Internationalisation of construction business and e-commerce: Innovation, integration and dynamic capabilities

Thayaparan Gajendran, Graham Brewer, Malliga Marimuthu


Abstract

Despite the role of internet and web based applications in delivering competitive advantage through e-business process is widely acknowledged, little is done by way of research to use the dynamic capability framework, in exploring the role of ecommerce in the construction business internationalisation. The aim of this paper is to present a literature based theoretical exploration using dynamic capability view to discuss internationalising construction businesses through electronic commerce (e-commerce) platforms. This paper contextualises the opportunities for internationalising construction, using a mix of supply chain paradigms, embedded with e-commerce platforms. The paper concludes by identifying the potential of dynamic capabilities of a firm, exploiting the innovation and integration potential of different e-business systems, in contributing to the internationalisation of construction businesses. It proposes that contracting firms with developed dynamic capabilities, has the potential to exploit e-commerce platforms to channel upstream activities to an international destination, and also offers the firm’s products/services to international markets.

Keywords

Dynamic Capabilities, Innovation, E-commerce, Building Information Modelling (BIM), Integration, Internationalisation

Full Text

PDF

References

Akkermans, H. A. Bogerd, P. Yucesan, E. and van Wassenhove, L. N. (2003) The impact of ERP on supply chain management: Exploratory findings from a European Delphi study, European Journal of Operational Research, 146, 284-301

Alshawi, M. and Ingirige, B. (2003) Web-enabled project management: an emerging paradigm in construction, Automation in Construction, 12, 349-364

Ambrosini, V and Bowman, C (2009) What are dynamic capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11 (1), 29-49

Ash, C. G. and Burn, J. M. (2003) Assessing the benefits from e-business transformation through effective enterprise management. European Journal of Information Systems, 12, pp. 297-308.

Ayers, J. B., Ed. (2002) Making Supply Chain Management Work, Auerbach Florida

Bagchi, P. K. and Skjoett-Larsen, T. (2003) Integration of Information technology and organisations in a supply chain, The International Journal of Logistics Management, 14 (1), 89-108

Barreto, I, (2010) Dynamic Capabilities: A Review of Past Research and an Agenda for the Future, Journal of Management, 36 (1), 256-280

Briscoe, G. and Dainty, A. (2005) Construction supply chain integration: an elusive goal? Supply Chain Management, 10 (4), 319-325

Chai, L. and Pavlou, P. (2004) From 'ancient' to 'modern': a cross-cultural investigation of in electronic commerce adoption in Greece, Journal of Enterprise Information Management, 17 (6), 416-23

Chesbrough, H. and R. S. Rosenbloom (2002) The role of the business model in capturing value from innovation: Evidence from Xerox Corporation's technology spin-off companies, Industrial and Corporate Change, 11 (3), 529-555

Cutting-Decelle, A-F., Young, B. I., Das, B. P., Case, K., Rahimifard, S., Anumba, C. J. and Bouchlaghem, D. M. (2007) A review of approaches to supply chain communications: from manufacturing to construction, ITcon, 12 (2007), 73-102

Daniel, E. M. and Wilson, H. N. (2003) The role of dynamic capabilities in e-business transformation, European Journal of Information Systems, 12, 282-296

Dikbas, A. and Scherer, R., Eds. (2004) eWork and eBusiness in Architecture Engineering and Construction ECPPM, Taylor & Francis, London.

Donk, D. P. v. (2008) Challenges in relating supply chain management and information and communication technology: An introduction, International Journal of operations & production management, 28 (4), 308-312

Dubois, A. and Gadde, L.-E. (2002) The construction industry as a loosely coupled system: implications for productivity and innovation, Construction Management and Economics, 20 (7), 621-631

Eisenhardt, K. M. and Martin, J. A. (2000) Dynamic capabilities: What are they? Strategic Management Journal, 21 (10/11), 1105-1121

Eyob, E. and Tetteh, G. (2012) Customer-Oriented Global Supply Chains: Concepts for Effective Management, (pp. 0-335), IGI Global, Web. 22 Mar. 2012. http://dx.doi.org/10.4018/978-1-4666-0246-5

