The Determinants of Core Competitiveness Toward Firm Performance of Construction Enterprises in Kunming, the People's Republic of China

Abstract

The purpose of this study was 1) To study the importance level of factor conditions, demand conditions, government, firm strategy, structure, rivalry, related and supporting industries, and chance events of construction enterprises in Kunming, and 2) To analyze determinants of core competitiveness toward the firm performance of construction enterprises in Kunming, The People's Republic of China. It is quantitative research. The sample consisted of 400 enterprise owners registered with the Kunming City Commercial Office, China, in 2023. The research tool is an online questionnaire. Collect data through websites, WeChat, and applications. Data were analyzed by descriptive statistics, including mean and standard deviation. Inferential statistics were analyzed with Multiple Regression by Enter Selection.

The results showed that all factors were very high important. It should be arranged from the very high important to the least important. including supplier power (3.90), threat of new entry (3.88), buyer power (3.87), firm performance (3.85), competitive rivalry (3.80) and threat of substitution (3.78). The result of the effect of supplier power had a direct effect on firm performance, with a path coefficient equal to 0.509, followed by the threat of new entry had a direct effect on firm performance, with a path coefficient equal to 0.297, competitive rivalry had a direct effect on firm performance, with a path coefficient equal to 0.089, threat of substitution had a direct effect on firm performance, with a path coefficient equal to 0.079, and Lastly, buyer power entry had a direct effect on firm performance, with a path coefficient equal to 0.071. Except for the threat of new entry, which had a direct effect on firm performance with a path coefficient equal to 0.297, none of the other variables were statistically significant at the 0.10 level.

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