Counterfeiting in the Construction Industry: Analysis of Sino-American Differences in Perception

Abstract

A research project funded by the Construction Industry Institute confirmed that there is a problem in the construction industry with counterfeit goods finding their way into the supply chains of major construction projects. Furthermore, it was found that the problem is substantial, the most common source country of the counterfeit goods is China, and the most common destinations of the goods are the United States, China, and the Middle East. Almost 200 construction industry and government leaders from around the world were interviewed for 14 h in the data-gathering phase of this study. The results, including statistical analyses of the comments and answers of the interviewees, are presented. Meaningful case studies are shared, as are the results of a rigorous statistical analysis into the tie between culture—or country of residence—and a respondent’s answer to a specific question. Nine hypotheses are presented, each tied to a specific question in a large survey. Each hypothesis is subjected to statistical analysis, and the results of these analyses are shared. Cultural analysis follows why respondents from two cultures profess different perceptions of the problem. The specific contribution of this paper is that it is the first paper published in a major journal to mention many of these specific issues that threaten the integrity of the supply chain of every construction project. It also is the first paper to offer insight into how cultural differences may explain contradictions in the perceptions of counterfeiting—and the consequences of the practice—between two cultures.