Share:


Determinants for coopetition strategies of international joint ventures in high-speed railway projects

    Yanliang Niu Affiliation
    ; Dan Zhao Affiliation
    ; Xiaopeng Deng Affiliation
    ; Ruoyu Lu Affiliation
    ; Xianbo Zhao Affiliation

Abstract

International joint ventures (IJVs) have become a significant mode of exploiting high-speed railway (HSR) overseas market for contractors. This study is devoted to identify the determinants for the coopetition strategies of IJVs in the HSR projects, as well as the interactive paths. On the base of a thorough literature review and the pilot study with five industry experts, 22 determinants were identified and packaged into six groups covering the three levels (including macro, firm, and project levels). Meanwhile, the interactive paths amongst the six groups were proposed. A questionnaire survey was performed with 210 practitioners experienced in IJVs in HSR projects to assess the significance of the factors, and 113 valid questionnaires were received. Based on the collected data, six groups of 22 determinants and nine interactive paths were verified by applying partial least-squares structural equation modeling technology. Specifically, these significant paths could be classified into two categories, namely the coopetition-capability oriented paths, and the coopetition-relationship oriented paths. The findings of this paper are conductive to expand the knowledge on coopetition and provide a useful reference for the members of IJVs in HSR projects to accomplish coopetition strategies from pre-project phase, the implementation phase, to post-project phase.

Keyword : high-speed railway, international joint ventures, coopetition strategies, determinants

How to Cite
Niu, Y., Zhao, D., Deng, X., Lu, R., & Zhao, X. (2021). Determinants for coopetition strategies of international joint ventures in high-speed railway projects. Journal of Civil Engineering and Management, 27(5), 331-345. https://doi.org/10.3846/jcem.2021.15021
Published in Issue
Jun 9, 2021
Abstract Views
1130
PDF Downloads
865
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Afuah, A. (2000). How much do your coopetitors’ capabilities matter in the face of technological change?. Strategic Management Journal, 21(3), 387–404. https://doi.org/10.1002/(sici)1097-0266(200003)21:3%3C397::aid-smj88%3E3.0.co;2-1

Akintoye, A. (2000). Analysis of factors influencing project cost estimating practice. Construction Management and Economics, 18(1), 77–89. https://doi.org/10.1080/014461900370979

Andrić, J. M., Wang, J., & Zhong, R. (2019). Identifying the critical risks in railway projects based on fuzzy and sensitivity analysis: A case study of belt and road projects. Sustainability, 11(5), 1302. https://doi.org/10.3390/su11051302

Antolín-López, R., Delgado-Ceballos, J., & Montiel, I. (2016). Deconstructing corporate sustainability: a comparison of different stakeholder metrics. Journal of Cleaner Production, 136, 5–17. https://doi.org/10.1016/j.jclepro.2016.01.111

Ashraf, M (2004). A critical look at the use of group projects as a pedagogical tool. Journal of Education for Business, 79(4), 213–216. https://doi.org/10.3200/joeb.79.4.213-216

Awang, Z., Afthanorhan, W. M. A. W., & Asri, M. A. M. (2015). Parametric and non-parametric approach in structural equation modeling (SEM): The application of bootstrapping. Modern Applied Science, 9(9), 58–67. https://doi.org/10.5539/mas.v9n9p58

Bengtsson, M., & Kock, S. (2000). Coopetition’ in business networks-to cooperate and compete simultaneously. Industrial Marketing Management, 29, 411–426. https://doi.org/10.1016/S0019-8501(99)00067-X

Bengtsson, M., & Raza-Ullah, T (2016). A systematic review of research on coopetition: toward a multilevel understanding. Industrial Marketing Management, 57, 23–39. https://doi.org/10.1016/j.indmarman.2016.05.003

Bilotkach, V., & Hüschelrath, K. (2019). Balancing competition and cooperation: evidence from transatlantic airline markets. Transportation Research Part A: Policy and Practice, 120, 1–16. https://doi.org/10.2139/ssrn.2661477

Black, C., Akintoye, A., & Fitzgerald, E. (2000). An analysis of success factors and benefits of partnering in construction. International Journal of Project Management, 18(6), 423–434. https://doi.org/10.1016/s0263-7863(99)00046-0

Brandenburger, A., & Nalebuff, B. J. (1996). Coopetition. Free Press.

