Analysis of the Business Environment in Construction Service Industry in DKI Jakarta, Indonesia
Abstract
This study aims to specifically analyze the business environment in the construction service industry in DKI Jakarta, by using an external andinternal 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
Full Text:
PDFReferences
(PUPR), K. P. U. dan P. R. Peraturan Menteri (Permen) Pengganti Peraturan Menteri Pekerjaan Umum (PU) No. 7 2011 dan 31 Tahun 2015 tentang Standar dan Pedoman Pengadaan Jasa Konstruksi Melalui Penyedia.
Abdelkafi, N., & Täuscher, K. (2016). Business Models for Sustainability From a System Dynamics Perspective. Organization and Environment. https://doi.org/10.1177/1086026615592930
Acıkdilli, G., & Ayhan, Y. D. (2013). Dynamic Capabilities and Entrepreneurial Orientation in the New Product Development. International Journal of Business and Social Science, 4(11), 144–150.
Adeoye, A. O., & Elegunde, A. F. (2012). Impacts of external business environment on organisational performance in the food and beverage industry in Nigeria. British Journal of Arts and Social Sciences.
Alvarez, S. A., & Barney, J. B. (2007). Discovery and creation: Alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1(1‐2), 11–26.
Amasaka, K. (2013). The Development of a Total Quality Management System for Transforming Technology into Effective Management Strategy. International Journal of Management, 30(2), 610–631.
Antoncic, B., & Hisrich, R. D. (2001). Intrapreneurship: Construct refinement and cross-cultural validation. Journal of Business Venturing, 16(5), 495–527. https://doi.org/10.1016/S0883-9026(99)00054-3
Arogyaswamy, K., Barker, V. L., & Yasai‐Ardekani, M. (1995). Firm Turnarounds: an Integrative Two‐Stage Model. Journal of Management Studies, 32(4), 493–525. https://doi.org/10.1111/j.1467-6486.1995.tb00786.x
Badrinarayanan, V. (2004). Adoption Of An Emerging Technology: An Examination Of The Direct And Combined Effects Of Market Orientation And Entrepreneurial Orientation. In AMA Winter Educators’ Conference Proceedings.
Barney, J. B. (2001a). Is the resource-based “view” a useful perspective for strategic management research? Yes. Academy of Management Review. https://doi.org/10.5465/AMR.2001.4011938
Barney, J. B. (2001b). Resource-based theories of competitive advantage : A ten- year retrospective on the resource-based view. Journal of Management, 27, 643–650. https://doi.org/10.1177/014920630102700602
Barney, J. B. (2001c). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650. https://doi.org/10.1016/S0149-2063(01)00115-5
Barquet, A. P., Seidel, J., Seliger, G., & Kohl, H. (2016). Sustainability Factors for PSS Business Models. In Procedia CIRP. https://doi.org/10.1016/j.procir.2016.03.021
Benson, J. K., Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations. Administrative Science Quarterly. https://doi.org/10.2307/2392573
Borchert, O. (2008). Resource-Based Theory: Creating and Sustaining Competitive Advantage. Journal of Marketing Management. https://doi.org/10.1362/026725708x382046
Brdesee, H., Corbitt, B., & Pittayachawan, S. (2013). Barriers and motivations affecting information systems usage by Hajj-Umrah religious tourism operators in Saudi Arabia. Australasian Journal of Information Systems. https://doi.org/10.3127/ajis.v18i1.809
Buchory Herry Acmad dan Saladin Djaslim. (2010). Pengaruh People , Physical Evidence , Product , Promotion , Price Dan Place Terhadap Tingkat Kunjungan Di Kafe Coffee Cozies Surabaya. Jurnal Manajemen Pemasaran Petra.
Cakmak, P. I., & Tas, E. (2012). The use of information technology on gaining competitive advantage in Turkish contractor firms. World Applied Sciences Journal, 18(2), 274–285. https://doi.org/10.5829/idosi.wasj.2012.18.02.744
Caloghirou, Y., Kastelli, I., & Tsakanikas, A. (2004). Internal capabilities and external knowledge sources: Complements or substitutes for innovative performance? Technovation. https://doi.org/10.1016/S0166-4972(02)00051-2
Chang, Y. Y., Hughes, M., & Hotho, S. (2011). Internal and external antecedents of SMEs’ innovation ambidexterity outcomes. Management Decision. https://doi.org/10.1108/00251741111183816
Chawinga, W. D., & Chipeta, G. T. (2017a). A synergy of knowledge management and competitive intelligence. Business Information Review, 34(1), 25–36. https://doi.org/10.1177/0266382116689171
Chawinga, W. D., & Chipeta, G. T. (2017b). A synergy of knowledge management and competitive intelligence. Business Information Review, 34(1), 25–36. https://doi.org/10.1177/0266382116689171
Chen, J., He, Y.-B., & Jin, X. (2008). A study on the factors that influence the fitness between technology strategy and corporate strategy. International Journal of Innovation and Technology Management, 5(1), 81–103. https://doi.org/10.1142/S0219877008001308
Chin, W. W. (1998). The Partial Least Squares Approach to Structural Equation Modeling. New Jersey: Psychology Press.
