Critical Internal Factors and Sub-Factors Affceting the Competitiveness of Consulting Companies in West Sumatera

Abstract

Competitiveness is a crucial criterion for enhancing the sustainability of a company’s survival. It enhances creativity and improved business performance. In Indonesia, the lack of competitiveness has led to entrepreneurship closures and a decline in the membership of consulting firm associations. Over the past decade, a total of 3,123 enterprises had closed their business operations. Hence, this research aims to obtain critical internal factors and sub-factors in improving business activities in consulting companies in West Sumatra to assist corporate directors with important skills to improve important competitiveness, thus addressing future challenges in competitiveness. The methodology of this study included a literature review, main survey, SPSS analysis as well as Smart PLS using data obtain from main survey. The results revealed that the competitiveness framework for consultant company in West Sumatera has 10 critical internal factor and 18 critical sub-factors with factor loadings >0.90. The critical internal competitiveness factors and sub factor are: Human Resource (Skill, knowledge), Financial (financial stability), R&D (scientific findings, patten), Technology (information system, specializet IT), Project Management (management healt & safety, Management environment, Risk management), Innovation (product innovation, technology innovation), Marketing (promotion, market knowledge), Organisation (culture, company grade), Managemen Proces (system & procedure), strategi (strategy focus). The study has successfully developed a framework to evaluate the competitiveness for construction consultant companies. All critical sub factors identified will guide the management in enhancing their competitiveness.