A Study On The Competitiveness Of International Engineering Contracting Enterprises In China

The industry of international engineering contracting has grown rapidly and steadily in recent years. The international engineering contracting items increasingly have been the ones of large scale, complex technology, diversified functions, and comprehensive contracting. Thus, the contractor's capabilities of financing, risks- resisting, technical innovation and management are highly demanded. Since the reform and opening-up policy implemented in our country, international engineering contracting has made a remarkable progress in China , but from those Chinese enterprises which have been in the ENR225 in past few years, we can see, there is still a great gap between the international engineering contracting businesses in China and those large contractors in other countries. How to improve and gain a longtime competitiveness for Chinese enterprises is an active topic for experts.Firstly, this paper points the tendency of international engineering contracting and its current situation in China. Secondly, started with the theory of competitiveness of enterprises, the paper designs evaluation indicators to build a competitiveness evaluation index system. And after making a comparison between China's international engineering contracting enterprises and other big ones in other countries, the paper presents the gaps between them to help them find their own advantages and disadvantages, under the guidance of the method of empirical study. And in this part the paper introduces Porter's "diamond framework" to analyze the factors, which influence the competitiveness of international engineering contracting enterprises in China, including four basic factors(element conditions, demand conditions, related and supporting industries, strategic structure and competition) and two secondary factors(opportunities, government). And then the paper discusses the main gaps between China's international engineering contracting enterprises and other big contractors and its reasons in the basis of the method of qualitative analysis. In addition, the paper issues some strategies to improve the competitiveness of international engineering contracting enterprises in China.Through the analysis on the competitiveness of international engineering contracting enterprises in China, the comparison with big contractors, as well as the dominance of multinational companies, the paper finally points out: At present, it is urgent to foster and develop a number of large multinational engineering contractors for China, which have prominent professional features, strong core capabilities and international competitiveness. This is an inevitable choice to make a leap forward for international engineering contracting enterprises in China.