Entry mode taxonomy and choice of Chinese international construction companies

Along with China’s national strategy “One Belt, One Road,” an increasing number of Chinese construction companies has ventured or will venture into the global market. The choice of entry mode is crucial for companies when going abroad. The objectives of this study are to (1) establish a systematic classification of the entry modes used in the international engineering field, and (2) identify and analyze the factors that influence the entry-mode choices of Chinese international construction companies (ICCs). Based on a literature review and a survey of 264 cases, a two-dimensional (2D) taxonomy model of the entry modes was established, and six factors significantly impact the choice of entry mode for Chinese ICCs were identified. The findings may help Chinese ICCs learn more about the choices available to them, the factors that influence these choices, and the way these factors influence their choices when venturing abroad.