IDENTIFICATION OF DETERMINANT FACTORS FOR THE COMPETITIVENESS OF LARGE-SCALE NATIONAL CONTRACTOR

• Main Author: Azzahra, Salma
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/82532
• Institution: Institut Teknologi Bandung

The issue of the low competitiveness of large-scale national contractors amid the high competition in the construction market, which is projected to continue growing to reach USD 407.87 billion by 2029. In 2023, Indonesia ranked 73rd out of 190 countries in the Ease of Doing Business (EoDB) index and 34th out of 64 countries in competitiveness according to IMD World Competitiveness, while the number of large construction companies in Indonesia is only 1.02% of the total construction companies nationally. The high competition from foreign construction companies active in Indonesia adds challenges for national contractors who generally still have low competitiveness, with only a few able to penetrate the international market. To enhance the competitiveness of large-scale national contractors, this study aims to identify the determining factors of competitiveness through various analytical methods, namely PESTLE and VRIO analysis, comparative testing, validity testing, reliability testing, descriptive statistical analysis, and relative importance index (RII). The data analysis results show that out of 60 variables analyzed, 39 variables have a significant influence on competitiveness, with the 13 highest factors determining the competitiveness of large-scale national contractors being financial stability, relationships with clients or owners, rising material and equipment costs, relationships with subcontractors or suppliers, having experience in operating similar projects, market competition intensity requiring careful strategy, good time management implementation, organizational credibility, leader personality and capability, technological innovation capability, project risk identification, current human resource capacity, and financial resources and financing capability.