Chan, A. P. C., Chan, D. W. M., Chiang, Y. H., Tang, B. S., Chan, E. H. W., & Ho, K. S. K. (2004). Exploring critical success factors for partnering in construction projects. Journal of Construction Engineering and Management, 130(2), 188–198. https://doi.org/10.1061/(ASCE)0733-9364(2004)130:2(188)

Chan, E. H., & Suen, H. C. (2005). Disputes and dispute resolution systems in Sino-foreign joint venture construction projects in China. Journal of Professional Issues in Engineering Education and Practice, 31(2), 141–148. https://doi.org/10.1061/(ASCE)1052-3928(2005)131:2(141)

Chan, A. P. C., Tetteh, M. O., & Nani, G. (2020). Drivers for international construction joint ventures adoption: a systematic literature review. International Journal of Construction Management. https://doi.org/10.1080/15623599.2020.1850203

Chang, T., Deng, X., Hwang, B.-G., & Zhao, X. (2018). Political risk paths in international construction projects: Case study from Chinese construction enterprises. Advances in Civil Engineering, Article ID 6939828. https://doi.org/10.1155/2018/6939828

Chang, T., Deng, X., & Hwang, B.-G. (2019). Investigating political risk paths in international high-speed railway projects: The case of Chinese international contractors. Sustainability, 11(15), 4157. https://doi.org/10.3390/su11154157

Cheng, E. W. L., & Li, H. (2001). Development of a conceptual model of construction partnering. Engineering, Construction and Architectural Management, 8(4), 292–303. https://doi.org/10.1108/eb021190

Cheng, E. W. L., & Li, H. (2002). Construction partnering process and associated critical success factors: Quantitative investigation. Journal of Management in Engineering, 18(4), 194–202. https://doi.org/10.1061/(ASCE)0742-597X(2002)18:4(194)

Cheng, E. W. L., Li, H., & Love, P. E. D. (2000). Establishment of critical success factors for construction partnering. Journal of Management in Engineering, 16(2), 84–92. https://doi.org/10.1061/(ASCE)0742-597X(2000)16:2(84)

Chin, K. S., Chan, B. L., & Lam, P. K. (2008). Identifying and prioritizing critical success factors for coopetition strategy. Industrial Management and Data System, 108(3–4), 437–454. https://doi.org/10.1108/eb021190

Chou, J.-S., Tserng, H. P., Lin, C., & Yeh, C.-P. (2012). Critical factors and risk allocation for PPP policy: comparison between HSR and general infrastructure projects. Transport Policy, 22, 36–48. https://doi.org/10.1016/j.tranpol.2012.05.009

Cozzolino, A., & Rothaerme, F. T. (2018). Discontinuities, competition, and cooperation: Coopetitive dynamics between incumbents and entrants. Strategic Management Journal, 39(2), 3053–3058. https://doi.org/10.1002/smj.2776

Crick, J. M. (2019). The dark side of coopetition: when collaborating with competitors is harmful for company performance. Journal of Business & Industrial Marketing, 35(2), 318–337. https://doi.org/10.1108/jbim-01-2019-0057

Crick, J. M., & Crick, D. (2020). The yin and yang nature of coopetition activities: non-linear effects and the moderating role of competitive intensity for internationalised firms. International Marketing Review. https://doi.org/10.1108/imr-01-2019-0018

Davison, A. C., & Hinkley, D. V. (1997). Bootstrap methods and their application. Cambridge University Press. https://doi.org/10.1017/CBO9780511802843

Deng, X., Low, S. P., Zhao, X., & Chang, T. (2018). Identifying micro variables contributing to political risks in international construction projects. Engineering, Construction and Architectural Management, 25, 317–333. https://doi.org/10.1108/ecam-02-2017-0042

Doloi, H., Iyer, K. C., & Sawhney, A. (2011). Structural equation model for assessing impacts of contractor’s performance on project success. International Journal of Project Management, 29(6), 687–695. https://doi.org/10.1016/j.ijproman.2010.05.007

