Predicting profit performance for selecting candidate international construction projects

Research output: Contribution to journalArticle

52 Citations (Scopus)

Abstract

International projects are inherently exposed to unpredictable and complicated risk scenarios. To minimize possible losses due to these risk exposures, construction firms have their own procedures or basic tools for selecting potential projects, but they are usually based on the experience and knowledge of the firm's engineers and decision makers that are often very subjective and lack scientific basis. This paper presents a quantitative profit prediction model for the early stage of an international project as a systematic risk-screening tool that involves the processes of defining, analyzing, and evaluating various profit-influencing risk variables. Various successful and unsuccessful international project cases with respect to profit levels are collected. Then, a scale-based profit prediction model to select candidate overseas projects is developed through factor analysis and a multiple regression analysis. Finally, this paper provides implications for global project management and lessons learned from case studies to improve profitability for international projects.

Original languageEnglish
Pages (from-to)425-436
Number of pages12
JournalJournal of Construction Engineering and Management
Volume133
Issue number6
DOIs
Publication statusPublished - 2007 May 21

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Profitability
Factor analysis
Project management
Regression analysis
Screening
Profit
Construction project
International projects
International construction
Engineers
Prediction model

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Building and Construction
  • Industrial relations
  • Strategy and Management

Cite this

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title = "Predicting profit performance for selecting candidate international construction projects",
abstract = "International projects are inherently exposed to unpredictable and complicated risk scenarios. To minimize possible losses due to these risk exposures, construction firms have their own procedures or basic tools for selecting potential projects, but they are usually based on the experience and knowledge of the firm's engineers and decision makers that are often very subjective and lack scientific basis. This paper presents a quantitative profit prediction model for the early stage of an international project as a systematic risk-screening tool that involves the processes of defining, analyzing, and evaluating various profit-influencing risk variables. Various successful and unsuccessful international project cases with respect to profit levels are collected. Then, a scale-based profit prediction model to select candidate overseas projects is developed through factor analysis and a multiple regression analysis. Finally, this paper provides implications for global project management and lessons learned from case studies to improve profitability for international projects.",
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Predicting profit performance for selecting candidate international construction projects. / Han, Seung Heon; Kim, Du Y.; Kim, Hyoungkwan.

In: Journal of Construction Engineering and Management, Vol. 133, No. 6, 21.05.2007, p. 425-436.

Research output: Contribution to journalArticle

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