Mathematical models for predicting Chinese A/E/C firmsʹ 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 Chinaʹs construction market are explored using Porterʹs generic competitive strategies, Sun Tzuʹs 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 firmʹs likely competitiveness level.