SEM Analysis of Contractor Performance in Accelerating Electrical Construction Project: Insights from Herzberg's Dual Factor Theory
Main Article Content
Keywords
performance analysis, hygiene factors, motivator factors, SEM, KPI
Abstract
In the rapidly developing electrical construction industry, the success of organizations is directly linked to the performance of their business partners. This study focuses on Indonesia's state-owned electrical enterprises, where a notable decline in Key Performance Indicators (KPIs) has raised concerns, hypothesizing that deficiencies in contractor performance are a major barrier to the timely completion of electrical construction projects. At the core of this issue is the role of human resources, identified as a pivotal factor in contractor performance that directly impacts project completion. The aim of the research is to elucidate the complex dynamics between motivator and hygiene factors, which are fundamental to Herzberg's dual factor theory, and their impact on the performance of the contractor's employees. Using Structural Equation Modeling (SEM), the study analyzes data from questionnaires distributed to 250 industry professionals. The analysis provides key insights into how these factors significantly influence job satisfaction and, ultimately, employee performance. These insights play a critical role in strategically planning contractor management practices. By emphasizing the need to understand the key factors driving employee satisfaction and performance, the study lays a solid foundation for designing effective employment contracts and management strategies. The practical implications of this research are significant, offering a pathway for contractors to enhance employee satisfaction and performance. This ultimately leads to the delivery of high-quality electrical infrastructure projects efficiently and promptly, underlining the study's relevance and importance in the contemporary industrial landscape.
References
[2] J. Heng, "Construction management of mid-and small-scale electrical works," Guangxi Water Resources and Hydropower Engineering, 2008.
[3] Y. Huang, "Application of Electrical Engineering and Automation Intelligent Technology in Building Electrical," ESTA, vol. 8, pp. 31-34, 2021, doi: 10.18686/ESTA.V8I3.197.
[4] B. Sovacool, A. Gilbert, and D. Nugent, "An international comparative assessment of construction cost overruns for electricity infrastructure," Energy Research and Social Science, vol. 3, pp. 152-160, 2014, doi: 10.1007/s10902-022-00567-6.
[5] R. Nasrudin, Q. Quarina, and T. Dartanto, "Revisiting the Energy-Happiness Paradox: A Quasi-Experimental Evidence of Electricity Access in Indonesia," Journal of Happiness Studies, vol. 23, no. 7, pp. 3549–3576, Oct. 2022, doi: 10.1007/s10902-022-00567-6.
[6] K. E. Direktorat Jenderal Ketenagalistrikan, "Laporan Kinerja Tahun Anggaran 2022 Direktorat Jenderal Ketenagalistrikan," Jakarta Selatan, 2023.
[7] Q. Guo, S. Chen, J. Wang, and X. Pan, "Research and Design of Electric Power Engineering Project Management System Based on Blockchain Technology," in 2022 International Conference on Blockchain Technology and Information Security (ICBCTIS), pp. 80-84, 2022, doi: 10.1109/ICBCTIS55569.2022.00029.
[8] H. Al-Ageeli and A. Alzobaee, "Critical Success Factors in Construction Projects (Governmental Projects as a Case Study)," The Journal of Engineering, vol. 22, pp. 129-147, 2016.
[9] N. Jasim, "Evaluation of Contractors Performance in Iraqi Construction Projects Using Multiple Criteria Complex Proportional Assessment Method (COPRAS)," IOP Conference Series: Materials Science and Engineering, vol. 1076, 2021, doi: 10.1088/1757-899X/1076/1/012106.
[10] E. Putri, "Competing Market Leader in Indonesia’s Construction Industry," Advanced International Journal of Business, Entrepreneurship and SMEs, 2021, doi: 10.35631/aijbes.38005.
[11] C. Liu, T. Hale, and J. Urpelainen, "Explaining the energy mix in China’s electricity projects under the belt and road initiative," Environmental Politics, pp. 1–23, Jun. 2022, doi: 10.1080/09644016.2022.2087355.
[12] H. Apostoleris, S. Sgouridis, M. Stefancich, and M. Chiesa, "Evaluating the factors that led to low-priced solar electricity projects in the Middle East," Nature Energy, vol. 3, no. 12, pp. 1109–1114, Oct. 2018, doi: 10.1038/s41560-018-0256-3.
[13] G. A. S. K. Silva and B. N. F. Warnakulasooriya, "Criteria for Construction Project Success: A Literature Review," SSRN Electronic Journal, 2016, doi: 10.2139/ssrn.2910305.
[14] O. V. Yuryeva, G. N. Butov, I. G. Malganova, and O. V. Pratchenko, "Civil Public Service: Human Resources Aspect," Mediterranean Journal of Social Sciences, Feb. 2015, doi: 10.5901/mjss.2015.v6n1s3p486.
[15] J. S. Armacanqui, "The Innovations Friendly Organization: Effective Introduction of New Technologies and Innovations in Oil and Gas Companies," in Day 1 Mon, September 14, 2015, SPE, Sep. 2015, doi: 10.2118/175876-MS.
[16] A. Banerjee, "Human resource aspects in global indirect virtual supply chain syndrome," International Journal of Industrial and Systems Engineering, vol. 24, no. 1, p. 62, 2016, doi: 10.1504/IJISE.2016.078009.
[17] S. Chauke, N. Mashwama, C. Aigbavboa, and W. Thwala, "Investigating Employee Performance for Improved Learning Curve in the South African Construction Industry," IOP Conference Series: Materials Science and Engineering, vol. 1218, 2022, doi: 10.1088/1757-899X/1218/1/012028.
[18] N. Jasim, "Evaluation of Contractors Performance in Iraqi Construction Projects Using Multiple Criteria Complex Proportional Assessment Method (COPRAS)," IOP Conference Series: Materials Science and Engineering, vol. 1076, 2021, doi: 10.1088/1757-899X/1076/1/012106.
[19] S. H. Mat Yahya and S. Ismail, "Performance Appraisal Amongst Contractors in Construction Project in Malaysia," Applied Mechanics and Materials, vol. 735, pp. 154-158, 2015, doi: 10.4028/www.scientific.net/AMM.735.154.
[20] L. Nguyen and T. Watanabe, "The Impact of Project Organizational Culture on the Performance of Construction Projects," Sustainability, vol. 9, no. 5, p. 781, 2017, doi: 10.3390/SU9050781. [21] T. A. Judge, S. Zhang, and D. R. Glerum, “Job Satisfaction,” in Essentials of Job Attitudes and Other Workplace Psychological Constructs, 1st Edition., Routledge, 2020.
[22] PT PLN (Persero) UIP Nusra, "Laporan KPI PT PLN (Persero) 2022 Nilai Kinerja Organisasi," Mataram, Jun. 2022.
[23] S. Durdyev and M. R. Hosseini, "Causes of delays on construction projects: a comprehensive list," International Journal of Managing Projects in Business, vol. 13, no. 1, pp. 20–46, Apr. 2019, doi: 10.1108/IJMPB-09-2018-0178.
[24] A. A. Fashina, M. A. Omar, A. A. Sheikh, and F. F. Fakunle, "Exploring the significant factors that influence delays in construction projects in Hargeisa," Heliyon, vol. 7, no. 4, p. e06826, Apr. 2021, doi: 10.1016/j.heliyon.2021.e06826.
[25] B. Lee, C. Lee, I. Choi, and J. Kim, "Analyzing Determinants of Job Satisfaction Based on Two-Factor Theory," Sustainability, vol. 14, no. 19, p. 12557, Oct. 2022, doi: 10.3390/su141912557.
[26] I. Mardanov, "Intrinsic and extrinsic motivation, organizational context, employee contentment, job satisfaction, performance and intention to stay," Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 9, no. 3, pp. 223–240, Jul. 2021, doi: 10.1108/EBHRM-02-2020-0018.
[27] A. A. Tabassi, M. Ramli, and A. H. A. Bakar, "Effects of training and motivation practices on teamwork improvement and task efficiency: The case of construction firms," International Journal of Project Management, vol. 30, no. 2, pp. 213–224, Feb. 2012, doi: 10.1016/j.ijproman.2011.05.009.
[28] E. Suryani, S. Wahyulina, and S. A. Hidayati, "Analisis dan Identifikasi Hygiene Factors dan Pengaruhnya terhadap Kepuasan Kerja pada Mitra Kerja PT. PLN UIP Nusa Tenggara," Jurnal Sosial Ekonomi dan Humaniora, vol. 6, no. 1, pp. 78–86, Jun. 2020, doi: 10.29303/jseh.v6i1.77.
[29] A. Kazaz, E. Manisali, and S. Ulubeyli, "Effect of Basic Motivational Factors on Construction Workforce Productivity in Turkey (Pagrindinių Motyvacijos Veiksnių Įtaka Statybos Produktyvumui Turkijoje)," Journal of Civil Engineering and Management, vol. 14, no. 2, pp. 95–106, Jun. 2008, doi: 10.3846/1392-3730.2008.14.4.
[30] I. Lukman, D. Hastuti, Asbah, Iskandar, and A. A. Gani, "Identification of hygiene factor in the working environment at Owned State Electrical Company of Mataram City," IOP Conf Ser Earth Environ Sci, vol. 413, no. 1, p. 012024, Jan. 2020, doi: 10.1088/1755-1315/413/1/012024.
[31] B. L. Holston-Okae and R. J. Mushi, "Employee Turnover in the Hospitality Industry using Herzberg’s Two Factor Motivation-Hygiene Theory," International Journal of Academic Research in Business and Social Sciences, vol. 8, no. 1, Feb. 2018, doi: 10.6007/IJARBSS/v8-i1/3805.
[32] H. Van Pham and H. T. H. Nguyen, "The effect of motivation and hygiene factors on employees’ work motivation in textile and apparel enterprises," Management Science Letters, pp. 2837–2844, 2020, doi: 10.5267/j.msl.2020.4.025.
[33] S. Jarupathirun and M. De Gennaro, "Factors of Work Satisfaction and Their Influence on Employee Turnover in Bangkok, Thailand," International Journal of Technology, vol. 9, no. 7, p. 1460, Dec. 2018, doi: 10.14716/ijtech.v9i7.1650.
[34] C. B. Nelson, K. Zivin, H. Walters, D. Ganoczy, S. MacDermid Wadsworth, and M. Valenstein, "Factors Associated With Civilian Employment, Work Satisfaction, and Performance Among National Guard Members," Psychiatric Services, vol. 66, no. 12, pp. 1318–1325, Dec. 2015, doi: 10.1176/appi.ps.201400334.
[35] M. Ibrahim, "Analysis of work satisfaction on work achievement of employees Indonesian local government," International Journal of Advanced and Applied Sciences, vol. 6, no. 8, pp. 39–44, Aug. 2019, doi: 10.21833/ijaas.2019.08.006.
[36] A. Pinayungan Dongoran, Nazaruddin, and R. Purnomo Wibowo, "Analysis of effect of leadership style, work motivation and work ability to employee satisfaction in increasing performance of harvesters," in IOP Conference Series: Materials Science and Engineering, May 2020, p. 012073, doi: 10.1088/1757-899X/801/1/012073.
[37] B. Xiong, M. Skitmore, and B. Xia, "A critical review of structural equation modeling applications in construction research," Automation in Construction, vol. 49, pp. 59–70, Jan. 2015, doi: 10.1016/j.autcon.2014.09.006.
[38] D. Sakaria, S. M. Maat, and M. E. E. Mohd Matore, "Examining the Optimal Choice of SEM Statistical Software Packages for Sustainable Mathematics Education: A Systematic Review," Sustainability, vol. 15, no. 4, p. 3209, Feb. 2023, doi: 10.3390/su15043209.
[39] H. A. Halepota, "Motivational Theories and Their Application in Construction," Cost Engineering, vol. 47, no. 3, pp. 14–18, Mar. 2005.
[40] A. H. Memon, S. H. Khahro, N. A. Memon, Z. A. Memon, and A. Mustafa, "Relationship between Job Satisfaction and Employee Performance in the Construction Industry of Pakistan," Sustainability, vol. 15, no. 11, p. 8699, May 2023, doi: 10.3390/su15118699.
[41] C. Fornell and D. F. Larcker, "Evaluating Structural Equation Models with Unobservable Variables and Measurement Error," Journal of Marketing Research, vol. 18, no. 1, p. 39, Feb. 1981, doi: 10.2307/3151312.
[42] J. F. Hair, C. M. Ringle, and M. Sarstedt, "PLS-SEM: Indeed a Silver Bullet," Journal of Marketing Theory and Practice, vol. 19, no. 2, pp. 139–152, Apr. 2011, doi: 10.2753/MTP1069-6679190202.
[43] I. Ghozali and H. Latan, Partial Least Squares Konsep Teknik dan Aplikasi dengan Program Smart PLS 3.0. Semarang: Universitas Diponegoro Semarang, 2015.
[44] Z. M. Thant and Y. Chang, "Determinants of Public Employee Job Satisfaction in Myanmar: Focus on Herzberg’s Two Factor Theory," Public Organization Review, vol. 21, no. 1, pp. 157–175, Mar. 2021, doi: 10.1007/s11115-020-00481-6.
Article Sidebar
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors' Retention of Copyright
Authors retain the copyright of their original work published in Jurnal Optimasi Sistem Industri (JOSI). By submitting their manuscript to the journal, authors grant Jurnal Optimasi Sistem Industri (JOSI) a non-exclusive license to publish the work under the CC BY-NC-SA 4.0 International License. This means that others are permitted to:
- Share and adapt the work for non-commercial purposes, provided proper attribution is given to the original authors and source.
- Create derivative works based on the original article, as long as the new work is non-commercial and under the same CC BY-NC-SA 4.0 International License.
Non-Commercial Usage
The CC BY-NC-SA 4.0 International License restricts commercial use of the published work and its derivatives. Commercial use includes generating revenue, financial gain, or any form of commercial exploitation. This limitation aims to preserve the scholarly and educational nature of the content.
ShareAlike Requirement
If you remix, adapt, or build upon the work, you must distribute your contributions under the same CC BY-NC-SA 4.0 International License as the original work. This "ShareAlike" requirement ensures that any new works based on the original content adhere to the same non-commercial, share-alike principles.
Usage, Attribution, and Citations
Authors and readers are allowed to:
- Share and distribute the published article in any medium or format.
- Adapt, remix, transform, and build upon the article for non-commercial purposes.
- Provide appropriate attribution to the original authors and the journal.
When using content from Jurnal Optimasi Sistem Industri (JOSI), proper attribution must be provided through citation of the original source and authors.
Copyright Infringement and Ethical Considerations
If you believe that any material published in Jurnal Optimasi Sistem Industri (JOSI) infringes upon your copyright or the copyright of someone you represent, please contact the editorial team promptly. The journal is committed to addressing copyright concerns in accordance with established ethical guidelines set forth by the Committee on Publication Ethics (COPE).
For any questions or inquiries related to copyright and licensing, please contact the editorial team at editor_josi[at]eng.unand.ac.id.