Dorn, S., Schweiger, B., & Albers, S. (2016). Levels, phases and themes of coopetition: A systematic literature review and research agenda. European Management Journal, 34(5), 484– 500. https://doi.org/10.1016/j.emj.2016.02.009

Dyer, D. H., Singh, H., & Hesterly, W. S. (2018). The relational view revisited: A dynamic perspective on value creation and value capture. Strategic Management Journal, 39(12), 3140– 3162. https://doi.org/10.1002/smj.2785

Eybpoosh, M., Dikmen, I., & Birgonul, M. T. (2011). Identification of risk paths in international construction projects using structural equation modeling. Journal of Construction Engineering and Management, 137(12), 116–1175. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000382

Fornell, C., & Bookstein, F. L. (1982). Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. Journal of Marketing Research, 19(4), 440–452. https://doi.org/10.1177/002224378201900406

Gale, A., & Luo, J. (2004). Factors affecting construction joint ventures in China. International Journal of Project Management, 22(1), 33–42. https://doi.org/10.1016/s0263-7863(03)00012-7

Ganesan, S., & Kelsey, J. (2006). Technology transfer: International collaboration in Sri Lanka. Construction Management and Economics, 24(7), 743–754. https://doi.org/10.1080/01446190600704703

Girmscheid, G., & Brockmann, C. (2010). Inter- and intra-organizational trust in international construction joint ventures. Journal of Construction Engineering and Management, 136(3), 353–360. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000142

Gnyawali, D. R., & Madhavan, R. (2001). Cooperative network competitive dynamics: a structural embeddedness perspective. Academy of Management Review, 26(3), 431–445. https://doi.org/10.5465/amr.2001.4845820

Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multi-variate data analysis (5th ed.). Prentice Hall.

Hannah, D. P., & Eisenhardt, K. D. (2018). How firms navigate cooperation and competition in nascent ecosystems. Strategic Management Journal, 39(13), 3163–3192. https://doi.org/10.2139/ssrn.2808034

Hong, Y., & Chan, D. W. M. (2014). Research trend of joint ventures in construction: A two-decade taxonomic review. Journal of Facilities Management, 12(2), 118–141. https://doi.org/10.1108/JFM-04-2013-0022

Hwang, B. G., Zhao, X., & Ng, S. Y. (2013). Identifying the critical factors affecting schedule performance of public housing projects. Habitat International, 38, 214–221. https://doi.org/10.1016/j.habitatint.2012.06.008

Hwang, B. G., Zhao, X., & Yu, G. S. (2016). Risk identification and allocation in underground rail construction joint ventures: Contractors’ perspective. Journal of Civil Engineering and Management, 22(6), 758–767. https://doi.org/10.3846/13923730.2014.914095

Hwang, B. G., Zhao, X., & Chin, E. W. Y. (2017). International construction joint ventures between Singapore and developing countries: Risk assessment and allocation preferences. Engineering, Construction and Architectural Management, 24(2), 209–228. https://doi.org/10.1108/ECAM-03-2015-0035

Isa, C., Saman, H., & Preece, C. (2014). Entry location and entry timing (ELET) decision model for international construction firms. Construction Economics and Building, 14(3), 34–57. https://doi.org/10.5130/AJCEB.v14i3.4156

Ivaldi, M., & Pouyet, J. (2018). Eliciting the regulation of an economic system: The case of the French rail industry. Transport Policy, 62, 21–30. https://doi.org/10.1016/j.tranpol.2017.04.003

Levy, M., Loebbecke, C., & Powell, P. (2003). SMEs, co-opetition and knowledge sharing: The role of information systems. European Journal of Information Systems, 12(1), 3–17. https://doi.org/10.1057/palgrave.ejis.3000439

Li, B., Akintoye, A., Edwards, P. J., & Hardcastle, C. (2005). Critical success factors for PPP/PFI projects in the UK construction industry. Construction Management and Economics, 23(5), 459–471. https://doi.org/10.1080/01446190500041537

