THE EFFECT OF COMPETIVE STRATEGIES AND BUSSINESS ENVIRONMENT ON THE PERFORMANCE OF CONSTRUCTION INDUSTRIAL SERVICES WITH THE MODERATION OF ORGANIZATIONAL CHARACTERISTICS

Abstract

This research objective is to analyze the effect of competitive strategy on the constructionservices industry performance with the moderation of organizational characteristics. This research analysisof 260 manager and the CEO of the large industrial construction services in DKI Jakarta Indonesia.Analysis method using structrural equation modelling with AMOS. Research result showing competitivestrategies affect organizational performance, business environment affect organizational performance,organizational characteristics influence organizational performance, competitive strategies strengthen theinfluence of competitive strategies on organizational performance, competitive strategies strengthen theinfluence of competitive strategies on organizational performance. Some practical suggestions for the projectmanager and CEO of the construction service company as follows: The construction service industry placesmore emphasis on the cost leadership strategy, especially low cost attributes, which emphasize strongcontrol of expenditure and competitive price competition, so that organizational performance increases; Theconstruction service industry places more emphasis on the internal environment, which is a moderate riskaction in work, so that organizational performance increases; The construction service industry is moredirective in that it emphasizes independence and initiative in solving problems, so that organizationalperformance increases; The construction service industry must emphasize strong control on expenditure andcompetitive price competition supported by the nature of independence and initiative in solving problems sothat the performance of construction organizations increases.Keywords: competitive strategies, business environment, organizational characteristics and organizationalperformance