Strategic choice of large construction enterprises going global based on niche theory

With the promotion of national policies and the active practice of the construction industry, the overseas development strategy of large construction enterprises has achieved fruitful results. However, in recent years, with the decline of the world economy and the downturn of the main overseas markets for Chinese international engineering contractors, Chinese enterprises are facing competition from multiple parties. Local governments are beginning to prioritize regional and systematic development. Therefore, studying the strategic options for Chinese large construction enterprises to go global is of great significance for their overseas development and improvement of their international competitiveness. Based on niche theory, this study constructed an enterprise niche index system containing three dimensions and eleven indicators, including niche width, overlap, and strength. The article selected companies listed in the “Top 250 International Contractors” rankings published by Engineering News Record (ENR) in the US as sample enterprises to calculate their enterprise niche, and useed K-means clustering to classify their enterprise niche types. A corresponding relationship between enterprise niche types and overseas development strategies was established. The results show that enterprises with niche widths (x) between 0.3 and 0.6, niche overlap degrees (y) between 0.6 and 1.0, and niche strengths (z) between 0.4 and 0.7 should adopt horizontal diversification strategies; enterprises with niche widths (x) between 0.2 and 0.6, niche overlap degrees (y) between 0.7 and 1.0, and niche strengths (z) between 0 and 0.4 should adopt vertical integration strategies; enterprises with niche widths (x) between 0.6 and 1.0, niche overlap degrees (y) between 0.6 and 0.8, and niche strengths (z) between 0 and 0.5 should adopt business ecosystem strategies. The research results reveal the corresponding relationship between enterprise niche types and overseas development strategies, providing theoretical references for Chinese construction enterprises to select their overseas development strategies and promoting high-quality development in their overseas markets. © 2024, Central South University Press. All rights reserved.