Unlocking Internationalization Success in Construction: A Configurational Analysis of Firm Strategies and Market Dynamics

The internationalization of construction firms is crucial for sustaining long-term growth and enhancing global competitiveness. However, how internal and external factors interact to shape internationalization outcomes in terms of depth and scope remains unexplored. Grounded in the resource-based view and institutional theory, this study used a fuzzy-set qualitative comparative analysis (fsQCA) to examine key drivers of internationalization among construction firms, focusing on joint venture partnerships; enterprise scale environmental, social, and governance (ESG) performance; competitive intensity; and governance efficiency of the host country (i.e., host countries’ regulatory transparency, political stability, and transaction cost efficiency). By analyzing data from 101 Chinese international construction firms, this study identified 9 configurations that explain varying levels of internationalization in both depth and scope. Four configurations indicate high internationalization, with enterprise scale and competitive intensity consistently emerging as core conditions, whereas joint venture partnerships serve as a supportive factor. ESG performance influences internationalization depth but is not essential for achieving a broad international scope. Conversely, five configurations explain low to moderate internationalization levels. In these cases, joint venture partnerships alone provide limited support, because smaller enterprise scale or lower governance efficiency in host countries constrains the scope of internationalization. This configurational analysis offers a nuanced view of how diverse combinations of internal capabilities and external conditions lead to varying internationalization outcomes. The findings provide valuable strategic insights for construction firms aiming to expand in complex global markets.