134 / 2017-07-01 11:15:21

A Structural Equation Model for International Market Selection of Chinese Construction Enterprises

International market selection (IMS),Chinese construction enterprises (CCE),International engineering contract,Structural equation model (SEM),AMOS

Chinese construction enterprises (CCE) play a significant role in the international engineering contract markets. With the advance of The Belt and Road initiative, they are expected to expand to more countries. International market choice (IMC) is the first key decision-making contractors facing as they enter the international market. It is necessary to carry out a comprehensive and systematic empirical analysis of the factors that affect IMC decision. Based on existing researches, factors impact on IMC of CCE are classified into four categories: attractiveness of target market，link between host country and China, distance from host country to China and strength of the company. Assumptions are proposed according to the theoretical analysis and the structural equation model (SEM) of IMS for CCE is established. Using the AMOS software, we measure the four unobservable factor categories (latent variables) through several observable variables, estimate their effects on explanatory variables in a structural model and analyze whether the effects are consistent with the hypothesis. SEM can be used to analyze the effect of factor system comprehensively, and the application of SEM in the empirical study of international engineering market selection is an application innovation.