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

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Muji Indarwanto*, Prof. Syamsir Abduh, PhD. (2019). THE EFFECT OF COMPETIVE STRATEGIES AND BUSSINESS ENVIRONMENT ON THE PERFORMANCE OF CONSTRUCTION INDUSTRIAL SERVICES WITH THE MODERATION OF ORGANIZATIONAL CHARACTERISTICS. Innovative Journal of Business and Management, 8(7), 126–134. https://doi.org/10.15520/ijbm.v8i7.2646
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Abstract

This research objective is to analyze the effect of competitive strategy on the construction
services industry performance with the moderation of organizational characteristics. This research analysis
of 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 competitive
strategies affect organizational performance, business environment affect organizational performance,
organizational characteristics influence organizational performance, competitive strategies strengthen the
influence of competitive strategies on organizational performance, competitive strategies strengthen the
influence of competitive strategies on organizational performance. Some practical suggestions for the project
manager and CEO of the construction service company as follows: The construction service industry places
more emphasis on the cost leadership strategy, especially low cost attributes, which emphasize strong
control of expenditure and competitive price competition, so that organizational performance increases; The
construction service industry places more emphasis on the internal environment, which is a moderate risk
action in work, so that organizational performance increases; The construction service industry is more
directive in that it emphasizes independence and initiative in solving problems, so that organizational
performance increases; The construction service industry must emphasize strong control on expenditure and
competitive price competition supported by the nature of independence and initiative in solving problems so
that the performance of construction organizations increases.
Keywords: competitive strategies, business environment, organizational characteristics and organizational
performance

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