Journal of Economics and Engineering, ISSN: 2078-0346, 4, December, 2010

ANALYSIS OF INTERNAL AND EXTERNAL FACTORS FOR COMPETITIVE ADVANTAGE OF INDONESIAN CONTRACTORS
Anik Ratnaningsih , Nadjadji Anwar , Patdono Suwignjo , I Putu Artama Wiguna Doctorate Programme of Civil Engineering, Institut Teknologi Sepuluh Nopember; Lecturer of Civil Engineering Department, Universitas Jember, Jember. 2 Professors of Civil Engineering Department, 3 Industrial Engineering Department; Institut Teknologi Sepuluh Nopember Surabaya, Surabaya (INDONESIA)
1 1 2 3 2

ABSTRACT Competitive advantage of national contractors was affected by company performances. The quality of perfomance was affected by several determinants which influencing success, namely internal and external factor. The company internal factors affection has close relationship with company ability such as financial ability, human resources, research collaborations, marketing and etc. while external factors affection toward succeeded of company especially contractor include political factor, economic, social and culture also technical (PESTEK). The purposes of this research are analyse internal and external factors in company that influences competitive advantage of national contractor in Indonesia. Approaches are uses to reach the purpose, namely literature study and survey to identify the problems and factors that influences success of national contractor. In this research analyses factor is using as analyses method approach. The research result shows that there are 5 internal factors that affected the competitive advantage of national contractor, i.e. resources, leadership, organization, skill, and service of quality. In addition, there are 6 external factors that influence them, i.e. economics, politics, culture, social, environment and government. Key words: internal factor, external factor, competitive advantage, factor analyses. 1. INTRODUCTION Contractor is important industry in Indonesia an also activator national constructions. Besides, national contractor is superior industry group up grading power attraction investment, and country competitive advantage (KADIN, 2009). Service market contraction in Indonesia is very affected by buying capacity from society and government; in this case it has close relationship with the developing of economic macro in Indonesia. The competition of national contractor is tighter, limited market in this country. In this period, or several years come, the condition of construction market in Indonesia is open globally. Many players its means the profit become thinner. Increasingly of critical relation makes contractor have to fight hardly to think competitive advantage. The varieties of Indonesia contractor are more than 140.000 companies that register at LPJK. A large amount of the company about 139.000 are has been classified into middle or low service construction (99, 34% total of amount construction company). A large company, include BUMN contractor, amount about 916 of company (LPJK, 2009). These companies are that has been estimated have high capacity competes, so they get trust to do national construction project in big scale, complex and in long term. Based on the data sources from LPJK, the condition of construction companies in Indonesia is increase 17, 27 % in 2008. This increasing is occurring on the group of construction industry grade 1-3 (small classification). Based on the category, construction industry in Indonesia was dispersed in the whole of province, however, many big groups of construction industry found at Javanese province and Jakarta. It shown that dominate of big group still at the central of administration, so it causes inequitable competition in all region. Viewing the construction development rapidly, so it needs identification of internal and external factors of national contractor to support competitive advantage of national contractor. preparing their self, in facing regional or even global market, the government supporting the national construction through improvement competence of service supplier is equal with the partner in the regional level (through ASEAN agreement and cooperative with APEC), that sometime will improve equivalent in international level for facing liberalization of services trade (GATS- WTO) in 2020. Competitive advantage is never come free from many factors that influence it, namely internal an external factor. Internal factors describe both strength and weakness of contractor. While external factors as chance and challenge for contractor (Hammermesh, 1983 in Subramoniam and Krishnankutty, 2002:551), as shows at Figure 1. In this case porter states thatthe broadest guidance for the formulation of strategy is stated in term of matching a firms strengths and weaknesses, particularly its distinctive competence, to the opportunities and risk (threats) in its environment. Ruacco and Proctor also gives the same opinion (1994:24). B a k u , A z e r b a i j a n | 51

