Download PDFOpen PDF in browserDeveloping a Markov Decision Process Model to Support ESG Decision Making in the International Construction Market13 pages•Published: August 28, 2025AbstractIn an era of increasing uncertainty and rapid change, international contractors are faced with significant challenges in navigating pressures across diverse institutional environments. In response, contractors are adopting Environmental, Social, and Governance (ESG) strategies to manage these institutional challenges and enhance their legitimacy. However, the decision-making process surrounding ESG implementation is complex, particularly under volatile conditions where traditional frameworks fall short in addressing uncertainty. This study proposes a novel approach using a Markov Decision Process (MDP) model to optimize ESG decision-making for international contractors. The results demonstrate that MDP provides a structured, scientific approach to ESG decision-making in uncertain and changing environments, offering actionable insights for contractors operating in global markets.Keyphrases: esg decision making, institutional pressure, international contractors, markov decision process (mdp) In: Jack Cheng and Yu Yantao (editors). Proceedings of The Sixth International Conference on Civil and Building Engineering Informatics, vol 22, pages 279-291.
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