Liu, J., Zhao, X., & Li, Y. (2016). Exploring the factors inducing contractors’ unethical behavior: case of China. Journal of Professional Issues in Engineering Education and Practice, 143(3), 0000316. https://doi.org/10.1061/(ASCE)EI.1943-5541.0000316

Liu, J., Xie, Q., Xia, B., & Bridge, A. J. (2017). Impact of design risk on the performance of design-build projects. Journal of Construction Engineering and Management, 143(6), 04017010. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001299

Luo, Y. (2004). A coopetition perspective of MNC-host government relations. Journal of International Management, 10(4), 431–451. https://doi.org/10.1016/j.intman.2004.08.004

Luo, Y. (2005). Toward coopetition within a multinational enterprise: a perspective from foreign subsidiaries. Journal of World Business, 40(1), 71–90. https://doi.org/10.1016/j.jwb.2004.10.006

Luo, Y. (2007). A coopetition perspective of global competition. Journal of World Business, 42(2), 129–144. https://doi.org/10.1016/j.jwb.2006.08.007

Lu, W.-S., Shen, L.-Y., & Yam, M. C. (2008). Critical success factors for competitiveness of contractors: China study. Journal of Construction Engineering and Management, 134(12), 972–982. https://doi.org/10.1061/(ASCE)0733-9364(2008)134:12(972)

Lu, C., Yu, Z., Wang, X., & Hong, Y. (2020). Empirical study on the obstacles to the success of joint ventures in construction projects. Advances in Civil Engineering, Article ID 1748198. https://doi.org/10.1155/2020/1748198

Maemura, Y., Kim, E., & Ozawa, K. (2018). Root causes of recurring contractual conflicts in international construction projects: Five case studies from Vietnam. Journal of Construction Engineering and Management, 144(8), 05018008. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001523

Mariani, M. M. (2007). Coopetition as an emergent strategy: Empirical evidence from an Italian Consortium of Opera Houses. International Studies of Management & Organization, 37(2), 97–126. https://doi.org/10.2753/imo0020-8825370205

McIntosh, M., & McCabe, B. (2003). Risk and benefits associated with international construction-consulting joint ventures in the English-speaking Caribbean. Canadian Journal of Civil Engineering, 30(6), 1143–1152. https://doi.org/10.1139/l03-063

Mohamed, M., Stankosky, M., & Murray, A. (2004). Applying knowledge management principles to enhance cross-functional team performance. Journal of Knowledge Management, 8(3), 127–142. https://doi.org/10.1108/13673270410541097

Niu, Y., Deng, X., Zhang, L., & Duan, X. (2019). Understanding critical variables contributing to competitive advantages of international high-speed railway contractors. Journal of Civil Engineering and Management, 25(2), 184–202. https://doi.org/10.3846/jcem.2019.8427

Niu, Y., Deng, X., Zhao, X., & Zhang, N. (2020). Hexagonal diamond model for international competitive advantages of high-speed railway industry. Journal of Management in Engineering, 36(2), 04020001. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000746

Niu, Y., Zhao, X., Wang, Y., & Deng, X. (2021). Locomotive model for international competitive advantages paths of highspeed railway contractors. Journal of Infrastructure Systems, 27(2), 04021002. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000600

Nunnally, J. C. (1978). Psychometric theory (2nd ed.). McGrawHill.

Ong, T. F., & Musa, G. (2012). Examining the influences of experience, personality and attitude on SCUBA divers’ underwater behavior: a structural equation model. Tourism Management, 33(6), 1521–1534. https://doi.org/10.1016/j.tourman.2012.02.007

Orozco, F. A., Serpell, A. F., Molenaar, K. R., & Forcael, E (2014). Modeling competitiveness factors and indexes for construction companies: Findings of Chile. Journal of Construction Engineering and Management, 140 (4), B4013002. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000462

Ozorhon, B., Dikmen, I., & Birgonul, M. T. (2007). Using analytic network process to predict the performance of international construction joint ventures. Journal of Management in Engineering, 23(3), 156–163. https://doi.org/10.1061/(ASCE)0742-597X(2007)23:3(156)

