The influence of market forces to construction companies' performance in Indonesia

Abstract

Construction industry is one of the sectors that contribute a high GDP for Indonesia
economy at approximately 4-8%. Therefore, it is important for the construction industry to improve its company performance, either private or state-owned, in order to become competitive with foreign construction companies. Construction industry in Indonesia can develop its competitiveness in the international market by establishing improvement steps toward the construction company in order to increase its performance quality. Several factors that affect and determine the success of a construction company are internal factors, external factors and market forces. Market forces are factors which are
uncontrolled by the industrialists, therefore early anticipation is needed. Several problems that occurred in the market forces area in the construction industry are customer satisfaction rate, competition between companies, constraints in capturing market, unbalanced supply and demand, lack of innovation and inaccurate market segmentation. The research objective discussed in this paper is to identify the cause of the problems arise in a construction company’s market forces that influence the company's performance in Indonesia. The methods used are literature studies and survey for identifying the cause of the problems and the construction company's success performance indicators. Analyses used in this research are statistical and cluster analysis. The results show the clusters from the problems arise in market forces that influence the construction company’s performance which consists of profitable, growth, sustainable, and competitive