The competitive strategy in global engineering industry: Strategic group analysis

The engineering is an advanced and complex field which is highly based on experiential technological knowledge, subject to construction and plant industry. Engineering also has spillover effects on relevant industries. Although upstream stages of engineering account only for 5-10% of total project values, they influence entire value chain processes in construction/plant projects. The government also recognizes the importance and pays attention to engineering industry. Nevertheless, there are very few studies that identify and analyze behavioral characteristics of engineering firms. Accordingly, this study identifies the behavioral patterns of firms engaged in global engineering industry and infers their strategies. We collected statistical data and developed indicators of Globalization and Diversification to examine corporate activities. Then, we visualized a strategic group map to analyze behavioral patterns by using the indicators. The analytical framework and methodology proposed in this study can be used as an important tool for strategic decision making and policy development.