 Journal of Economics and Engineering, ISSN: 2078-0346, 4, December, 2010

Strenght and weakness of company Chance & industry challenge

Internal factors of company

Competitive strategy

External factors of company

Values of keys excecutive

Society hopes

Fig. 1. Basic concept of competitive formulate strategy Determining the factors that affects the competitive advantages of national contractor were needed. There are many factors influences the company efforts. From these factors the company must have efficient method to choose or determine the big factor that influences the competitive advantage of company. Competition Competitive advantage or competition is essence of success or fail of the company. The competition is determines the proper activity for company to give contribution for the effort such as innovation, cohesive culture and good realization. Competitive strategy is a way to find competitive positions in industry, as basic compete to form benefits position and continuously (Porter, 2004-2005). The definition of competitive advantage is business sector that able to satisfy customer needs as characteristic of product and service, able to satisfy the worker needs and offers interesting ROI and also has potential to grow up (Momaya, K & K. Selby, 1998). To determine both internal and external factors were used references approach, discussion and questioner, also brainstorming method (Ruacco and Proctor, 1994, 24), as used in scenario analysis methods (Rao and Steckel, 1998:247 in Handoko Sasmito, 2003). To make factor exploration easily, so it used models key environmental variables and competitive advantage, from many references. namely: Peffer (1996), Gerard (1996), Grant (1995:339), Amit & Schoemaker (1993), Petreraf (1993: 186), Thomson & Stricland (1991:141), Hamermest (1983), Weelen & Hunger (2002:50-80), Porter (1980:4), A Hitt M at.al (2001:46-96), Sudarto (2007) and Muhammad (2000). The reference models above are similar except the scope and research purpose are different. There are several competitive advantage models are comprehensive which shows on Figure 2 (Harvard Business Review, 1991:141; Grant, 1995:339). While, the company environment and industry model (internal & external) were has been described by Amit and Schoemaker (1993) in Handoko (1996) that refers to Porter models.
Firm strategy structure and rivalry Firm strategy structure and rivalry Firm strategy structure and rivalry

Firm strategy structure and rivalry Factor Conditions Demand Conditions

Related and supporting Industries

52 | w w w . i j a r . l i t . a z

Source: Thomson & Stricland, 1991:141

The National Environment . National resources & capabilities . Domestic market . Related &supporting industries

Journal of Economics and Engineering, ISSN: 2078-0346, 4, December, 2010

. Gverment policies & regulatory . exchange rate Source: Grant, 1995:339

Fig. 2. Determinant of national competitive advantage

B a k u , A z e r b a i j a n | 53

Basically, these models are the same and completed. Harvard Business Review (1992:141), described about industry environments entirely, which involve 4 components interacted, namely: (i) the condition of production factors (skill, infrastructure etc) in the country, (ii) domestic market condition against industry products, (iii) the availability of proponent industry international, and (iv) the company strategy, resources and high competition atmosphere in the country. External factors Generally, external factors are similar for goods customer of industry. But, as industry which has special characteristic it needs external support from government, such as: regulation, protection, tax, money changing stability, politic stability and safety, industry infrastructure, banking supports, financing institution that needed such as: low money lender, requirements and credit process easily. Competitive advantage concept (Grant, 1995:339) replaces the industry environments and states environment as external environment. While the external environment scope of company which describes by Grant (1995: 339) and Amit and Schoemaker (1993), are: competitor, customer, substitute products, new company competitors, service supplier and material, industry environment factors (technology, regulation, government, banking, money changing stability, politic stability, safety, and etc). The other industry environment got from industry analysis (Porter, 1980:378) and key environmental variables (Weelen and Hunger, 1994:92), namely: consultant services, auditor service, interrelated association, commercial bank and worker commit. Concepts and models above generally happen in Construction Company. In global competition context, the environment of external company of contractor involve national environment and industry environment it self. Hitt (2001: 50) classified the external factor into 6 elements, are demographic, economic, and politic / law, social culture, technology and globalization. Wheelen & Hunger (2004: 57) also classified the external factors into 4 elements, are: economic, technology, politic / law, and social culture. Basically, both of them have the same principle, where Hitt demographic factor included in social culture elements in Wheelen & Hunger, the globalization included on law / politic elements. Political factor Basically, law and political factors are how the organization/company tries to affects the government and government affect the organization or company. Politic factor is related with government policies, legislation, law tax, government stability, regulation, protection, law system, safety infestation and business safety guaranty. Economic factor Economic factor is referring to the truth and economic direction, where the company is competes. Economic factor very affect competitive advantage of organization/company. These factors are economic development, capita incomes, GPP trend, inflation, competition, relation and association. Social factor and culture This factor is has close relationship with culture value of society. Because attitude or norms that brought by society will support the changing of other factors. These factors are: norms, language, demographic, life style, life aims, education level, religion, knowledge level, environments and status. Technology factor Technology factors as supporting factors that influences the organization/company development. Technology factors include of institutions, and activities that related on creating new knowledge and transformed the know- ledge into output, product, process and new material. Technology factors are: communication system, IT, patent right, telecommunications, and infrastructure. Internal factor Internal factors as factor that affect competitive advantage of company; this is related with company capability in every section. Internal environment factors is strategic asset of company that involve of resources and capabilities, resources as capability of competitive advantage of company which owned by competitor, while capability are main sources of superiority that difficult to imitate by competitor. Intangible factors Richard Hall (Hall, 1992: 144) describes intangible resources as strategic asset that able to create sustainable competitive advantage, because the asset is difficult to imitate by competitor, durable namely: Assets within a legal context (regulatory differential): contract, licenses, intellectual property rights, trade secrets, owned and specialist physical resources. Assets without a legal context (positional differential): company reputation, product reputation, network, databases, ect. Know-how (functional differential): employee know-how, supplier know-how, distributor know-how, public knowledge, ect.

