Open AccessTechnological Capabilities of Medium-Sized Contractors in Indonesia
Author(s) -
Biemo W. Soemardi,
Bayu Mitra Adhyatma Kusuma,
Krishna S. Pribadi,
Sonny Yuliar
Publication year - 2021
Publication title -
journal of construction in developing countries
Language(s) - English
Resource type - Journals
eISSN - 1823-6499
pISSN - 2180-4222
DOI - 10.21315/jcdc2021.26.2.1
Subject(s) - business , process (computing) , key (lock) , construction industry , industrial organization , supply chain , technological change , process management , marketing , engineering , construction engineering , computer science , computer security , operating system , artificial intelligence
The construction industry plays a significant role in national development and economic growth of Indonesia. Contractors are key actors in the construction industry and manage large amounts of construction resources and activities. While the demand for improving the nation's infrastructure is on the rise, the question remains whether the industry, especially contractors, will be able to fulfil this demand. This study investigates whether contractors include technological capabilities as an important part of their company strategies for addressing the dynamics of the construction industry. In particular, it aims to understand how contractors develop and improve their technological capabilities through a technological learning process (exploration, acquisition and internalisation). The investigation focuses on medium-sized contractors, who often play an important role as part of the supply chain for larger contractors. A model is developed to represent the dynamic interactions between key factors that influence the way contractors select and use technology to enhance their performance. Data were collected through a survey and were then used to map the contractors' development of technological capabilities. The study reveals that medium-sized contractors have yet to consider the development of technological capabilities as strategic. The results are expected to benefit the regulator and construction companies in Indonesia in their efforts to improve the performance of the country's construction industry.