International strategic alliances in construction: performances of Turkish contracting firms

Abstract

Firms need various resources and capabilities in order to compete with each other effectively. These resources and capabilities can be acquired, developed internally, or obtained via an ongoing cooperative relationship with another firm through the use of a strategic alliance. The use of strategic alliances in construction industry has increased sharply over the last decade and they are particularly effective in helping a firm maintain a superior competitive position in dynamic environments. Alliances reportedly improve the competitiveness of the construction firms by providing access to external resources, by providing synergies and by fostering rapid learning and change. The purpose of this research is to identify the success factors and key components of the development process of strategic alliances, and propose a process model of strategic alliances performances based on alliance conditions in international construction industry. The research involves a questionnaire survey conducted to the Turkish contracting firms operating internationally. Different types of projects constructed by Turkish contractors in Commonwealth of Independent States, Middle East Countries, African Countries, and other regions of the world between 2002 and 2009, were analyzed and used in the developments made in this study. The results indicate that shared risk, trust between parties, and equity are found to be the most important determinants of strategic alliance success. The research findings support the contracting firms enhancing their productive capacities and acquiring competitive advantages that enable them to increase alliance performances. The study also commences on how the identified factors enhance the effectiveness of the participating firms’ competitive strategies by providing for mutual resource exchanges (technologies, skills, or products).