Ozorhon, B., Arditi, D., Dikmen, I., & Birgonul, M. T. (2008a). Effect of partner fit in international construction joint ventures. Journal of Management in Engineering, 24(1), 12–20. https://doi.org/10.1061/(ASCE)0742-597X(2008)24:1(12)

Ozorhon, B., Arditi, D., Dikmen, I., & Birgonul, M. T. (2008b). Implications of culture in the performance of international construction joint Ventures. Journal of Construction Engineering and Management, 134(5), 361–370. https://doi.org/10.1201/9781482266665-105

Ozorhon, B., Arditi, D., Dikmen, I., & Birgonul, M. T. (2010). Performance of international joint ventures in construction. Journal of Management in Engineering, 26(4), 209–222. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000022

Ozorhon, B., Arditi, D., Dikmen, I., & Birgonul, M. T. (2011). Toward a multidimensional performance measure for international joint ventures in construction. Journal of Construction Engineering and Management, 137(6), 403–411. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000314

Park, B. J., Srivastava, M. K., & Gnyawali, D. R. (2014). Impact of coopetition in the alliance portfolio and coopetition experience on firm innovation. Technology Analysis & Strategic Management, 26(8), 893–907. https://doi.org/10.1080/09537325.2014.913016

Quintana-García, C., & Benavides-Velasco, C. A. (2004). Cooperation, competition, and innovative capability: a panel data of European dedicated biotechnology firms. Technovation, 24(12), 927–938. https://doi.org/10.1016/s0166-4972(03)00060-9

Sarstedt, M., Henseler, J., & Ringle, C. M. (2011). Multigroup analysis in partial least squares (PLS) path modeling: Alternative methods and empirical results. Advances in International Marketing, 22(1), 195–218. https://doi.org/10.1108/s1474-7979(2011)0000022012

Schreiber, J. B., Nora, A., Stage, F. K., Barlow, E. A., & King, J. (2006). Reporting structural equation modeling and confirmatory factor analysis results: a review. Journal of Educational Research, 99(6), 323–338. https://doi.org/10.3200/joer.99.6.323-338

Shen, L. Y., Wu, G. W., & Ng, C. S. (2001). Risk assessment for construction joint ventures in China. Journal of Construction Engineering and Management, 16(5), 607–619. https://doi.org/10.1061/(ASCE)0733-9364(2001)127:1(76)

Shen, L. Y., Lu, W. S., & Yam, M. C. (2006). Contractor key competitiveness indicators: A China study. Journal of Construction Engineering and Management, 132(4), 416–424. https://doi.org/10.1061/(ASCE)0733-9364(2006)132:4(416)

Sillars, D. N., & Kangari, R. (2004). Predicting organizational success within a project-based joint venture alliance. Journal of Construction Engineering and Management, 130(4), 500–508. https://doi.org/10.1061/(ASCE)0733-9364(2004)130:4(500)

Tetteh, M. O., & Chan, A. P. C. (2019). Review of concepts and trends in international construction joint ventures research. Journal of Construction Engineering and Management, 145(10), 04019057. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001693

Tetteh, M. O., Chan, A. P., & Nani, G. (2019). Combining process analysis method and four-pronged approach to integrate corporate sustainability metrics for assessing international construction joint ventures performance. Journal of Cleaner Production, 237, 117781. https://doi.org/10.1016/j.jclepro.2019.117781

Tetteh, M. O., Chan, A. P. C., Darko, A., & Nani, G. (2020). Factors affecting international construction joint ventures: a systematic literature review. International Journal of Construction Management. https://doi.org/10.1080/15623599.2020.1850203

Thomason, S. J., Simendinger, E., & Kiernan, D. (2013). Several determinants of successful coopetition in small business. Journal of Small Business & Entrepreneurship, 26(1), 15–28. https://doi.org/10.1080/08276331.2012.761800

Tidström, A., & Rajala, A. (2016). Coopetition strategy as interrelated praxis and practices on multiple levels. Industrial Marketing Management, 58, 35–44. https://doi.org/10.1016/j.indmarman.2016.05.013

