Rationale and Benefits Associated with International Alliances

Abstract

The concept of a global economy is changing the traditional perceptions of national borders. As national borders become more flexible, competition for construction projects will continue in increase. In addition, dwindling resources have caused governments to evaluate many nontraditional approaches to generate the needed revenue and expertise to undertake public construction projects. The construction industry, faced with the continuing move toward a global marketplace, must examine the possible competitive advantages offered by forming international alliances. Alliances will play an important role in determining the future growth of many companies. It is imperative to begin planning now for something we consider inevitable. The writers were the primary participants in a Construction Industry Institute sponsored research project to study the impact of forming alliances as a way to enhance the competitiveness of U.S. construction firms. Using data collected from interviews with 30 international construction industry executives during that study, this paper discusses why alliances are formed and the benefits that can be gained from them.