Advertisement

KSCE Journal of Civil Engineering

, Volume 23, Issue 2, pp 491–498 | Cite as

Analyzing Barrier Factors due to Overseas Construction Market Environment Changes: Focused on Korean Construction Companies

  • Hwa Rang Kim
  • Do Yeob Kim
  • Hyoun Seung JangEmail author
Construction Management
  • 21 Downloads

Abstract

Recently, the global construction market environment is affected by various factors that have an impact on the overseas construction contract costs. Also, the Korean overseas construction cost has been in the decline since 2015. It was generally assumed that the decline was due to the decreased number of projects in the Middle East region, a region where major contracts are based in for Korean construction companies. However, the major cause was the incapability of Korean construction companies in coping with the changing environment of the overseas construction market which ultimately lead to their weakened competitiveness. As such, this research utilizes DEMATEL technique in order to analyze the causal relationship between the factors of the global construction market environment change, and to identify a sustainable method to acquire competitiveness for Korean construction companies. Based on the analysis results, priority factors in which Korean construction companies must consider were extracted, which were “changes in the overseas contracting method from simple contracting to finance-accompanied method” and “intensified contracting competition between companies in developed and emerging nations”.

Keywords

overseas construction market environment changes barrier factor DEMATEL causal relationship 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Ahn, H. J., Ryu, J. H., and Kwon, K. H. (2018). KIS industry outlook: Construction, Industry1 Dept., Korea Investors Service, Seoul, Korea.Google Scholar
  2. Bae, S. J. (2010). “Quantitative analysis for problems and improvement directions of the comprehensive rural village development projects using DEMATEL and contents analysis.” Journal of Korean Society of Rural Planning, Vol. 16, No. 3, pp. 173–184.Google Scholar
  3. Business Monitor International (2017). Global infrastructure report Q1 2018, BMI Research, London, United Kingdom.Google Scholar
  4. Choi, S. (2012). "“A study on the improve administrative efficiency of the new address project application of DEMATEL method.” Journal of the Korean Society of Cadastre, Vol. 12, No. 2, pp. 21–29.Google Scholar
  5. Daelim Industrial Co., Ltd. (2018). 2017 annual report, Seoul, Korea.Google Scholar
  6. Daewoo Engineering & Construction Co., Ltd. (2018). 2017 annual report, Seoul, Korea.Google Scholar
  7. Gabus, A. and Fontela, E. (1972). World problems, an invitation to further thought within the framework of DEMATEL, Battelle Geneva Research Centre, Geneva, Switzerland.Google Scholar
  8. Gabus, A., and Fontela, E. (1973). Perceptions of the world problematique: Communication procedure, communicating with those bearing collective responsibility (DEMATEL report no. 1), Battelle Geneva Research Centre, Geneva, Switzerland.Google Scholar
  9. GS Engineering & Construction Corp. (2018). 2017 annual report, Seoul, Korea.Google Scholar
  10. Hana Institute of Finance (2017). 2018 industry outlook(Construction), Industry Research Team., Seoul, Korea.Google Scholar
  11. Hyundai Engineering & Construction Co. (2018). 2017 annual report, Seoul, Korea.Google Scholar
  12. Hyundai Engineering Co., Ltd. (2018). 2017 annual report, Seoul, Korea.Google Scholar
  13. IHS Global Insight (2017). Global construction outlook: Executive overview, IHS Economics, London, United Kingdom.Google Scholar
  14. International Construction Information Service (2018}). Statistics on overseas construction orders Data Base, International Contractors Association of Korea, Seoul, KoreaGoogle Scholar
  15. International Monetary Fund (2017}). Macroeconomic developments and prospects in low income developing countries-2016, IMF Policy Paper, Washington, DC, USAGoogle Scholar
  16. Jang, M., Park, S. H., and Lee, M. H. (2017). “Conservation management of historical assets through community involvement a case study of kanazawa machiya in Japan.” Journal of Asian Architecture and Building Engineering, JAABE, Vol. 16, No. 1, pp. 53–60, DOI: 10.3130/jaabe.16.53.CrossRefGoogle Scholar
