Competing for large-scale infrastructure projects in the emerging Asian markets: Factors of success

Abstract

This paper aims to provide some general guidance and factors of success for those interested in the burgeoning Asian infrastructure sector. What separates successful foreign contractors from those that flounder? This investigation is based on interviews with managers, directors and other executives from American construction and engineering firms that have had an established and successful presence in the region for at least 10 years. Also interviewed were representatives from government and local firms. The two groups typically play a vital role in the prosperity of the foreign contractor. Three general success themes emerged from our investigation: the growing competitive role of knowledge transfer, the use of local firm networks for managing government entities and the importance of adapting firm risk orientation to the host country's legal and cultural environment. The authors provide an overview of the challenges facing these emerging economies as well as the challenges to firms wishing to gain entry. The concept of a “triple alliance” between foreign firms, government constituencies and local entities is used as a framework for analysis.