IMPROVING QUALITY MANAGEMENT SYSTEM

IMPLEMENTATION IN INDONESIAN
CONSTRUCTION COMPANIES




By

Debby Willar
S.T. (Civil), MEngSc (Project Management)



A thesis submitted to Queensland University of Technology
in fulfilment of the requirements of a

Doctor of Philosophy




School of Civil Engineering and Built Environment
Science and Engineering Faculty

2012

ii

STATEMENT OF ORIGINAL AUTHORSHIP

The work contained in this thesis has not been previously submitted to meet
requirements for an award at this or any other higher education institution. To the
best of my knowledge and belief, the thesis contains no material previously published
or written by another person except where due reference is made."


Signature:





















Date: 09/07/2012
iii

ACKNOWLEDGEMENT

Praise the LORD, Who, in His infinite mercy, guided me to the completion of this
PhD thesis. I will praise You, O LORD, with my whole heart; I will tell of all Your
marvelous works. (Psalm 9:1).

I would like to express my deepest gratitude for the patience, understanding,
knowledgeable guidance and constant support of my principal supervisor, Dr
Vaughan Coffey, and my associate supervisor, Associate Professor Dr Bambang
Trigunarsyah of Queensland University of Technology. Their insights and advice
have been vital and sharp towards completing this thesis.

I am truly grateful to the Directorate General of Higher Education of the Ministry of
Education and Culture of the Republic of Indonesia, in sponsoring this study.
Appreciation and thanks are also acknowledged to Mr. Tri Djoko Waluyo (the
Secretary of Agency for Construction Development, the Ministry of Public Works),
Mr. H.M. Malkan Amin (the National Construction Services Development Board-
NCSDB), Ir. Panguriseng (the CSDB South Sulawesi), and Mr. Nico Ranti (the
CSDB North Sulawesi), for their support and cooperation during the period of my
candidature.

Thanks are also extended to my fellow colleagues and friends at the Manado State
Polytechnic, Ir. Chris Hombokau, M.T. and Jerry Lintong, S.E.Ak., at the Ujung
Pandang State Polytechnic, Ir. Muhammad Taufan, all of whom helped and provided
strong support during the activities of data collection. I would also like to thank Dr
John Schiller of the University of Queensland, for the final proof reading of this
thesis.

Last but not least, my heartiest thanks and love to my mother, husband - Frankie, and
daughters - Esther and Jessie, who have given me continuous support throughout this
journey.

Debby Willar
Brisbane, July 2012
iv

ABSTRACT

As the Indonesian construction industry is now promising to become the engine of
national economic development, achieving quality and higher performance, not only
domestically but also in the international market, are becoming crucial issues.
Implementing quality management systems (QMSs) based on ISO 9001 are
important in helping Indonesian construction companies become more competitive,
for it is acknowledged that quality in construction is a major concern in the global
construction industry. However, the possession of ISO 9001 certification does not
reflect the presence of a well-operated QMS, which is capable of giving customer
and project end-users satisfaction.

The review of literature found that there is a significant correlation between a
companys organisational culture and the quality performance of contractors. While
research into this area has involved many researchers, there is no critical mass of
information specifically related to the Indonesian situation. Studies based on
contemporary perspectives of the characteristics of the Indonesian construction
organisational culture using Cameron and Quinns Organizational Culture
Assessment Instrument (OCAI) and its relationship with the contractors ISO 9001
practices, have not been previously undertaken. This thesis research, therefore,
investigated the culture profiles in Indonesian construction organisations, together
with the current implementation of ISO 9001 and their performance during
implementing QMSs, as information in these areas has a bearing on the poor
performance and low levels of competitiveness of Indonesian construction
companies.

Questionnaire surveys were distributed to selected representative grade 7 civil
engineering contractors located in the two provincial capitals of Makassar and
Manado, and the national capital, Jakarta, in order to collect responses designed to
examine the effectiveness of their QMSs implementation. The survey also aimed to
identify current problems within the systems, and examine the performance of
companies while implementing their QMSs. The questionnaire contained questions
to assess the organisational culture profiles of Indonesian construction companies,
adopting the OCAI. The survey results were then used to analyse the influence of
different organisational culture profiles on QMSs implementation among respondent
companies. The results from the questionnaire survey supported the development of
a Culture-based Quality Management System Improvement Implementation
Framework, designed to help Indonesian construction companies identify some
typical barriers associated with impacting on effective QMSs implementation; to
assist them to develop cultural values that can drive effective QMSs implementation;
to undertake effective QMSs practices; and to recognise the potential results and
longer-term benefits obtainable from implementing effective QMSs. A Focus Group
Discussion was conducted with the assistance of a panel of professional construction
v

practitioners, policy makers and academic experts, which further considered and
validated the usefulness and applicability of the framework. Based on the outcome
from this discussion and on the results of the earlier data analysis, a final version of
the framework was developed to assist Indonesian construction companies in
improving their capability of construction project delivery, and thereby contribute to
providing or improving the competitive advantage of Indonesian construction
companies in the local, national and global construction market.

Keywords: Quality Management System, Organizational Culture Assessment
Instrument, construction company, Indonesia.






















vi

TABLE OF CONTENTS

STATEMENT OF ORIGINAL AUTHORSHIP ii
ACKNOWLEDGEMENT iii
ABSTRACT iv
TABLE OF CONTENTS vi
LIST OF TABLES ix
LIST OF FIGURES xi
LIST OF ABBREVIATIONS xiii

CHAPTER 1
INTRODUCTION
1.1 Problem Statement 1
1.2 Research Aim and Objectives 7
1.3 Research Significance 9
1.4 Methodology Approach 11
1.5 Thesis Organisation 13

CHAPTER 2
QUALITY MANAGEMENT SYSTEM AND ORGANISATIONAL
CULTURE IN CONSTRUCTION

2.1 Introduction 15
2.2 Quality Management Systems in Construction 16
2.2.1 Quality Defined in Construction 16
2.2.2 ISO 9001 Standard 20
2.2.3 The Effectiveness of Implementing a Quality Management
System
27
2.2.4 Barriers to Implementing Quality Management Systems 31
2.3 The Existing Use of the ISO 9001 Standard in Indonesian Construction
Companies
35
2.4 Organisational Culture in the Construction Industry 46
2.4.1 Concepts of Organisational Culture 46
2.4.2 The Competing Values Framework 48
2.5 The Culture-based Quality Management System 56
2.5.1 Culture Change 56
2.5.2 Relationship between Organisational Culture and Quality
Management System Practices in Construction Companies
59
2.5.3 Construction Organisation Performance Measurement 64
2.6 Research Gaps 68
2.7 Summary 69



vii

CHAPTER 3
RESEARCH DESIGN
3.1 Introduction 71
3.2 Research Plan 72
3.3 Selection of Research Methods 78
3.3.1 Questionnaire Design 81
3.3.2 Sample Design 89
3.3.3 Preliminary Studies 92
3.3.4 Questionnaire Survey 99
3.3.5 Focus Group Discussion 103
3.4 Summary 107

CHAPTER 4
INDONESIAN CONTRACTORS QUALITY MANAGEMENT SYSTEM
AND ORGANISATIONAL CULTURE

4.1 Introduction 108
4.2 Profiles of Respondents 109
4.3 Current Quality Management System Implementation 112
4.3.1 Development of Quality Management Systems 113
4.3.2 Levels of Quality Management System Implementation 118
4.3.3 Problems Affecting Effective Quality Management System
Implementation
121
4.3.4 Key Performance Indicators of ISO 9001 Certified Contractors 123
4.4 Contractors Organisational Culture Profiles 124
4.4.1 Overall Dominant Organisational Culture Types 125
4.4.2 Dominant Types of Six Cultural Dimensions 127
4.5 Examination of the Theoretical Framework 130
4.5.1 Sets of Meaningful Quality Management System Variables 130
4.5.2 Relationships among Quality Management System and
Organisational Culture Variables
136
4.6 Discussion of Results 144
4.7 Summary 157

CHAPTER 5
CULTURE-BASED QUALITY MANAGEMENT SYSTEM
IMPROVEMENT IMPLEMENTATION FRAMEWORK

5.1 Introduction 160
5.2 Development of a Framework 160
5.2.1 Types of Organisational Culture 161
5.2.2 Construction of Framework Components 165
5.3 Evaluation and Validation of Framework 167
5.3.1 Composition of the Panel Group 167
5.3.2 Analysis and Results 171
5.4 Discussion of Results 185
viii

5.5 The Framework 190
5.6 Summary 209

CHAPTER 6
CONCLUSIONS
6.1 Conclusions 210
6.2 Research Contributions 213
6.3 Limitations and Recommendations for Future Research 215

REFERENCES 218

APPENDIX A - Sample of Questionnaire 235
APPENDIX B - Sample of Focus Group Discussion Protocol 254
APPENDIX C - Results of Preliminary Studies 258
APPENDIX D - Summary of Statistical Data Analysis (Tables) 264
APPENDIX E - Summary of Statistical Data Analysis (Figures) 275
APPENDIX F - Summary of Organisational Culture Profiles 277
APPENDIX G - List of Publications 282















ix

LIST OF TABLES

Table 2.1 Summary of the Twenty Elements of ISO 9001 Standard 22
Table 2.2 Matrix of the Five Clauses and Eight Management Principles
of ISO 9001 Standard
25
Table 2.3 Matrix of the Incorporation of the Twenty Elements with Five
Clauses of ISO 9001 Standard
26
Table 2.4 Benefits of Applying ISO 9001 in Construction Organisations 30
Table 2.5 The Appicability of the Competing Values Framework Model
to Organisational Typologies
52
Table 2.6 OCAI Traits and Typologies 55
Table 3.1 Integration of Research Methods and Research Objectives
with Expected Outcomes
80
Table 3.2 Construction and Development of Questionnaire 84
Table 3.3 Sample Size for 5%, 7% and 10% Precision Levels, a
Confidence Level of 95% and P= .05
91
Table 4.1 Individual Respondents Levels 110
Table 4.2 Individual Respondents Work Experience 110
Table 4.3 Companies First Certified Under ISO 9001 111
Table 4.4 Companies Ownership 111
Table 4.5 Company Age 112
Table 4.6 Major Companies Client 112
Table 4.7 Use of Consultants Assistance for QMS Development 113
Table 4.8 Opinions of Consultant Roles 114
Table 4.9 Level of Consultant Roles 114
Table 4.10 Approaches in Developing QMS Documentation 115
Table 4.11 Length of Time for ISO 9001 Certification 116
Table 4.12 Initial Motivation of Companies in Applying for ISO 9001
Certification (N=340)
117
Table 4.13 Company Implementation Levels of ISO 9001 Principles
(N=403)
119


x

Table 4.14 ANOVA Results: Significant Group Response for
Implementation Level of ISO 9001 Principles
119
Table 4.15 Company Implementation Level of ISO 9001 Elements
(N=403)
120
Table 4.16 ANOVA Results: Significant Group Responses for
Implementation Level of ISO 9001 Elements
121
Table 4.17 Barriers to the Effective Quality Management System
Practices (N=403)
122
Table 4.18 Contractors Key Performance Indicators (N=403) 123
Table 4.19 Dominant Culture Types of Indonesian Construction
Organisational Culture
126
Table 4.20 Dominant Culture Types of Six Cultural Dimensions 129
Table 4.21 Principal Component Analysis Results for the QMS Variables
(N=403)
133
Table 4.22 Reliability of Internal Consistency (N=403) 134
Table 4.23 Descriptive Analysis of QMS Factors (N=77) 136
Table 4.24 Pearsons rho Correlation Matrix (N=77) 139
Table 4.25 ANOVA Results: QMS Practices on the Six Cultural
Dimensions
141
Table 4.26 Pairwise Comparisons in the Six Cultural Dimensions of QMS
Practices between the Four Culture Types
141
Table 5.1 Applicability of Hierarchy-Market Culture in Four
Organisational Areas
163
Table 5.2 Invited and Agreed Focus Group Panellists 168








xi

LIST OF FIGURES

Figure 1.1 Overview of Research Approach 11
Figure 1.2 Three Locations of Respondents 13
Figure 2.1 Illustration of Relationship of QMS and TQM 19
Figure 2.2 An Effective Companys QMS Complies with ISO 9001
Principles and Elements
28
Figure 2.3 ISO 9001 Process Model 29
Figure 2.4 The Competing Values Framework 49
Figure 2.5 Culture-based TQM Implementation Strategies 61
Figure 3.1 Overall Research Plan 73
Figure 3.2 Schematic Diagram for Theoretical Framework for
Organisational Culture and Quality Management System
Implementation
76
Figure 3.3 Back-translation Technique for Survey Questionnaire 82
Figure 3.4 Approach of Questionnaire Survey 100
Figure 3.5 Obtaining Best Practices and Consensus for the Framework
Refinement
106
Figure 4.1 Dominant Clan Type of a Construction Organisational Culture 125
Figure 4.2 An Example of Contractor Culture Profiles 128
Figure 4.3 Main Variables and their Relationships in the Theoretical
Framework
138
Figure 4.4 Regression Weights from a Structural Equation Model of the
Theoretical Framework
143
Figure 5.1 The Applicability Model of Hierarchy-Market Culture 162
Figure 5.2 Flow of Culture Change 165
Figure 5.3 Generic Integrated Framework for Culture-based Quality
Management System Improvement Implementation
191
Figure 5.4 Framework 1: Culture Change in Construction Organisation 193
Figure 5.5 Framework 2: Quality Audits Improvement 195
Figure 5.6 Framework 3: Servicing Improvement 197
Figure 5.7 Framework 4: Control of Quality Records Improvement 198
Figure 5.8 Framework 5: Training and Development Improvement 200
xii

Figure 5.9 Framework 6: Verification of Product Realization
Improvement
201
Figure 5.10 Framework 7: Quality Management and Quality System
Improvement
203
Figure 5.11 Framework 8: Process Approach Improvement 205
Figure 5.12 Framework 9: Improvement of Continual Improvement 207
Figure 5.13 Framework 10: Improvement of Factual Approach to Decision
Making
208





















xiii

LIST OF ABBREVIATIONS

AFTA : ASEAN Free Trade Area
ANOVA : Analysis of Variance
APBN : Anggaran Pendapatan dan Belanja Negara
APEC : Asia-Pacific Economic Cooperation
ASEAN : Association of Southeast Asian Nations
BAPEKIN : Badan Pembinaan Konstruksi dan Investasi
BPKSDM Badan Pembinaan Konstruksi dan Sumber Daya Manusia
BSC : Balanced Scorecard
BSI : British Standards Institute
CBPP-KPI : Construction Best Practice Program - Key Performance
Indicators
CCN : Corruption-Collusion and Nepotism
CI : Confidence Interval
CVF : Competing Values Framework
DIS : Draft International Standard
EFQM EM : European Foundation for Quality Management Excellence
Model
FGD : Focus Group Discussion
FIDIC : Federation Internationale des Ingenieurs-Conseils
G-7 : Grade 7
GAPEKSINDO : Gabungan Pengusaha Konstruksi Indonesia
GCG : Good Corporate Governance
GDP : Gross Domestic Product
HR Human Resources
ICA : Indonesian Contractors Association
ISO : International Organization for Standardization
KMO : Kaiser-Meyer-Olkin
KPI : Key Performance Indicator
LoI : Level of Implementation
LoB : Level of Barriers
LoKPI : Level of Key Performance Indicator
xiv

LPJK : Lembaga Pengembangan Jasa Konstruksi
NCAI : National Contractors Association of Indonesia
NCSDB : National Construction Services Development Board
OCAI : Organizational Culture Assessment Instrument
PCA : Principal Component Analysis
QA : Quality Assurance
QHSE : Quality, Health, Safety and Environment
QMR : Quality Management Representative
QMS : Quality Management System
R&D : Research and Development
SD : Standard Deviation
SEM : Structural Equation Modelling
SNI : Standar Nasional Indonesia
SPSS : Satistical Package for Social Science
TQM : Total Quality Management















1

CHAPTER 1
INTRODUCTION


1.1 Problem Statement

The construction industry globally is one of the largest contributors to Gross
Domestic Product (GDP), as well as playing an important role in determining a
countrys economic growth. According to Betts et al. (2011) in their written report on
global forecasts for the construction industry over the decade 2011 to 2020, it was
observed that this sector currently accounts for more than 11% of global GDP and it
is estimated that by 2020 it will account for 13.2% of the worlds GDP. Indonesia, is
categorised as one of the emerging markets in the Asia Pacific Region, and is one of
seven countries (the others being China, India, USA, Canada, Russia and Australia),
that it is predicted will account for 65% of growth in global construction by 2020
(ibid 2011).

Since the early 1970s, the construction sector has been one of the main economic
indicators to show continuous and gradual growth of the Indonesian economy. This
sector accounted for 10.19% of GDP in 2011 (Central Bureau of Statistics 2012).
Planning activities in the construction sector in Indonesia are estimated to have
provided direct employment for around 5 million people, with this figure increasing
to around 10 million during project execution stages (LPJK 2007). It has been
reported that in the first-quarter of 2011, the construction industry workforce in
Indonesia was about 5.58 million, making it one of the largest employment sectors in
the Indonesian economy (Central Bureau of Statistics 2011).

The Ministry of Finance reported that the Ministry of Public Works of Indonesia was
allocated around 36.09 IDR trillion in 2010, 56.52 IDR trillion in 2011, and 62.56
IDR trillion in 2012 (The Presidential Unit of Monitoring and Control 2012) within
the national budget (APBN) specifically for infrastructure development, most of
which was for bridge construction and road maintenance. The Ministry of Public
2

Works received the third largest national budget allocation in each of the three years
from 2010 to 2012.

Construction project activity in Indonesia has increased significantly in recent years,
reflecting the combination of government financing for infrastructure facilities and
private sector investment in housing and property development. Considering this
huge budget allocation for Indonesian infrastructure projects, the National
Construction Services Development Board (NCSDB) has established policy support
guidelines for the Indonesian construction industry for the period 2007 2030. These
policy support guidelines cover the following areas:
a) establishment of a strong, reliable, and competent Indonesian construction
industry, capable of providing quality, useable, and sustainable construction
products;
b) creation of added value for society through sustainability, professionalism,
synergy and competitiveness in the construction industry; and
c) promotion of better business ethics, efficient processes and proven quality of
construction products, while conserving the environment (Suraji, Krisnandar and
Mulyo 2007).