Organizational culture (cultural differentiation): perception of quality and service, ability to manage change, ect.

Tangible Factor Hitt (2001: 110) describes tangible resources as activa factors that measurable. Tangible resources involve of financial (the capability of company to pay a credit, capability of company to increase the profit), organization resources (organization structures, control system, communication systems between the level, coordination systems), physically resources (newest technology, the location of company, equipment), technology resources (patent right, Known name, the capacity of technology achievement). General industry factor as get from several sources namely: sources of competitive advantage (Barney, 1997: 208; Day, 1994:40), the resourcebased perspective (Grant, 1991: 18), and forces driving industry competition (Porter, 1980:4). Generally, these internal factors are irrelevant for construction industry. As the characteristic, several irrelevant factors for construction implementer industry namely: intellectual property right, distributor know-how, public knowledge, advertising agencies, and substitutes. In the other side, there are several internal factors that rather important for construction implementer industry, such as location, areal and capacity, technology level, organization structure and management system and also top management capability. As financial capital industry, these factors become consider for customer. Based on explanation above, exploration internal and external factor is relevant for constructor industry that used for next analysis which determine through professional discussion and brainstorming (Ruacco & Proctor, 1994: 64). Refer to Amitt and Schoemaker models (1993), company environment model of industry contractor shown in Figure 3.
COMPANY Domestic market Intangible assets - Delivery Speed - Quality - Culture - Price level - Know-how - Technology - Networks - R&D - Management - Contract - TQM - Safety Regional markett Competition goverment Bank Education

Tangible assets - Engineering & database - Facility & Equipment - Employee - Capital/Finance - Location & capacity

Industry strategic factor - material and component - employees - sub-contractor - clasification &certification

Association Political Economy

Labour

Strategic Assets (resources & capabilities)

Infrastructur Customer

Fig. 3. Environment model of construction industries Figure 4 above explain about internal and external factors that affects organizer construction of industry environment. 2. MATERIALS AND METHODS The weakness of construction management industry is the results that reach only conceptual that do not useable yet by all of Construction Company and also involve of resource in the company. As knew that construction company is relative similar with the other manufacture company, but construction company has project that managed and the project as something uniquely, has limitation time, must be appropriated with standard design, need a control, evaluation and monitoring for every level of activity. The concept management of company against construction project that manage do not understood yet and able to do by constructor in Indonesia. So, resulting the decisions of strategy that inappropriate and can not do yet in the management projects. This research is expected able to produces factors framework as shaped indicator that influences competitive advantage constructor in Indonesia. This research is conducts by using empirical data approach also opinion about the effort that has been done by high constructor with the capabilities in the management of company. Therefore, a questionnaire equipment uses for survey activities. This survey was done by giving a questionnaire of constructor with grade 6 and 7, which apply at Java and Jakarta that still exist.

