Dynamic model: The influence of project management competencies, resources and capabilities towards the performance of small-medium qualification contractor in Indonesia

Abstract

Abstract:The previous researchers have proven that there is a positive and significant influence between the project management competency and corporation's resource or capability towards the performance using the static model. The purpose of this research is to develop the model and to simulate the relationship among project management competency, resource and capability, and the performance of small-medium qualification contractor in Indonesia using the dynamic model. There are four steps used in this research, developing the conceptual model, collecting the data through questionnaire and interview, developing the causal pie chart, developing the flow chart, simulating and analyzing the developing result. The research result shows that, through the development of dynamic model, the project management competency and corporation's resource and capability in particular time frame can influence the performance of small-medium qualification contractor significantly. Keywords : competence, performance, resource, small-medium contractor, dynamic system. I. INTRODUCTION The categorization of contractor in Indonesia is based on the criteria such the competency's level or depth and the potential effort, and also the capability of doing the implementation of its job's construction based on the risk and/or the technology usage and/or the cost value criteria (LPJKN, 2013)[1]. In 2014, the number of contractors in Indonesia reached 141,665 corporations, those consist of small qualification (S) 126.467 (89,27%), medium qualification (M) 14.155 (9,99%) and big qualification (B) 1.043 (0,74%) (LPJKN, 2014)[2]. The amounts of big qualification only could reach 0,74% with the marketing segments for almost 85%, and the rest 15% was handed by small-medium qualification (Gapensi, 2012)[3]. The marketing segments handed by those small-medium qualification are not equivalent with the number of existing corporations. This condition might cause the competitions between the others become unhealthy and distorted (Husaini, 2013) [4]. As a consequence, a lot of small-medium qualification are not able to continue their corporations, moreover, there are many more which do not operate again. (Ervianto, 2007) [5]. Therefore, they need an effort and policy from the contractor stake holders so that it might increase the performance.Typically, the small-medium qualification contractors in Indonesia are in poor condition. They have a very low management competence, inefficient management system, limited resources and capability, and limited human resources (Wheelen & Hunger, 2005)[6]. The insufficient things of those small-medium qualification contractors in Indonesia are the delaying schedule, the fixing in finishing step, the broken materials in location, waiting for the fixing equipment and tools which have not come yet. Some of those insufficient things are caused by a lot of changes in planning, the low-skilled workers, the delaying in decision making, bad coordination, the weakness of planning and controlling, the delaying in materials deliv...