Analyzing the Influence of Knowledge-Based Strategies of Chinese Multinational Contractors on the Performance of the Construction Industry in Southern African Countries

Linbin Zhu (), Stavros Sindakis () and Saloome Showkat ()
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Linbin Zhu: Xiamen University
Stavros Sindakis: Hellenic Open University
Saloome Showkat: Institute of Strategy, Entrepreneurship and Education for Growth

Journal of the Knowledge Economy, 2024, vol. 15, issue 2, No 153, 8968-9000

Abstract: Abstract This study investigates the organizational strategies employed by Chinese multinational contractors (CMCCs) operating in the construction industry across Southern African countries. By integrating the resource-based view (RBV) and dynamic capabilities theory (DCT), the study aims to uncover the factors contributing to CMCCs’ competitive advantage and ability to achieve sustained success. Through a comprehensive analysis of micro- and macro-environmental factors, the study reveals the significant impact of the local context on CMCCs’ contract acquisition. Factors such as GDP, population, infrastructure needs, and transparency index rankings shape the market dominance of CMCCs in different countries within the region. The research identifies ten organizational strategies employed by CMCCs that have led to their recent success in Southern Africa. These strategies encompass financial, legal, and technical aspects, including competitive pricing, long-term partnerships with suppliers, access to funding from the Chinese government, fragile adherence to compliance and anti-corruption policies, specialized sub-companies, training and development of human resources, and various contract agreements. Furthermore, the study highlights the importance of knowledge-based strategies for CMCCs’ competitive advantage. The acquisition, transfer, and application of knowledge play a crucial role in adapting to local environments, continuous learning, innovation, and expertise development. The findings underscore the significance of considering political and cultural factors in the Southern African construction industry. CMCCs’ ability to understand and adapt to the political and cultural context of the host country contributes to their successful operations.

Keywords: Organizational strategy; Organizational analysis; Environmental scanning; Business internationalization; Construction industry (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-023-01440-4

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