Factors Affecting U.S. Contractors' Performance Overseas

Abstract

The volume of international work undertaken by U.S. contractors has declined considerably in the last few years. The share of the international market held by U.S. companies also declined in the same period. The paper reports the findings of a study conducted to explain the performance of U.S. contractors in international markets. Performance indexes were developed that can be calculated by making use of publicly available company information. A questionnaire survey was administered to U.S. contractors that have been active in overseas markets in the last five years. Statistical analyses were performed to explain international performance in terms of commitment, presence, and growth. Findings indicate that the type of construction, the type of contract, financing sources, the geographical location of projects, sources of information, and research and development activity tend to affect U.S. contractors' international performance.