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You are here: Risk and Diversification in International ConstructionEdited on: 2018-12-24

Risk and Diversification in International Construction:

Faghihi, V. and Vahdat, A. () "Risk and Diversification in International Construction", The Business Review, Cambridge, 20 (2), 95-102.

Risk and Diversification in International Construction



Market diversification is considered as a method to reduce risks regarding to the portfolio and projects. The diversification strategy of firms might affect revenue and market new entries of the companies. Unfortunately, there are few empirical findings regarding diversification of international construction companies. The current study performs an empirical analysis on diversification of international contractors and design firms. The study identifies (1) the pattern of contractors classified into business types, (2) the relationship between diversification level and size of the company, and (3) market entry strategy of US firms. The empirical study findings may be a start to investigation of diversification strategies of construction companies.

Keywords: Market Diversification, Risk Management, International Market, ENR Top 225 International Contractors, ENR Top 200 International Design Firms

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