Chinese multinational construction firms in international and domestic markets: A re-examination of the eclectic paradigm

Chinese international contractors are increasingly involved with global construction market by undertaking a number of projects; however, relatively few studies have been completed on their domestic operations and foray into international arena. This research studies various aspects, in terms of ownership, location and internalization (OLI) advantages of Chinese construction multinational corporations (CMNCs) in both international and domestic market. Dunning's eclectic paradigm, as one of the most important multinational corporation theories, is re-examined for the context of Chinese CMNCs in international construction, and extended for China's domestic context. The significant OLI factors are identified and examined; their variation, correlation and causality relationship are analyzed. This research draws theoretical significance for application and extension of eclectic paradigm, and provides implications and suggestions for practitioners. It suggests that, Chinese CMNCs are at their initial stage of internationalization and they should strategically manage many OLI factors in line with the changing business environment and globalization.