Research On Dynamic Capabilities And Their Influence On Performance Of International Contractors

International contracting industry plays an essential role in the implementation of the “Going out” strategy.During the past three decades,Chinese international contracting industry developed rapidly,but the international market environment is much different from the domestic market environment.Especially factors such as regional political turmoil and global economic disruptions,made the overseas market more complex and more unstable.International contractors become anxious and aggressive for some time.The dynamic capability theory will be to deal with this case.The dynamic capabilities describe the process of enterprises to face rapidly-changed environment,integrate all kinds of resources,change their operation and development path and then rebuild internal and external competence.Under the circumstances,how enterprises deal with the dynamic changes of the business environment to maintain competitive advantage and g ain sustainable development,has become an important issue for the international construction contracting industry in China.In this paper,research on the dynamic capabilities of international contracters was carried out.Based on literatures and theories about dynamic capabilities of international contractors,the following key issues were analyzed.Firstly,five dimensions of dynamic capabilities,namely market sensing capability,learning capability,network capability,resource-integrated capability and organizational flexibility are defined,through theoretical analysis.Secondly,the questionnaire and factor analysis method were to verify whether the sub-dimensional capabilities are scientific and practical,and to establish the scale applicable to dynamic capabilities of international contracters.Thirdly,the Structural Equation Modeling(SEM)was used to test the influence of the dynamic capabilities to performance of the Chinese international contractors,also based on the effective samples collected by questionnaire.Results show that five dimensional dynamic capbilities of Chinese international contractors are unbalanced and the level is low as a whole.Additionally,the development of dynamic capabilities results in different influence on enterprise performance.However in general,the dynamic capabilities are a prerequisite to obtain the competitive advantage and good performance.Through this study,with the model of dynamic capabilities and the path analysis of dynamic capabilities to performance of international contractors,the international construction contracting enterprises can actively identify their dynamic capabilities and select suitable strategies to respond to the complex market environment.Meanwhile,with the new theoretical capabilities system,international engineering contracting enterprises can worked out more practical ideas and research about subsequent management to a certain extent.