Determinants of Firm Performance: An Empirical Evidence from Construction Industry in Indonesia

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Dhiraj Kelly Sawlani , Idris Gautama So , Asnan Furinto , Mohammad Hamsal

Abstract

The construction industry is the 4th largest contributing industry to
gross domestic product in 2016 in Indonesia. However, its’ growth is slowing
down recently because of the companies’ low competitiveness that causes
production inefficiency. Despite the urgency for a comprehensive solution to
increase its productivity, research in this area is still lacking. This study aims
to examine the development and application of electronic customer
relationship management (e-CRM) theory, project innovation (PI), project
organizational culture (BO), and dynamic capabilities (KD) in increasing
competitive advantage (KB), and its implications for business performance
(KP), moderated by the size of construction companies in Indonesia.By
collaborating with PT BCI Asia for data collection, at least 200 responses are
targeted to collect from online questionnaires and analyzed by structural
equation modeling (SEM). We found that (1) there is a significant influence of
e-CRM, PI, and KD on KB; (2) there is an influence of PI, BO, and KD on
KP, while e-CRM has no significant effect; (3) there is a significant influence
of KB on KP in Indonesian construction firm; (4) KB mediates the influence
of e-CRM, PI, BO, and KD on KP; and (5) firm size moderates the effect of
KB on KP.

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