Given the emerging prospects of the Indonesian construction industry to become the
engine of national economic development, as well as adding value to social and
cultural development and conservation of the environment, Indonesian construction
companies are still unfortunately plagued by low competitiveness (Pamulu 2010).
The lack of competitiveness of domestic contractors when competing for contracts
with foreign companies, both at national and international levels, is mainly attributed
to their poor performance and inability to adapt to change, high execution costs,
project delays, low levels of efficiency, low productivity, and conflict among
involved parties (Budiwibowo et al. 2009; Larasati and Tsunemi 2009). These
challenges and constraints have resulted in many Indonesian contractors not being
able to capitalise on development and contractual opportunities due to their not being
capable of attaining higher levels of performance (ibid 2010). At the same time, there
has in recent years been a significant increase in the number of foreign companies
competing for contractual opportunities in Indonesia, while a very small number of
3

large-scale Indonesian contractors are operating in an international market
(Widjajanto, Pribadi and Suraji 2011).

In comparison with Indonesia, in Hong Kong, the great majority of national
construction work is are done by local contractors, although there has been not much
export of Hong Kong construction companies overseas (Anson et al. 2009). As
reported by the Singaporean Building and Construction Authority, 43 Singapore
construction and engineering companies have been successful in getting contracts in
32 localities since 2008 (Susilo 2009). Likewise, the involvement of Malaysian
construction companies in the global construction market since 2008 has resulted in
them securing 40 projects in foreign countries in 2008, 23 projects in 2010, and 19 in
2011. In addition, Malaysian contractors also dominate the Malaysian domestic
market, particularly for building construction (Shaffii 2010; Karib 2011).

Sudarto et al. (2008) report that, within Indonesia, market related issues including
customer satisfaction rate, competition between companies, and constraints in
capturing market interest, are major factors contributing to the poor performance of
Indonesian construction companies when competing for contracts with constructors
from other South-East Asian countries. This situation is exacerbated with China
being particularly competitive and securing contracts for international projects in
countries in the Middle East, as well as in the free-trade market country groupings of
ASEAN Free Trade Area (AFTA) and Asia-Pacific Economic Cooperation (APEC).

The results of a survey of quality in construction by the Federation Internationale des
Ingenieurs-Conseils (FIDIC), has clearly indicated that the failure in construction
quality is a problem worldwide (Rumane 2011). In the light of such reports and also
due to the local shortfalls described before, the Government of Indonesia in order for
its construction industry to become more competitive, has enacted specific
regulations relating to the application and implementation of quality management
systems (QMSs), acknowledging that quality in construction is a major concern in
the global construction industry. The implementation of QMSs has become more
widespread in the Indonesian construction industry since the quality of civil
engineering project work became an issue of concern to the Government, contractors,
consultants, project customers and end-users. Quality management systems are
4

becoming increasingly important to customers, who have developed a growing
aspiration to engage qualified and professional construction companies, capable of
meeting their specification requirements, and capable of giving better customer
satisfaction. Quality management in the construction industry is different from that in
manufacturing or other service industries, as in the construction industry it
encompasses not only the quality of products, but also the total management
approach to meet a defined purpose provided by clients (Rumane 2011).

The quality management systems (QMSs) currently being implemented by the G-7
(the highest grade of Indonesian contractor qualification) contractors and builders,
are based on the ISO 9001 standard. Though the ISO 9001 standard is sometimes
criticized in terms of its ability to assist construction companies in operating quality
procedures and producing quality products, ISO 9001-based QMSs have been widely
adopted in the global construction arena (Chini and Valdez 2003; Turk 2006;
Lordsleem, Duarte and Barkokbas 2010; Watson and Howarth 2011). Holding a
valid ISO 9001 certification is a requirement for construction companies that wish to
be registered in the G-7 category, as well as for companies wishing to tender for
government projects with a value above USD 100,000.

However, the mere existence of quality documentation, such as quality plans,
procedures and work instructions, in company head offices, does not necessarily
reflect the presence of deep-rooted operational practices and procedures needed for
ensuring the ultimate delivery of a well-operated QMS, capable of giving customer
satisfaction in line with the espoused values of ISO 9001. Project owners and end-
users often lodge complaints to local government agencies relating to the poor
quality of products and project outcomes from Indonesian constructors, some of
which are reported in Indonesian newspapers (Pontianak Post Online 2006; Radar
Banten 2007; Ombudsman-Asahan 2008; Media Online Finroll 2009; Komentar
Newspaper 2009).

In addition, there still appears to be doubt within many Indonesian construction
companies, with regard to the whole concept of quality management and QMSs
implementation. Some construction companies and builders try to obtain ISO 9001
certification solely based on a desire to be included on clients tendering lists, and to
5

follow the trends of other companies, rather than having any real company objective
to improve processes, or to satisfy customers with improved project outcomes.

To cope with such problems, the Ministry of Public Works in cooperation with the
National Construction Services Development Board (NCSDB) has been conducting
seminars and human-resource training focused on quality awareness themes, to help
motivate local and national contractors to properly implement ISO 9001 certified
QMS (Sudaryono 2006; Andi and Chandra 2007). In 2005, the NCSDB released
Guidelines for Quality Management Implementation (ISO 9001:2000) for
Construction and Consultant Services, in order to assist construction companies in
the planning and implementation of QMSs, and with the establishment of related
quality documentation. However, despite these efforts, there has been little positive
evidence of improved quality output (ibid 2007) and, rather it has been
acknowledged that there needs to be further support for an improvement in strategies
for improving the quality performance of Indonesian construction companies
(Sudarto et al. 2008). Questions which have also been raised in relation to this issue
include the following:
Why does the work undertaken by ISO 9001 certified Indonesian contractors
fail to satisfy most customers?
What are the barriers faced by Indonesian construction companies when
implementing QMSs, and how can these barriers be removed and project
outcomes be significantly and continuously improved?
Why do ISO 9001 certified construction companies fail to capture potentially
lucrative construction market opportunities?

The holding of an ISO 9001 certificate does not mean that a company is
implementing an effective QMS, to do that requires a cultural shift. The change from
a culture of building to the lowest quality level and then repairing inevitable
defective work, to a culture of producing rightfirst-time output, is required for the
demonstration of achievement of successful quality system application. Corbett and
Rastrick (2000), Irani, Beskese and Love (2004) and Koh and Low (2008) state that
there is a definite relationship between corporate culture and quality in construction
projects, and in order to support the necessary elements of such a QMS, an
appropriate corporate culture is a prerequisite. This relationship is mutually
6

reinforcing and this means that if the corporate culture is good, the quality system
will be applied appropriately, with the resulting products and services also being
good (ibid 2008).

The cultural factors, which are integrated into organisational management and
policies, also play a major role in determining how effectively construction
companies implement their QMSs. This perspective is equally applicable in the
Indonesian scenario. From the few studies that exist on the subject, it is apparent that
the cultural values which support quality system implementation need to be
internally driven by the management and staff of construction companies. Hence,
with a strong culture that gives an organisation a distinct identity and drives it to
operate effectively (Sai, Wong and Wu 2011), an effective implementation of the
company QMS that also exhibits continuous improvement, is expected. Such a
system should be capable of meeting project owner requirements, and of providing a
high level of customer satisfaction in the area of project delivery.

Considerable research has been conducted into QMS implementation within
construction projects, focusing particularly on its advantages to stakeholders, both
internal and external. However, both globally and specifically within Indonesian
construction industry, there have only been relatively limited studies on whether the
deep-seated organisational cultures of companies influence, and are absorbed into,
the QMS practices, and how these impact on quality system outputs within the
construction sector. The successful implementation of an ISO 9001 certified QMS
requires a total change in organisational focus, even to the extent of adopting a new
type of culture that must be focused on achieving greater customer satisfaction and
improving the operational processes at all levels of the company. Effective QMSs
and a strong corporate culture are mutually bound together, as is evidenced by the
failure of many companies that are not strongly committed to continuous QMS
improvement and ultimate customer satisfaction, being unable to implement quality
practices and achieve quality outcomes, thereby resulting in a lack of high level
competitiveness and organisational performance.


7

1.2 Research Aim and Objectives

The research undertaken within the context of this thesis was aimed at the
development of a comprehensive Culture-based Quality Management System
Improvement Implementation Framework for Indonesian contractors and builders,
suitable for integration into their own company and project quality management
practices, to help them achieve better project quality delivery. By providing a
framework for the effective implementation and continuous improvement of QMSs
by Indonesian construction companies, it is expected that there would be
improvements in customer satisfaction, reflecting the better management and control
being applied to construction projects. Organisations could then be expected to begin
to move towards operating total quality management practices, which should help to
improve their delivery capability of construction projects, and thereby also contribute
to giving these organisations a greater competitive advantage in local, national and
global markets.

In order to achieve the research aim above and address the issues raised in the
previous section, three main questions needed to be addressed:
1. What is the current status of the quality management systems (QMSs) being
implemented by Indonesian construction companies?

Essentially, the identification of the status of QMS implementation in an
organisation involves examining how effective and successful the
implementation of QMS requirements, such as the standards of ISO 9001, is
taking place. The complex nature of construction practices often causes
challenges in the roll-out of QMS at the management and project levels.
These challenges need to be identified in order to take measured actions to
overcome the barriers. Furthermore, the assessment of a companys
performance during implementation of a QMS is also important in order to
evaluate the impact of the quality system on effectiveness of the system,
specifically in the Indonesian context. Therefore, additional research
questions which needed to be addressed included the following:

What are the levels of implementation of the existing QMSs?
8

If there are obstacles to the implementation of QMSs, what are they?
Do the barriers to the implementation of an effective quality
management system significantly relate to the quality management
system practices?

What are the achievements of companies due to implementing the
QMSs?
Do the barriers to the implementation of an effective quality
management system significantly relate to the key performance of
construction companies?
Does the identified presence of quality management system practices
significantly relate to the key performance of construction
companies?

2. What are the organisational culture profiles of Indonesian construction
companies?

As revealed in previous research, organisational culture correlates with, and
affects, the effectiveness and continuous improvement of a companys QMS
implementation. Therefore, an additional research question which needed
also to be addressed was:

How do the organisational culture profiles of Indonesian
construction companies influence their QMSs implementation?

3. How can effective QMSs be properly established, and be effectively
implemented and continuously improved, by Indonesian construction
companies?

A robust culture-based QMS implementation framework for guiding
Indonesian construction companies in developing and implementing effective
and continuously improving QMSs to achieve better bottom-line outcomes,
as well as creating strong organisational cultures, is considered as a pressing
need. Therefore, the responses to Research Questions 1 and 2 can help with
9

the design and development of the framework, and to facilitate the evaluation
of its usefulness.

With reference to the above research questions, the following research objectives
were established, which then became the focus of the research within the context of
this thesis.

1. The examination of the effectiveness of the QMSs being operated in Indonesian
construction companies, including identify current problems within the systems
and the examination of companies performance while implementing their
QMSs.

2. The assessment of the organisational culture profiles of Indonesian construction
companies and an analysis of the influence of different organisational culture
profiles on QMSs implementation.

3. The design and development of a Culture-based Quality Management System
Improvement Implementation Framework for Indonesian construction
companies to effectively implement QMSs, designed to achieve better bottom-
line outcomes, while also facilitating the evaluation of the usefulness and
applicability of such a framework.


1.3 Research Significance

As construction projects usually involve large quantities of resources and many
dynamic processes, achieving high quality is not only end-product based, but also
reflects on the management of interrelated organisational processes. However, the
assessment of the output of construction companies can often be impeded by
different interpretations of quality by the service providers and related parties
involved. As a result, quality deliverables at both management and project levels are
often not as transparent and measurable as promised in project designs and contracts.

10

The research reported in this thesis seeks to identify and address the critical factors
that impact on the gap between quality management and organisational culture, and
the actual realization of such factors within the context of the management of
construction processes and project implementation and achieved outcomes. The
research also aims to facilitate the development of integrated culture-based QMS
framework aimed at improving QMS implementation and performance outcomes in
Indonesian construction companies undertaking infrastructure and building
construction projects both domestically and internationally. The framework is
designed as a guideline and strategic tool for use by G-6 and G-7 Indonesian
contractors and builders to measure and understand their own corporate cultures, and
to successfully prepare, develop and apply more effective QMSs, in order to adopt
more efficient quality processes and practices. It is also expected that the framework
will have a direct impact on the ability of many Indonesian construction companies
and practitioners to enter the international construction contracting market, reflecting
their increased capability due to applying culture-based QMS framework. Finally, it
is anticipated that the framework will facilitate consultation and communication
among construction services providers and decision makers involved in the process
of national infrastructure project delivery, thereby achieving improved quality
outcomes throughout the development project life-cycle and across the management
system. This would also be expected to result in improved construction companys
levels of competitiveness and performance.

This research has also sought to provide a deeper understanding of the existing body
of knowledge with respect to QMS implementation and organisational culture
identification, within the context of construction project management. In addition,
the study aims to enrich the extant literature with a contemporary perspective on the
characteristics of organisational culture and the extent of QMS practices in
Indonesian construction companies, and the relationships between these two.

Finally, the proposed framework was aimed at providing support for introducing ISO
9001 certification of QMSs to a wider base of Indonesian construction companies,
including the small-medium (G-2 to G-5) construction companies, by providing a
better understanding of the Indonesian construction regulations pertaining to QMSs
establishment and implementation (i.e. SNI 19-9001-2001/ISO 9001-2000). The
11

framework will also positively contribute to the establishment of robust benchmarks,
which can be expected to facilitate the Ministry of Public Works in a more
widespread governance of specific policy designed to encounter better QMS
implementation in the Indonesian construction industry.


1.4 Methodology Approach

Based on the research questions and objectives, a mixed methodology of both
quantitative and qualitative approaches was employed to collect the relevant
information associated with the current status of QMS practices and organisational
culture issues, within the Indonesian construction industry. Prior to undertaking the
quantitative questionnaire survey, (mainly applied to accomplish research objectives
1 and 2), a preliminary study was carried out. A qualitative approach (i.e. a focus
group discussion), was used to obtain results to satisfy research objective 3, aimed at
an evaluation and validation of the proposed culture-based QMS improvement
implementation framework by construction company practitioners, policy makers
and academic experts. Each research approach was supplemented by a detailed
analysis and interpretation of the data collected. An overview of the research process
is illustrated in Figure 1.1.



Figure 1.1 Overview of Research Approach

The examination of the effectiveness of the QMSs being operated in
Indonesian construction companies, including identify current
problems within the systems and the examination of companies
performance while implementing their QMSs.
Quantitative
Questionnaire
The assessment of the organisational culture profiles of Indonesian
construction companies and an analysis of the influence of different
organisational culture profiles on QMSs implementation.
Quantitative
Organisational Culture
Assessment Instrument
The design and development of a Culture-based Quality Management
System Improvement Implementation Framework for Indonesian
construction companies to effectively implement QMSs, designed to
achieve better bottom-line outcomes, while also facilitating the
evaluation of the usefulness and applicability of such a framework.
Qualitative Focus Group
Discussion
Research Approach Research Objectives
12

The research questions and objectives also established the boundaries of the research,
as it was not intended that this would develop a comprehensive culture-based QMS
framework model. Rather, it was intended to identify the improved factors and
attitudes present in ISO 9001 certified Indonesian construction companies that have
an impact on the quality of performance of their project management procedures and
the application of process controls. The research was also aimed at assessing the
organisational culture profiles of companies by using the Organizational Culture
Assessment Instrument (OCAI) (Cameron and Quinn 2006), which is based on the
Competing Values Framework (CVF) model (Quinn and Rohrbaugh 1983), to
ascertain which culture profiles are dominant and how well they can support QMS
implementation.

While this research is scoped based on the above premise, the data collection is
drawn only from Indonesia, thus the outcomes contextually reflect the scenarios
prevalent in Indonesian construction organisations. However, global construction
industry experience is also referred to in the literature review in order to provide a
fuller understanding of the research topic.

The research population was limited to a group of respondents in three provincial
capitals of Indonesia: Manado in North Sulawesi Province, Makassar in South
Sulawesi Province, and Jakarta (Figure 1.2). These three locations were regarded as
being representative of small, medium and large cities. The respondents represented
groups of Quality Management Representatives, Managers, and Project/Site
Engineers drawn from ISO 9001 certified construction companies, all of whom have
substantial experience and are considered experts in the field of QMS concepts and
practices. In addition, these groups also correspond to high, middle, and low levels of
management strata in the organisational structure of their companies.







13




Figure 1.2 Three Locations of Respondents
(source: University of Texas Libraries 2012)


1.5 Thesis Organisation

This thesis consists of six chapters, a brief outline of the content of each chapter
being given below.

Chapter 1: An introduction describes the problem statement, which provides the
background for the research component of the thesis. The chapter states the research
questions, and the aims and objectives, followed by the anticipated significant of the
research. The chapter also provides a brief outline of the research methodology that
was adopted.

Chapter 2: A summary of the current state of knowledge by reviewing relevant
literature in the area of quality management systems and the organisational culture in
the construction industry. Topics covered include: quality definitions in the
construction industry; the concept and appliances of ISO 9001; current use of quality
management systems in the Indonesian construction sector; the concept of
organisational culture in construction, including the conceptual model of Competing
Values Framework (Cameron and Quinn 2006); and the integration of organisational
cultures with quality management system practices. The chapter identifies the
research gaps which justify the need for this research study.
14

Chapter 3: A description of the design of the research necessary to answer the
research questions. The chapter outlines in detail, the research plan, questionnaire
construction, sample design, and data collection methods namely, preliminary
studies, questionnaire, focus group discussion and types of analysis.

