| Title |
Analyzing the Market Structure of International Construction Contracts : Focusing on Korean Construction Firms |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2019.20.1.124 |
| Keywords |
International Construction ; Contract Performance ; Korean Construction Firms ; Market Structure ; Market Concentration ; Market Mobility and Instability ; Competitive Strategy |
| Abstract |
Notwithstanding the crucial contribution of international construction industry in the national economy, previous studies on international construction contracts had mainly focused either on trend investigation or market share analysis at a point of time. Fundamentally, the international construction industry is fragmented due to its project-based nature, is heterogeneous that has to involve different firms from diverse fields, and tends to be dynamic according to macroeconomic conditions. Therefore, the combination of static and dynamic analyses is necessary to understand its underlying structure. This study analyzes the market structure of international construction contracts using the data of 9,173 projects awarded by Korean construction firms from 2000 to 2017. Industry-level performance data is analyzed both in static (market concentration) and dynamic (market mobility and instability) methods, and detailed methodology is also provided. Consequently, the static analysis result shows that the competition among Korean construction firms has been more intensified, and the dynamic analysis result indicates that market positions of Korean construction firms are unstable and vulnerable in most of the regions and the sectors. The combination of static and dynamic indices is found to be helpful to understand the underlying aspects of market structure and can be utilized as an effective strategic reference in the highly competitive market. |