Development Situation And Strategy Of China’s International Engineering Contracting Enterprises Under Complex Environment

Under the background of the global economic integration, the cooperation in the international engineering contracting industry is taken as an effective way to make important contributions to the economy development among various countries. China’s international engineering contracting industry officially started in the early days of Reform and Opening. With rapidly more than thirty years development, it has grown into an important force in the field of international engineering contracting. However, its past rapid development was not stable influential to the complicated market environment. Especially in recent years, affected by the global political factor, economic factor and other macro factors, the international engineering market has become more complicated and turbulent that the international engineering industry in China faces more new challenges. These challenges make the new markets developing and sustainable development difficult for China’s international engineering contractors. Facing the complex market environment, China’s international engineering contractors should make a clear understanding about the international and local engineering contracting development situation in order to gain competitive advantages. It is also meaningful to find the ways to improve its own capacities responding to dynamic changes in the complicated market environment.Therefore, this paper establishes the framework of the international engineering contracting market environment analysis through the PEST analysis theory firstly. Then, the macro factors influencing to the environment of international engineering contracting market are summarized, such as political factors, economic factors and social factors. Meanwhile, with the factors analysis, the characteristics and conditions of different regional markets in the world are explored. Secondly, based on the date of the global 250 strong international contractors published by Engineering News-Record (ENR) in the last ten years, this paper analyzes the international engineering contracting situation and the development of China’s international contract. SWOT analysis method is used to analyze the international engineering contracting enterprises in China to find out their advantages, disadvantages, opportunities and challenges in the future development. This will help the contractors to find the internal causes and international causes in future development. Thirdly, by introducing the dynamic capabilities theory, and combining with the characteristics of international engineering contracting industry, the contracting enterprises dynamic capabilities evaluation index system is established and China’s international engineering contracting enterprises dynamic capabilities is taken as an example to analyze its current developing status. Finally, based on the dynamic capability and evaluation result of the enterprise, the development strategies and advices are given to China’s international engineering contractors which provide references for the enterprises to deal with the complex market environment problems.