Using social network strategy to manage construction projects in China

Due to its unique culture, besides adopting established project management practices, the question is whether social network strategy is relevant for managing projects in China. The research aims to ascertain the relevance of social network strategy and identify the important network practices that foreign and local architectural, engineering or construction (A/E/C) firms adopt when managing construction projects in China. 82 sets of data were collected using a structured questionnaire. The results show that both local and foreign firms adopt practices relating to social network strategy to a significant extent. However, they do not collaborate with competitors even though this could add value to their products/service. Foreign firms also do not make enough use of political resources, relying neither on their home country governments nor the Chinese government. Foreign firms lag behind Chinese firms in not joining consortiums or enlarging the number of partners in their networks, suggesting a ‘do it alone’ stand.

Research highlights
► A/E/C firms should form and cultivate relationships when operating in China.
► Having more partners in the network would improve competitiveness.
► Foreign firms operating in China should make more use of political resources.