiveness in supporting these firms is becoming increasingly important. The market structure of an industry results from the competition between countries or firms, which helps identify future market opportunities and establish a timely competitive strategy. The objective of this study is to quantitatively analyze the I-CPS market structure based on top international design firms (TIDFs). This study analyzes the revenue structures of TIDFs by nationality to identify country-specific factors in the I-CPS industry. The Engineering News-Record’s (ENR) Top 225/200 International Design Firms List for the past decade (2011–2021) was used to analyze international revenue in the major 15 countries. This study analyzed the I-CPS industry’s concentration for static analysis, and for dynamic analysis, the rank distribution of TIDFs, their mobility, and instability by firm nationality were analyzed sequentially. The results confirmed that market forces shifted from Europe and USA to Canada and China and that the market position was unstable in many countries. Additionally, this study divides the 15 countries into four static and dynamic combinations: high-static and high-dynamic, high-static and low-dynamic, low-static and high-dynamic, and low-static and low-dynamic. The findings of this study help understand country-level competition in the I-CPS market from a macro perspective, and provide directions for follow-up studies related to the I-CPS market structure.

Suggested Citation

  • Kang-Wook Lee, 2023. "Market Structure Analysis of Revenue of International Construction Professional Service (I-CPS): A Country-Level Analysis," Sustainability, MDPI, vol. 15(18), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13836-:d:1241802
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/18/13836/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/18/13836/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Weisheng Lu, 2014. "Reliability of Engineering News-Record international construction data," Construction Management and Economics, Taylor & Francis Journals, vol. 32(10), pages 968-982, October.
    2. Kunhui Ye & Weisheng Lu & Weiyan Jiang, 2009. "Concentration in the international construction market," Construction Management and Economics, Taylor & Francis Journals, vol. 27(12), pages 1197-1207.
    3. R?is?n Murphy, 2013. "Strategic planning in construction professional service firms: a study of Irish QS practices," Construction Management and Economics, Taylor & Francis Journals, vol. 31(2), pages 151-166, February.
    4. Carol Jewell & Roger Flanagan & Weisheng Lu, 2014. "The dilemma of scope and scale for construction professional service firms," Construction Management and Economics, Taylor & Francis Journals, vol. 32(5), pages 473-486, May.
    5. Carol Jewell & Roger Flanagan & Caner Anac, 2010. "Understanding UK construction professional services exports: definitions and characteristics," Construction Management and Economics, Taylor & Francis Journals, vol. 28(3), pages 231-239.
    6. Michael Hoxley, 2000. "Are competitive fee tendering and construction professional service quality mutually exclusive?," Construction Management and Economics, Taylor & Francis Journals, vol. 18(5), pages 599-605.
    7. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    8. John Connaughton & Jim Meikle & Satu Teerikangas, 2015. "Mergers, acquisitions and the evolution of construction professional services firms," Construction Management and Economics, Taylor & Francis Journals, vol. 33(2), pages 146-159, February.
    9. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    10. Baldwin, John R & Gorecki, Paul K, 1994. "Concentration and Mobility Statistics in Canada's Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 42(1), pages 93-103, March.
    11. repec:bla:econom:v:46:y:1979:i:181:p:67-75 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reinhold Decker & Xuemin Zhao, 2004. "SMEs' Choice of Foreign Market Entry Mode: A Normative Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 3(3), pages 181-200, December.
    2. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    3. Jones, Chris & Temouri, Yama, 2016. "The determinants of tax haven FDI," Journal of World Business, Elsevier, vol. 51(2), pages 237-250.
    4. José Manuel Martins Caetano & António Caleiro, 2005. "Corruption and Foreign Direct Investment:What kind of relationship is there?," Economics Working Papers 18_2005, University of Évora, Department of Economics (Portugal).
    5. Kang Park, 2003. "Patterns and strategies of Foreign Direct Investment: the case of Japanese firms," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1739-1746.
    6. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    7. Neil M. Kay, 2005. "Penrose and the growth of multinational firms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 99-112.
    8. Celal Bayari, 2016. "Economic Geography of the Australian Mining Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(5), pages 552-566, December.
    9. Peggy A. Cloninger & Benjamin Oviatt, 2007. "Service Content and the Internationalization of Young Ventures: An Empirical Test," Entrepreneurship Theory and Practice, , vol. 31(2), pages 233-256, March.
    10. Paul Hong & Stephen K. Callaway & Soon W. Hong, 2016. "Open network innovation in the age of complexity: case for small and medium enterprises," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 10(1), pages 65-86.
    11. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    12. Caetano, José & Caleiro, António, 2009. "Economic Freedom and Foreign Direct Investment -- How different are the MENA countries from the EU?," EconStor Preprints 144148, ZBW - Leibniz Information Centre for Economics.
    13. Bonaglia, Federico & Goldstein, Andrea & Mathews, John, 2006. "Accelerated Internationalisation by Emerging Multinationals: the Case of White Goods Sector," MPRA Paper 1485, University Library of Munich, Germany.
    14. Françoise Hay & Christian Milelli, 2013. "The endless quest to strategic assets by Chinese firms through FDI:From Inward to Outward Flows," EconomiX Working Papers 2013-16, University of Paris Nanterre, EconomiX.
    15. Halkos, George Emmanuel & Tzeremes, Nickolaos G., 2007. "Productivity efficiency and firm size: An empirical analysis of foreign owned companies," International Business Review, Elsevier, vol. 16(6), pages 713-731, December.
    16. Lin, Feng-Jyh, 2010. "The determinants of foreign direct investment in China: The case of Taiwanese firms in the IT industry," Journal of Business Research, Elsevier, vol. 63(5), pages 479-485, May.
    17. Bonaglia, Federico & Goldstein, Andrea & Mathews, John A., 2007. "Accelerated internationalization by emerging markets' multinationals: The case of the white goods sector," Journal of World Business, Elsevier, vol. 42(4), pages 369-383, December.
    18. Huang, Can & Jacob, Jojo, 2014. "Determinants of quadic patenting: Market access, imitative threat, competition and strength of intellectual property rights," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 4-16.
    19. Ozturk-Kose, Ebru & Tsagdis, Dimitrios & Jiménez, Alfredo, 2025. "Internationalization and escapism: Government support as a pullback force for small and large enterprises," International Business Review, Elsevier, vol. 34(3).
    20. John Mathews, 2006. "Dragon multinationals: New players in 21 st century globalization," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 5-27, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13836-:d:1241802. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.