Economic Factors Affecting Selection of Growth Strategies by International Construction Companies in Foreign Developed Countries Exemplified by Skanska AS and Vinci in the US and Germany

This thesis investigates the economic factors influencing the selection of growth strategies by international construction companies operating in foreign developed countries, using Skanska AS and Vinci as exemplars in the United States and the Federal Republic of Germany. The study comprises three main chapters. Chapter 1 provides a theoretical foundation by examining growth strategies of international companies, defining growth strategy and exploring its types. It also analyzes the use of growth strategies by international construction firms, with a focus on diversification, its benefits, and associated risks. Moreover, it investigates the economic factors affecting growth strategy selection, including economic growth, employment, inflation rate, exchange rates, governmental spending, and policies within the construction industry. Chapter 2 delves into the impact of economic factors on growth strategy selection, utilizing Skanska AS and Vinci as case studies. It offers an overview of the construction industry, business models, market strategies, and growth strategies of both companies. The chapter further analyzes the economic factors' impact on the selection of growth strategies in the Federal Republic of Germany and the United States, providing insights into the strategic decisions made by Skanska AS and Vinci in these markets. Chapter 3 presents the research findings and recommendations for international companies operating in the developed countries, based on the experiences of Skanska AS and Vinci. It discusses Vinci's growth strategy for 2004-2023 and Skanska's growth strategy for the same period, offering practical insights for growth strategy selection in the USA and the FRG. Additionally, the chapter outlines the overall limitations of the research and suggests areas for future inquiry. By synthesizing theoretical frameworks, empirical analysis, and practical insights, this thesis contributes to a deeper understanding of the complex relationship between economic factors and growth strategy selection in the international construction industry. It aims to inform practitioners, policymakers, and researchers about effective strategies for navigating the challenges and leveraging the opportunities presented by foreign developed markets.