Last edited 30 Nov 2020

Main author

CIOB Institute / association Website

Japanese construction contractors in the international market

Susumu Isoda, University of Reading, UK.

This study explores and compares the business models and financial structures of leading international construction firms. Its purpose is to identify the key determinants behind the declining presence of Japanese contractors in international markets.

Financial ratio analysis indicates that there are no major differences in liquidity and leverage across these firms, although distinct differences in profitability and efficiency between Japanese and non-Japanese contractors have been identified. Moreover, Japanese firms have been found to be particularly capital intensive, for two reasons:

Furthermore, cost structure analysis reveals that a company’s efficiency in the procurement of materials and services plays an important role in its improved profitability. The corresponding business models of these two analyses indicate that Japanese firms are neither unique in character nor considerably different in comparison to contractors in other countries. Every construction firm has its business model and financial structure deemed suitable for its surrounding environment to enhance competitive advantage.

This dissertation was the Highly Commended Winner, Masters Dissertation Award, CIOB International Innovation & Research Award, 2014.

The judges said, “This is a very ambitious piece of work which draws equally from a comprehensive literature review and innovative empirical research. The dissertation addresses a number of complex business models, and provides a comparative analysis of data across the globe. Synthesised data is used to draw conclusions around the reasons for the declining engagement of Japanese contractors in international markets. The conclusions provide new insights which have not previously been recorded.”


Designing Buildings Anywhere

Get the Firefox add-on to access 20,000 definitions direct from any website

Find out more Accept cookies and
don't show me this again