A System for Evaluating the Overseas Business Capability of Small & Medium Construction Companies

Because of the recession of the Korean construction market, many construction companies are expediting overseas business. Despite the rapid growth of international markets, the polarization of profit with SMCCs (Small and Medium Construction Companies) and large construction companies in the international construction market has become more serious. This problem causes competition to provide the lowest prices, which makes the future of overseas business for the SMCCs uncertain. Thus, the SMCCs require a reasonable capability evaluation system for overseas business. However, the existing evaluation methods focus on large construction companies. To address this problem, this study proposes a system to evaluate the overseas business capabilities. The 27 indicators to evaluate the overseas business capabilities are derived from a literature review and are verified through expert interviews. The indicators are classified into 4 large categories, and a questionnaire-based survey of 50 Korean SMCCs is conducted to analyze the correlation between overseas business capability and the indicators. The system expects to provide the effect of the indicators on the overseas business capability and the chance to evaluate the capability for overseas business.