Estimation of international construction performance: analysis at the country level

The measurement or estimation of the degree of internationalization of multinational corporations (MNCs) remains lacking although many studies have been completed on MNCs in the construction industry. Dunning's Eclectic Paradigm suggests that the determinants of internationalization depends on the ownership (O), locational (L) and internalization (I) advantages of a firm. Another important factor relates to the involvement of a firm among specialized fields in the construction industry, i.e. the specialty (S) advantages. This paper proposes the OLI+S model for measuring/estimating the internationalization process of construction MNCs, according to nationalities, using the following ratios: O-IRTR, L-IBD, I-OMS and S-ISF. Major players in the international construction market were analysed using these ratios. The OLI+S model shows that construction MNCs from different nationalities demonstrated different patterns in the internationalization process depending on their business strategies, indigenous market situations, historical factors, etc. among others.