To make the same perception and definition of technical term on every respondents, so, survey the result will be supported by interview directly and indirectly (via phone) to 127 big constructor leader in Java and Jakarta.

Survey programs As part of research method, survey realization become important to do the best, by considering the collection of information and data will be determined the process of research continuously. The purpose of survey activities are: 1. To know internal and external factors that affects management of Contruction Company that usually done by contractor in Indonesia to improve competitive advantage. 2. To know the problems in management of construction company. To reach the purpose above, the questioner was developed, which involve of 2 parts. Namely : 1. General: contain about the information of respondent with company profile such as kind of job, owner type and etc. 2. Statement: in this part asked several things related with realization of strategy planning and both internal and external problems. These statements related with planning object, marketing, production, financial and resource that related with PESTEK. Survey respondent profile Survey was done on 127 contractor leader grade 6 and 7 at Java and Jakarta, in contractor general sector. Almost of respondent has been long time splash around and contraction effort, it is more than 6 up 30 years. Although include of companies that have been joint for a long time in contraction sector, but the contractors are do not have a good strategy to manage their company, only 30 % of respondent that have a good strategy. From figures shown that respondent contractor do the project at government institution (52%) and private (22%) based on survey result shows that the almost of contractor has experience to mask on more owner type.

Private 26

swasta,22

goverment swasta private

goverment 52

Fig. 4. Respondent owner type

Factor analisis method Factor analyses method on this research is used to simplify the variable of internal and external factors. Competitive advantage of national contractor is having dominant affection. Factor analyses is a multivariate statistical technique by the purpose to analyses the relation and reduction several factor to be more simple factor. Hair, et.al (1998: 14) defines Factor analysis, is a statistical approach that can be used to analyze interrelationships among a large number of variables and to explain these variables in terms of their common underlying dimensions (factors). The data of factor is primary data that resulted from questioner to several stakeholders of national contraction implementer industry that conducting the factor analyses by using software of SPSS. The step to determine factor and quality was shown at Figure 5.

Problem Formulation (environment business analysis of construction

Eksternal and internal factors exploration of construction industries

Adjusment variable amount and sample size

Factor analysis method

Data manage and kuisioner

Likers Scala 1-5

Validity test, realibility test, and normality test

Dominant Variable (mean: 3,5-5,0)

Factor Analisis (summarization/ data and reduction

Conceptual & practical

Penentuan loading faktor

Intreprestasi and faktor name (surrogate variables/summated scale)

variable Selection at factor (loading : > .50)

Loading analysis

Output : Factor dan loading internal dan eksternal Factor

Fig. 5. The step determining factor and quality

To determine the number of variable, Hair, et al (1998: 98) describe:the researcher may do this employing the most parsimominous set of variables, guided by conceptual and practical considerations, and then obtaining an adequate samples size for the number of variable examined. In determine total of sample, Hair. Al (1998: 98) mention: the sample size would not be fewer than 50 observations. And preferably the sample size should be 100 or larger. As a general rule, the minimum is to have at least five times as many observations as there are variables to be analyzed, to minimize the chances of over fitting the data. Variable data for analyses factor uses metric measurement hair, et al (1988: 98). Therefore, questioner design made in the form semantic differential scale (Levin and Rubin, 1998), with scale 1 before the questioner is distributed; need to do face validity and logical validity through expert discussion and questioner test to several respondents to be. The research problem is interrelationship between observe variable Hair, et al (1998: 90). The steps of analyses data in factor analyses is showing by Hair et al (1998: 94 and 101), simplicity in diagram form shows on Figure 6.