Chapter 4: A description of results of questionnaire surveys and the analysis of that
data. The chapter first evaluates the current status of QMS implementation using
descriptive statistical analysis. It then identifies the overall type and dominant types
of the six cultural dimensions of Indonesian construction organisational culture using
the Competing Values Framework (Cameron and Quinn 2006). Finally, it examines
the theoretical framework developed using several statistical techniques. It also
discusses the results arising from the findings from these analyses.

Chapter 5: A description of the logical steps that need to be undertaken in the
development of a framework for culture-based QMS improvement implementation.
It then presents the results of the analysis of data obtained from the focus group
discussion to evaluate and validate the initial framework and finally, the ultimate
research findings are presented in the form of a finalized framework.

Chapter 6: This chapter summarises the main conclusions of the research study, it
then outlines how the study output has contributed to the general body of knowledge,
the construction industry, and future policy. Finally, the chapter acknowledges some
of the limitations of the current study and gives recommendations for further
research in the future.










15

CHAPTER 2
QUALITY MANAGEMENT SYSTEM AND
ORGANISATIONAL CULTURE IN CONSTRUCTION


2.1 Introduction

The previous chapter gave an introduction to the research of this study. This chapter
aims to build a theoretical foundation upon which the research is based, by reviewing
the relevant literature to identify research issues in the area of quality management
systems (QMSs) and organisational culture in construction.

The concept of quality management systems and, in particular the use of QMS-ISO
9001 standard, are introduced before discussing effective practices of QMSs and
challenges to their implementation in the global construction industry. An overview
of current Indonesian construction companies practices related to their QMSs is
provided. The chapter examines how government regulations affect the
implementation of QMSs, the motives underlying the establishment of QMSs in
Indonesian construction companies, and current barriers impacting on effective QMS
implementation. A review of the importance of the organisational culture in
companies involved in construction, covering the usefulness of the organisational
culture model of Cameron and Quinn (2006) in establishing inherent culture
typologies of organisations, is also provided. Furthermore, the review covers cultural
changes and research findings, where there have been significant relationships
between the organisational culture and effective QMSs, it also covers the issue of
construction performance as an outcome of correct organisational culture and
successful quality practices. Premised on these discussions, the QMS research gaps
in the Indonesian construction industry are identified.




16

2.2 Quality Management Systems in Construction

The sub-sections below introduce the general concept of quality and quality
management system (QMS), in the context of the construction sector perspective;
also introduced are the essential concepts of one of the well-known QMSs, the ISO
9001 standard. The two concepts are reviewed to contextualize the extent and
significance of these research topics. Accordingly, the effectiveness of implementing
QMSs and barriers to implementing the quality system are also justified.


2.2.1 Quality Defined in Construction

With regard to any examination of quality issues in the construction industry, there
are commonly three main terms that require objective definition and discussion.
They are - what is actually meant by quality, quality management system (QMS),
and what constitutes a total quality management (TQM) philosophy.

There is no precise or single definition of quality, and although many of the
pioneers of the quality movement and gurus, such as Deming, Juran, Crosby,
Feigenbaum, Taguchi and others, had their own individual definitions of quality,
ISO DIS 9000:2000 generally defines quality as the degree to which a set of
inherent characteristics fulfill requirements (Tricker 2008, 4). This means that in the
construction industry, quality appears to be achieved whenever the needs of all those
entities and individuals involved in projects or production or provision of services,
such as consultants, constructors, project customers, and other related stakeholders,
are fulfilled. Indeed, understanding the main concepts of quality is essential for a
construction company in implementing a quality management system as a strategic
management tool to gain benefits from the successful implementation of a quality
system.

Lam, Low and Teng (1994, 15), in the context of construction, define quality
management as that aspect of the overall management function that determines and
implements the quality policy, and quality system as the organisational structure,
responsibilities, procedures, processes and resources for implementing quality
17

management. Hoyle (1997) indicates that the production of desirable quality
products does not happen by chance, but rather it must rely on the use of a quality
system as the management suite to meet all of the established quality goals. Hence,
the essence of understanding quality in construction relates to achieving quality in
the construction business performance through the implementation of a quality
management system (QMS). This concept is supported by Thorpe and Sumner (2004,
3) who describe a QMS in companies as a formal statement of an organizations
business policy, management responsibilities, processes and their controls, that
reflects the most effective and efficient ways to meet (or exceed) the expectations of
those it serves, whilst achieving its own prime business objectives. It is generally
true to say that, in the global construction industry, one of the aims of every
construction firm is to win the trust and acknowledgment of customers as a means of
gaining business competitiveness and making greater profits; it therefore follows that
this should also be one of the main reasons for QMS to become a prime focus in
every construction company, for the fulfillment of customers needs and satisfaction.

Quality has a number of components, and a focus on only one aspect may result in a
loss of customers (Center for the Advancement of Process Technology 2011). The
application of a QMS in order to consider the important aspects of the quality, is one
of the key quality concepts reviewed by the writers on quality, these quality concepts
including the following:
(1) a management commitment to reflect that quality issues must start from the
top;
(2) management systems to ensure consistency of operations;
(3) the use of statistics as the tool to run and evaluate processes as efficiently as
possible;
(4) team work; and
(5) training to provide teams with the required knowledge of management
systems, statistics, and improvement methodologies (ibid 2011).

In an attempt to employ quality as a key component of the success of construction
businesses today, many researchers state that it requires a well-implemented QMS in
order to ensure the effectiveness of the QMS (Ahmed et al. 2005; Cachadinha 2009;
Farooqui and Ahmed 2009; Shibani, Soetanto and Ganjian 2010).
18

Thorpe and Sumner (2004) have proposed a number of fundamental concepts for an
effective QMS, that include the following:
A system that enables a company to identify with, and completely meet,
customers needs;
A system that clearly defines the responsibilities for carrying out defined
functions and activities;
A system that is representative of the most effective and efficient organisation
for carrying out business processes and various discrete activities;
A system that recognises the sound advice offered by standards such as ISO
9001;
A system that is successful because of peoples understanding commitment, due
a sense of ownership; and,
A system that is formally and continuously reviewed in a quest for ongoing
improvements.

These guideline concepts should be able to assist construction companies in the
establishment and implementation of their QMSs, in a way that enables their
organisations to apply a holistic and systematic approach to quality management, as
espoused in the philosophy of Total Quality Management (TQM) of Deming (1986)
and others.

Total Quality Management (TQM) is generally considered to be a higher level
concept of strategic achievement than that provided by a QMS. McGregor and
Palmer (2002) view TQM, firstly, as an approach to ensure that a whole organisation
is involved in producing high quality outcomes in everything they do; secondly, in
improving the continuous implementation of quality management; and finally, in
achieving the primary objective of the concept, that of customer satisfaction. Based
on these objectives and guidelines for providing continual improved quality
management in construction companies, an effective TQM-based set of values is also
an essential requirement for services providers, to generate qualified activities and
achieve the desired outcomes.

19

In several scholarly articles written by Wong and Fung (1999), Low and Teo (2004),
Ahmed et al. (2005), Farooqui and Ahmed (2009), Shibani, Soetanto and Ganjian
(2010), it is generally concluded that the concepts of QMS and TQM are at about the
same level. Some construction companies have adopted a TQM approach as an
initiative to help raise quality and productivity, while others, who were reported to be
adopting TQM, were in fact actually applying the eight basic elements of an ISO
9001 based QMS. Thorpe and Sumner (2004) have recommended that construction
companies that are eager to benefit from the TQM approach, start by establishing a
QMS concept as their first step on what Grossman and Helpman (1989), among
others, have called the quality ladder. Figure 2.1 provides a simple illustration of
the interface of the QMS and TQM concepts.






Figure 2.1 Illustration of Relationship of QMS and TQM
(Thorpe and Sumner 2004)

The main reason for undertaking a review of these two quality concepts is that
among Indonesian construction companies, the concepts of QMS and TQM are not
always well understood. Based on preliminary interviews, while some local
contractors understand what a QMS is, they do not have a clear understanding of the
philosophy of TQM. However, for national level contractors who successfully
implement QMS, they ultimately target TQM in their quest for total quality
achievement in their companies.





TQM
Feedback Continuing quest
to be the best
Business improvement & people involvement
QMS
20

2.2.2 ISO 9001 Standard

Quality control systems were originally developed from United Kingdom (UK)
nuclear and military standards, and then rolled out as BS5750:1979 in the
manufacturing industry. It was much later (in the 1980s and early 1990s) that the
systems were adopted by UK construction companies to meet local and national
government requirements for the construction industry, when companies were
required to have certified quality systems in order to take up offered bidding
opportunities (Thorpe and Sumner 2004).

The ISO 9000 series has now become the QMS model recommended by the
followers of the quality movement as a benchmark for implementation of good
management and process control in a variety of industries and sectors (McCornac
2006; Tricker 2008; Fotopoulos, Psomas and Vouzas 2010; Wahid, Corner and Tan
2011). The model has been particularly widely adopted by the construction industry
(Chini and Valdez 2003; Turk 2006; Lordsleem, Duarte and Barkokbas 2010;
Watson and Howarth 2011). The first series of ISO 9000 developed by the
International Organization for Standardization-Technical Committees (ISO-TC 176)
in 1987, was updated in 1994 and 2000, with the latest version of this standard being
ISO 9001:2008. The 2008 version did not introduce any major changes relative to the
2000 version, and therefore does not require the re-writing of quality documents to
suit the most recent version (Vianna 2007; International Organization for
Standardization 2011). The ISO 9001 standard is actually a generic one, which can
be used successfully in construction companies and on their projects, even though
every project is unique and involves different sub-contractors and suppliers.

The QMS-ISO 9001 standard is made up of five main clauses and 23 sub-clauses,
each of which contains requirements that should be fully implemented to gain the
potential benefits from the adoption of the system. There are 20 elements of ISO
9001 which are used as the basis of ISO 9001:1994. These elements have been
replaced by five clauses for undertaking quality processing. However, the twenty
elements are clearly identifiable within the process-based approach for implementing
ISO 9001:2008 (Watson and Howarth 2011). The twenty elements have been
adapted for construction procedures to cover a wide scope of quality related activities
21

of construction-related firms (Chini and Valdez 2003), as QMS elements to meet
construction organisation and project conformity needs. In developing and
maintaining ISO 9001, the collective experience and knowledge of international
experts relating to ISO-TC 176 has been used for the development of the eight major
quality management principles embedded in the ISO 9001 standard, that can be used
by management as a basis for improving an organisations performance (Tricker
2008). These eight quality management principles are:

1. Customer focus
The company focuses on customer requirements and expectations.
2. Leadership
The leaders establish unity of purpose and direction of the company.
3. People involvement
Employees are fully involved and their abilities are empowered for the
companys benefit.
4. Process approach
Project activities and related resources are managed as a process.
5. Systems approach to management
The company identifies, understands, and manages interrelated processes as a
system.
6. Continual improvement
The company has a strategic objective for permanent and continuous
improvement of overall performance.
7. Factual approach to decision making
Decision-making is based on an analysis of relevant data and information.
8. Mutually beneficial supplier relationships
The company and its suppliers have interdependent and a mutually beneficial
relationship.

The twenty elements of the ISO 9001 standard relating to building construction are
summarised in Table 2.1.



22

Table 2.1 Summary of the Twenty Elements of ISO 9001 Standard
ISO 9001 Elements Quality Functions Required
E1 Management
responsibility
Define, document and publicize quality policy
Define, document responsibility, authority and interrelations of
staff
Identify and provide adequate resources
Appoint quality manager
Review quality systems on a regular basis
E2 Quality system Establish, document and maintain quality system
Prepare and effectively implement documented procedures.
Define and document how quality planning is conducted for a
project or contract, including preparation of a quality plan
E3 Contract review Review tender before submission
Review contract before signing
Review variation order before acceptance and transfer amended
requirements to functions concerned
E4 Design control Plan design activities
Identify and review design input
Review, verify, and validate design input
E5 Document and
data control
Review and approve documents prior to issue
Review and approve document changes prior to issue
Control distribution and updating of documents
E6 Purchasing Evaluate and select subcontractors on basis of capabilities for
quality
Exercise appropriate control over subcontractors
Review and approve purchasing documents prior to release
Specify arrangements for verification and product release of
subcontractors product or work at subcontractors premises if
required
Allow the client or his representative to verify subcontracted
product or work at the contractors/subcontractors premises
where specified in contract
E7 Control of
customers
supplied
product
Control verification, storage, and maintenance of customer-
supplied product
E8 Product
identification
and traceability
Identify material and semi-finished product from receipt and
during all stages of production, delivery, and installation, where
appropriate
Provide unique identification of individual product or batches
where specifically required
E9 Process control Identify, plan, and control production, installation and servicing
processes, including provision of documented procedures and
suitable equipment
Assign qualified operators to carry out special processes
E10 Inspection and
testing
Conduct receiving inspection and testing of incoming materials
and components
Conduct in-process inspection and testing of semi-finished work
in accordance with quality plan
Maintain signed-off records of inspections and tests

23

Table 2.1 Summary of the Twenty Elements of ISO 9001 Standard (continued)
ISO 9001 Elements Quality Functions Required
E11 Control of
inspection,
measuring and
test equipment
Use inspection, measuring, and testing equipment capable of
necessary accuracy and precision
Calibrate the equipment at prescribed intervals, or prior to use,
and indicate its calibration status
Review previous results when the equipment is found to be out
of calibration
E12 Inspection and
test status
Indicate by suitable means the conformance or nonconformance
of product or work with regard to inspect and performed
E13 Control of non-
conforming
products
Identify and segregate, when practical, any nonconforming
product or work
Review and dispose of the nonconforming product or work by
an authorized person
Inspect and/or test the product or work again after repair
E14 Corrective and
preventive
action
Investigate cause of nonconformities, including client
complaints
Take corrective/preventive action to eliminate cause/potential
cause of nonconformities
Implement and record changes to document procedures
resulting from corrective/preventive action
Ensure that corrective/preventive action is taken and that it is
effective
E15 Handling,
storage,
packaging,
preservation and
delivery
Establish methods of handling product that prevent damage or
deterioration
Use designated storage areas to prevent damage or deterioration
Asses condition of product in stock at appropriate intervals
Protect product during delivery
E16 Control of
quality records
Retain quality records for prescribed period
Maintain quality records in such a way that they are identifiable,
retrievable and secured against damage, deterioration, or loss
E17 Internal quality
audits
Plan and schedule internal quality audits
Assign independent personnel to carry out internal quality
audits
Conduct follow-up audits if necessary
E18 Training Identify training needs of staff
Provide training required
E19 Servicing Verify that servicing meets specified requirements
E20 Statistical
techniques
Identify the need for statistical techniques in quality control
Implement and control the application of statistical techniques
Sources: Chung (1999, 38), Rumane (2011, 104)

The relationship between the structure of five clauses of the ISO 9001 standard and
the eight quality management principles, and the incorporation of the twenty
elements with the five clauses, are shown in Table 2.2 and Table 2.3, respectively.

24

In summary, as an international standard for QMS (in comparison with other quality
standards and awards - Six Sigma, Malcolm Baldrige National Quality Award
Criteria, The European Foundation for Quality Management Excellence Model-
EFQM EM), ISO 9001 is now widely accepted in many manufacturing, production
and services industries, because it specifies what an organisation should do to
achieve better quality management and improvement. It is acknowledged by
McCornac (2006) that the standard focuses on the way an organisation goes about its
work, and not directly on the results of this work. This QMS standard is currently
being adopted by Indonesian construction companies and is officially recommended
by the Ministry of Public Works as an approach to solving quality problems in the
construction industry and for meeting customers needs.























25


Table 2.2 Matrix of the Five Clauses and Eight Management Principles of
ISO 9001 Standard



ISO 9001 Principles


ISO 9001 Clauses
C
u
s
t
o
m
e
r

f
o
c
u
s

L
e
a
d
e
r
s
h
i
p

P
e
o
p
l
e

i
n
v
o
l
v
e
m
e
n
t

P
r
o
c
e
s
s

a
p
p
r
o
a
c
h

S
y
s
t
e
m
s

a
p
p
r
o
a
c
h

C
o
n
t
i
n
u
a
l

i
m
p
r
o
v
e
m
e
n
t

F
a
c
t
u
a
l

a
p
p
r
o
a
c
h

t
o

d
e
c
i
s
i
o
n

m
a
k
i
n
g

M
u
t
u
a
l
l
y

b
e
n
e
f
i
c
i
a
l

s
u
p
p
l
i
e
r

r
e
l
a
t
i
o
n
s
h
i
p
s


4.0 Quality Management System
4.1 General requirements
4.2 Documentation requirements
5.0 Management Responsibility
5.1 Management commitment
5.2 Customer focus
5.3 Quality policy
5.4 Planning
5.5 Responsibility, authority and
communication

5.6 Management review
6.0 Resource Management
6.1 Provision of resources
6.2 Human resources
6.3 Infrastructure
6.4 Work Environment
7.0 Product Realization
7.1 Planning of product realization
7.2 Customer-related processes
7.3 Design and development
7.4 Purchasing
7.5 Production and service provision
7.6 Control of monitoring and measuring
devices

8.0 Measurement, Analysis and Improvement
8.1 General
8.2 Monitoring and measurement
8.3 Control of nonconforming product
8.4 Analysis of data
8.5 Improvement
Adopted from: Luk (2006, 51)


26


Table 2.3 Matrix of the Incorporation of the Twenty Elements with Five Clauses of ISO 9001 Standard
ISO 9001 Standard E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13 E14 E15 E16 E17 E18 E19 E20
4.0 Quality Management System
4.1 General requirements
4.2 Documentation requirements
5.0 Management Responsibility
5.1 Management commitment
5.2 Customer focus
5.3 Quality policy
5.4 Planning
5.5 Responsibility, authority and
communication

5.6 Management review
6.0 Resource Management
6.1 Provision of resources
6.2 Human resources
6.3 Infrastructure
6.4 Work Environment
7.0 Product Realization
7.1 Planning of product
realization

7.2 Customer-related processes
7.3 Design and development
7.4 Purchasing
7.5 Production and service
provision

7.6 Control of monitoring and
measuring devices

8.0 Measurement, Analysis and Improvement
8.1 General
8.2 Monitoring and measurement
8.3 Control of nonconforming
product

8.4 Analysis of data
8.5 Improvement
Sources: Chung (1999, 38), Rumane (2011, 104)
27

2.2.3 The Effectiveness of Implementing a Quality Management System

Successful implementation of a QMS, as espoused in the relevant ISO 9001 standard,
requires effective planning, operation and review, as well as continuous
improvement of the system at all levels of an organisation. Effectiveness has been
defined by the British Standards Institute (BSI) (2009) as the extent to which planned
activities are realised and planned results are achieved. The term effectiveness is
particularly pertinent to quality management system implementation, as companies
that adopt a QMS must meet their specified quality requirements and prescribed
quality objectives without any shortfalls, in order to be seen to have successfully
implemented their QMSs.

