Impact of Resources and Strategies on Construction Company Performance

Abstract

Globalized competition and customer needs forced construction companies to measure their performance beyond the financial measures such as profitability, turnover, etc. As qualitative determinants were added to measurement systems, their investigation and evaluation became a major area of research. In this study, the impact of "resources and capabilities," "strategic decisions," "project management competencies," and "strength of relationships with other parties" on "company performance" was investigated. A questionnaire survey was administered to 73 Turkish contractors and the results of the survey were analyzed using structural equation modeling.The findings indicate that, as expected, resources and capabilities and strategic decisions have an important and direct impact on company performance, whereas project management competencies and strength of relationships with other parties impact company performance only indirectly, through their impact on companies' resources and capabilities and strategic decisions.

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

“…Some theories and previous studies are becoming the basic of this research conceptual model, those are Absah (2008) [18], Isiket al (2010) [10] dan Huda & Wibowo (2013) [25]. The research of Absah (2008) [18] showed that, the competence of corporation gives a strong influence to the performance and competitiveness, also the performance comes from particular resources and competence.…”

“…The research of Absah (2008) [18] showed that, the competence of corporation gives a strong influence to the performance and competitiveness, also the performance comes from particular resources and competence. Meanwhile, the research from Isiket al, (2010) [10] dan Huda & Wibowo (2013) [25] concludes that (a) project management competence has a big deal in corporations' resources and capability, (b) project management competence has a significant influence towards corporation's performance, (c) Resource and performance have a significant influence towards the corporation's performance. Based on the former researches, the conceptual model has been drawn as in Figure 1.…”

“…There are 9 knowledge area in project management, those are scope management, time management, cost management, human resource management, risk management, communication management, quality management, supplying management and project integration management. Some supporting arguments in the knowledge area based on the contractor competency are Isik et al( 2010) [10], explaining that project management competency is a part of contractor's resource and capability. The strong and supported project management competency will support the quality of strategic decision in contractor corporation (Dietrich & [22].…”

“…This research develops the static model which has been done before by ; Isik et al, 2010;Ardiana, 2011;Wibowo, 2011;Huda &Wibowo, 2013) [10] [20] [25] by using dynamic model, to analyze the influence of project management construction and resources/capability in corporation towards the workers' performance in Indonesia. The used dynamic model, hopefully, more beneficial for the contractors while they are making the policy to evaluate their performance, especially the capability of project management competency and resources.…”

“…In line with Waluyo's explanation (2014) [9], that 85% of management problems is in the using system, while 15% is in the human resource. One of the important factors to increase resource, capability, strategic decision and performance, is through developing the project management competency (Isik et al, 2010)[10], it can be a training or competency certification. …”