Foreign architectural and engineering design firms’ competitiveness and strategies in China: A diamond model study

There is an increasing number of Foreign Architectural and Engineering Design Firms (FAEDFs) operating in China as a result of the Chinese government’s efforts to open its construction market to the international community. These FAEDFs face competition from both local and foreign rivals. This study aims to investigate the competitiveness of FAEDFs in the dynamic environment of the Chinese construction market. The diamond model technique is adopted to reveal the development mechanisms for the competitiveness of FAEDFs in China. Data used in the analysis comes from multiple sources including literature survey and interviews conducted at two major cities (i.e. Shanghai and Beijing). Key factors that need to be considered during the formation of strategies for FAEDFs in China are highlighted. The research indicates that there are a number of factors contributing to or impeding the development of the competitiveness of FAEDFs in China. The elements identified in the Diamond model analysis provide critical inputs for FAEDFs to formulate strategies to survive and sustain growth in China.

► We applied the diamond model to examine FAEDFs’ competitiveness in China.
► We verified the diamond model as a useful technique for competitiveness analysis.
► Diamond model analysis provides critical inputs to formulate business strategies.