However, according to Al-Nakeeb et al. (1998), the definition of effectiveness from
BSI appears to mislead people into thinking that it implies that the effectiveness
comes from solely meeting the specified requirements and the prescribed quality
objectives. In fact, it refers to the effectiveness of the system in meeting and
complying with the specified requirements of the adopted standard. This means that
effectiveness in the overall sense should really mean both things; the full meeting of a
companys own specified quality requirements, together with meeting the prescribed
quality objectives (Kam and Tang 1997), referred to in the eight quality management
principles and the elements of ISO 9001. In addition, Oztas, Gzelsoy and Tekinkus
(2007) argue that the effectiveness of a system needs to be judged by how well a
construction company operates and whether it achieves its goals in meeting customer
expectations. This view is illustrated in Figure 2.2.










28





Recent publications on construction quality management highlight the important
activities that should be performed in relation to the application of an effective QMS-
ISO 9001. According to Rumane (2011), an organisation needs to demonstrate its
ability to consistently provide products that meet or exceed customer expectations
and satisfaction, while also adopting appropriate processes for the continued
improvement of the QMS and related assurances of conformity to customer and
applicable regulatory requirements. Watson and Howarth (2011) also emphasize that
for ISO 9001 to remain a process-based system with heavy emphasis on compliance,
an organisation is required to rigorously conduct an assessment of organisational
performance, set against a standard and leading to accreditation. Clearly, the context
of an effective QMS implementation is to ensure that work is performed according to
specifications, throughout the design and development phases, manufacturing and
construction, and servicing, and also ensure that customers are satisfied with the
resulting products and services (Beaumont 2006). Figure 2.3 illustrates the process
model of ISO 9001, with the focus on customer requirements and satisfaction.




Effective QMS
implementation
Quality
procedures
Quality
objectives
Quality
policy
A companys QMS
I
S
O

9
0
0
1

p
r
i
n
c
i
p
l
e
s


I
S
O

9
0
0
1

e
l
e
m
e
n
t
s


Figure 2.2 An Effective Companys QMS Complies with ISO 9001
Principles and Elements

29












Figure 2.3 ISO 9001 Process Model (Watson and Howarth 2011)


Effective implementation of a quality management system (QMS), and espousing
quality values or adopting a high-level quality philosophy, whether by virtue of
operating a QMS-ISO 9001 or applying a TQM approach, potentially provides
benefits that are needed, even in the most competitive construction environments.
Table 2.4 summarises the potential benefits of ISO 9001 deployment for construction
organisations.








Quality Management System Continual
Customer
Requirements
Management
Responsibility
Measurement
Analysis
Improvement
Product/
Service
Customer
Satisfaction
Resource
Management
Product (and/or)
Realization
30

Table 2.4 Benefits of Applying ISO 9001 in Construction Organisations
Area of
Improvement
Benefits of ISO 9001
Representative
Authors
Construction
project
Preventing work repetition and project delays
Buildability factor of most projects can be
increased while the project cost is decreased
As an effective and appropriate working
platform at both design and construction stage
of a project
Efficient in using material resources
Low and Wee
(2001), Low and
Abeyegoonasekera
(2001), Ofori, Gang
and Briffett (2002),
Farooqui and
Ahmed (2009)
Project
management
Consistent and effective control of key
processes and project management
More efficient and effective utilisation of
scarce resources.
Farooqui and
Ahmed (2009),
Watson and
Howarth (2011)
Quality
Failure to meet specifications can be
minimized
Promoting control of suppliers and
subcontractors and the development of
effective supply chain management
Provide a corporate quality advantage
Low and Wee
(2001), Farooqui
and Ahmed (2009),
Watson and
Howarth (2011)
Organisation
performance
World-wide recognition and be chosen to bid
in both local and global market contracts
Provides a means of achieving a top-quality
performance in all areas/activities
Reduced inspection costs hence improved
corporate profitability
As a tool to help contractors establishing and
measuring their performance indicators
Ofori, Gang and
Briffett (2002),
Turk (2006),
Farooqui and
Ahmed (2009),
Lordsleem, Duarte
and Barkokbas
(2010), Watson and
Howarth (2011)
Management
system
Improvement of organisation communication
system and working environment
Better efficiency
Continual improvement
Greater emphasis on leadership, team spirit
and motivation
Change management and adequacy of training
Planning and review process to ensure that
the system in place remains suitable
Effective and capable of identifying new
opportunities
Provide clear and valid operating procedures
Low and
Abeyegoonasekera
(2001), Ofori, Gang
and Briffett (2002),
Farooqui and
Ahmed (2009),
Lordsleem, Duarte
and Barkokbas
(2010), Leonard
(2010),Watson and
Howarth (2011)


All the above advantages cited for construction organisations are based on the
lessons learned from the use of an appropriate and effective quality system
framework for controlling the processes required when constructing a project. An
example cited in the research of Zin, Chen and Ali (2009) is that the majority of
Malaysian constructors have been able to improve their company competitiveness by
31

80%, after having certified to ISO 9001. This clearly indicates that QMSs need to be
developed and implemented effectively, for any construction company wishing to
become a sector leader.

Nevertheless, given the benefits of ISO 9001 deployment, the implementation
process can be a problematic one. The following sub-section reviews critical issues
relating to the successful implementation of effective QMSs.


2.2.4 Barriers to Implementing Quality Management Systems

A number of researchers in the area of QMS implementation are of the opinion that
ISO 9001 is not an appropriate standard for use in construction firms. For example,
Landin (2000), in studying the Swedish construction sector argues that ISO 9001 is
difficult to apply by construction companies because its clauses are too general.
Construction projects, practices, contracts and specifications are regarded as unique
and specific in every project, and they usually provide different specific products and
services outcomes that are difficult to be fully incorporated within a generic system
such as ISO 9001.

Turk (2006) notes that the development of an ISO 9001 certified QMS requires a
huge amount of written documentation and needs a long time to integrate into a
companys management system, leading to potential substantial increases in
operating costs. The author further notes other significant problems confronting the
ISO 9001 certification process within the Turkish construction firms that prolongs
the registration process as well as making it expensive. Some companys
management is not open to research and criticism, while in others the personnel
systems needs restructuring for the establishment of QMS (ibid 2006).

In addition to the above barriers, Bubshait and Al-Atiq (1999), in describing a Saudi
Arabian case, indicate that overload of work for the quality assurance team and the
tendency for disputes to arise concerning quality issues in internal organisations, are
also among the major causes of difficulties in implementing the ISO 9001 quality
standard in construction companies. Further to these views, Quazi, Hong and Meng
32

(2002) make the point in their study of the Singapore construction sector, that there is
evidence to suggest that it cannot always be proven that ISO 9001 certified
companies do actually provide qualified products and services. From these contrary
views, the key question that arises is why some construction companies cannot
effectively empower their organisations to establish successful QMS arrangements,
while others are successful in implementing a QMS.

According to Oztas, Gzelsoy and Tekinkus (2007), the differences and uniqueness
of the construction industry from other industries (e.g., a long time for project
completion; human relationships generally formed once; difficulty in defining quality
standards and feedback relating to the construction processes) make it difficult for
construction companies to implement QMSs, which can be fragmented and slow in
their attempts at quality improvement (Leonard 2010). In addition, the fact that the
construction industry has historically been reluctant to deal with changes (Haupt and
Whiteman 2004; Low and Hong 2005) is reflected in slower implementation of ISO
9001 especially in developing countries.

Despite the unique nature of the characteristics surrounding the construction
industry, McCabe (1998), Chini and Valdez (2003), McCabe and Boyd (2004),
Ahmed et al. (2005), McCornac (2006), ISO9000Council.org (2009) and Watson and
Howarth (2011) all reflect on the questions related to QMS issues in general, and
these views are summarised as follows:

Typical problem 1: Management Attitude and Purpose
If the purpose of obtaining the ISO 9001 certification from the perspective of
management is solely as a marketing initiative, or due to customer pressure, there is
no guarantee that there will be any internal improvement of the organisations
effectiveness as a result of implementing an ISO 9001 quality system
(ISO9000Council.org 2009).

Typical Problem 2: Implementation by Consultants
Management frequently engages consultants to write a quality manual, quality
procedures and develop other ISO 9001 required documents. However, sometimes
quality management consultant(s) may be unfamiliar with the business concepts and
33

culture of the company (ISO9000Council.org 2009). The consultant tries to mold the
entire company and align it to a one-size-fits-all ISO 9001 set of quality procedures
(ibid 2009). In addition, management will often attempt to choose the perceived
easiest certification body recommended by the consultant in the market, reflecting a
misconception of the reasons for obtaining ISO 9001 certification (McCornac 2006).

Typical Problem 3: I SO 9001 Management Representative without Power
According to ISO9000council.org (2009), management often mistakenly considers
ISO 9001 standards as solely a task of documentation, to be fulfilled by companies,
rather than as a toolset for changing and substantially improving management
systems. As a result, any appointed Quality Management Representative (QMR) is
limited to preparing the quality documentation and setting up a workable QMS,
while lacking the power to make real decisions or effect changes. In addition, the
QMR often lacks adequate authority to fully engage people during the project
implementation process (McCabe 1998; Watson and Howarth 2011).

Typical Problem 4: I nsufficient Resources
It is crucial to the success of ISO 9001 implementation that management allocates
sufficient financial resources for the establishment and implementation of an
effective QMS. A dedicated QMR needs to be trained and guided, while top
management needs to be convinced of the rationale and need for, an ISO 9001, and
understand its potential benefits. An ISO 9001 quality manual, quality procedures
and other quality system documentation needs to be written, work processes
throughout the company need to be analysed and streamlined, and employees need to
be trained (Chini and Valdez 2003; Ahmed et al. 2005; ISO9000Council.org 2009).

Typical Problem 5: Lack of I mprovement
Since organisations all function in dynamically changing business environments, the
ISO 9001 standard must be adapted constantly to continue facilitating the
improvement of business competitiveness and technologies (ISO9000Council.org
2009). The lack of improvement happens when management has the misconception
that ISO 9001 certification alone is the final achievement (ibid 2009). McCornac
(2006) observed that there was no clear improvement in a companys business
34

performance when the extent of changes in the companys management system after
ISO 9001 registration were only relatively minor.

Typical Problem 6: Making it Complicated
According to ISO9000council.org (2009), ISO 9001 does not need to be
complicated. However, the council admits that the requirements of the ISO 9001
standard can be rather general and thus difficult to understand, because they are
designed for any company of any size in any industry. This situation becomes more
complicated when management and staff are not provided with awareness and
understanding of how the system works, or of the potential benefits it can provide for
their companies. Rather, they feel that they exposed to over-bureaucratic systems,
(including stiff auditors), and are not helped by apparently bad standard templates
and training tools (ibid 2009).

From the above it can be concluded that problems relating to the attitudes and
perceptions of management, and related lack of commitment, are the main deterrents
to the effective implementation of the ISO 9001 in many organisations. Another
consideration that appears to be associated with these problems relates to the
differing cultures that exist in every organisation, and the impact that these cultural
traits may potentially have on the effective implementation of QMSs and related
attitudes towards complying with the attributes of ISO 9001. Within the construction
industry, inappropriate quality corporate cultures are a recognised barrier to
successful implementation of ISO 9001 (Watson and Howarth 2011). Much effort is
necessary to achieve the potential benefits from successful implementation of QMS
practices.

Current ongoing research into the construction management area has produced
evidence that organisational issues, such as quality culture and corporate culture, are
determinant factors contributing to the successful or unsuccessful implementation
and maintenance of an ISO 9001 quality system (van Marrewijk 2007; Koh and Low
2008; Yip Robin and Poon 2009; Coffey 2010). A detailed review and discussion of
these issues is provided in a later section (Section 2.5) of this literature review.


35

As part of this study an examination is made of how effective are the existing quality
management systems being implemented by Indonesian construction companies, and
what are the main obstacles to the implementation of QMSs. The following section
of the review is aimed at providing an understanding of these issues, while also
helping to explain the need to develop and use specific research instruments in the
data collection stage of the study.


2.3 The Existing Use of the ISO 9001 Standard in Indonesian Construction
Companies

The growth of the national economy, as well as the improvements in the roll-out of
national development, appears to be a positive driver for the Indonesian construction
industry, especially when the Government has speeded up its infrastructure
development plan and investment in delivery of roads, water resources and human
settlement infrastructure, in support of the acceleration of economic growth
(Widjajanto, Pribadi and Suraji 2011). These prevailing conditions trigger higher
levels of competition among national and foreign contractors in tendering for
government construction projects and investing focus on enhanced maintenance
demands.

According to Pamulu (2011), the macro and micro environments of most Indonesian
construction company, which in turn influence the way they operate, are also factors
pertinent to market competition. In the macro environment, a variety of trends in
political, economic, social and legal developments are assuming greater strategic
importance for contractors in market competition (idem 2011). On the other hand, in
a micro context, low levels of competitiveness, low barriers for entry into the
construction industry (Budiwibowo et al 2009), inefficiency and high-cost
transactions, collusion, and incompetent human resources (Suraji et al. 2007), are
among the problems that national contractors have to deal with in dealing with
market competition. This is reflected especially in the low quality of delivery of
infrastructure project, and dissatisfaction by project owners and end-users.


36

In response to this scenario and these drivers, for the past decade the Indonesian
construction sector has had the intention (or has been made) to promote the
development and implementation of quality management systems (QMSs) among its
various players. Quality issues must now be seriously considered by both the
Government and the construction industry, particularly as it is recognised that the
construction services at the national level have not been optimal, and the role of
foreign construction companies undertaking construction of both government and
private projects is gradually increasing (Sudarto 2007; Construction Management
and Engineering of Bandung Institute of Technology 2009). At the same time, the
number of Indonesian construction companies working overseas has remained below
the number of foreign companies extending their operations into Indonesia
(Widjajanto, Pribadi and Suraji 2011).

In order to embrace the issue of quality in construction, the Indonesian Government
has enacted regulations for construction companies undertaking projects, particularly
those that are government related. A basic set of regulations (Construction Service
Act No. 18/1999, Government Regulation No. 29/2000) relating to operations of
construction services was formulated in order to provide direction for the growth and
development of Indonesian construction services, in creating a solid business
structure, and delivering reliable, highly competitive, and quality construction work.
Specifically, Presidential Decree No. 80/2003 was designed to effectively and
efficiently control the conduct of government procurement activities for products and
services by all stakeholders involved in construction activities, including
construction companies. The regulation was reviewed and renewed in 2010
(Presidential Regulation No. 54/2010), following the acknowledgement of the need
for corrective action aimed at providing healthy competition with changes in
management and business efficiency.

A decree directed primarily at quality management system implementation, was
developed by the Ministry of Settlement and Regional Infrastructure. This decree is
known as the Construction Quality Management System of the Department of
Settlement and Regional Infrastructure No. 362/KPTS/M/2004. Within the context
of this decree, the Government refers to ISO 9001 as a reference standard for the
development of QMSs for contractors engaged in the departments construction
37

projects. The decree is a follow-up to the Decree of Ministry of Settlement and
Regional Infrastructure No. 339/KPTS/M/2003 on Guidelines for Construction
Services Procurement by Government Agencies. In these guidelines, it is stated that
government working units or procurement committees should recognise the fact that
certain contractors are ISO certified, and for special or complex work, or works
involving high levels of technology, the Director General may include the
requirement for tendering contractors to be ISO 9001 certified.

Another decree on QMS implementation within the construction services was issued
by the Head of Construction and Investment Development Agency, on behalf of the
Ministry of Settlement and Regional Infrastructure. This decree is known as the
Construction Quality Management System for Small Scale Construction
Corporations, No. 16/KPTS/KE/2004. The Agency recommends SNI-19-9001-
2001/ISO 9001-2000 as one of the instruments to be used to meet the quality
requirements for construction work. Small to medium-sized construction companies
are referring to these two regulations as the rules applicable for developing their
quality management systems, and as the main driver for using ISO 9001
requirements to govern the QMSs eventually being developed.

In 2005, the National Construction Services Development Board (NCSDB) a
buffer body, as stated in the Construction Service Act No. 18/1999 that is responsible
for the development of the construction sector together with the Government and
other construction service stakeholders, in cooperation with the Department of
Public Works, released Guidelines of Quality Management Implementation (ISO
9001:2000) for Construction and Consultant Services. These guidelines contain key
sections explaining the planning and implementation of QMS documentation, and
they also provide examples of typical work instructions. These guidelines are
provided by the NCSDB as a tool in support of regulation No. 12/LPJK Year 2009,
in relation to the re-registration of certificates of construction enterprises in the year
2010. In the regulation, it is clearly stated that any grade 7 (G-7) (the highest grade in
Indonesian construction company capability qualifications) company must hold valid
ISO 9001 certification to be eligible for undertaking construction work.

