"Why was the world construction industry dominated by European leaders?" The development of the largest European firms from the late 19thto the early 21stcenturies

The paper analyzes the most important factors contributing to why, for a long time, the world construction industry was dominated by European leaders. Indeed, up to 2007-08, European hegemony remained strongest in the services connected to the construction industry and, above all, in the production...

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Bibliographic Details
Published in:Construction history : journal of the Construction History Group 2013-01, Vol.28 (3), p.89-114
Main Author: Barjot, Dominique
Format: Article
Language:English
Subjects:
Business structures
Cement industry
Cements
Civil engineering
Construction industries
Economic competition
Public buildings
Railway systems
Raw materials
Subsidiary companies
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Summary:The paper analyzes the most important factors contributing to why, for a long time, the world construction industry was dominated by European leaders. Indeed, up to 2007-08, European hegemony remained strongest in the services connected to the construction industry and, above all, in the production and distribution of raw materials. The paper addresses two major goals: to study the European cement industry and the distribution of building supplies; to analyze the shift to services initiated by the European building and public works firms. To this end, three lines of inquiry have directed the research: the shift from the international firm to the global one; the passage from industry to services; a typology of national models. The conclusions of a macroeconomic approach has identified the following factors contributing to the European leadership: technological innovation; control of technological progress; better risk management; advantages both in terms organization, commercial know-how and support of banks; more skilled engineers and workers; decisive role of the colonial experience; and state economic support. A microeconomic approach has shown that these competitive advantages constituted the most important factor for the success of world leaders Bouygues, Skanska and Vinci in the building and civil engineering sector, and Holcim, Lafarge and Saint-Gobain in the raw materials sector. Nevertheless, in spite of its successful characteristics, the European leadership remained fragile.
ISSN:0267-7768