  17. Kim, H. N. (2016). “The impacts of changes in the oil price on construction investments of oil producing countries.” Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology, Vol. 6, No. 12, pp. 459–468, DOI: 10.14257/AJMAHS.2016.12.27.CrossRefGoogle Scholar
  18. Kim, C. H. (2018). 2018 industry risk rating (international construction), NICE Information Service Co., Seoul, Korea.Google Scholar
  19. Kim, D. Y., Kim, H. R., and Jang, H. S. (2018). “An analysis of the casual relations on construction project manager’s level competency.” Journal of the Architectural Institute of Korea Structure & Construction, AIK, Vol. 34, No. 3, pp. 77–86, DOI: 10.5659/JAIK_SC.2018.34.3.77.Google Scholar
  20. Lee, M. S., Park, Y. S., Min, S. H., Lee, J. H., Park, J. E., Jang, J. Y., Choi, J. W., Kwak, B. G., Yoo, J. W., Kim, S. W., Kim, D. J., and Choi, H. H. (2017). 2018 industry outlook, Korea Development Bank Future Strategy Research Institute, Seoul, Korea.Google Scholar
  21. Lim, D. B., Park, D. H., and Kang, M. Y. (2016). In the case of construction companies’ resilience, Issue Monitor, Vol. 63, Samjong KPMG ERI Inc., Seoul, Korea.Google Scholar
  22. Lim, D. B., Park, D. H., and Kang, M. Y. (2017). Korean overseas construction in crisis, looking for opportunities in investment development projects, Samjong Insight, Issue 48, Samjong KPMG ERI Inc., Seoul, Korea.Google Scholar
  23. McGraw-Hill Construction (2017). The top 250 international contractors and the top 250 global contractors, New York, United States of America.Google Scholar
  24. Outlook, R. E. (2018). Regional economic outlook update: Middle East and Central Asia, International Monetary Fund, Washington, DC, United States of America.Google Scholar
  25. Park, B. J., Oh, J. K., and Kim, J. J. (2012) “A study on how the changing environment of construction industry at home and abroad affects construction companies’ overseas project.” Journal of the Architectural Institute of Korea Planning & Design, Vol. 28, No. 11, pp. 125–132.Google Scholar
  26. Park, S. H., Soda, O., and Choi, S. Y. (2011). “A structured analysis of urban decay problems by DEMATEL.” Korea Real Estate Academy Review, Vol. 46, pp. 321–337.Google Scholar
  27. POSCO Engineering & Construction Co., Ltd. (2018). 2017 annual report, Pohang, Korea.Google Scholar
  28. Samsung Engineering Co., Ltd. (2018). 2017 Annual Report, Seoul, Korea.Google Scholar
  29. Seon, Y. K. and Choi, H. S. (2017). Industry credit outlook: 2018 industry outlook (international construction), Korea Ratings Corporation, Seoul, Korea.Google Scholar
  30. Shieh, J. I., Wu, H. H., and Huang, K. K. (2010). “A DEMATEL method in identifying key success factors of hospital service quality.” Knowledge-Based Systems, Vol. 23, No. 3, pp. 277–282, DOI: 10.1016/j.knosys.2010.01.013.CrossRefGoogle Scholar
  31. SIPRI (2018). SIPRI yearbook 2018 summary: Armaments, disarmament and international security, Solna, Sweden.Google Scholar
  32. Sohn, T. H. (2017). Overseas construction diagnosis and obtain order strategy, Construction issue focus, Construction & Economy Research Institute of Korea., Seoul, Korea.Google Scholar
  33. Stephanie, G. (2017). Findings of the recent literature on international capital flows: Implications and suggestions for further research, Economic Department Working paper No. 1410, Organization for Economic Cooperation and Development, Paris, France.Google Scholar
  34. Tzeng, G. H., Chiang, C. H., and Li, C. W. (2007). “Evaluating intertwined effects in e-learning programs: A novel hybrid MCDM model based on factor analysis and DEMATEL.” Expert Systems with Applications, Vol. 32, No. 4, pp. 1028–1044, DOI: 10.1016/j.eswa.2006.02.004.CrossRefGoogle Scholar
  35. Wu, W. W., and Lee, Y. T. (2007). “Developing global managers’ competencies using the fuzzy DEMATEL method.” Expert Systems with Applications, Vol. 32, No. 2, pp. 499–507, DOI: 10.1016/j.eswa.2005.12.005.CrossRefGoogle Scholar
  36. Yang, J. S., Kang, J. H., Kim, Y. J., Sung, D. W., Lee, M. H., and Na. H. Y. (2018). Economic and industrial outlook 2018, Korea Exim bank Overseas Economic Research Institute., Seoul, Korea.Google Scholar

Copyright information

© Korean Society of Civil Engineers and Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  • Hwa Rang Kim
    • 1
  • Do Yeob Kim
    • 1
  • Hyoun Seung Jang
    • 1
    Email author
  1. 1.School of ArchitectureSeoul National University of Science & TechnologySeoulKorea

Personalised recommendations