38

Further promotion of the implementation of construction services QMSs has been
continuing through various other programmes of government and contractors
associations. The Secretary of the Agency for Construction Development of The
Ministry of Public Works has introduced a QMS guideline based on ISO 9001
standard to help small and middle-scale construction companys categories trying to
develop their QMSs (Sudaryono 2006). The Ministry of Public Works acting as a
mandatory quality controller, has also been conducting seminars and toolbox
training programmes to help motivate local contractors in the implementation of
ISO 9001 certified QMSs. An article from a website of Indonesian Contractors
(Indonesian Contractor 2007) reports that a programme (Technical Assistance
Programme) has been introduced into some regions to provide opportunities for
small-scale construction companies to gain a better conceptual understanding of the
benefits of, and the methodology for, implementing ISO 9001 certified QMSs.
Within the large-scale construction categories, the Indonesian Contractors
Association has endorsed a proposal that its members develop and advance their
performance in the area of training on ISO 9001 (Indonesian Contractors Association
2010).

The strategic role of construction services in national development has been
addressed by the establishment of a related Government act, various new decrees and
regulations. However, specific regulations on the development and implementation
of QMS (as a part of the national construction services strategic role) have not been
adequately addressed to date, and the government instruments and association
support programmes mentioned above, just contain general descriptions of what
construction companies should do. Consequently, construction organisations
(especially large-scale contractors) view these QMS-related policies as merely
relating to the need for possessing relevant qualifications for registration to
participate in government procurement activities. Additionally, these QMS-related
regulations really require more comprehensive supporting explanation in order to
make the requirements of such system more understandable and practical for
constructors and builders, this will definitely help construction organisations to more
effectively implement their QMSs.

39

Information obtained from the preliminary studies which involved interviews with
the officers from the NCSDB and the Public Works Ministry, and with practitioners
from the Indonesian Contractors Association (ICA) and National Contractors
Association of Indonesia (NCAI), regarding the lead role of the Government and also
the extant regulations for QMS implementation, validates the focus on these issues as
the basis of the research problem in this study.

Furthermore, the Ministerial Regulation No. 362/KPTS/M/2004 does not clearly
state any other required qualification for contractors to be engaged in developing
QMSs than obtaining ISO 9001 certification. Although the current regulation solely
applies to grade 7 contractors, an attempt is being made to also apply the same
regulation to grade 6 companies. Based on the interview output from the preliminary
studies, it was also apparent that some parent contractors are also beginning to realise
that they must involve sub-contractors (grades 2 to 5 or in some cases grade 6) in
adopting documented controlled quality procedures into their project work processes.
Grade 4 contractors are also eligible to take part in government projects valued at up
to one billion rupiah while for grade 5 companies the value of individual government
projects can be as high as 10 billion rupiah. However, these contractors are not
currently required to hold ISO 9001 certifications. A revision of the regulations is
regarded as being necessary in order to guide the reform process in Indonesian
construction industry, particularly in terms of ensuring a quality system and quality
products. The research findings from this study are expected to positively contribute
to these objectives.

An implication of the Government regulations is that G-7 construction companies are
inspired to get the ISO 9001 certification immediately. However, the additional
motives the G-7 construction companies might have in proceeding with the
certification process has been an important component of the research in this study.
Ideally, the primary aim of construction companies in obtaining their ISO 9001
certification would be to satisfy their customers. This aim refers to the first principle
of ISO 9001, which states that Organisations depend on their customers and
therefore should understand current and future customer needs, should meet
customer requirements and strive to exceed customer expectations (Tricker 2008,
26). Another aim that follows this primary one is for a company to be successful in
40

its business performance. It would therefore be useful to discover whether the
motives of companies in developing their quality management system can generate,
or be generated from, those aims.

A considerable amount of research has been carried out relating to the study of the
motives of construction companies in wishing to become ISO 9001 certified.
Dissanayaka et al. (2001), Ofori, Gang and Briffett (2002), Chini and Valdez (2003),
Low and Teo (2004), Turk (2006), Oztas, Guzelsoy and Tekinkus (2007), and Zin,
Chen and Ali (2009) have all evaluated some of the motives that have proven to be
successful in driving construction companies in achieving their goals and
expectations. Included among the motives are the aim of improving the quality of
work done and thereby gain a competitive advantage, and to reduce the companys
operating costs. However, many construction firms are motivated to obtain ISO
9001 certification on account of client demands for it and/or due to specific tender
requirements for such certification (ibid 2001; ibid 2003; ibid 2004; ibid 2006).

In the Indonesian scenario, there still appear to be some doubts among other
Indonesian construction companies in relation to the whole concept of quality
management practices. In discussions with construction practitioners during
preliminary interviews conducted in January 2010, it was revealed that some
construction companies and builders have been trying to obtain ISO 9001
certification solely for the purpose of following the trend of other companies, rather
than any internal company desire to improve processes or satisfy customers with
improved project outcomes. This view indicates that certain companies are merely
paying lip service to the objective of quality management being primarily for
customer satisfaction, without considering the many broader advantages from the
adoption of quality management practices. Novessro (2009) reports that obtaining
ISO 9001 certification solely for prestige is one of the main root-causes of ineffective
ISO 9001 implementation by Indonesian contractors and builders.

This study aimed at identifying the factors which have prompted some Indonesian
contractors to become ISO 9001 certified. Chini and Valdez (2003) in their research
on QMS in the US construction industry, indicate that knowledge about each
companys motivation for certification was a key component of their study. By
41

conducting studies into the motives which underlie a decision to apply for, or resist
consideration of, ISO 9001 certification, a QMS framework might then potentially be
designed that will assist some Indonesian construction companies in achieving their
aspirations for growth based on a more competitive business model, while others
would be able to more clearly view the benefits of, and processes required to
maintain, ISO 9001 certification.

Given the pressing need for implementing SNI 19-9001:2001 (ISO 90012000) for
the establishment, implementation and operation of a bona-fide QMS, every G-7
construction company should develop its own QMS, including establishing full and
auditable quality documentation (i.e., quality manuals, quality procedures, work
instructions, and internal and external audit requirements, as well as regular
management reviews). Currently all G-7 Indonesian contractors and builders, have
already obtained ISO 9001 certification in order to become registered for government
work, while many others are trying to get their required certification.

In order to assure the consistency of constructed project quality, private project
owners also now require their preferred contractors to operate a formal quality
system as a guarantee for raising quality standards at all project stages, and to ensure
that project operations are based on proper quality planning. The system preferred by
the Indonesian National Builders Association is ISO 9001 (Gapeksindo 2007). The
Association further states that construction companies which intend to bid for
projects must have an ISO 9001 certified QMS, meaning that this requirement is
valid both for government and private projects.

From the preliminary interviews, it was revealed that during the establishment phase,
when setting up their ISO 9001 systems, Indonesian construction companies
commonly hire a quality consultant to assist and guide them in the preparation of a
timeline and programme, to achieve the goals of obtaining certification, developing
quality documentation as required by ISO 9001, and training their workforce and
Quality Assurance (QA) team. The needed to appoint an ISO 9001 consultant is
based on the construction companies need for assistance for the interpretation of the
ISO 9001 requirements and integrate them into their own construction company
business processes and procedures; this being a necessary part of the quality-based
42

approach. Nugroho, Saroso and Nurcahyo (2009) state that interpretation of all
clauses of the ISO 9001 is one of the most important milestones in the early stages of
establishment of a quality system. They argue that the failure in executing proper
ISO 9001 interpretation may lead to an ineffective and inefficient implementation
stage, making the expected benefits of QMS implementation difficult to achieve.
Despite the role of ISO 9001 consultants in the early stages of development of a
quality-based system, for the later stages companies need to have the confidence and
ability for maintaining and improving the system, based on the use of their own
resources.

Data obtained from the Indonesian National Construction Services Development
Board (NCSDB) shows that in 2009 there were 139,634 construction companies in
the country, comprising 124,971 in Grades 2 - 4 (small scale), 13,750 in Grade 5
(medium scale), and 913 in Grades 6 - 7 (large scale) (LPJK 2009b). Another report
released by NCSDB also notes that the total number of the ISO 9001 certified
construction firms in November 2008 was 305 (LPJK 2009a). Compared to the
percentage of construction companies holding ISO 9001 certification in other
countries, Singapore 7.1%, China 11.4%, UK 8.8% (Turk 2006), Indonesia has only
managed to get about 0.22% of all construction companies certified.

The benefits of holding an ISO 9001 certificate have been acknowledged by
Indonesian builders and construction firms. Pamulu and Husni (2005) and
Susilawati, Salim and Soesilo (2005), based on their studies, point out that the
certified construction companies find it easier to win a higher number of contracts
because project owners trust them more than non-certified companies. This has been
further supported by Nugroho, Saroso and Nurcahyo (2009) who report that from a
builders perspective, companies which implement a QMS have a higher chance of
winning contracts. Project sponsors and clients are more certain that projects will be
finished on time and to specified quality standards driven by the QMS. Recent
research findings of Asa, Abidin and Latif (2008) note that by applying ISO 9001
certified QMSs, Indonesian construction companies have achieved greater overall
profits than in the past, while at the same time a new quality-oriented movement has
started to be developed. Despite this progress, Sudarto (2007) admits that the
Indonesian construction industry still needs to make further progress in this area to
43

be able to produce sustainable construction projects and have competitive power
within developing countries in the Asian region as well as globally.

The positive achievements of some construction companies from the implementation
of QMS have apparently not been experienced by all companies. Misconceptions
among some constructors and builders regarding the basic concepts of ISO 9001, as
well as a prevalence of the wrong motives for developing and implementing a QMS
have led to a low level of quality work in many contemporary projects in the
Indonesian construction industry. This further exacerbates a long-standing problem
of poor quality outcomes in Indonesian projects, which is highlighted in the Body of
Construction Development and Investment (BAPEKIN) report, which states that in a
Pelita VI road infrastructure project, there was a financial loss of 7.68 trillion rupiahs
due to serious deviations in project quality (Andi and Chandra 2007). The authors
also provide additional examples of other quality problems including a 50%
reduction in road infrastructures planned-life, 6% in total damage to completed road
works and 7% in road-medium break-down.

Many clients have serious questions relating to unsatisfactory work, poor quality and
project outcomes, from Indonesian constructors, some of which are reported in
Indonesian newspapers, based on complaints coming from various local government
officials. Five government projects totaling 9.15 billion rupiahs in Asahan Tanjung
Balai District in the province of North Sumatera were reported to have not met
project specifications (Ombudsman-Asahan 2008), while several projects with a total
cost exceeding 1 billion rupiahs in the districts of Melawi and Pontianak in West
Kalimantan Province, and in Merak-Banten Province, were reported to have been
improperly carried out (Pontianak Post Online 2006; Radar Banten 2007). The South
Sulawesi Provincial Government has also issued complaints to a construction
company undertaking a fly-over project in Makassar on account of delays in the
project causing serious traffic jams (Media Online Finroll 2009). Similarly, in the
province of North Sulawesi, representatives of the province and related recipient
communities, have directed complaints to a contractor in relation to significant
project delays and poor performance on the Soekarno Bridge in Manado (Komentar
Newspaper 2009). Another complaint was forwarded from project users to another
developer over concerns that the materials used for Lobo Bridge in Talaud District
44

North Sulawesi Province were seriously outside specifications (ibid 2009). The
complaints clearly reflect concerns relating to the current state of ISO 9001 and QMS
implementation in the construction industry in Indonesia. They also raise basic
questions relating to how QMSs can be effectively applied in the day-to-day
activities of Indonesian constructors and builders, and the maintenance of quality
standards throughout the life of projects.

Discussion of the issues related to why QMSs cannot be effectively applied by some
Indonesian constructors and builders is very limited in the extant literature. As
reviewed in the sub-section on barriers to QMS implementation in the global
construction industry, the Indonesian experience is very similar. Susilawati, Salim
and Soesilo (2005), Sudarto (2007) and Novessro (2009) indicate that the main root-
causes for ineffective ISO 9001 certified QMS implementation by Indonesian
contractors and builders include: a lack of top management commitment; minimum
availability of supporting resources; failure in applying continuous improvement
concepts; unrealistic timelines set up for rolling-out QMS programs; failure in
disseminating QMS programs to all organisational levels (since it is assumed that the
system is only appropriate for manufacturing processes); unsuccessful human
resources training with regards to becoming an agent of change; unsuccessful
definition and design of QMS documentation; the fact that implementation of QMS
is only allowed as an add-on to standard operating procedures; and, that QMSs are
applied without conducting a comprehensive review of existing management
systems.

In addition (but of particular significance), some of the best practices that result from
the proper use of ISO 9001 and implementation of a good QMS, have been
undermined by the fact that companies implementing their QMS often possess weak
corporate cultures. Gapeksindo (2007) opines that deterioration in the
implementation of QMS occurs from the time of tender-bidding throughout the
period of project execution. The authors provide an example of a winning project
which priced at only 50-60% of total project budget estimate. The question then rose
related to whether it was realistic to promote quality assurance in a project, the
contract for which was based on a cut-throat tender price. Supporting this view,
Rayendra L. Toruan in an editorial foreword to Quality Management
45

Implementation Guidelines (LPJK 2005), criticized the practice of lowest-bid
tender award processes because of the possibility that such awards might be
influenced by corruption-collusion and nepotism-(CCN), with dubious mark-up
practices which inevitably affect the quality of subsequent construction work.

Santoso in a recent doctoral dissertation (Universitas Brawijaya Malang 2009),
argues that ISO 9001 initiative is not a major factor that affects Indonesian
construction business performance. The reason cited for this opinion is because ISO
9001 can be easily obtained by using an experienced external party (ibid 2009). The
author concedes that company employees are only contract-labourers hence it is
rather difficult to involve them in quality management practices in the parent
company. Such a conclusion, if true, would reduce the incentive of construction
companies in the adoption of ISO 9001 standards. Schein (2004) provides strategies
for leaders, during the early stages of team work development, for incorporating new
workers (or contract-workers) into a companys quality culture. The research
component of this thesis undertakes the identification of problems and issues
specifically relating to the Santoso case, in order to understand how to overcome
similar barriers to the implementation of QMSs for the achievement of more positive
business outcomes.

In summary, there are few research articles which have reporting on the results of an
examination of the use of ISO 9001 by construction companies in Indonesia,
especially in terms of identifying the barriers that prevent proper implementation of
quality initiatives. The research that forms the basis to this thesis aims to provide a
much-needed and comprehensive study on how well QMSs and ISO 9001 are being
used by construction companies in Indonesia, together with how their
implementation might be better guided by the establishment of a new framework for
use by client bodies and constructors, to produce better output, improve business
outcomes, and strengthen the organisational culture. These research issues have been
supported by the use of a quantitative questionnaire survey as a primary tool,
supported by qualitative focus group discussions as a complimentary tool, to validate
results from the survey questionnaire.

46

In the previous section it has been stated that other research reveals that the
organisational culture does correlates with QMS implementation. This study
therefore aims to investigate the current organisational culture profiles of Indonesian
contractors, and the influence of different culture types on quality system
implementation. The following sections aim to explain how quality management
systems and practices may be better implemented, and better business outcomes and
customer satisfaction achieved, using the strengths and directions of organisational
culture.


2.4 Organisational Culture in the Construction Industry

Chapter 1 described how the research approach used in this study aim to assess and
analyse the culture profiles of Indonesian construction companies and investigate the
relationship between QMS attainment levels and those culture profiles. It is therefore
necessary to understand the concepts surrounding, and theoretical models of,
organisational culture. In this section, the organisational culture assessment model of
Cameron and Quinn (2006), derived from Quinn and Rohrbaughs (1983) earlier
Competing Values Framework (CVF) is reviewed, as this instrument is chosen for
use as the primary instrument for the collection and interpretation of data for
identifying and analysing the organisational culture profiles of Indonesian
contractors. Since culture is often regarded as an abstract concept (Cheng 2005), the
underlying values of culture are also reviewed in order to gain a better
understanding of the more specific concept of organisational culture, to help
enhance the analysis of the situation pertaining to Indonesian constructors and
builders undertaken in the later stages of this study.


2.4.1 Concepts of Organisational Culture

There are different understandings of the concept of organisational culture, some
of which are taken from historical, anthropological or behavioural viewpoints, such
as those of Tylor, Boaz and Malinowski, while others perceive organisational
culture as having a more structural approach and symbolic perspective (Coffey
47

2010). The following are a sample of some of the definitions of organisational or
corporate culture described by different authors and researchers.

A common concept of corporate culture used by many scholars is that of the
foundation of corporate character which is visible in the way that its personnel carry
out tasks and express their opinions (Denison 1984). Leavitt, Pondy and Boje (1989,
278) to the notion that organisational culture as the pattern of basic assumptions
that a given group has invented, discovered, or developed, in learning to cope with
its problems of external adaption and internal integration, that has worked well
enough to be considered valid and therefore, to be taught to new members as the
correct way to perceive, think, and feel in relation to those problems.

By adopting definitions from a number of sources, Coffey (2005, 94) writing
specifically about the culture of construction companies, adopts the following
definition: the informal shared values, norms and beliefs that control how
individuals and groups in organisations consistently perform tasks, solve problems,
resolve conflicts and interact with each other and with others outside the
organisation. More recently, Tijhuis and Fellows (2012) define the nature of culture
in international construction as not being a matter of concerning particular
individuals, but something that relates to and concerns groups of people in which the
development of culture spirals through time by shaping behaviour which, in turn,
shapes culture. In this study, the term organisational culture is defined as the shared
values and underlying assumptions within the construction organisation, which
allow the organisation to operate effectively.

There has been a growing body of literature since the 1990s that has examined
organisational culture and its links to different aspects of organisational management
and practices. Handy (1993) notes that the customs and traditions of a place are
powerful in influencing peoples behaviour. Moreover, contemporary studies link
organisational culture to the following: innovation (Tijhuis 2010; Abiola Falemu,
Ogunsemi and Oyediran 2010); effectiveness and performance of the organisation
(Lemon and Sahota 2004; Corbett and Rastrick 2000; Maull, Brown and Cliffe 2001;
Liu, Zhang and Leung 2006; Zheng, Yang and McLean 2009; Coffey 2010);
sustainability in construction (Yip Robin and Poon 2009) which, in turn, is the most
48

important element of competitiveness (Cameron and Quinn 2006); and to
implementation of quality management systems (Irani, Beskese and Love 2004;
Mahmood et al. 2006; Nummelin 2006; Koh and Low 2008).