Problem formulation

Loading Factor Analysis

Factor Amount

Rotate Factor (Varimax)

factor Intepretation

scoe factor analysis

Factor choice

Assumption controll

Fig. 6. Steps of factor analyses The explanation of every step is as follows: Problem Formulation: grouping and reducing (data summarizatioan and data reduction) number of variable become simpler factor, so easier to interpret. 2 questions that need to answer for factor analyses are: (1) how are the variables measured? and (2) how many variables should be included (hair et al, 1998 : 98) Measuring factor loading: done to strength believe of factors, it is by looking variances value and Eigen value for every factor. Loading factors is showing the relations between original variable with factor (hair, et al, 1998: 89) and large loading shows the level of variable importance with factor (Hair, et al 1998:107). Determination of total factor: the variables are grouping into smaller dimension factors that determines based on Eigen value and variant value. The values as bigger that explain the relationship between total variant against the fact, and also used as basic to make factor that representative analyzed factor. Eigen value that used was a bigger one and variant total is minimal 60% (Hair, et all 1998). Variant maximum contribution of every variable against the factor knowing through factor rotation. The determination of incoming variable into factor based on factor score (factor loading) that shows correlation between original variable and factor. Factor rotation (varimax): at beginning rotation there is possibility of contribution (loading) every variable against the factor is the strength relative same. If it is happens, so the analyses continued by factor rotation, will be found the maximal contribution (variant) of every variable to the factor, so the result will be easier to interpret. Factor interpretation: from factor rotation result, many variable that come to identification factor. Hair et al (1998: 107) mention:the first factor tends to be general factor With almost every variable loading significantly and it account for the largest amount variance. The second and subsequent factors are then based on the residual amount of variance. On the other part Hair, et al (1998:115) explain : If the objective is simply to identify logical combinations of variables and better understand the interrelation-ship among variables, then factor interpretation will suffice. Measurement score factor: from factor rotation get loading factor that shows the correlation between original variable and factor. Loading indicate the degree of correspondence between the variable and the factor, with higher loading making the variable representative of variable and the factor (Hair, et. al, 1998:106). Quadrate of score factor shows the big of variant presentation to original variable that explained by factor. Factor determination: based on research purpose, factor that formed giving a name based on the magnitute of the factor loadings (Hair, et, al,. 1998:129), where this bigger able to considered as correlation between original variable with the factor, Hair et al (1998: 101) explore 2 naming alternative, namely: surrogate

variable and summated scales. Surrogate variable is naming that refer to variable that have high factor loading, and summated scales is combining several variable that have same concept to assumption investigation and validation: these assumptions used for analisis factor is sufficient sample to reach conviction scale and to fullfill the assumption multikolinecritas level, because the purpose of this analisis is identifying correlation between variable (Hair et all, 1998: 99). Sufficient test sample is able to use KMO measure of sampling, adequacy (MSA) by

limitation 0 up 1. Sufficient limitation sample according to Hair et all: (1998:99): 0.70 is middling, 0.60 adalah mediocre, 0.50 is miserable, < 0.50 unacceptable. 3. RESULTS AND DISCUSSION Analyses of internal and external factors Variables that describe on figure 4 is variable that use for this research. The result of test survey analysis at the beginning on the variable both validity and reliability gives a high value, so it is felt enough valid and reliable. Variable planning design is that use as research instrument was shown at Figure 7 and Table 1.

Fig. 7. Variables of internal and external factors that affect competitive advantage of national contractor. Table 1. Internal dan External Factors
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Faktor Internal Delivery speed Quality insurance Price level Employee know how Sub contractors Engineering Facility & equipment Special resource Construction technology Construction location Capital & Financial condition Competence top management Organization Safety management Company culture Research & Development Industrial relation Business Network Contract TQM Code Int1 Int2 Int3 Int4 Int5 Int6 Int7 Int8 Int9 Int10 Int11 Int12 Int13 Int14 Int15 Int16 Int17 Int18 Int19 Int20 Faktor Eksternal Domestic Market International Market Construction activity Financial condition of customer Availibility of supporting industries Suplier know-how Quality of material Price of material Availibility of subcontractor Wage level of subcontrator Bank support Goverment support Education &RD Role of related association Security of political stability Industries infrastructure Competition climate Outsourcing company Barrier to international market Eksternal networking Employee training program Brand image Code Eks1 Eks2 Eks3 Eks4 Eks5 Eks6 Eks7 Eks8 Eks9 Eks10 Eks11 Eks12 Eks13 Eks14 Eks15 Eks16 Eks17 Eks18 Eks19 Eks20 Eks21 Eks22

