Gaining a competitive advantage through strategic human resource management in Indonesian construction industry

Abstract

This research was conducted to test the model of strategic human resource management as a competitive advantage in the construction industry specially to identify factors related to achieving competitive advantage in this industry. The empirical data were drawn from 174 construction companies in Indonesia using questionnaire method. Structural Equation Modeling techniques was used to analyze the conceptualized relationship model. The empirical results reveal that competitive advantage in the construction industry in Indonesia could be achieved through human resource management practices to build and improve a safety culture which would increase employee productivity. Companies must integrate human resource management practices with safety culture as a priority strategy of the company since based on empirical result, safety culture can be a source of competitive advantage for construction companies in Indonesia. Future studies can use these strategic human resource management models in different industry sectors by adding a number of samples so that the results could be generalized.