Focusing on an investigation of the link between organisational culture and
effectiveness of an organisation, Coffey (2010) provides a list of organisational
culture-performance link studies which were conducted by researchers in different
parts of the world, between 1990 and 2004. From the list, it can be concluded that
various kinds of organisational culture dimensions have been proven to be connected
with short and long-term performance, direct or indirect performance, low and high
performance, and growth and profitability of an organisation.


2.4.2 The Competing Values Framework

There are a number of well-established and well-recognised organisational culture
models which are used for identifying and measuring organisational culture. One of
these models is the Competing Values Framework (CVF), which was developed in
1999 by American researchers Kim S. Cameron and Robert E. Quinn, based on the
observations derived from research undertaken by Campbell et al. (1974) and Quinn
and Rohrbaugh (1983), of various indicators constituting the criteria that represents a
comprehensive set of all possible measures for organisational effectiveness. The
CVF is useful as a guide for enhancing organisational effectiveness and facilitating
culture change within an organisation, with aims of helping organisations to
understand themselves and develop an effective organisational environment
(Cameron and Quinn 2006). This is one of the better known and possibly most
widely used multidimensional models over the past 20 years (Coffey 2010, 59).
Indeed, the CVF has been shown empirically to reflect the current thinking of
organisational theorists on organisational values and resulting organisational
effectiveness (Cooper and Quinn Spring 1993, 178).

The CVF has been selected as the conceptual paradigm for analysis in this study, as
being the most suitable organisational culture model for use due to its suitability for
identifying the profiles or types of organisational culture of construction companies,
49

especially for Indonesian construction companies, which generally do not attach
much importance to organisational culture. The CVF helps provide an understanding
of how sometimes complex phenomenon operate in these companies. In addition,
output based on the CVF model is regarded as being compatible with studies
pertaining to culture in the construction industry in other countries.

The CVF consists of four major culture types (clan, adhocracy, hierarchy, market)
that are theorized to compose cultural profiles within various kinds of organisational
contexts (Choi et al. 2010). These authors further explain that an organisation can
possess either a predominant internal or external focus, and may either be wishing to
achieve flexibility and discretion, or stability and control. This combination of
factors creates four potential cultural categories, each representing a distinct set of
cultural values. The four major culture types that emerge from the framework (Figure
2.4) are briefly described by Cameron and Quinn (2006) as follows:




Figure 2.4 The Competing Values Framework
(adapted from Cameron and Quinn 2006)

CLAN culture: This is similar to a family-type organisation, because people share
values, goals, cohesion, participation and individuality. Leaders and employees
are bonded by a strong commitment. The strong characteristic of this culture is
that all work is done by the team. Customers are seen as partners and human
resources development and empowerment are seen as key factors for success.
Clan Adhocracy
Hierachy Market
Flexibility and Discretion
I
n
t
e
r
n
a
l

F
o
c
u
s

a
n
d

I
n
t
e
g
r
a
t
i
o
n

E
x
t
e
r
n
a
l

F
o
c
u
s

a
n
d

D
i
f
f
e
r
e
n
t
i
a
t
i
o
n

Stability and Control
50

ADOCHRACY culture: This is very dynamic and entrepreneurial, because people
are motivated to be innovative, creative, and risk takers. There is no centralized
power or authority relationship. Instead, power flows from people-to-people or
from task-team to task-team. Having the most unique and up-to-date products all
the time is perceived as being critical for organisational success.

MARKET culture: This is the dominant culture for results-oriented organisations,
in which people are pushed to be competitive and productive in a hard-driven and
demanding work environment, in which leadership is based on achievement style.
Winning the competition is the main criteria for being successful.

HIERARCHY culture: This is very typical for government-type organisations.
People perform tasks based on formalized procedures under an effective and good
coordinator. This culture is typified by a stable and permanent organisation, which
defines organisational success in terms of efficiency.

From the above explanation on the four types of culture, it is acknowledged that
different organisations have diverse working environments, work attitudes and roles,
leadership styles, strategies, etc. These are all important when considering the
incorporation and implementation of a new management approach such as QMS,
because all these factors will determine the degree of success of any QMS related
innovations. Companies should, therefore, fully understand their organisational
culture profiles and initiate changes if necessary, in order to improve organisational
performance in order to gain external recognition and appreciation.

Applicability of the Competing Values Model
Cameron and Quinn (2006) have evaluated the applicability of the competing values
model within any organisation, with regard to a number factors including
organisational leadership and organisational effectiveness. Total Quality
Management (TQM) and human resources management roles are each associated
with the specific culture in each of the four quadrants of the model. Organisations
that consider making adjustments based on a well-developed and robust culture
model with specific applicability to their organisational management practices, will
51

improve their performance, as most will successfully develop cultural values and
become more effective.

The first aspect of the CVF that is applicable to organisational behavior is leadership
(covering leader type, value drivers and the theory of effectiveness). The second
aspect relates to organisational effectiveness, which is reflected in high values in
each type of culture. Further, the authors, Cameron and Quinn (2006) have indicated
that the CVF can help organisations improve their TQM practices by applying
various quality strategies in each culture type, specifically, with reference to the
dominant cultures that exist within the company. When conducting research into
human resource (HR) management, Ulrich and Brockbank (2005) used the CVF
approach to identify the changing roles of the human resource manager. These
researchers concluded that the role, means, and competencies required by the HR
manager associated with each of the four cultures could foster organisational change
and improvement (Cameron and Quinn 2006). These latter authors also state that the
framework derived by Ulrich and Brockbanks (2005) research is a more
comprehensive view of HR management than that discussed in much of the
literature, because their model is a strategic one for more inclusive and rational HR
roles. Table 2.5 presents the CVF applicability to each type of culture.















52

Table 2.5 The Appicability of the Competing Values Framework Model to
Organisational Typologies

CVF
Applicability
CLAN TYPE ADHOCRACY MARKET HIERARCHY
Organisational Leadership
Leader Type

Facilitator,
Mentor, Team
Builder
Innovator,
Entrepreneur,
Visionary
Hard driver,
Competitor,
Producer
Coordinator,
Monitor,
Organizer
Value Drivers
Commitment,
Communication,
Development
Innovative
outputs,
Transformation,
Agility
Market share,
Goal achievement,
Profitability
Efficiency,
Timeliness,
Consistency
and uniformity
Theory of
Effectiveness
Human
development and
participation
produce
effectiveness
Innovativeness,
vision, and new
resources produce
effectiveness
Aggressively
competing and
customer focus
produce
effectiveness
Control and
efficiency with
capable
processes
produce
effectiveness
Organisational Effectiveness
Organisational
Effectiveness
Cohesion, high
levels of
employees morale
and satisfaction,
human resources
development,
teamwork
New products,
creative solutions
to problem,
cutting-edge ideas,
growth in new
markets
Achieving goals,
outpacing the
competition,
increasing market
share, acquiring
premium levels of
financial returns
Efficiency,
timeless,
smooth
functioning,
predictability
Involvement and
participation of
employee foster
empowerment
and commitment
Innovation and
new ideas create
new market, new
customers, and
new opportunities
Competition
creates an impetus
for higher levels of
productivity
Control foster
efficiency
Total Quality Management
Quality Strategies
Empowerment,
Team building,
Employee
involvement,
Human resource
development,
Open
communication
Surprise and
delight, Creating
new standards,
Anticipating
needs, Continuous
improvement,
Finding creative
solutions
Measuring
customer
preferences,
Improving
productivity,
Creating external
partnerships,
Enhancing
competitiveness,
Involving
customers and
suppliers
Error detection,
Measurement,
Process control,
Systematic
problem
solving,
Quality tools

Human Resource Management Roles
Human Resource
Role
Employee
champion means
responding to
employee needs
Change agent
means facilitating
transformation
Strategic business
partner means
aligning HR with
business strategy
Administrative
specialist
means re-
engineering
processes
Competencies
Morale
assessment;
Management
development;
System
improvement
Systems analysis;
Organisational
change skills;
Consultation and
facilitation
General business
skills; Strategic
analysis; Strategic
leadership
Process
improvement;
Customer
relations;
Service needs
assessment
Source: Cameron and Quinn (2006)
53

In summary, organisational performance can be highly improved by combining the
dominant culture profile with the applicability aspects of the CVF: leadership styles,
management and employees roles, quality management, and effectiveness criteria
(Cameron and Quinn 2006). In relation to this study, the CVF and its applicability
are regarded as being beneficial to the research by helping with the development of a
framework for QMS implementation, which is specifically referred to in the ISO
9001 standard, in order to develop a culture-based QMS implementation guidance
for Indonesian construction companies.

The Organizational Culture Assessment I nstrument
In this research, the Organizational Culture Assessment Instrument (OCAI), which
was developed in 1999, based on the Competing Values Framework (CVF) model,
has been used to identify the current culture profiles of Indonesian construction
companies. This instrument is constructed in the form of a questionnaire that requires
individuals to rate a set of statements that relate to six cultural dimensions: dominant
characteristics, organisational leadership, management of employees, organisational
glue, strategic emphasis, and criteria of success. The OCAI assists companies in
diagnosing an organisations cultural type, cultural strength, and cultural congruence
(Cameron and Quinn 2006).

Once the culture profile of an organisation has been determined, Cameron and Quinn
(2006) use the OCAI to provide comparison standards to enable researchers to
analyse different culture profiles in depth. The first comparison standard is to
identify the dominant type of culture; this is useful for matching this most influential
culture with the demands of competitive environment. Secondly, the culture profile is
analysed to establish the degree of strength needed in order to be successful in its
environment. The third comparison standard is to identify whether the culture profile
is congruent or incongruent. Cultural congruence means that the same culture type is
emphasized in various parts of the organisation (ibid 2006). The fourth comparison
standard is to compare the culture profile with the average culture profiles of other
companies/industries that have been surveyed by Cameron and Quinn, to help
stimulate additional change in a way that enhances organisational effectiveness.
Finally, it is important to use the culture profile to determine operational trends of an
organisation, to help provide a more comprehensive culture profile.
54

In construction research on organisational culture profiles, Thomas et al. (2002),
Numellin (2006), Liu, Zhang and Leung (2006), Oney-Yazc et al. (2007) and Koh
and Low (2008) used the OCAI to identify the culture profiles of construction
companies in each country of their research domain. They found that the tool is
helpful in providing a comprehensive picture of a companys organisational culture
and the values that characterize each culture, as well as providing a comparison
standard for culture profile interpretation. The six cultural dimensions of OCAI
represent the culture climate in an organisation which forms a cumulative
representation of an organisational culture (Rameezdeen and Gunarathna 2003). The
cultural dimensions with associated cultural types of the OCAI are presented in
Table 2.6.























55

Table 2.6 OCAI Traits and Typologies
Cultural
Dimensions
Culture Types
Clan Culture Adhocracy Culture Market Culture Hierarchy
Culture
Dominant
Characteristics
It is a very
personal place. It
is like an
extended family.
People seem to
share a lot of
themselves.
It is a very dynamic
and entrepreneurial
place. People are
willing to stick their
necks out and take
risks.
It is very results-
oriented. A major
concern is with
getting the job
done. People are
very competitive
and achievement-
oriented.
It is a very
controlled and
structured place.
Formal
procedures
generally govern
what people do.
Organisational
Leadership
The leader is
generally
considered to
exemplify
mentoring,
facilitating, and
nurturing.
The leader is
generally
considered to
exemplify
entrepreneurship,
innovation, or risk
taking.
The leader is
generally
considered to
exemplify a no-
nonsense,
aggressive, results-
oriented focus.
The leader is
generally
considered to
exemplify
coordinating,
organising, or
smooth-running
efficiency.
Management
of Employees
The management
style is
characterised by
teamwork,
consensus, and
participation.
The management
style is
characterised by
individual risk
taking, innovation,
freedom, and
uniqueness.
The management
style is
characterised by
hard-driving
competitiveness,
high demands, and
achievement.
The management
style is
characterised by
security
employment,
conformity,
predictability,
and stability in
relationships.
Organisation
Glue
The glue that
holds the
organisation
together is
loyalty and
mutual trust.
Commitment to
this organisation
runs high.
The glue that holds
the organisation
together is
commitment to
innovation and
development. There
is an emphasis on
being on the cutting
edge.
The glue that holds
the organisation
together is the
emphasis on
achievement and
goal
accomplishment.
The glue that
holds the
organisation
together is formal
rules and
policies.
Maintaining a
smooth-running
organisation is
important.
Strategic
Emphases
It emphasizes
human
development.
High trust,
openness, and
participation
persist.
It emphasizes
acquiring new
resources and
creating new
challenges. Trying
new things and
prospecting for
opportunities are
valued.
It emphasizes
competitive actions
and achievement.
Hitting stretch
targets and winning
in the marketplace
are dominant.
It emphasizes
permanence and
stability.
Efficiency,
control, and
smooth
operations are
important.
Criteria of
Success
Success is on the
basis of the
development of
human resources,
teamwork,
employee
commitment, and
concern for
people.
Success is on the
basis of having the
most unique or
newest products. It
is a product leader
and innovator.
Success is on the
basis of winning in
the marketplace and
outpacing the
competition.
Competitive market
leadership is key.
Success is on the
basis of
efficiency.
Dependable
delivery, smooth
scheduling, and
low-cost
production are
critical.
Source: Cameron and Quinn (2006)
56

2.5 The Culture-based Quality Management System

Drawing from the understanding that culture addresses people matters, and thus
becomes the crucial factor in effective QMS implementation, as well as being the
primary determinant for organisations to improve (McCabe 1998), culture-based
quality management system is interpreted as meaning a mixture of strong
organisational culture and effective QMS implementation. In more concrete terms,
this means ensuring that, with recognizable adaptable strong organisational culture
profiles, a construction companies QMS-ISO 9001 can be efficiently and effectively
implemented and continually improved, to provide a strategic management system
that improves a companys performance. The sub-sections below draw on the two
aspects of developing culture-based quality management system: (i) the steps of
culture change and (ii) details of the relationships between organisational culture and
QMS implementation in construction settings.


2.5.1 Culture Change

When conducting the preliminary interviews at the time of the preliminary study,
most of the local construction companies in Manado in North Sulawesi Province
admitted that they do not have a good understanding of organisational culture,
whereas national Jakarta based companies generally realised that their organisational
cultures were not well developed or strong. The output of the interviews also
indicated that there was still a lack of quality awareness among both management
and workers. A change of attitude is therefore required at all levels for an
organisation to achieve an understanding of the importance of quality, and so enable
individuals to become role models for others. This research has aimed to develop a
culture-based QMS improvement implementation framework to guide construction
companies in developing and changing their organisational culture, to impact
favourably on their quality practices and procedures incorporated in their QMS, and
espoused in their quality values.

Just as for organisational culture, there are many different meanings of the term
culture change. Cameron and Quinn (2006) suggested culture change is
57

concerned with making real changes in the behaviour of people throughout the
organisation. Trice and Beyer (1993, 395) described culture change as referring to
planned, more encompassing, and more substantial kinds of changes than those
which arise spontaneously within cultures or as a part of conscious efforts to keep an
existing culture vital. It involves a break with the past and disrupts the cultural
continuity; it is an inherently unbalanced process (ibid 1993).

With regard to culture change in the construction organisation in order to
effectively implement QMS, Low and Teo (2004) point out that the transformation of
processes, strategies and beliefs of an organisation is needed and this needs to be
facilitated by key personnel (McCabe 1998). Yip Robin and Poon (2009) make an
additional point that changes in attitudes and practices can be implemented by
transforming mind-sets and actions. While Numellin (2006) states that cultural
change is not just about adopting new systems and methods, but also requires
changes in underlying assumptions and values, hence organisational culture; this
does not happen easily.

It is commonly argued that the emphasis on making culture change in construction
organisations should be due to pressure both from internal and external factors.
Tijhuis and Fellows (2012) have commented that in a competitive business
environment especially when entering new markets, there is pressure for culture
change. An example of this is provided in the Indonesian highway corporation, Jasa
Marga, which initiated organisational cultural changes in response to technological
developments, social and political pressures, and tight market competition. This
corporation has changed its vision and organisational structure (Susanto 2008).
Another example of reasons to undertake change is presented by van Marrewijk
(2007) who states that a culture in a large infrastructure projects needs to be
developed to reflect decision-making processes and uncertainty.

Strategies for Culture Change
According to Naoum (2011), a strong organisational culture plays an active role to
lead construction employees to a higher level of motivation, where the stronger the
culture the better the employees performance in terms of efficiency and
productivity. For a construction company to understand its current culture and then
58

initiate changes in order to develop a strong corporate culture, is not an easy task.
Sandholm (1999) claims that it might be difficult for a company to alter its usual
habits and behaviour to embrace a new quality culture. Supporting this view, Lakhe
and Mohanty (1994) conclude that in order to guarantee the successful adoption of
TQM principles, there should be a total transformation of the corporate culture,
restructuring of management responsibilities and a complete and long-term
involvement of all stakeholders for quality process improvement. This means that
strategies for strong cultural development and change may be required, to change
peoples mindset and behaviour within an organisation.

Although there are apparent hurdles that must be faced by organisations in changing
the status quo and developing cultures that will support QMS, these may well be
overcome by applying accurate and appropriate strategies aimed at specific actions
leading to cultural change. Therefore, the strategy of change is an important one.
Once an organisation has established an intention to change its current culture to
reflect its wish to adapt and deal with internal and external challenges, according to
Cameron and Quinn (2006, 87), there are six potential steps in strategies for
organisational culture change. These steps are:

1. Reach a consensus on the current culture in order to foster involvement and to
minimize resistance to the culture change by those affected.
2. Reach consensus on the desired future culture, to clarify for all concerned what
the new cultural emphases will be.
3. Determine what the changes will and will not mean, to identify what is to remain
unaltered in the organisation in the midst of change.
4. Identify illustrative stories.
5. Develop a strategic action plan.
6. Develop an implementation plan to generate specific action steps that can be
initiated to create momentum toward culture change.

