A Data-Driven Approach to Country Classifications in the International Construction Market

Kang Wook Lee, Seung Heon Han, Chan Young Park

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Citation (Scopus)

Abstract

The success of international construction businesses is highly subject to market uncertainties in association with host country attributes. That's because going international requires a large-scale investment and target country selection is a key component of corporate decision making. However, despite emerging interests and the need for systematic country evaluation, most existing studies have focused on specific regions or countries and have lacked comparative analyses among diverse countries using objective information. To address this limitation, this study suggests a data-driven approach to country classification using a two-stage model. The first stage represents a process of macro-classification to screen negative countries regarding country attractiveness. The second stage is a micro-classification procedure whereby promising countries are identified based on their level of past project performance. The model utilizes not only secondary data from internationally reputable institutions but also actual performance data of Korean firms from 1990 to 2014 to evaluate 32 countries. Using a factor analysis and two-step cluster analyses, the model allows us to cluster 32 countries by characteristics and explain the current status of each country. The proposed approach enables firms to quantitatively evaluate candidate countries and make better decisions at the early stage of corporate strategy development.

Original languageEnglish
Title of host publicationConstruction Research Congress 2016
Subtitle of host publicationOld and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016
EditorsJose L. Perdomo-Rivera, Carla Lopez del Puerto, Antonio Gonzalez-Quevedo, Francisco Maldonado-Fortunet, Omar I. Molina-Bas
PublisherAmerican Society of Civil Engineers (ASCE)
Pages1332-1342
Number of pages11
ISBN (Electronic)9780784479827
DOIs
Publication statusPublished - 2016 Jan 1
EventConstruction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan, CRC 2016 - San Juan, Puerto Rico
Duration: 2016 May 312016 Jun 2

Publication series

NameConstruction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016

Other

OtherConstruction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan, CRC 2016
CountryPuerto Rico
CitySan Juan
Period16/5/3116/6/2

Fingerprint

Factor analysis
Macros
Decision making
Industry
Uncertainty

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Building and Construction

Cite this

Lee, K. W., Han, S. H., & Park, C. Y. (2016). A Data-Driven Approach to Country Classifications in the International Construction Market. In J. L. Perdomo-Rivera, C. Lopez del Puerto, A. Gonzalez-Quevedo, F. Maldonado-Fortunet, & O. I. Molina-Bas (Eds.), Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016 (pp. 1332-1342). (Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016). American Society of Civil Engineers (ASCE). https://doi.org/10.1061/9780784479827.134
Lee, Kang Wook ; Han, Seung Heon ; Park, Chan Young. / A Data-Driven Approach to Country Classifications in the International Construction Market. Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016. editor / Jose L. Perdomo-Rivera ; Carla Lopez del Puerto ; Antonio Gonzalez-Quevedo ; Francisco Maldonado-Fortunet ; Omar I. Molina-Bas. American Society of Civil Engineers (ASCE), 2016. pp. 1332-1342 (Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016).
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abstract = "The success of international construction businesses is highly subject to market uncertainties in association with host country attributes. That's because going international requires a large-scale investment and target country selection is a key component of corporate decision making. However, despite emerging interests and the need for systematic country evaluation, most existing studies have focused on specific regions or countries and have lacked comparative analyses among diverse countries using objective information. To address this limitation, this study suggests a data-driven approach to country classification using a two-stage model. The first stage represents a process of macro-classification to screen negative countries regarding country attractiveness. The second stage is a micro-classification procedure whereby promising countries are identified based on their level of past project performance. The model utilizes not only secondary data from internationally reputable institutions but also actual performance data of Korean firms from 1990 to 2014 to evaluate 32 countries. Using a factor analysis and two-step cluster analyses, the model allows us to cluster 32 countries by characteristics and explain the current status of each country. The proposed approach enables firms to quantitatively evaluate candidate countries and make better decisions at the early stage of corporate strategy development.",
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Lee, KW, Han, SH & Park, CY 2016, A Data-Driven Approach to Country Classifications in the International Construction Market. in JL Perdomo-Rivera, C Lopez del Puerto, A Gonzalez-Quevedo, F Maldonado-Fortunet & OI Molina-Bas (eds), Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016. Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016, American Society of Civil Engineers (ASCE), pp. 1332-1342, Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan, CRC 2016, San Juan, Puerto Rico, 16/5/31. https://doi.org/10.1061/9780784479827.134

A Data-Driven Approach to Country Classifications in the International Construction Market. / Lee, Kang Wook; Han, Seung Heon; Park, Chan Young.

Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016. ed. / Jose L. Perdomo-Rivera; Carla Lopez del Puerto; Antonio Gonzalez-Quevedo; Francisco Maldonado-Fortunet; Omar I. Molina-Bas. American Society of Civil Engineers (ASCE), 2016. p. 1332-1342 (Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Lee KW, Han SH, Park CY. A Data-Driven Approach to Country Classifications in the International Construction Market. In Perdomo-Rivera JL, Lopez del Puerto C, Gonzalez-Quevedo A, Maldonado-Fortunet F, Molina-Bas OI, editors, Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016. American Society of Civil Engineers (ASCE). 2016. p. 1332-1342. (Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016). https://doi.org/10.1061/9780784479827.134