Business Transformation: Exploring Dynamic Capabilities, Technological Innovation, and Competitive Advantage through the Lens of Resource-Based View in Construction Services Companies

Hari Wibisono; Maryono Supoyo

doi:10.61100/adman.v1i3.93

Authors

Hari Wibisono Program Studi Manajemen Bisnis, Pascasarjana, Sekolah Bisnis Institut Pertanian Bogor (IPB)
Maryono Supoyo Program Studi Manajemen, Fakultas Ekonomi dan Bisnis, Universitas Airlangga

DOI:

https://doi.org/10.61100/adman.v1i3.93

Keywords:

Dynamic Capabilities, Technological Innovation, Competitive Advantage, Resource-Based View, Construction Services Companies

Abstract

Construction services companies, as an integral part of the construction sector, face significant challenges in coping with rapidly changing business environments. In the face of this uncertainty, business transformation becomes a necessity to ensure the sustainability and success of the company. This research aims to explore the relationship between business transformation, dynamic capabilities, technological innovation, and competitive advantage in construction services companies. The research utilized an extensive examination of existing literature employing qualitative analysis to acquire a comprehensive insight into the subject, covering the period from 1991 to 2023. The study results indicate that in the era of globalization and business dynamics, business transformation is crucial for construction services companies. The Resource-Based View (RBV) approach emphasizes the importance of internal resources and capabilities such as technical skills, managerial skills, innovation, and rapid adaptation to changes. The implementation of technologies such as BIM, IoT, and AI is key to enhancing efficiency and expanding interactions with customers. Successful transformation requires a focus on the development of unique resources and capabilities, rapid adaptation to market and technological changes, and customer engagement by understanding their needs and providing excellent services.

References

R. F. Aziz and S. M. Hafez, “Applying lean thinking in construction and performance improvement,” Alexandria Engineering Journal, vol. 52, no. 4, pp. 679–695, Dec. 2013, doi: 10.1016/j.aej.2013.04.008.

R. Martínez-Peláez et al., “Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology,” Sustainability, vol. 15, no. 14, p. 11221, Jul. 2023, doi: 10.3390/su151411221.

D. Plekhanov, H. Franke, and T. H. Netland, “Digital transformation: A review and research agenda,” European Management Journal, vol. 11, pp. 1–24, Sep. 2022, doi: 10.1016/j.emj.2022.09.007.

P. Madhani, “Resource Based View (RBV) of Competitive Advantage: Importance, Issues, and Implications,” KHOJ Journal of Indian Management Research and Practices, vol. 1, no. 2, pp. 1–16, 2009.

D. Teece and G. Pisano, “The Dynamic Capabilities of Firms: an Introduction,” Industrial and Corporate Change, vol. 3, no. 3, pp. 537–556, 1994, doi: 10.1093/icc/3.3.537-a.

K. M. Eisenhardt and J. A. Martin, “Dynamic Capabilities: What Are They?,” Strategic Management Journal, vol. 21, no. 10/11, pp. 1105–1121, 2000.

T. Kinda et al., “Accelerating Innovation and Digitalization in Asia to Boost Productivity,” Departmental Papers, vol. 2023, no. 001, p. 1, Jan. 2023, doi: 10.5089/9798400224034.087.

B. Triwahyono, T. Rahayu, and K. Kraugusteeliana, “Analysing the Role of Technological Innovation in Improving the Operational Efficiency of MSMEs,” Jurnal Minfo Polgan, vol. 12, no. 1, pp. 1417–1426, Jul. 2023, doi: 10.33395/jmp.v12i1.12791.

A. Arjang, S. Sutrisno, R. M. Permana, R. Kusumastuti, and A. M. A. Ausat, “Strategies for Improving the Competitiveness of MSMEs through the Utilisation of Information and Communication Technology,” Al-Buhuts, vol. 19, no. 1, pp. 462–478, 2023.

A. Saputra, D. Ilmi, W. Angelina, S. S. Gadzali, and A. M. A. Ausat, “PT Pos Indonesia Public Service Innovation in Maintaining Existence and Competitiveness in the Industrial Era 4.0 (Case Study of PT Pos Indonesia KC Subang),” Journal on Education, vol. 5, no. 3, pp. 10302–10311, 2023, Accessed: Feb. 22, 2023. [Online]. Available: https://jonedu.org/index.php/joe/article/view/1926

N. W. Lubis, “Resource Based View (RBV) in Improving Company Strategic Capacity,” Research Horizon, vol. 2, no. 6, pp. 587–596, 2022.

A. Talaja, “Testing VRIN framework: Resource value and rareness as sources of competitive advantage and above average performance,” Management, vol. 17, no. 2, pp. 51–64, 2012.

P. M. Madhani, “The Resource - Based View (RBV): Issues and Perspectives,” PACE, A Journal of Research of Prestige Institute of Management, vol. 1, no. 1, pp. 43–55, 2010.

L. S. Pheng and L. S. Hou, “The Economy and the Construction Industry,” in The Economy and the Construction Industry, Springer Nature Singapore Pte Ltd, 2019, pp. 21–54. doi: 10.1007/978-981-13-5847-0_2.

P. E. Eriksson and M. Westerberg, “Effect of Procurement on Construction Project Performance,” DiVa Portal, pp. 1–19, 2009.

M. Kim, J. Song, and J. Triche, “Toward an integrated framework for innovation in service: A resource-based view and dynamic capabilities approach,” Information Systems Frontiers, vol. 17, no. 3, pp. 533–546, Jun. 2015, doi: 10.1007/s10796-014-9505-6.

L. D’Oria, T. R. Crook, D. J. Ketchen, D. G. Sirmon, and M. Wright, “The Evolution of Resource-Based Inquiry: A Review and Meta-Analytic Integration of the Strategic Resources–Actions–Performance Pathway,” J Manage, vol. 47, no. 6, pp. 1383–1429, Jul. 2021, doi: 10.1177/0149206321994182.

W. B. Edgar and C. A. Lockwood, “Corporate Core Competencies’ Essence, Contexts, Discovery, and Future: A Call to Action for Executives and Researchers,” Sage Open, vol. 11, no. 1_suppl, pp. 1–96, Oct. 2021, doi: 10.1177/21582440211051789.

N. Adepu, S. Kermanshachi, A. Pamidimukkala, and K. Loganathan, “Analyzing the factors affecting construction project schedules amidst COVID-19 pandemic,” Project Leadership and Society, vol. 4, p. 100100, Dec. 2023, doi: 10.1016/j.plas.2023.100100.

M. Baghalzadeh Shishehgarkhaneh, A. Keivani, R. C. Moehler, N. Jelodari, and S. Roshdi Laleh, “Internet of Things (IoT), Building Information Modeling (BIM), and Digital Twin (DT) in Construction Industry: A Review, Bibliometric, and Network Analysis,” Buildings, vol. 12, no. 10, p. 1503, Sep. 2022, doi: 10.3390/buildings12101503.

M. Rožman, P. Tominc, and T. Štrukelj, “Competitiveness Through Development of Strategic Talent Management and Agile Management Ecosystems,” Global Journal of Flexible Systems Management, vol. 24, no. 3, pp. 373–393, Sep. 2023, doi: 10.1007/s40171-023-00344-1.

N. Anderson, K. Potočnik, and J. Zhou, “Innovation and Creativity in Organizations,” J Manage, vol. 40, no. 5, pp. 1297–1333, Jul. 2014, doi: 10.1177/0149206314527128.

J. Barney, “Firm Resources and Sustained Competitive Advantage,” J Manage, vol. 17, no. 1, pp. 99–120, Mar. 1991, doi: 10.1177/014920639101700108.

I. Farida and D. Setiawan, “Business Strategies and Competitive Advantage: The Role of Performance and Innovation,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 8, no. 3, pp. 1–16, Sep. 2022, doi: 10.3390/joitmc8030163.

E. Gurel, “SWOT ANALYSIS: A THEORETICAL REVIEW,” Journal of International Social Research, vol. 10, no. 51, pp. 994–1006, Aug. 2017, doi: 10.17719/jisr.2017.1832.

M. H. Yimam, “Impact of training on employees performance: A case study of Bahir Dar university, Ethiopia,” Cogent Education, vol. 9, no. 1, pp. 1–19, Dec. 2022, doi: 10.1080/2331186X.2022.2107301.

G. Vial, “Understanding digital transformation: A review and a research agenda,” The Journal of Strategic Information Systems, vol. 28, no. 2, pp. 118–144, Jun. 2019, doi: 10.1016/j.jsis.2019.01.003.

S. Tang, D. R. Shelden, C. M. Eastman, P. Pishdad-Bozorgi, and X. Gao, “A review of building information modeling (BIM) and the internet of things (IoT) devices integration: Present status and future trends,” Autom Constr, vol. 101, pp. 127–139, May 2019, doi: 10.1016/j.autcon.2019.01.020.

W. M. Lim and T. Rasul, “Customer engagement and social media: Revisiting the past to inform the future,” J Bus Res, vol. 148, pp. 325–342, Sep. 2022, doi: 10.1016/j.jbusres.2022.04.068.

S. Kraus, S. Durst, J. J. Ferreira, P. Veiga, N. Kailer, and A. Weinmann, “Digital transformation in business and management research: An overview of the current status quo,” Int J Inf Manage, vol. 63, p. 102466, Apr. 2022, doi: 10.1016/j.ijinfomgt.2021.102466.

W. Wahyuni, R. Ramli, and W. Mawardi, “Optimizing Employee Performance in Tapalang Health Center, Tapalang District, Mamuju Regency: The Interplay of Work Environment, Discipline, and Motivation,” Management Studies and Entrepreneurship Journal (MSEJ), vol. 4, no. 5, pp. 6786–6795, 2023.

Wahyun, “Pengaruh Etika Kerja Islami Terhadap Komitmen Organisasi Pada Bank Syariah Mandiri Kota Mamuju,” SEIKO : Journal of Management & Business, vol. 6, no. 1, pp. 346–354, 2023.

M. Aqil, H. K. Tjahjono, Muafi, and W. Prajogo, “The Impact of Psychological Contract Breach on Counterproductive Work Behavior Mediated by Organizational Trust and Work Engagement in State Civil Apparatus,” Quality - Access to Success, vol. 24, no. 194, pp. 213–225, Jan. 2023, doi: 10.47750/QAS/24.194.25.

N. W. Dahri, H. K. Tjahjono, M. Muafi, and W. Prajogo, “The Influence of Workplace Envy on Turnover Intention: The Mediating Role of Negative Emotion and Perception of Injustice,” Quality - Access to Success, vol. 24, no. 193, pp. 28–38, Jan. 2023, doi: 10.47750/QAS/24.193.04.

Almita, M. Tahir, and M. N. Hajjad, “Employee Performance and the Impact of Workplace Facilities and Discipline,” Jurnal Manajemen Bisnis, vol. 10, no. 2, pp. 417–425, 2023.

N. E. Baso, I. Adinugroho, and Junaeda, “Pengaruh Brand Trust Dan Service Quality Terhadap Keputusan Pembelian Pada Toko Family Kabupaten Mamuju,” SEIKO : Journal of Management & Business, vol. 6, no. 2, pp. 326–333, 2023.

Hestiana, Muchtar, and Junaeda, “Pengaruh kualitas produk, harga dan promosi terhadap keputusan pembelian sepeda motor,” AKUNTABEL: Jurnal Akuntansi dan Keuangan, vol. 20, no. 3, pp. 338–349, 2023.

I. P. Widiana S, Ramli S, and N. Asia, “Pengaruh Kualitas Produk Dan Harga Terhadap Keputusan Pembelian Pakaian Pada Toko Planet Kids Di Kabupaten Mamuju,” SEIKO : Journal of Management & Business, vol. 6, no. 2, pp. 326–333, 2023.

N. Asia, J. Kamarudin, and N. Fajariani, “Analisis laporan keuangan pada koperasi simpan pinjam,” INOVASI: Jurnal Ekonomi, Keuangan dan Manajemen, vol. 19, no. 1, pp. 133–142, 2023.

Adriansah, Ramli, and Muh. Ferils, “Examining The Impact Of Work Stress, Work Motivation, And Work Discipline On Employee Performance At PT. Manakarra Unggul Lestari In Leling Village, Tommo District, Mamuju Regency,” Management Studies and Entrepreneurship Journal, vol. 4, no. 5, pp. 6776–6785, 2023.

A. Kusrianto, I. Adinugroho, and Muh. Ferils, “The Influence of Place and Promotion on Purchasing Decisions at General Furniture Stores in Mamuju District,” SEIKO : Journal of Management & Business, vol. 6, no. 2, pp. 364–372, 2023.

Muh. Ferils and Suharlina, “DETERMINAN KINERJA PEGAWAI PADA RUMAH SAKIT BHAYANGKARA HOEGENG IMAM SANTOSO KEPOLISIAN DAERAH PROVINSI SULAWESI BARAT,” Assets : Jurnal Ekonomi, Manajemen Dan Akuntansi, vol. 12, no. 2, pp. 262–280, 2022.

H. Acha, M. Sibgatullah, F. Furqan, K. Kurnia, and N. R. Febriandika, “Analysis Of Sharia Laundry Marketing Strategy In Mamuju District,” Perisai : Islamic Banking and Finance Journal, vol. 7, no. 1, pp. 36–54, Mar. 2023, doi: 10.21070/perisai.v7i1.1626.

R. Novianti and A. Rajab, “ Rezki Novianti The Influence of Scientific Approach, Learning Motivation, and Student Responses on Statistical Learning Outcomes of STIE Muhammadiyah Mamuju Students,” aya Matematis: Jurnal Inovasi Pendidikan Matematika, vol. 8, no. 3, pp. 188–192, 2020.

H. Acha, “PROGRESSING STUDENTS’MOTIVATION IN LEARNING ENGLISH BY USING HYPNOSIS (HYPNOLEARNING) AT STUDENTS OF STAN 2 JILC PERINTIS MAKASSAR,” ETERNAL (English, Teaching, Learning, and Research Journal), vol. 5, no. 1, pp. 180–194, 2019.

F. Furqan and A. Hikmawan, “Reason and Revelation According to Harun Nasution and Quraish Shihab and its Relevance to Islam Education,” Al-Misbah (Jurnal Islamic Studies), vol. 9, no. 1, pp. 17–30, Apr. 2021, doi: 10.26555/al-misbah.v9i1.3890.

Ramli S, A. R. Mus, H. Damis, and A. Mahmud, “The Intervening of Purchase Decision Between Marketing Mix, Consumer Behaviour and Brand Image on Costumer Statisfaction,” Jurnal Manajemen Bisnis, vol. 8, no. 2, pp. 382–396, 2021.

Hasbullah and Ramli S, “Pengaruh budaya kerja, disiplin dan motivasi terhadap produktivitas kerja pegawai,” I N O V A S I, vol. 17, no. 4, pp. 645–652, 2021.

Ramli S and Hasbullah, “Pengaruh dimensi kualitas pelayanan terhadap kepuasan pemohon perizinan pada dinas penanaman modal dan pelayanan terpadu satu pintu (dpmptsp) kabupaten mamuju,” FORUM EKONOMI, vol. 23, no. 2, pp. 77–85, 2021.

Ramli S, “Kreativitas pelaku usaha, sosial media dan inovasi kemajuan teknologi terhadap keputusan pembelian smartphone,” AKUNTABEL: Jurnal Akuntansi dan Keuangan, vol. 20, no. 1, pp. 31–39, 2023.

A. Gunawan, T. Malik, J. D. Amory, Y. Yusriadi, Sjaid S Fais Assagaf, and L. Alfita, “The Influence of Soft Competency and Hard Competency on Internal Auditor Performance Through Work Motivation at PT. KB Finansia Multi Finance,” in Proceedings of the International Conference on Industrial Engineering and Operations Management, Sao Paolo, Brazil: IEOM Society International, 2021, pp. 3008–3016.