The strategy for culture change must be well planned, in order to minimize the
chance of failure. According to Susanto (2008), one of the causes of organisational
change failure is because of a lack of strong consensus with the organisational
leaders as to what is to be changed and how. If members of organisations feel that the
59

proposed changes will cause any pressure, then resistance can sometimes be manifest
in the form of sabotage, reduced productivity and reduced motivation (Low and Teo
2004). Based on the researchers own experience as the Quality Manager of an ISO
9001 certified educational institution, management and staff, while acknowledging
that ISO 9001 certification must be retained, do not always positively respond to
sincere strategies for its implementation or any related action plan to retain it. Yip,
Robin and Poon (2009) emphasize that the culture in construction companies needs
to be a sustainable one, and this can only be achieved by making changes over time
in response social demands for sustainability, and global tendencies in sustainable
construction development. Therefore, any proposed steps for culture change need to
be included in the culture-based QMS framework design, to identify what current
organisational culture profiles are currently in place that can lead management
towards designing its own strategy for culture development and change, in order to
reach a desired quality culture.


2.5.2 Relationship between Organisational Culture and Quality Management
System Practices in Construction Companies

A number of studies have been undertaken analysing how a quality system can be
successfully implemented and in identifying the potential benefits to be gained by a
construction organisation that achieves effective implementation of such systems.
Corbet and Rastrick (2000), Irani, Beskese and Love (2004), Coffey (2005), Coffey
(2010) agree that there is a definite relationship between corporate culture and
quality in construction projects. It has also been noted that the nature of the culture is
a major determinant factor for such success, and that this, in turn, is related to the
successful implementation of a QMS. Koh and Low (2008) have referred to this
relationship as mutually reinforcing and by this they mean that if the corporate
culture is good, the quality system will be applied appropriately, with the resulting
products and services also being good.

Organisational practices ingrained in the forms of organisational structure, processes,
methods and procedures, must be constantly constructed and managed in order to
make an effective organisation (Nadler and Tushman 1980). Building up the concept
60

of organisational culture within an organisation influences quality management
practices and vice versa (Noronha 2002), and all the organisational practices must be
in a state of congruence for good quality practices to operate (Koh and Low 2008).
This implies, for example, that if the management applies a new approach that
focuses on internalizing quality values [which are part of organisations culture] in
all organisational members (Bright and Cooper 1993), then the organisational culture
creates an organisational climate which supports quality improvement and/or also
grows the quality climate; this, in turn, directs the quality management processes
[and implementation] that achieve quality results (ibid 2002).

According to Maull, Brown and Cliffe (2001) construction companies should
undertake a preliminary review of their internal culture before attempting to
introduce TQM. Irani, Beskese and Love (2004) suggest that construction firms
should examine whether they possess core values that focus on customer satisfaction
and retention of such values, before turning to TQM. Although it is recognised that
cultural values differ among organisations, the authors state that the basic beliefs in
business competition, and the desire to have an efficient operational budget, should
be common to all companies (ibid 2004). These points are useful when considering
of appropriate culture type, dimensions and strength that a construction company
needs to possess or develop, in order to have a chance in gaining customers
satisfaction, engage in effective management functions, and therefore achieve
business excellence.

Koh and Low (2008) appear to have established the links between corporate culture
models and strategies for TQM practices. They have proposed that organisations
should continuously adjust their corporate cultural values using transparent and
open-minded vision, thereby placing themselves in a group of similar strong culture
organisations. The authors observe that companies then need to bring these strong
cultural traits into their TQM strategies, as the two need to be incorporated
simultaneously.

Using the Organizational Culture Assessment Instrument (OCAI) developed by
Cameron and Quinn (2006), Koh and Low (2008) conducted an assessment of
Singaporean construction companies, and analysed how their cultures related to the
61

implementation of the eight elements of TQM. From their survey findings, four
organisational culture types were identified - strong comprehensive, clan-driven,
hierarchy-driven and weak comprehensive culture. Figure 2.5 illustrates these four
culture profiles and the corresponding TQM implementation strategies necessary to
be applied for each culture type; they conclude that there are two major strategies:
(1) modification of organisational culture in response to the diagnosis on weak
cultural aspects that require fortification; and (2) adaptation of TQM practices to
better suit the prevailing organisational culture so that quick results can be attained.
(ibid 2008, 245).

Organisational
Culture Profiles
Possible Implementation Strategies

Hierarcy-driven
culture
1. Modify culture to be more flexible and externally
oriented
2. Fortify customer and process management first,
follow by other elements

Clan-driven
culture
1. Modify culture to be more externally oriented
2. Fortify customer and process management first,
follow by other elements

Strong
comprehensive
culture
1. Maintain current culture
2. Maintain current TQM level first, fortify quality
information management

Weak
comprehensive
culture
1. Fortify all areas of flexibility and external
orientation
2. Fortify supplier, customer, and process management
first, follow by other elements

Figure 2.5 Culture-based TQM Implementation Strategies (Koh and Low 2008)


Looking more deeply into the specific factors of the relationship, earlier research
findings have revealed that the link between corporate culture and effective QMS or
TQM implementation in construction organisations is related to several common but
important management traits. These include: (1) process management; (2) leadership
and management commitment; and (3) staff empowerment and effective
communication.

62

Process management: The processes that exist in any organisation reflect their day-
to-day set of activities, and therefore, quality work outcomes are a result of
consistent and regular quality management processes and their control. Zhang,
Waszink and Wijngaard (2000) have emphasized that process management is the key
element in guaranteeing project results that conform to specified requirements. In
support of this view, Mahmood et al. (2006) point out that if all organisations
activities are directed to TQM initiatives in order to achieve overall quality
performance, then process management appears to be an essential requirement for
quality of conformance. However, QMS supports the operation of the processes
which is an organisation itself, has the mandate to design and is free to determine the
type and extent of quality documentation it references for its process approach
(Watson and Howarth 2011). Therefore, the corporate culture needs to be embedded
in a projects process management through the establishment of top-driven and high-
quality project objectives, combined with a desire to satisfy customers by meeting
and even exceeding their requirements.

Leadership and Management Commitment: In the review of barriers in implementing
QMS, it is noted that the role of leadership in QMS implementation is critical.
McAdam and Kelly (2002) claim that, to successfully implement TQM requires
effort by all sections within an organisation. However, it is often pointed out that all
levels of management have a major responsibility in leading and assisting their
members to properly establish the QMS. In addition, Ahmed et al. (2005), Everett
(2002) and Mahmood et al. (2006) note that, the success of any quality system can be
achieved even if there is nothing but a strong commitment to improving quality, and
guidance from management on their expectations and requirements for quality in
order to value customers. This means that management has responsibility for creating
a comfortable workplace atmosphere that helps employees in delivering productive
project results (Leiter and Maslach 2002; Mahmood et al. 2006). Hence, the essence
of a companys corporate culture reveals the quality management styles of an
organisation from top to middle management levels, with top managements
motivation within an organisation playing a key role in improving quality (Lo 2002).

Many styles of leadership in construction have also been researched. It has been
noted that top leadership and project manager leadership styles are closely associated
63

with effective outcomes for better construction firm work settings. Muller and Turner
(2007) indicate that the project managers leadership style influences project success,
and different leadership styles are appropriate for different types of projects. Toor
and Ofori (2008) and Mahmood and Mohammed (2008) argue that authentic
leadership must be embedded in the organisational culture to maximise positive
outcomes and achieve a factual organisational performance. Ozorovskaja, Voordijk
and Wilderom (2007) have examined the practice of transformational and
transactional leadership in Dutch and Lithuanian construction companies, in an effort
to get more trustful, productive, and committed employees. The important role of
leadership in the construction industry, with the influence of organisations culture,
according to Tijhuis (2010), can make construction more innovative, as long as the
central management is seriously involved with decision making and communication
in a professional manner.

Specifically in relation to the construction project culture of Indonesia, Pamulu and
Husni (2005) have observed that by measuring cultural values in sample companies
in Makassar, the capital of South Sulawesi, they can understand how different
aspects of culture affect the use of ISO 9001 to varying degrees, and from their
studies, leadership has the highest impact. This means that leadership, which reflects
management commitment and involvement, is the most important value in quality
management system application. Management commitment, according to clause 5.1
of ISO 9001, states that management has to develop, control, co-ordinate, supervise
and monitor their corporate quality policy and ensure that this policy is understood
and maintained throughout the organisation (Tricker 2008, 205).

Staff Empowerment and Effective Communication: According to Reeves and Bednar
(1994) the performance of management and staff in all work stages, including the
production of quality outcomes, reflects the prevalent type of company culture that
exists. An appropriate corporate culture also enhances a harmonic internal
relationship amongst management and staff, so that communication between them
runs smoothly (Karathanos 1998). This is highlighted in clause 5.5.3 of the ISO
9001, which notes that internal communication needs to take place to improve the
effectiveness of the quality management system implementation. In addition, Irani,
Beskese and Love (2004) have observed that good corporate cultures will motivate
64

staff to produce valuable outcomes, as they know exactly what they must do. This is
reflected in staff maintaining a positive perspective, even when there is a
transformation in the organisation, thereby leading to employee recognition and
rewards (Mahmood and Mohammed 2008). Sai, Wong and Wu (2011) also note that
goal settings and accomplishment, team orientation, coordination and integration,
performance emphasis, innovation orientation, member participation and reward
orientation, are significant organisational culture factors in the construction industry
that help provide an organisation with an identity. From these perspectives, it can be
seen that corporate human resources are an important factor to be considered in the
broader picture of successful QMS implementation, as the cultural values of an
organisation are inspired in the minds and attitudes of organisational players and
actualize them in a quality manner with a full understanding of their responsibilities.


2.5.3 Construction Organisation Performance Measurement

The fact that the effective implementation of QMS-ISO 9001 in the construction
companies benefits either the internal management and operational systems of the
companies, through the improvement of quality awareness and understanding, and
therefore, the quality of services and product delivery, or the satisfaction of external
parties involved in the services and product provided by the companies, including the
end-users of the construction, indeed the overall benefit is an important for the
companies business performance improvement.

Although there are many potential criteria, which might be measured to assess
construction companies performance and achievements, the notion that construction
companies performance is measured in terms of business or financial performance is
still critical, particularly for the Indonesian construction industry which is focused on
ISO 9001 certified contractors (Asa, Abidin and Latief 2009). Research on the links
between quality by ISO 9001 certified companies and financial performance in
various industries, has found contradictory results. ISO 9001 certified companies, in
addition to improving their operational efficiency, also have improvements in their
nancial performance (Cow-Chua, Goh and Tan 2003; Sharma 2005; Haupt and
Whiteman 2004). Marn and Ruiz-Olalla (2011) also researched this issue and found
65

that there was a positive relationship between ISO 9001 quality certification and
business results. However, not all companies that become ISO 9001 certified show
nancial performance benets (Naveh and Marcus 2005; Morris 2006; Benner and
Veloso 2008). In the construction research area itself, studies on the effects of ISO
9001 implementation on the certified companies business performance are still
limited.

Bassioni, Price and Hassan (2004) addressed the shift of performance measurement
in construction companies, from financial considerations to a mixture of both
financial and non-financial considerations. Using Korean construction companies as
an example, Yu et al. (2007) developed an implementation model to measure and
compare the performance of construction companies with other construction
companies. They proposed a model based on: (1) financial aspects (profitability,
growth, stability); (2) customer aspects (external customer satisfaction, internal
customer satisfaction, market share); (3) internal business processes (R&D,
technological capability, business efficiency); and (4) learning and growth aspects
(HR development, organisation competency). Some popular frameworks, such as
Balanced Scorecard (BSC) model, the European Foundation for Quality
Management (EFQM) excellent model, and the Construction Best Practice Program -
Key Performance Indicators (CBPP-KPI) model, have been adopted and widely used
within the construction industry (Yang et al. 2010).

However, there is no single performance measurement system that fits the
construction industry. It is therefore, an important task for every construction
company in individual countries, to develop a comprehensive performance
measurement that can help the construction industry to measure its existing
performance, and then decide which performance criteria need to be more improved
for the future continuity of companys business life. The quality of the construction
process and the level of customer satisfaction derived from it, need to be
operationalized to form a quality performance assessment system (Yasamis, Arditi
and Mohammadi 2002), to provide a definite basis for performance measurement, as
required from ISO 9001 certified companies. As also noted by Ali and Rahmat
(2010), client satisfaction was found to be one of the most important criteria for
measuring Malaysian construction company performance.
66

As outlined in the review of the relationships between organisational culture and
construction companies effective performance (Section 2.4.1), a strong
organisational culture helps ensuring that an organisation operate effectively and
give identity to the organisation (Sai, Wong and Wu 2011), as well as supporting
QMS-ISO 9001 implementation, ensures that future projects are more marketable
and repeat business ensured. This is also reflected in the relationship between a
strong organisational culture and an effective QMS or TQM implementation, in
reference to their impact on the organisational effectiveness and a high level of
successful performance, although there is still relatively limited research on these
links.

Earlier studies on the links between organisational culture and organisational
performance show the positive relationships between these two parameters.
According to Denison and Mishra (1995), organisational culture can be measured
and is a trigger for organisational outcomes. They proposed four parameters as a
measure of organisational culture (adaptability, mission, involvement, and
consistency) within the context of company performance, with comparisons between
similar companies being made within the context of profitability, quality, return on
assets, sales growth, employees satisfaction, and overall performance. This approach
to the measurement of culture and organisation performance measurement was
adopted by Coffey (2010) who argues that there is a significant correlation between
the strength of an organisations culture and its comparative effectiveness in
performance. The link, in turn, highlights the importance of organisational culture to
an effective QMS implementation in ensuring an overall high level of company
performance in both the immediate and longer term.

The importance of national culture to, and relationships with, quality management
practices and effectiveness is not well documented in the literature. However, a
number of significant studies do exist. Specifically, Noronha (2002) and Noronha
(2003) use case studies of ISO 9001 and TQM companies operating in mainland
China, Hong Kong and Taiwan, and found that Chinese cultural values have an
important influence on an organisations quality climate, processes, methods and
results. More recently, Kull and Wacker (2010), in a survey-based study of
manufacturing industries have found that differences in quality management
67

effectiveness exist among the East Asian cultures of China, South Korea, and
Taiwan.

Comprehensive studies on the links between national culture and quality systems,
and/or organisational performance in an Indonesian context, are also very limited,
although that linkage was not investigated within the scope of this study. The
research focus of this study related to the perceived immature state of QMS roll-out
in the Indonesian construction industry, reflecting the fact that culturally, Indonesian
contractors tend to be employed based more on relationships than on capability or
performance records.

In the case of Indonesian construction companies, there has been also limited
research on organisational culture and its impact on QMS practices leading to
improved performances. Some studies on industry performance conducted by
Wirahadikusumah and Pribadi (2011) have highlighted the need for the Indonesian
construction industry to immediately implement strategic initiatives aimed at
improving conditions within the construction sector, especially for companies
interested in the global construction market. The small number of Indonesian
companies regarded as capable of competing for national and international projects,
has been cited by Budiwibowo et al. (2009), as reflecting poor development
strategies and polices. Despite this and other studies on the Indonesian construction
industry performance, there remains a great need for the further study of issues
relating to the improvement in performance within the Indonesian construction
industry. This thesis study on the effects of the organisational culture and QMS
implementation on construction performance in Indonesia, is a counterpart to earlier
studies, as the issues relating to the organisational culture and QMS have the
potential for having a strong impact on facilitating organisational strategy and policy
development.

By undertaking the review on the construction performance measurement system, in
particular the performance of the ISO 9001 certified contractors, and the linkages
between organisational culture and organisation effective performance, this study
aimed to develop key performance indicators (KPIs) for Indonesian ISO 9001
68

certified construction companies, in order to measure their performance in response
to the implementation of QMS.


2.6 Research Gaps

The study of the organisational culture in the construction industry is still in the stage
of debate (Oney-Yazc et al. 2007). Despite the complexities involved in measuring
culture of the construction industry (Tijhuis and Fellows 2012), this culture is
regarded as being worthy of research, especially in relation to the organisational
culture needed to support QMS (Koh and Low 2008; Watson and Howarth 2011) and
to improve organisational effectiveness, and therefore, organisational performance
(Sai, Wong and Wu 2011; Coffey 2010).

While research into the construction organisational culture, the practice of QMSs and
the performance of contractors implementing such QMSs has involved many
researchers, there is no critical mass of research specifically in relation to the
Indonesian situation. Studies based on contemporary perspectives of the
characteristics of the construction organisational culture using Cameron and Quinns
Organizational Culture Assessment Instrument and its relationship with the QMS-
ISO 9001 standard practices of construction companies in Indonesia, have not been
previously undertaken. The lack of research intention in this area is particularly
surprising, as Indonesian contractors are already applying QMSs with ISO 9001
certification. Increased attention is needed on the matter of Indonesian QMSs
improvement. This has been the objective of this thesis research, particularly as the
Indonesian construction industry has been facing challenges in relation to its internal
organisation and work environment, in order to attain an effective QMSs
implementation. It is also important to investigate the organisational culture profile
in an Indonesian construction organisation, together with the current implementation
of contractors QMS-ISO 9001 and their performance during implementing QMSs,
as information in these areas has a bearing on the poor performance and low levels of
effectiveness of Indonesian construction companies, when reviewed in terms of
quality and profitability, performance and effectiveness; the industry faces
69

challenges and uncertainties in an environment of increasing construction demands
and changing economic environment.

A number of recent studies have examined the construction industrys organisational
culture within the context of the use of Cameron and Quinns Competing Value
Framework (CVF), as well as the use of their Organizational Culture Assessment
Instrument (OCAI) as the conceptual paradigm for the analyses (Thomas et al. 2002;
Nummelin 2006; Oney-Yazc et al. 2007; Koh and Low 2008). However, those
studies were not based on the use of the method of analysis provided by Cameron
and Quinn (2006). Although the knowledge acquired from earlier research will help
in devising ways for identifying the profiles of organisational cultures, none of them
have been based on Cameron and Quinns analysis model.

