Antecedents of Competitive Advantage and Its Impact on Firm Performance: Empirical Study on Construction Industries in Indonesia

Abstract

This study aims to analyze the factors that drive competitive advantage in improving firm performance among Indonesian construction companies. This study tries to combine all theories (Theory of The Firm for Strategic, Performance Management, Relationships Marketing Theory, Contracting View of the Firm) as factors that influence the competitiveness and performance of a company. Prediction of factors taken from the variable electronic customer relationship management, project innovation, project organizational culture, and dynamic capabilities that have a major influence on competitive advantage and firm performance. The type of research used is quantitative research with a causal study research design. This research uses purposive sampling technique with a sample of 385 respondents who work in the construction industry. The result shows that dynamic capabilities and project organizational culture only have significant influence on firm performance, whereas e-CRM and project innovation have positive and significant influence on competitive advantage and firm performance. Therefore, Indonesian construction companies need to focus on e-CRM and project innovation to optimize their competitive advantage and firm performance.