Chuan, C. L. (2006). Sample Size Estimation Using Krejcie and Morgan and Cohen Statistical Power Analysis: a Comparison. Jurnal Penyelidikan IPBL.
Clargo, P., & Tunstall, R. (2011). Leading an entrepreneurial workforce: development or decline? Education + Training, 53(8/9), 762–783. https://doi.org/10.1108/00400911111185071
Coakes, E., & Smith, P. (2007). Developing communities of innovation by identifying innovation champions. The Learning Organization, 14(1), 74–85. https://doi.org/10.1108/09696470710718366
Covin, J. G., & Slevin, D. P. (1988). The Influence of Organization Structure on The Utility of an Entrepreneurial Top Management Style. Journal of Management Studies, 25(3), 217–234. https://doi.org/10.1111/j.1467-6486.1988.tb00033.x
Crocitto, M., & Youssef, M. (2003). The human side of organizational agility. Industrial Management & Data Systems, 103(6), 388–397. https://doi.org/10.1108/02635570310479963
de Villiers‐Scheepers, M. J. (2012). Antecedents of strategic corporate entrepreneurship. European Business Review, 24(5), 400–424. https://doi.org/10.1108/09555341211254508
Dyllick, T., & Hockerts, K. (2017). Beyond the business case for corporate sustainability. In Corporate Environmental Responsibility. https://doi.org/10.4324/9781315259277-7
Fernandes, A. A. R., & Solimun. (2017). Moderating effects orientation and innovation strategy on the effect of uncertainty on the performance of business environment. International Journal of Law and Management, 59(6), 1211–1219. https://doi.org/10.1108/IJLMA-10-2016-0088
Ghozali, I. (2014). SEM Metode Alternatif dengan menggunakan Partial Least Squares (PLS). Semarang: Badan Penerbit Universitas Diponegoro.
Goold, M., & Campbell, A. (2002). Parenting in complex structures. Long Range Planning, 35(3), 219–243. https://doi.org/10.1016/S0024-6301(02)00052-3
Govori, A. (2013). Factors affecting the growth and development of SMEs: Experiences from Kosovo. Mediterranean Journal of Social Sciences. https://doi.org/10.5901/mjss.2013.v4n9p701
Guiso, L., Sapienza, P., & Zingales, L. (2015). The value of corporate culture. Journal of Financial Economics, 117(1), 60–76. https://doi.org/10.1016/j.jfineco.2014.05.010
Gupta, A. (2013). Environmental and pest analysis : An approach to external business environment. International Journal of Modern Social Sciences.
Heilbrunn, S. (2005). The impact of organizational change on entrepreneurship in community settings. Journal of Small Business and Enterprise Development, 12(3), 422–436. https://doi.org/10.1108/14626000510612321
Hidayat, R., Akhmad, S., & Mu’alim. (2015). Effects of environmental factors on corporate strategy and performance of manufacturing industries in Indonesia. Journal of Industrial Engineering and Management. https://doi.org/10.3926/jiem.1326
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.
Høgevold, N. M., & Svensson, G. (2012). A business sustainability model: A European case study. Journal of Business and Industrial Marketing. https://doi.org/10.1108/08858621211197001
Hoskisson, R. E., Hitt, M. A., Wan, W. P., & Yiu, D. (1999). Theory and research in strategic management: Swings of a pendulum. Journal of Management, 25(3), 417–456. https://doi.org/10.1177/014920639902500307
Hubeis, M., Najib, M., Widyastuti, H., & Wijaya, N. H. (2013). Strategi Produksi Pangan Organik Bernilai Tambah Tinggi yang Berbasis Petani ( A Strategy of Organic Vegetable Production With a Farmer-Based Premium Price ). Jurnal Ilmu Pertanian Indonesia.
