Institutional complexity for Chinese international contractors

Abstract

Purpose – The paper aims to investigate the prevailing institutional logics that underpin the organisational behaviours of Chinese contractors and the institutional complexity they face across several strategic areas when they undertake projects abroad. Design/Methodology/Approach – The paper draws mainly on industry literature, reports and government websites to develop a typology of two ideal types of institutional logics that prevail among Chinese international contractors. The configurations of institutional complexity in different strategic areas are analysed through pattern-matching. Findings – Two main logics are identified, namely, construction and investment logics. These logics in turn lead to patterns of volatile complexity in the strategic areas of business, technology, human resources and marketing; patterns of aligned complexity in operational and information technology strategic areas; and patterns of segregated complexity in financial strategic area. Research Limitations/Implications – The paper presents an ongoing doctoral research. It provides a preliminary understanding of the institutional logics affecting Chinese international contractors and sets out the first step to understand the relationship between complex institutional environments and organisational responses. Practical Implications – Chinese international contractors commonly face resistance, and at times resentment, from the local industries in the countries they operate. The findings of this paper are a first step towards a better understanding of why this is the case and what can be done to rectify the situation and improve long and short-termproject performance. Originality/Value – This paper provides practical implications for Chinese contractors to understand their internal context of institutional complexity and provides the basis for further understanding of Chinese contractors’ strategic responses.