Competitive Strategies Associated with Particular Localization Patterns Adopted by Implanted Architecture, Engineering, and Construction Firms in China

A good deal has been written on strategy that explains how firms compete. However, there is nothing yet in the literature that explains the relationship between the strategies used by firms in an offshore context and the kinds of localizational adaptations a firm makes to serve those strategic ambitions. This paper investigates 60 foreign firms active in the Chinese architecture/engineering/construction industry, measures their rates of localization across five localization parameters, and identifies specific strategic orientations associated with varying rates of localization across those five parameters. The approach used is case study based, using data collected from semistructured interviews and in-house documentation. In describing the relationship between measured rates of localization and the associated observed strategic orientations of firms, this paper concludes by offering a new model of strategy as a function of localization. (C) 2014 American Society of Civil Engineers.