Fawcett, S. E. and Magnan, G. M. (2002) The rhetoric and reality of supply chain integration, International Journal of Physical Distribution and Logistics Management, 35 (5), pp. 339-361

Fawcett, S. E. Osterhaus, P. Magnan, G. M. Brau, J. C. and McCarter, M. W. (2007) Information sharing and supply chain performance: the role of connectivity and willingness, Supply Chain Management: An international Journal, 12 (5), 358-368

Froehlich, G., Hoover, H.J., Liew, W. and Sorenson, P.G. (1999) Application framework issues when evolving business applications for electronic commerce, Information Systems, 24 (6), 457-473

Frohlich, M. T. and Westbrook, R. (2001) Arcs of integration: an internal study of supply chain strategies, Journal of Operations Management, 19, 185-200

Howes, R. and Tah, J. H. M. (2003) Strategic Management Applied to International Construction, Thomas Telford, Victoria

Issa, R. R. Flood, I. and Caglasin, G. (2003) A survey of e-business implementation in the US construction industry, ITcon, 8, 15-28

Johnson, E and Whang, S (2002) E-business and supply chain management: An overview and framework, Production and Operations Management, 11 (4), 413-23

Johnson, R., Clayton, M., Xia, G., Woo, J.H. and Song, Y. (2002) The strategic implications of e-commerce for the design and construction industry, Engineering Construction and Architectural Management, 9 (3), 241-248

Kalakota, R. and Whinston, A.B (1996) Frontiers of electronic commerce, Addison Wesley Longman Publishing Co., Inc. Redwood City, CA, USA

Kauffman, R.J. and Walden, E.A. (2001) Economics and electronic commerce: Survey and directions for research, International Journal of Electronic Commerce, 5, 5-116

Kshetri, N.B. (2001) Determinants of the locus of global e-commerce, Electronic Markets, 11 (4), 250-257

Lambert, D. M. and Cooper, M. C. (2000) Issues in Supply Chain Management, Industrial Marketing Management, 69 (1), 65-83

Laudon, K C. and Traver, C. G. (2009) E-Commerce: Business, Technology, and Society, 2nd. Ed., Addison Wesley

Lee, C-S (2001) An analytical framework for looking at e-commerce business models and strategies. Internet Research: Electronic Networks, Applications and Policy, 11 (4), 349-59

Leighton Group. (2011). About us", at http://www.leightonasia.com/v4/default.asp?lid=1 & sec=About+Us (accessed May, 2011)"

London, K. (2008), Construction supply chain economics, Taylor & Francis, London

London, K. (2010). Multi-market industrial organisational economic models for the internationalisation process by small and medium enterprise construction design service firms, Architectural Engineering and Design Management, 6 (2), 132-152

Luo, Y., Zhao, J.H. and Du, J. (2005) The internationalisation speed of e-commerce companies: an empirical analysis, International Marketing Review, 22 (6), 693-709

McGraw Hill Construction (2009) The business value of BIM: Getting building information modelling to the bottom line, In: Smart Market Report

McGraw Hill Construction (2010) The business value of BIM in Europe: Getting building information modelling to the bottom line the united kingdom, France and Germany. In: Smart Market Report

McGraw Hill Construction (2012) The business value of BIM for infrastructure: Addressing America's infrastructure challenges with collaboration and technology

Makadok, R. (2001) Toward a synthesis of the resource-based and dynamic-capability views of rent creation, Strategic Management Journal, 22 (5), 387- 401

Menipaz, E. and Menipaz, A. (2011) International Business, SAGE, London

Min, H. and Zhou, G. (2002) Supply chain modelling: past, present and future. Computers & Industrial Engineering, 43, 231-249, http://dx.doi.org/10.1016/S0360-8352(02)00066-9

Nelson, R R and Winter, S G (1982) An evolutionary theory of economics, Cambridge: Harvard University Press.

