The Impact of Organizational Capability on Chinese Construction Firm's Foreign Market Entry Mode Selection

With the fast development of China's construction industry, Chinese construction firm's international contractual revenues have been growing larger. However, the relevant research into Chinese construction firm's international entry mode choice has been underdevelopment. Considering the characteristics of value-chain activities in construction firms, the paper classified the entry mode into permanent entry and mobile entry. Drawing upon organizational capability view to strategic management, this paper analyzes the influence of 4 organizational capability factors on Chinese construction firm's entry mode selection and hypotheses were then developed. Using data on Chinese construction firms during the periods from 2005 to 2008, it also tests the linkage of firms' capabilities with permanent or mobile entry mode selection by the binary logistic regression, and the results were interpreted.