Is information quality a key factor in improving competitive advantages and performance of engineering, procurement and construction companies?
Economic Annals-ХХI: Volume 188, Issue 3-4, Pages: 118-126
Citation information:
Budinorman, Ya., Mulyani, S., Sukmadilaga, C., & Winarningsih, S. (2021). Is information quality a key factor in improving competitive advantages and performance of engineering, procurement and construction companies? Economic Annals-XXI, 188(3-4), 118-126. doi: https://doi.org/10.21003/ea.V188-14
Yanuar Budinorman
PhD Student (Accounting),
Universitas Padjadjaran
Jl. Raya Bandung Sumedang KM. 21, Hegarmanah,
Jatinangor, Kabupaten Sumedang, Jawa Barat, 45363, Indonesia
yanuar@rekayasa.co.id
Sri Mulyani
PhD (Accounting),
Professor,
Universitas Padjadjaran
Jl. Raya Bandung Sumedang KM. 21, Hegarmanah,
Jatinangor, Kabupaten Sumedang, Jawa Barat, 45363, Indonesia
Rector,
Universitas Singaperbangsa Karawang
sri.mulyani@unsika.ac.id;
sri.mulyani@unpad.ac.id
ORCID ID: https://orcid.org/0000-0001-6744-8991
Citra Sukmadilaga
Lecturer,
Economic and Business Faculty,
Universitas Padjadjaran
Jl. Raya Bandung Sumedang KM. 21, Hegarmanah,
Jatinangor, Kabupaten Sumedang, Jawa Barat, 45363, Indonesia
citra.sukmadilaga@unpad.ac.id
ORCID ID: https://orcid.org/0000-0003-3172-3407
Srihadi Winarningsih
Lecturer,
Economic and Business Faculty,
Universitas Padjadjaran
Jl. Raya Bandung Sumedang KM. 21, Hegarmanah,
Jatinangor, Kabupaten Sumedang, Jawa Barat, 45363, Indonesia
srihadi.winarningsih@unpad.ac.id
ORCID ID: https://orcid.org/0000-0002-6856-377X
Is information quality a key factor in improving competitive advantages and performance of engineering, procurement and construction companies?
Abstract. The study examines the effect of information quality on competitive advantage and company performance. This is a survey study conducted in engineering, procurement and construction (EPC) companies in Indonesia throughout the year 2020. Out of 189 questionnaires submitted to 63 EPC companies, 96 questionnaires from 49 companies were returned and processed.
The unit of analysis is the organization, and the directors of the company are the respondents. The research instrument was built based on the operationalisation of variables developed by previous research. The research results are explained descriptively and verified by using structural equation modelling (SEM). The data were processed with the use of the LISREL 8.8 statistical software.
The results showed that information quality had a significant positive effect on the company’s competitive advantage, but did not have a significant effect on the company’s performance. Information quality can have a positive impact on the company’s performance when mediated by the company’s competitive advantage. Other findings show that the company’s competitive advantage has a significant impact on its performance. The findings indicate that EPC companies in Indonesia need information quality to create corporate excellence. A competitive advantage can also improve the company’s performance. EPC companies should invest heavily in IT, because information quality is the biggest determining factor in increasing their competitive advantage and performance, particularly as the application of artificial intelligence technology can be an alternative solution in the increasing competitiveness with the global EPC firms.
Keywords: Information Quality; Competitive Advantage; Company Performance; EPC Companies
JEL Classifications: G19; L15
Acknowledgements and Funding: The authors received no direct funding for this research.
Contribution: The authors contributed equally to this work.
Data Availability Statement: The dataset is available from the authors upon request.
DOI: https://doi.org/10.21003/ea.V188-14
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Received 7.02.2021
Received in revised form 27.03.2021
Accepted 30.03.2021
Available online 10.05.2021