Peer effects of internationalization for engineering news-record contractors: evidence from Chinese contractors

Abstract

PurposeThis study explores whether the peer effects of internationalization exist within the subdivision industry of enterprises in the engineering field and assesses the imitation paths for the peer engineering enterprises within the industry when implementing internationalization strategies under the peer effects.Design/methodology/approachThis study collected secondary and objective data on 38 Chinese engineering enterprises from the Engineering News-Record's list of the top 250 international contractors between 2013 and 2021. It employed a regression analysis to test the research hypotheses.FindingsThe findings reveal that in the process of internationalization: (1) peer effects exist within the subdivision industry of internationalization of engineering enterprises; (2) engineering enterprises within the same industry and region imitate each other; (3) non-state-owned engineering enterprises imitate state-owned engineering enterprises within the same industry; and (4) in the industry follower–leader imitation process, industry followers imitate leaders according to enterprise size and return on assets.Originality/valueThe results contribute to a better understanding of how peer effects influence engineering enterprises' internationalization process. This study also proposes imitation paths based on the law of imitation to provide recommendations for engineering enterprises' better development in the international market.