Analysis of the Business Environment in Construction Service Industry in DKI Jakarta, Indonesia

Abstract

This study aims to specifically analyze the business environment in theconstruction service industry in DKI Jakarta, by using an external andinternal dimension factor approach. The dimensions of external factorsinclude several indicators such as political, economic, social andtechnological indicators. While the internal factor dimensions consist ofindicators of corporate culture, corporate structure, and corporateresources. The analysis technique uses Structural Equation Model (SEM)with SmartPLS. The number of samples included 370 leaders ofconstruction service companies in DKI Jakarta. One company isrepresented by one company leader, either large, medium or small scalecompany. The results showed that external factors are more dominantthan the internal factors in shaping the construction service businessenvironment in DKI Jakarta. It can be understood because as the capitalcity, DKI Jakarta has a far more complex constellation than other regions.It means that in the case of operating companies in Jakarta, they must beagile in managing the external threats and opportunities. Companies thatcannot adapt to the very dynamic climate in the capital with the dramaticcompetition will not be able to survive.