Toor, S. R., & Ogunlana, S. O. (2008). Critical COMs of success in large-scale construction projects: Evidence from Thailand construction industry. International Journal of Project Management, 26(4), 420–430. https://doi.org/10.1016/j.ijproman.2007.08.003

Tse, D. K., Pan, Y., & Au, K. Y. (1997). How MNCs choose entry modes and form alliances: The China experience. Journal of International Business Studies, 28(4), 779–805. https://doi.org/10.1057/palgrave.jibs.8490119

Union Internationale des Chemins de fer. (2018, June). High speed rail brochure. https://uic.org/IMG/pdf/uic__speed_2018_ph08_web.pdf

Union Internationale des Chemins de fer. (2020, February). High speed lines in the world. https://uic.org/

Wang, T., Tang, W., Qi, D., Shen, W., & Huang, M. (2015). Enhancing design management by partnering in delivery of international EPC projects: Evidence from Chinese construction companies. Journal of Construction Engineering and Management, 142(4), 04015099. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001082

Wilhelm, M. M. (2011). Managing coopetition through horizontal supply chain relations: linking dyadic and network levels of analysis. Journal of Operations Management, 29(7–8), 663–676. https://doi.org/10.1016/j.jom.2011.03.003

Zhai, Z., Shan, M., & Le, Y. (2020). Investigating the impact of governmental governance on megaproject performance: evidence from China. Technological and Economic Development of Economy, 26(2), 449–478. https://doi.org/10.3846/tede.2020.11334

Zhang, L., Wong, W. F., & Chen, P. H. (2010). Critical factors influencing learning effectiveness in international construction joint ventures. International Journal of Construction Management, 10(1), 87–100. https://doi.org/10.1080/15623599.2010.10773140

Zhang, N., Deng, X., Zhao, X., & Chang, T. (2019). Exploring the sources of contractors’ competitive advantage on international HSR construction projects. International Journal of Civil Engineering, 17(7), 1115–1129. https://doi.org/10.1007/s40999-018-0373-1

Zhang, N., Hwang, B., Deng, X., & Niu, Y. (2020a). How to balance interfirm relationships? A case from high-speed railway industry. Journal of Business & Industrial Marketing, 35(11), 1785–1799. https://doi.org/10.1108/jbim-09-2019-0389

Zhang, N., Hwang, B., Deng, X., & Ning, Y. (2020b). Achieving transient competitive advantage in high-speed rail projects bidding: Sustainable development perspective. Sustainable Development, 28(6), 1738–1754. https://doi.org/10.1002/sd.2121

Zhao, Z. Y., & Shen, L. Y. (2008). Are Chinese contractors competitive in international markets?. Construction Management and Economics, 26(3), 225–236. https://doi.org/10.1080/01446190801905380

Zhao, X., Hwang, B. G., & Yu, G. S. (2013). Identifying the critical risks in underground rail international construction joint ventures: Case study of Singapore. International Journal of Project Management, 31(4), 554–566. https://doi.org/10.1007/s12205-019-0602-4

Zhao, X., Hwang, B. G., & Phng, W. (2014). Construction project risk management in Singapore: Resources, effectiveness, impact, and understanding. KSCE Journal of Civil Engineering, 18(1), 27–36. https://doi.org/10.1007/s12205-014-0045-x

Zhao, X., Wu, P., & Wang, X. (2018). Risk paths in BIM adoption: empirical study of China. Engineering, Construction and Architectural Management, 25(9), 1170–1187. https://doi.org/10.1108/ecam-08-2017-0169

Zhou, Q., Deng, X., Jin, R., & Chang, T. (2019). Analyzing the key drivers of contractors’ temporary competitive advantage in the competition of international high-speed rail projects. KSCE Journal of Civil Engineering, 23(11), 4579–4591. https://doi.org/10.1007/s12205-019-0602-4

Zuo, J., Zhao, X., Nguyen, Q. B. M., Ma, T., & Gao, S. (2018). Soft skills of construction project management professionals and project success factors: A structural equation model. Engineering, Construction and Architectural Management, 25(3), 425–442. https://doi.org/10.1108/ecam-01-2016-0016