23

Technology of change

Eks23

From the survey result was reacted by respondent explain that all factor is valid and reliable. It is shown by value r > r tabel 0,4 by level signification ()=0,05 < 0.6, where significant value 0,902. After statistical test for getting average value and standard deviation from 20 internal factor and 23 external factor. Factor that owned was rather big, so done analyses factor to reduce smaller factor by seeing the vektor of eigen value. To fullfill the sufficient test and sample variance were used KMO and Bartlett test. Sample has reached enough and variance if KMO value > 0.7. KMO test result of internal factor gives variant 0,877 (Table 2) and 0, 774 for external factor (Table 3). Table 2. KMO and Bartlett's Test factor internal Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Sphericity Test of Approx. Chi-Square df Sig.

.877 1348.641 190 .000

Table 3. KMO and Bartlett's Test factor external

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Approx. Chi-Square Sphericity df Sig.

.774 1702.128 253 .000

The next step is reducing a factor. The result after doing analysis and rotation, give reduction on 5 internal factor and 6 external factor by Eigen value >1 (Figure 8 and Figure 9). Tabel 4 and 5 gives explanation about factor naming and factor loading. Factor naming based on loading value 0,5. Factor naming uses summated scales, it is combine several variable that have same concept. All naming shown an Table 6.

Scree Plot

10

Eigenvalue

0 1 2 3 4

10

11

12

13

14

15

16

17

18

19

20

Component Number
Fig. 8. Eigenvalue internal factor

resour ces

Leader ship

econo mics

politics

Organi zation

Internal

Eksternal

culture

social Skill Service of quality govern ment environ ment

Fig. 9. Framework of internal & external factors Table 4. Rotated Component Matrix (a) Component 1 .063 .262 .198 .304 .172 .631 .745 .778 .533 .319 .330 .327 .114 .055 .062 .071 .376 .217 .723 .739

int1 int2 int3 int4 int5 int6 int7 int8 int9 int10 int11 int12 int13 int14 int15 int16 int17 int18 int19 int20

2 -.020 .322 .064 .298 .219 .102 .185 .379 .024 .737 .733 .510 .410 .426 .625 .060 .067 .537 .210 .395

3 .019 .098 .020 .206 .251 .311 .042 .240 .375 .095 -.020 .221 .522 .513 .493 .793 .728 .456 -.018 .202

4 .186 .076 .798 .663 .593 .281 .248 .092 .138 .181 .113 .394 .161 -.107 .321 .189 .109 .198 .195 .151

5 .870 .708 .128 .191 .062 .099 .284 -.031 .375 .050 .133 -.018 .314 .347 .169 -.056 .012 .126 .207 -.076

60 | w w w . i j a r . l i t . a z

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization. (a) Rotation converged in 8 iterations.

B a k u , A z e r b a i j a n | 61

Table 5. Rotated Component Matrix(b) Component eks1 eks2 eks3 eks4 eks5 eks6 eks7 eks8 eks9 eks10 eks11 eks12 eks13 eks14 eks15 eks16 eks17 eks18 eks19 eks20 eks21 eks22 eks23 1 .003 -.101 .267 .110 .370 .558 .835 .836 .517 .424 .132 .178 .144 .352 .304 .597 .351 .086 -.016 .142 .483 .839 .813 2 .473 .125 -.075 .806 .260 .314 .053 .195 -.053 .114 .147 .256 .095 .459 .693 .326 .044 .472 .630 .107 .150 .060 .094 3 .242 .515 .036 .144 .650 .436 .132 .125 .142 -.284 .083 .138 .133 .145 .016 -.090 .068 .037 .277 .860 .605 .109 .169 4 .463 .515 .732 .082 .193 .297 .136 .099 .325 .515 .159 -.107 .212 .336 .056 .157 .237 -.399 -.178 -.108 .022 .023 .003 5 .007 .067 .255 -.129 -.033 .113 .103 .066 .091 .079 .009 .247 .805 .260 .266 .405 .590 .508 .174 .069 .320 .132 .101 6 .311 .238 -.047 .180 .135 -.006 .061 .150 .377 .122 .829 .656 .057 .058 -.032 -.132 .323 .154 .267 .100 .043 .103 .124

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. (b) Rotation converged in 10 iterations.