O'Reilly III, C A and Tushman, M L (2008) Ambidexterity as a dynamic capability: Resolving the innovator's dilemma, Research in Organizational Behavior, 28 (July), 185-206

OTIS. (2010). OTIS Worldwide, at http://www.otisworldwide.com/ (accessed May 2011, 2011)

Pant, S. Sethia, R. and Bhandarib, M. (2003) Making sense of the e-supply chain landscape: an implementation framework, International Journal of Information Management, 23 (3), 2001-221

Porter, M E (1980) Competitive strategy: Techniques for analyzing industries and competitors, New York: Free Press.

Porter, M.E. (1990) The Competitive Advantage of Nations, Free Press, New York

Reina, P. and Tulacz, G. J. (2010a) The top 200 international design firms, ENR, ENR, New York

Reina, P. and Tulacz, G. J. (2010b) The top 225 international contractors, ENR, ENR, New York

Rindova, V. P. and Kotha, S. (2001) Morphing": Competing through Dynamic Capabilities, Form, and Function, The Academy of Management Journal, 44 (6), 1263-1280"

Roy, S. Sivakumar, K. and Wilkinson, l. F. (2004) Innovation Generation in Supply Chain Relationships: A Conceptual Model and Research Propositions, Journal of the Academy of Marketing Science, 32 (1), 61-79

Rugman, A. M. and Collinson, S. (2009) International Business. Prentice Hall, Sydney

Shera, P. J. and Lee, V. C. (2004) Information technology as a facilitator for enhancing dynamic capabilities through knowledge management, Information & Management, 41, 933-945

Siau, K. and Tian, Y. (2004) Supply chain integration: architecture and enabling technologies, The Journal of Computer Information Systems, 44 (3), 67-72

Su, Y. and Yang, C. (2010) A structural equation model for analyzing the impact of ERP on SCM. Expert Systems with Applications, 37, 456-496, http://dx.doi.org/10.1016/j.eswa.2009.05.061

Smart, A. (2008) eBusiness and supply chain integration, Journal of Enterprise Information Management, 21 (3), 227-246

Swilley, E., Hofacker, C. F., and Lamont, B.T (2012) The Evolution from E-Commerce to M-Commerce: Pressures, Firm Capabilities and Competitive Advantage in Strategic Decision Making, The international Journal of e-Business Research, 8 (1), 1-16

Tan, K. C. (2001) A framework of supply chain management literature, European Journal of Purchasing and Supply Management, 7, 39-48

Teece, D. and Pisano, G. (1994) The Dynamic Capabilities of firms: An introduction, The International Institute for Applied Systems Analysis, Austria

Teece, D. J. (2007) Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance, Strategic Management Journal, 28, 1319-1350

Teece, D. J. Pisano, G. and Shuen, A. (1997) Dynamic capabilities and strategic management, Strategic Management Journal, 18 (7), 509-533

Turban, E, Lee, J K, King, D, Liang, T P and Turban, D (2010) Electronic commerce, 6th ed. New Jersy: Prentice Hall Press

Voordijk, H. Leuven, A. V. and Lann, A. (2003) Enterprise Resource Planning in a large construction firms: implementation analysis, Construction Management and Economics, 21, 511-521

Vrijhoef, R. and Koskela, L. (2000) The four roles of supply chain management in construction, European Journal of Purchasing & Supply Management, 6 (2000), 169-178

Wang, Y., Yang, J. and Shen, Q. (2007) The application of electronic commerce and information integration in the construction, International Journal of Project Management, 25 (2), 158-163

Winter, S. G. (2003) Understanding dynamic capabilities. Strategic Management Journal, 24, 991-995, http://dx.doi.org/10.1002/smj.318

Wu, J. H. and Hisa, T. L. (2008) Developing E-Business Dynamic Capabilities: An Analysis Of E-Commerce Innovation From I-, M-, To U-Commerce, Journal of Organisational Computing and Electronic Commerce, 18, 95-111

Zhu, K and Kraemer, K L (2002) E-commerce metrics for net-enhanced organizations: Assessing the value of e-commerce to firm performance in the manufacturing sector, Information Systems Research, 13 (3), 275-95

Zwass, V. (1996) Electronic commerce: structures and issues, International Journal of Electronic Commerce, 1 (1), 3-23

Zwass, V. (2003) Electronic commerce and organisational innovation: aspects and opportunities, International Journal of Electronic Commerce, 7 (3), 7-37

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM