Mathematical models for predicting Chinese A/E/C firms' competitiveness

Architectural, engineering and/or construction firms (A/E/C firms) need to be competitive in order to survive and grow. This research investigates the components of competitiveness, and develops and validates mathematical models to predict the competitiveness levels of A/E/C firms headquartered in mainland China (Chinese A/E/C firms). The strategies to achieve competitive performance in China's construction market are explored using Porter's generic competitive strategies, Sun Tzu's Art of War and the networking approach. The research method used is a questionnaire survey of senior executives of Chinese A/E/C firms. Using the structural equation modeling (SEM) technique, two reasonably accurate mathematical models for predicting competitiveness were developed and validated. The finding is that Chinese A/E/C firms may increase competitiveness by pursuing a multi-pronged approach comprising differentiation, focus, cost leadership, variation of tactics, and relationship cultivation. Practitioners may use the mathematical models developed to make a preliminary assessment of a firm's likely competitiveness level.

► SEM models for predicting Chinese A/E/C firms' competitiveness were validated.
► Porter's generic business strategies help to increase competitiveness in China.
► The war strategy to improve competitiveness is to constantly vary tactics.
► Relationship cultivation improves competitiveness.
► A firm's likely competitiveness level may be assessed using the SEM models.