Ireland, R. D., Covin, J. G., & Kuratko, D. F. (2009). Conceptualizing corporate entrepreneurship strategy. Entrepreneurship: Theory and Practice, 33(1), 19–46. https://doi.org/10.1111/j.1540-6520.2008.00279.x
J. K., N., W. J., O., D., K., & F. M., K. (2016). Does External Environment Influence Organizational Performance? The Case of Kenyan State Corporations. Management and Organizational Studies. https://doi.org/10.5430/mos.v3n3p41
Kang, M. S., Moretti, R., & Park, S. K. (2016a). A study on entrepreneurship in korea & china: Comparisons among smes business performance in Korea & China. International Journal of Software Engineering and Its Applications, 10(11), 361–376. https://doi.org/10.14257/ijseia.2016.10.11.29
Kang, M. S., Moretti, R., & Park, S. K. (2016b). A study on entrepreneurship in korea & china: Comparisons among smes business performance in Korea & China. International Journal of Software Engineering and Its Applications, 10(11), 361–376. https://doi.org/10.14257/ijseia.2016.10.11.29
Kim, S., Lee, J., & Yu, K. (2004). Corporate culture and organizational performance. Journal of Managerial Psychology Journal of Managerial Psychology Iss Leadership & Organization Development Journal, 19(1), 340–359. https://doi.org/10.1108/02683940410537927
Kim, S., Lee, J., Yu, K., Kim Jean Lee, S., & Yu, K. (2004). Corporate culture and organizational performance. Journal of Managerial Psychology, 19(1), 340–359. https://doi.org/10.1108/02683940410537927
Kleine, A., & von Hauff, M. (2009a). Sustainability-driven implementation of corporate social responsibility: Application of the integrative sustainability triangle. Journal of Business Ethics. https://doi.org/10.1007/s10551-009-0212-z
Kleine, A., & von Hauff, M. (2009b). Sustainability-driven implementation of corporate social responsibility: Application of the integrative sustainability triangle. Journal of Business Ethics. https://doi.org/10.1007/s10551-009-0212-z
Knight, D., Pearce, C. L., Smith, K. G., Olian, J. D., Sims, H. P., Smith, K. A., & Flood, P. (1999). Top management team diversity, group process, and strategic consensus. Strategic Management Journal, 20(5), 445–465. https://doi.org/10.1002/(SICI)1097-0266(199905)20:5<445::AID-SMJ27>3.0.CO;2-V
Ko, W. W., & Liu, G. (2017). Environmental Strategy and Competitive Advantage: The Role of Small- and Medium-Sized enterprises’ Dynamic Capabilities. Business Strategy and the Environment, 26(5), 584–596. https://doi.org/10.1002/bse.1938
Koufteros, X., Vonderembse, M., & Jayaram, J. (2005). Internal and external integration for product development: The contingency effects of uncertainty, equivocality, and platform strategy. Decision Sciences. https://doi.org/10.1111/j.1540-5915.2005.00067.x
Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429–451. https://doi.org/10.1016/S0883-9026(00)00048-3
Morioka, S. N., & de Carvalho, M. M. (2016). A systematic literature review towards a conceptual framework for integrating sustainability performance into business. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2016.01.104
Moynihan, D. P., & Pandey, S. K. (2005). Testing how management matters in an era of government by performance management. Journal of Public Administration Research and Theory. https://doi.org/10.1093/jopart/mui016
Nenzhelele, T. E., & Pellissier, R. (2014). Competitive Intelligence Implementation Challenges of Small and Medium-Sized Enterprises. Mediterranean Journal of Social Sciences, 5(16), 92–99. https://doi.org/10.5901/mjss.2014.v5n16p92
Ong, J. W., & Ismail, H. B. (2013). Personality traits and firm performance: The mediating effect of competitive advantage. International Journal of Entrepreneurship and Small Business, 19(3), 362–378. https://doi.org/10.1504/IJESB.2013.055308
Osarenkhoe, A. (2010). A coopetition strategy – a study of inter‐firm dynamics between competition and cooperation. Business Strategy Series, 11(6), 343–362. https://doi.org/10.1108/17515631011093052
Paik, J. H., Kim, M. K., & Park, J. H. (2017). The antecedents and consequences of technology standardizations in Korean IT small and medium-sized enterprises. Information Technology and Management, 18(4), 293–304. https://doi.org/10.1007/s10799-016-0268-2
Permana, E., Maulina, E., Purnomo, M., Qosasi, A., & Miftahuddin, A. (2019). The Impact Of Information Technology Capability to A Company Agility. https://doi.org/10.4108/eai.8-12-2018.2284040
Porter, M. E. (2008). Strategy Strategy the Five Competitive. Harvard Business Review, 86(January), 78–94. https://doi.org/Article
Prahalad, C. K., & Hamel, G. (1990). The Core Competencies of the Corporation. Harvard Business Review, 68(3), 79–91. https://doi.org/100-003-757
Qosasi, A., Maulina, E., Purnomo, M., Muftiadi, A., Permana, E., & Febrian, F. (2019). The impact of Information and Communication Technology capability on the competitive advantage of small businesses. International Journal of Technology. https://doi.org/10.14716/ijtech.v10i1.2332
Reitz, H. J. (1979). The External Control of Organizations: A Resource Dependence Perspective. Academy of Management Review. https://doi.org/10.5465/amr.1979.4289039
Ringle, C. M., & Wende, S. Will, A. (2005). SmartPLS 2.0.
