Analysis of the Business Environment in Construction Service Industry in DKI Jakarta, Indonesia

Rukun Santoso, Erwin Permana

Abstract


This study aims to specifically analyze the business environment in the
construction service industry in DKI Jakarta, by using an external and
internal dimension factor approach. The dimensions of external factors
include several indicators such as political, economic, social and
technological indicators. While the internal factor dimensions consist of
indicators of corporate culture, corporate structure, and corporate
resources. The analysis technique uses Structural Equation Model (SEM)
with SmartPLS. The number of samples included 370 leaders of
construction service companies in DKI Jakarta. One company is
represented by one company leader, either large, medium or small scale
company. The results showed that external factors are more dominant
than the internal factors in shaping the construction service business
environment in DKI Jakarta. It can be understood because as the capital
city, DKI Jakarta has a far more complex constellation than other regions.
It means that in the case of operating companies in Jakarta, they must be
agile in managing the external threats and opportunities. Companies that
cannot adapt to the very dynamic climate in the capital with the dramatic
competition will not be able to survive.


Keywords


Analysis ; Business Environment ; Construction Services

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