Development Strategy Of Chinese International Construction Contractors Based On The Evolution Of Industry Relations Between Engineering Consulting And Contracting

As two key sectors in the construction industry,the industrial relevance of construction consulting and contracting are complex,dynamic and not easy to be fully cognized.In recent years,with the process of economic globalization,the international engineering market has sparked a flurry of mergers and acquisitions,strategic alliances.The relationship between construction contractors and design consultants has shift towards co-opetition.The international contractors have clearly recognized the guidance and high added value of the engineering consulting business,and therefore actively integrated consulting design business to drive the expansion of contracting business scale.At the same time,the owners are increasingly tend to deliver the projects to international contractors who can provide comprehensive construction services.To breakthrough development bottleneck and expand the international market share,small and medium-sized contractors at a competitive disadvantage should integrate resources and actively optimize internal business restructure and external m&a.Vertical integration and horizontal diversification mode in parallel,can extend industrial value chain of firms.These market behaviors of integration has been recognized by the industry and academia,which provide a large number of empirical materials for the research of the industrial interactive relationship between international contracting and consulting.Based on the realistic background,this study can deepen the understanding of current development trend of contracting market mode in international market and the driving effect of design consulting business to contracting business.From the view of industry chain,analyses are conducted to find the driving mechanism in integration between international engineering contracting and design consulting based on the international engineering industry chain.Then,by means of the decoupling theory,the decoupling model of the two industries is established to explore the relationship in the historical process.Summarize the developing mode and experiences of top international contractors and inversely to demonstrate decoupling analysis conclusion.Finally,the study provides a set of practical and reasonable suggestions for the international contractors in our country to entering the international market,which should rationally select contractors or consultants to strategic alliance or m&a,improve its industry value chain system and breakthrough development bottleneck.According to the above research strategy,based on the annual turnover data in 2000-2016 released by ENR,the stationarity test,co-integration test and Granger causality test are conducted,which can explain the international engineering consultancy has strong leading effect to contracting,and exist a long-term equilibrium relationship.Then Tapio elastic decoupling model has been employed to research the decoupling relationship evolution of international engineering contracting and consulting under different categories.From macroscopic to microcosmic formation,the general rule of relations between the two industries can be conclude,which means the international engineering contracting business can rely on consulting business to realize better sales performance and consulting business has played a collaborative role in contracting business.Finally,suggestions are made to our international contractors which vertical integration and horizontal diversification is a suitable way to resources integration,around the core industry to broad more businesses,areas and regional developments.Equity acquisition and strategic alliances can layout globalization to improve the industrial value chain and provide comprehensive general contracting services to the global owners.