Main Article Content

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 a large, medium or small scale company. The results showed that external factors are more dominant than 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 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

Business Environment Construction Services

Article Details

References

  1. (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.
  2. Abdelkafi, N., & Täuscher, K. (2016). Business Models for Sustainability From a System Dynamics Perspective. Organization and Environment. https://doi.org/10.1177/1086026615592930
  3. 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.
  4. 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.
  5. Alvarez, S. A., & Barney, J. B. (2007). Discovery and creation: Alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1(1‐2), 11–26.
  6. 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.
  7. 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
  8. 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
  9. 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.
  10. 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
  11. 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
  12. 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
  13. 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
  14. Benson, J. K., Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations. Administrative Science Quarterly. https://doi.org/10.2307/2392573
  15. Borchert, O. (2008). Resource-Based Theory: Creating and Sustaining Competitive Advantage. Journal of Marketing Management. https://doi.org/10.1362/026725708x382046
  16. 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
  17. 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.
  18. 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
  19. 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
  20. 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
  21. 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
  22. 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
  23. 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
  24. Chin, W. W. (1998). The Partial Least Squares Approach to Structural Equation Modeling. New Jersey: Psychology Press.
  25. Chuan, C. L. (2006). SAMPLE SIZE ESTIMATION USING KREJCIE AND MORGAN AND COHEN STATISTICAL POWER ANALYSIS: A COMPARISON. Jurnal Penyelidikan IPBL.
  26. 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
  27. 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
  28. 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
  29. 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
  30. de Villiers‐Scheepers, M. J. (2012). Antecedents of strategic corporate entrepreneurship. European Business Review, 24(5), 400–424. https://doi.org/10.1108/09555341211254508
  31. Dyllick, T., & Hockerts, K. (2017). Beyond the business case for corporate sustainability. In Corporate Environmental Responsibility. https://doi.org/10.4324/9781315259277-7
  32. 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
  33. Ghozali, I. (2014). SEM Metode Alternatif dengan menggunakan Partial Least Squares (PLS). Semarang: Badan Penerbit Universitas Diponegoro.
  34. 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
  35. 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
  36. 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
  37. Gupta, A. (2013). Environmental and pest analysis : An approach to external business environment. International Journal of Modern Social Sciences.
  38. 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
  39. 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
  40. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.
  41. 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
  42. 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
  43. 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.
  44. 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
  45. 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
  46. 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
  47. 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
  48. 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
  49. 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
  50. 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
  51. 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
  52. 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
  53. 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
  54. 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
  55. 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
  56. 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
  57. 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
  58. 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
  59. 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
  60. 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
  61. 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
  62. 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
  63. Porter, M. E. (2008). Strategy Strategy the Five Competitive. Harvard Business Review, 86(January), 78–94. https://doi.org/Article
  64. 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
  65. 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
  66. 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
  67. Ringle, C. M., & Wende, S. Will, A. (2005). SmartPLS 2.0.
  68. Rundh, B. (2009). Packaging design: Creating competitive advantage with product packaging. British Food Journal. https://doi.org/10.1108/00070700910992880
  69. 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
  70. 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
  71. 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.
  72. 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
  73. 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
  74. 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
  75. 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
  76. Tassal sustainability report. (2014). Sustainability Report 2014. Tassal.
  77. 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
  78. 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
  79. 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
  80. Thind, R., & Thind, R. (2018). The business environment. In Strategic Fashion Management. https://doi.org/10.4324/9781315160344-2
  81. Wang, H.-L. (2014). Theories for competitive advantage. Being Practical with Theory: A Window into Business Research, 33–43.
  82. Weerawardena, J., & Mavondo, F. T. (2011). Capabilities, innovation and competitive advantage. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2011.10.012
  83. 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
  84. 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
  85. 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.
  86. Wheelen, T., & Hunger, J. (2012). Strategic Management and Business Policy. Policy. Retrieved from http://books.google.com/books?id=J8YGhhK5keUC&pgis=1
  87. 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