Two-Dimensional Globalizing Index for Engineering and Construction Companies

Abstract

Increasing globalization is creating both challenges and opportunities for engineering and construction (E&C) companies. Many researchers have examined the drivers and key success factors that enable globalizing E&C firms to become truly global. However, although firms integrate recommended globalization tactics, they lack an approach to evaluate the effect of different tactics and strategies on their globalizing performance. This paper presents an index that enables firms to assess their globalizing performance in two dimensions: degree of global reach and degree of global integration. Data were collected from 15 E&C companies to internally validate the developed globalizing index. The globalizing scores of the 15 E&C companies with their international revenue ratios were then compared to externally validate that the international revenue ratio is positively correlated with the global reach score. This research fills an essential gap in the construction engineering and management literature by contributing a novel index for E&C firms’ to measure their globalizing performance.