Table 6. Naming factor Factors Internal F1 F2 F3 F4 F5 External F1 F2 F3 F4 F5 F6 Variable Int6, Int7,Int8, Int9, Int19, Int 20 Int10,Int11,Int12,Int15,Int18 Int13,Int14,Int16,Int17 Int3,Int4,Int5 Int1,Int2 Eks6-eks9,eks16,eks22,eks23 Eks4,eks15,eks19 Eks5,eks20,eks21 Eks2,eks3,eks10 Eks13,eks17,eks18 Eks11,eks12 Loading 0.631;0.745;0.778;0.533; 0.723;0.739 0.737;0.733;0.510;0.625; 0.537 0.522;0.513;0.793;0.728 0.798;0.663;0.593 0.87;0.708 0.558;0.835;0.836;0.517; 0.597.0.839;0.813 0.806;0.693;0.630 0.650;0.860;0.605 0.515;0.732;0.515 0.805;0.590;0.558 0.829;0.656 Naming factors Resource Leadership Organization Skill Service of quality economic politic culture social enviroment goverment

Many factors are influence competitive advantage of manufacture or construction. In this case the contractor has similarity such as internal factor never slipped away of resources factor, leadership, organization and capability. But the differentiation between the contractors is management project. Construction project have uniquely because limited by time resources and design quality. Therefore service of quality that explains about guarantee of realization and insurance are really affected. External factor has a same influence, whether manufacture company or construction. These factors involve how the influence of economic, social, politic, culture, government and environment.

4. CONCLUSSIONS The existence of big constructor is very supporting the economical country especially increasing devise value. Expected that a big constructor in Indonesia able to expand the market to every country. In this case do not slip away from determination of company management strategy. Although the company had been determined vision and mission clearly, but in realization there are many construction company failed because wrong to determining the strategy. Survey result is gives availability description to make first point development everything to increase competitive advantage and continuity of industry organizer in Indonesia. One of it is by making survey result as specification for strategy planning and determines long term strategy of company. It was suggested to increase the competence, in addition to support the position modelling of competitive advantage in company with the other competitor company. To increase competitive advantage need accuracy of company strategy that appropriate with the capability of company. Therefore, it still needs furtehr research by modelling the strategy of increasing competitive advantage of national constructor. By existing the accuracy of strategy, it was expected the company will be sustainable in market. REFERENCES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Amit, R, Schoemaker,P.J.(1993) Strategic Assets and Organization Rent, Strategic Management Journal, 14, pp 33-46 Grant, R.M. (1998) The Resource-Based Theory of Competitive Advantage: Implications for Strategy formulation, California management review, Spring, pp 114-135 Hair,J.F.,at al (1998) Multivariate Data Analysis, 5th Edition, Prentice Hall, Inc, New Jersey Hamel, G. & Prahalad, C. (1990). The core competence of the corporation. Harvard Business Review, 68, 79-91. KADIN (2009), Perkembangan Infrastruktur di Indonesia LPJK (2009), Statistik Badan Usaha Pelaksana Konstruksi Momaya, K. and K. Selby (1998)."International Competitiveness of theCanadian Construction Industry: A Comparison with Japan and the United States." Canadian Journal Civil Engineering 25: 640-652. Peffer, J (1996) Competitive Advantage Through People, Havard Businees School Press, USA Porter, M. E. Global Competitiveness Report 2004-2005: Findings from the Business Competitiveness Index. New York, Institute for Strategy and Competitiveness Harvard Business School. (2004). Porter, M.E (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, New York Roucco,P., Proctor,T.(1994) Strategic Planinning in Practice : A Creative Approach, Marketing intelegence & Planning Journal, 12;9,pp 24-29 Sudarto (2007), JURNAL TEKNOLOGI, Edisi No. 2. Tahun XXI, Juni 2007, 102-110 ISSN 02151685 th Thomson, A.,A., Strickland, A.J.(2001) Strategic Management, Concepts and Cases, 12 Edition, McGraw-Hill, Singapore Whelen & Hunger (2004). Strategic Management, Prentice Hall, Inc, New Jersey