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Towards testing the eclectic paradigm on multinational contracting: an approach to reviewing and analysing secondary data

Rahman, Azmeri, Bridge, Adrian, Rowlinson, Steve, & Kwok, Tommy (2011) Towards testing the eclectic paradigm on multinational contracting: an approach to reviewing and analysing secondary data. In Wang, Yaowu, Pang, Yongshi, & Shen, Geoffrey Q.P. (Eds.) Proceedings of the 2011 International Conference on Construction and Real Estate Management (ICCREM 2011), China Architecture & Building Press, Guangzhou University Business Hotel, Guangzhou, China, pp. 915-920.

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Abstract

In response to the need to leverage private finance and the lack of competition in some parts of the Australian public sector major infrastructure market, especially in very large economic infrastructure procured using Pubic Private Partnerships, the Australian Federal government has demonstrated its desire to attract new sources of in-bound foreign direct investment (FDI) into the Australian construction market. This paper aims to report on progress towards an investigation into the determinants of multinational contractors’ willingness to bid for Australian public sector major infrastructure projects and which is designed to give an improved understanding of matters surrounding FDI into the Australian construction sector. This research deploys Dunning’s eclectic theory for the first time in terms of in-bound FDI by multinational contractors and as head contractors bidding for Australian major infrastructure public sector projects. Elsewhere, the authors have developed Dunning’s principal hypothesis associated with his eclectic framework in order to suit the context of this research and to address a weakness arising in Dunning’s principal hypothesis that is based on a nominal approach to the factors in the eclectic framework and which fail to speak to the relative explanatory power of these factors. In this paper, an approach to reviewing and analysing secondary data, as part of the first stage investigation in this research, is developed and some illustrations given, vis-à-vis the selected sector (roads, bridges and tunnels) in Australia (as the host location) and using one of the selected home countries (Spain). In conclusion, some tentative thoughts are offered in anticipation of the completion of the first stage investigation - in terms of the extent to which this first stage based on secondary data only might suggest the relative importance of the factors in the eclectic framework. It is noted that more robust conclusions are expected following the future planned stages of the research and these stages including primary data are briefly outlined. Finally, and beyond theoretical contributions expected from the overall approach taken to developing and testing Dunning’s framework, other expected contributions concerning research method and practical implications are mentioned.

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ID Code: 46432
Item Type: Conference Paper
Keywords: Eclectic Paradigm, Foreign Direct Investment, Multinational Contractors
ISBN: 978-7-112-13701-5
Subjects: Australian and New Zealand Standard Research Classification > ENGINEERING (090000) > CIVIL ENGINEERING (090500) > Construction Engineering (090502)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Past > Schools > School of Urban Development
Copyright Owner: Copyright 2011 China Architecture & Building Press
Deposited On: 12 Oct 2011 23:21
Last Modified: 21 Jan 2012 21:57

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