COMPETITIVE STRATEGY AND PERFORMANCE OF CONTRACTORS IN YOGYAKARTA

VIVIANDA, VENNY (2018) COMPETITIVE STRATEGY AND PERFORMANCE OF CONTRACTORS IN YOGYAKARTA. S1 thesis, UAJY.

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Abstract

Construction industry is one of the major contributors to the economic development in Indonesia, and it is forecasted to grow along with the increase number of both public and private projects in Indonesia. Therefore, understanding competition environments in construction industry and design competitive strategy are required toward achieving superior performance. By knowing competitive environments,contractors are able to analyze their strengths, weaknesses,opportunities, and threats.Furthermore, it helps contractors to formulate competitive strategy in order to achieve superior performance. The purpose of this study are to examine what are the competition environments of construction industry in Yogyakarta, what are the competitive strategy that have been applied by the contractors, and to examine the relationship between competitive strategy and contractors’ performance in Yogyakarta. The data that used in this study are collected by using questionnaire to the contractors in Yogyakarta. The respondents are the owner and the manager of the contractors itself. Rank analysis is used to examine the competition environments in Yogyakarta construction industry and competitive strategies that have been applied by the contractors in Yogyakarta. Later, Pearson correlation analysis is used to examine the relationship between competitive strategy and performance of contractors in Yogyakarta. The result of this study shows that respondents highly agree that there are many new competitors in construction industry in Yogyakarta, followed with the intense competition between existing firms, and high bargain power of clients. The result indicates that respondents are having a good relationship among the consulting firms, suppliers, and clients. The contractors show a high degree of advantages in the site progress management skill along with a good reputation in their business. The result also implies that the most competitive strategies that have been applied by the contractors are offering higher quality of product and emphasize in building company’s reputation. Finally, the result shows that competitive strategies havepositively related to the contractors’ performance but only give a little contribution,with the correlation coefficient is 0,111.

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