Rundh, B. (2009). Packaging design: Creating competitive advantage with product packaging. British Food Journal. https://doi.org/10.1108/00070700910992880
Sambamurthy, Bharadwaj, & Grover. (2003). Shaping Agility through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms. MIS Quarterly, 27(2), 237. https://doi.org/10.2307/30036530
Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: Categories and interactions. Business Strategy and the Environment. https://doi.org/10.1002/bse.682
Shiamwama, S. M., Ombayo, J. A., & Mukolwe, M. S. (2014). Internal Factors Affecting the Performance of Businesses of Retirees in Kakamega Municipality. International Journal of Business, Humanities and Technology.
Shirokova, G., Vega, G., & Sokolova, L. (2013). Performance of Russian SMEs: exploration, exploitation and strategic entrepreneurship. Critical Perspectives on International Business, 9(1/2), 173–203. https://doi.org/10.1108/17422041311299941
Suwandej, N. (2015). Factors Influencing Total Quality Management. Procedia - Social and Behavioral Sciences, 197, 2215–2222. https://doi.org/10.1016/j.sbspro.2015.07.361
Tachiki, D. S. (2014). ICT and corporate structure: The diffusion of e-commerce across Japanese companies. In Competitiveness of New Industries: Institutional Framework and Learning in Information Technology in Japan, the U.S and Germany (pp. 155–179). https://doi.org/10.4324/9780203963609
Tajeddini, K., Elg, U., & Trueman, M. (2013). Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation. Journal of Retailing and Consumer Services, 20(5), 453–462. https://doi.org/10.1016/j.jretconser.2013.05.004
Tassal sustainability report. (2014). Sustainability Report 2014. Tassal.
Teece, D. J. (2012). Dynamic Capabilities: Routines versus Entrepreneurial Action. Journal of Management Studies. https://doi.org/10.1111/j.1467-6486.2012.01080.x
Tenenhaus, M., & Esposito, V. (2005). PLS path modeling. Computational Statistics & Data Analysis, 48, 159–205. https://doi.org/10.1016/j.csda.2004.03.005
Tennant, S., & Fernie, S. (2013). Organizational learning in construction supply chains. Engineering, Construction and Architectural Management, 20(1), 83–98. https://doi.org/10.1108/09699981311288691
Thind, R., & Thind, R. (2018). The business environment. In Strategic Fashion Management. https://doi.org/10.4324/9781315160344-2
Wang, H.-L. (2014). Theories for competitive advantage. Being Practical with Theory: A Window into Business Research, 33–43.
Weerawardena, J., & Mavondo, F. T. (2011). Capabilities, innovation and competitive advantage. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2011.10.012
Weerawardena, J., McDonald, R. E., & Mort, G. S. (2010). Sustainability of nonprofit organizations: An empirical investigation. Journal of World Business. https://doi.org/10.1016/j.jwb.2009.08.004
Wen-Cheng, W., Chien-Hung, L., & Ying-Chien, C. (2011). Types of Competitive Advantage and Analysis. International Journal of Business and Management. https://doi.org/10.5539/ijbm.v6n5p100
Wetzels, M., Odekerken-Schroder, G., & van Oppen, C. (2009). Using PLS Path Modelling for Assessing Hierarchical Construct Models: Guidelines and Empirical Illustration. Management Information Systems Research Center, 33(1), 177–195.
Wheelen, T., & Hunger, J. (2012). Strategic Management and Business Policy. Policy. Retrieved from http://books.google.com/books?id=J8YGhhK5keUC&pgis=1
Yang, L., & Wang, D. (2014). The impacts of top management team characteristics on entrepreneurial strategic orientation: The moderating effects of industrial environment and corporate ownership. Management Decision (Vol. 52). https://doi.org/10.1108/MD-03-2013-0140
DOI: https://doi.org/10.31334/bijak.v18i2.1771
Refbacks
- There are currently no refbacks.
Copyright (c) 2021 Majalah Ilmiah Bijak
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
View My Stats
ISSN 1411-0830 (Media Cetak) 2621-749X (Media Online)
Email : [email protected] / [email protected]
Website: http://ojs.stiami.ac.id/index.php/bijak/index
INDEKS BY:
|