Japanese Construction Alliances

As a result of increased globalization, characterized by freely accessible communications and transportation systems, the traditionally geographically dependent construction industry finds itself in the midst of industry changes in which the borders between competitors are being removed. As a result, construction industry organizations need to react to change and increased competition. One method for doing so is formation of construction alliances to provide for the resource, geography specific, and technological needs of project owners. The objective of this paper is to present the results of interviews with leaders in the Japanese construction industry, with a perspective on perceptions of change in the international and domestic market, and the use of alliances to react to those changes. The results indicate an increasing need to form alliances to remain competitive across and within traditional market borders. Additionally, the impact of the spread of the free market economy is noted as a significant factor in the rise of increasing competitiveness. The importance of alliance success is stressed, and the means to that success is careful integration of cultures and technology during alliance formation.