While acknowledging that there has been little research based on the use of Cameron
and Quinns CVF-OCAI tool for identifying types of contractors organisational
culture profiles and their relationship with QMS-ISO 9001 principles and elements,
there has also only been limited research into the relationships between the barriers
to implementing ISO 9001 standard and construction companies performance while
implementing the standard. Research output and information is also very limited
relating to the strength of contractors organisational culture driving an effective
QMS-ISO 9001 implementation, impacting on companies effective performance. To
rectify these research gaps, the research which has formed the basis of this thesis has
been aimed at a study of organisational culture types (based on CVF) and their
relationship to the implementation of QMS-ISO 9001 standards. The thesis output
has been the development of a comprehensive Culture-based Quality Management
System Improvement Implementation Framework for construction organisations, to
provide the basis for improvements in company performance and quality outcomes.


2.7 Summary

This chapter reviews the literature related to QMSs, both in a global and Indonesian
context. It also reviews the basis of the relationships that have increasingly been
70

shown to exist between contractors organisational culture and the practice of QMSs
in construction companies.

The review shows that the successful implementation of a QMS, particularly if
certified under a formal international standard such as ISO 9001, requires a total
change in organisational culture which involves leadership styles, management and
staff commitments, improved organisational effectiveness, process management,
staff empowerment and effective communication. The change from an organisations
current culture to a new quality culture must become focused on achieving greater
customer satisfaction, together with meeting internal organisational needs. These two
concepts, the QMS and the organisational culture, are mutually bound, and a failure
in the commitment to a strong quality culture will result in unsuccessful QMS
implementation.

The common barriers in terms of successful QMS implementation currently being
faced by Indonesian construction companies are much the same as those which have
been experienced by construction companies elsewhere in the world. However, the
root causes of problems specifically relating to Indonesia (i.e. the gap between
having ISO 9001 certification with no apparent improvement in the performance of
project outcomes) have yet to be addressed. To date, there have been few studies on
how and why the organisational culture of construction companies is important in
achieving an improvement in the quality of project performance under Indonesian
conditions. This research was therefore been focused on the study of these issues
from an organisational culture perspective, including the type and strength of the
companys culture, as well as their roles in the QMS processes and practices, as a
means to direct organisations towards more successful quality outcomes, following
the implementation of QMSs.

Based on the literature review and identified research gaps, the conceptual
framework for Indonesian contractors culture-based QMS implementation was
developed in Chapter 3, to provide guidance for the selection of appropriate research
methods for later stages of the study.

71

CHAPTER 3
RESEARCH DESIGN


3.1 Introduction

Saunders, Lewis and Thornhill (2009) state that a research design must clearly
describe the general plan of how the research questions will be answered together
with providing justification of the methods selected and employed for a particular
research design. Although this study combined quantitative and qualitative methods
to achieve the research objectives as outlined in Chapter 1, a quantitative approach
was employed as the major methodology; as this best suited the research objectives
and associated research gaps highlighted in Chapter 2. The methodology employed a
survey questionnaire of construction industry practitioners, to collect opinions as
well as empirical data regarding the first and second research objectives. Other
secondary methodologies were also used: a preliminary study to help in clarifying
the research gaps and designing the final survey questionnaire, and a focus group
discussion to finalize and validate the research findings (the third research objective).
Using the collected data, analyses were carried out to establish a generic, integrated
culture-based quality management system improvement implementation framework
to assist construction companies in enhancing the development and implementation
of a specific company-based QMS. The design and development of the framework is
covered in Chapter 5.

Having established the research objectives in Chapter 1, this chapter presents the
process by which the objectives were achieved. The research plan (Section 3.2)
covers the general research process used in the study, together with the theoretical
framework on which the entire research study is based. The research methods
selected in order to answer the research questions are discussed in Section 3.3.
Section 3.4 provides a summary of the content of this chapter.


72

3.2 Research Plan

Before embarking on the actual research, a research plan was needed to address the
strategic stages and specific components which need to be implemented to meet the
research objectives. The first stage of the research plan was to undertake some an
initial studies, which provided the means for identifying the research problem and
defining the research questions, established the objectives of the research, enabled
the planning of the proposed research process to be carried out in order to confirm
and refine the specific research topic to study. An initial study is an essential stage in
the identification of a topic has not already been researched, or if previously studied
and reported, needs further investigation (Fellows and Liu 2008).

The second stage involved an extensive literature review, focusing on the area
proposed as the research topic, designed produce a questionnaire instrument for first
testing in the preliminary study. The results from the preliminary study were used to
refine the questionnaire and to make some adjustment of the research plan in order to
develop a comprehensive survey. The benefit of conducting a preliminary study is
that it contributes to the narrowing of the problem area and in defining a specific
problem statement (Sekaran and Bougie 2009).

Data collection and analysis relating to questionnaire are covered in stage 3. In this
stage, a tentative Culture-based Quality Management System Improvement
Implementation Framework was developed, and there was a focus group discussion
(FGD) to evaluate and validate the framework. The feedback from the FGD was
analysed and the results used to refine the expected research findings. Fellows and
Liu (2008) note that a mixture of quantitative and qualitative methods may be
employed to gain specific advantages and reduce potential disadvantages of each
method. Following the qualitative analysis of results, a final Culture-based Quality
Management System Improvement Implementation Framework was established.
Stage 4 (the last stage) of the research plan development comprised the writing of the
research report. Figure 3.1 provides an illustrated framework of the activities
undertaken during the study.
73







Re-appraisal by Researcher
Preliminary Studies Preliminary Literature Review
Culture-based QMS
framework
formulation
Quantitative
data analysis
Questionnaire
survey
Extensive
literature
review
Develop
research
plan
Establish
research
objectives
Define
research
questions

Figure 3.1 Overall Research Plan (adapted from Fellows and Liu 2008)


Qualitative
data
analysis
Information obtained
from existing knowledge
STAGE 4
Thesis writing
Culture-based QMS
framework
refinement
Focus group
discussion
Information added to
existing knowledge
Key
STAGE 3 STAGE 1 STAGE 2
Dissemination
74

Theoretical Framework
The way the research questions are presented and the proposed research objectives to
achieve, highlights the classification of the research study (Saunders, Lewis and
Thornhill 2009). This study can be classified as an explanatory study, which
emphasizes the study of a situation or problem in order to explain the relationships
between variables (ibid 2009). The approach needs a theoretical framework to
establish how certain variables are related to each other (a model) and why these
variables are believed to be associated with each other (a theory) (Sekaran and
Bougie 2009).

This study uses a theoretical framework based on means, to examine the extent of:
(1) the relationships between barriers and the effectiveness of QMS implementation;
(2) the relationships between the barriers and performance of construction companies
certified under the QMS-ISO 9001; (3) the relationships between the effectiveness of
QMS implementation and the performance of construction companies; and (4) the
influence of construction companies organisational culture profiles on the
effectiveness of implementation of quality management systems (QMSs). All these
factors underpin the theoretical framework, and are the main variables in this
research (Figure 3.2).

Identification of the main variables and the possible linkages between them, as
established in the theoretical framework, were developed within the literature review
documented in Chapter 2. The main findings of this review can be summarised as
follows:
The variable of typical profiles of Indonesian contractors organisational
culture has been based on Cameron and Quinns (2006) organisational culture
traits and typologies. They are the four culture types (clan, adhocracy, market
and hierarchy) within the six cultural dimensions (dominant characteristics,
organisational leadership, management of employees, organisation glue,
strategic emphases, and criteria of success). It has been theorized that the
organisational culture influences successful QMS implementation. This was
therefore assessed within the context of Indonesian construction organisation
practices of organisational culture and QMS.
75

The variable of an effective QMS implementation refers to the meeting of a
companys own specified quality requirements and prescribed quality
objectives which are based on the quality management principles and the
elements of ISO 9001 standard. This was tested within the context of
establishing where there were linear relationships between the effective QMS
implementation and the key performance indicators within construction
companies.

The variable of the performance of construction companies is related to
several key performance indicators (KPIs) which typically exist in a
contractors business operation; they include profitability, sales growth,
market share, global market contracts acquired, quality of services and
products, sustainable construction products, new product innovation and
development, and generating employee satisfaction. The need to assess the
relationship between the performance of construction companies certified
under the QMS-ISO 9001, the effective implementation of the QMSs and
barriers to implementing QMSs are key issues in measuring the successful
implementation of a quality system.

The arrow leading from the variable of barriers to implementing effective
QMS to the variable of effective QMS practices in Figure 3.2 reflects the
important relationship that is theorized to exist between these two variables.
Therefore, a test was undertaken to assess whether the QMS barriers relate to
an effective QMSs implementation. In addition, testing of the relationship
between the QMS barriers variable and the contractors KPIs variable in
this study, was developed as a potential new insight in the examination of
these two variables.







76











Figure 3.2 Schematic Diagram for Theoretical Framework for Organisational
Culture and Quality Management System Implementation

The theoretical framework for the research and the issues 1, 2 and 3 reflected in
Figure 3.2, were developed in reference to Research Question 1 and its sub-
questions, which are outlined below:

Research Question 1:
What is the current status of the quality management systems (QMSs) being
implemented by Indonesian construction companies?

(1) The relationships between barriers and the effectiveness of QMS
implementation, are associated with:
sub-question 1.1:
Do the barriers to the implementation of an effective quality management
system significantly relate to the quality management system practices?







Performance
of
construction
companies



Effective
quality
management
system
(QMS)
practices
Barriers to
implementing
effective QMS

Organisational
culture profiles

(1)
(2)
(3)
(4)
77

(2) The relationships between the barriers and performance of construction
companies certified under the QMS-ISO 9001, are associated with:
sub-question 1.2:
Do the barriers to the implementation of an effective quality management
system significantly relate to the key performance of construction companies?

(3) The relationships between the effectiveness of QMS implementation and the
performance of construction companies, are associated with:
sub-question 1.3:
Does the identified presence of quality management system practices
significantly relate to the key performance of construction companies?

The theoretical framework and item number 4 depicted in Figure 3.2, were
developed in relation to Research Question 2 and its sub-question, which are
summarized below:

Research Question 2:
What are the organisational culture profiles of Indonesian construction companies?

(4) The influence of construction companies organisational culture profiles on
the effectiveness of implementation of quality management systems, are
associated with:
sub-question 2.1:
How do the organisational culture profiles of Indonesian construction
companies influence their QMSs implementation?

As the focus of this research is on the improvement of effective quality management
system implementation, which, in turn, can bring about improvements in
construction companies performance and quality outcomes, as well as the
development and implementation of a strong organisational culture, the third
research question then was able to addressed, based on the results of the Research
Questions 1 and 2. The issues relating to Research Question 3 are summarized
below:

78

Research Question 3:
How can effective QMSs be properly established, and be effectively implemented
and continuously improved, by Indonesian construction companies?

Examining the relationships between the main variables and answering the specific
research questions is conducted through appropriate statistical analyses.


3.3 Selection of Research Methods

The careful selection of appropriate research methods is an important component of
the strategy in the overall design of any study. The understanding of which research
methodologies and methods are appropriate, is important in development for
successful data collection in the construction industry (Abowitz and Toole 2010). The
methods employed in undertaking this research were chosen specifically to support
each of the research objectives, the type and availability of the information required,
the expertise of the researcher, and the time and financial support available for data
collection. This research adopted both rigorous and comprehensive methods that
were able to be employed in the whole research process, from the early phase of the
literature review and data collection, to complete data analysis, seeking to satisfy the
research aims and objectives. The integration of research methods and each of the
research objectives are presented in Table 3.1, while the detail of each method used
is described in the following sub-sections.

A mixed-method approach was adopted for this research. Collecting data using a
multitude of methods and from multiple sources lends rigor to research and can
potentially reduce potential bias associated with some data collection methods
(Sekaran and Bougie 2009). This approach comprised two complimentary methods: a
questionnaire survey and focus group discussion. The questionnaire generated
quantitative data, while the second provided richer qualitative details, while at the
same time validating the quantitative findings. Hurmerinta-Peltomaki and Nummela
(2006) have found there is value-adding to results based on the adoption of mixed
methods, when compared with using a single method. The combined approach also
79

provides considerable potential for increasing the validity of information and
creating knowledge through the study of alternative designs (ibid 2006).

The choice of the mixed-method approach for the conduct of the research was based
on the requirements of the different research strategies. A survey was regarded as
appropriate to answer the what? type research questions, while interviews based on
group discussions are appropriate to answer the how? type research question
(Fellows and Liu 2008). While parts of the questionnaire were quantitative in nature
for measuring the numerical itemized rating scale, the Organizational Culture
Assessment Instrument was basically qualitative, as it measured the attitudes to
current organisational culture. The information generated in these surveys was
utilised to answer Research Questions 1 and 2, and partially to respond to Research
Question 3. The analysis and results from the questionnaires were validated by a
focus group of expert stakeholders in order to fully answer Research Question 3.

Although the quantitative method was the mainstay of the methodology used to
generate the research findings in this study, the focus group discussion was able to
not only validate, but also give a deeper and more practical description of, the
findings in order to improve their usefulness and contributions. The quantitative
findings in this research required validation based largely on deductive qualitative
findings. Therefore, the combination of quantitative and qualitative methods both for
data collected and analysis in this study was considered as the best strategy in order
to get robust valid answers to the research questions.
80

Table 3.1 Integration of Research Methods and Research Objectives with Expected Outcomes
Phase Research Objectives
Research Methods
Expected Outcomes
Data Collection Data Analysis
1
To identify quality management systems (QMSs) issues in
construction projects and organisations in both international
and Indonesian contexts, identify gaps and problems of issues
particularly in the Indonesian case
Literature review - Theoretical framework
2 To develop a draft research instrument (questionnaire) Literature review - Draft questionnaire and variables
3
To confirm the selected variables for the study, and shape the
final questionnaire with necessary modification based on
information developed in Phase 2
Preliminary Studies Qualitative Final questionnaire instrument
4
To examine the effectiveness of the QMSs being operated in
Indonesian construction companies, including the
identification of current problems within the systems, and
examine the companies performance while implementing
QMSs
Questionnaire Quantitative
Level of QMSs implementation,
QMS improvement elements
variables and statistical
relationships between these
variables
5 To assess the organisational culture (OC) profiles of
Indonesian construction companies and analyse the influence
of different organisational culture profiles on QMS
implementation
Questionnaire Quantitative
Dominant types of Indonesian
contractors OC and statistical
analysis of OC and QMS
improvement elements variables
6
To design and develop a draft of culture-based QMS
improvement implementation framework, to enable
Indonesian construction companies to effectively implement
QMS
- - A framework to improve QMS
implementation
7 To disseminate the framework to practitioners and policy
makers and evaluate its usefulness in practice
Focus group
discussion
Qualitative Refinement of the framework and
its validation
8 To refine and finalize the culture-based QMS improvement
implementation framework
- -
Valuable implications for
construction industry and
practitioners in Indonesia
81

3.3.1 Questionnaire Design

To ensure that meaningful data was collected, the research instrument (i.e.
questionnaire) in this study was carefully developed and tested in the pilot study,
followed by minor revisions in order to have a well-validated survey instrument. All
statements were primarily based on information derived from the literature review
and preliminary studies.

Questions in the survey were classified as either closed-ended or open-ended.
Since most of the questions sought opinions or a subjective measurement, the
formats of such questions were based on an unbalanced itemized rating scale. For
example, 4=fully implemented, 3=not so fully implemented, 2=minimally
implemented, 1=yet to be implemented. The itemized rating scale provides flexibility
in the number of points in the scale as appropriate (e.g. 4,5,7, etc.); it is also allows
for the possible use of different anchors (e.g. very important to very unimportant)
(Sekaran and Bougie 2009).

The scale of the questionnaire does not include a mid-point, due to a consideration of
potential cultural bias in response to the survey instrument. According to Coffey
(2010), noting findings of previous research (Hofstede and Bond 1988; Hofstede
1991; Si and Cullen 1998) when conducting studies in Asian countries, there has
been notable experience that managers tend to select the mid-point of an odd-number
based rating scale in a questionnaire. They can even apply it in their general life; this
reflects a Confucian doctrine that regardless of correctness, always follows a middle
way. According to Beck (2010), Confucius taught the middle way between extremes
in regard to most virtues and considered moderation transcendent and rare in his
time. Many researchers have different views of the use of the middle-way response.
However, it depends ultimately on the researchers own decision and level of
confidence in using mid-point scales, or making a conscious decision not to use
them, in questionnaire response categories (Coffey 2010).

In order to secure the most enthusiastic response possible to this survey, the language
used for the questionnaire was Bahasa, which was back-translated twice from the
original English version by different translators who were both fluent in English and
82

Bahasa. Figure 3.3 shows the flow of this back-translation technique when used for
the questionnaire adjustment.

Figure 3.3 Back-translation Technique for Survey Questionnaire
(adapted from Coffey 2005)


According to Usunier (1998), this back-translation technique is advantageous in
ensuring that potential translation errors and discrepancies are minimized. In fact, the
results from the translation process were that there was little difference between the
two Bahasa versions. After comparing the second Bahasa version with the original
English version, and then conducting editing of the Bahasa version, a final version
was reached which accurately reflected the meaning of the original English language
survey instrument.

Saris and Gallhofer (2007) recommend that is best to start with general questions and
keep key questions in the last part of the questionnaire. However, revision of the
original questionnaire design resulted in the main questions being in the middle part
of the questionnaire which commenced by providing general information to
respondents on the objectives of the survey, with the middle sections requiring them
to think deeply; the questions in the last section allowed respondents to be more
relaxed in expressing their thoughts and opinions.





Original
English
version
(E1)
Bahasa
Version
(B1)
English
version
(E2)
Bahasa
version
(B2)
Comparison of
E1 and B2 and
Editing
Back-translation processes
BAHASA
(FINAL
VERSION)
83

Questionnaire Format
One section of the questionnaire focused on the companys quality management
system (QMS) details, while the five main sections were focused on the development
and implementation of QMS-ISO 9001. One main section was also focused on the
assessment of a construction companys organisational culture profile.

The QMS related sections of the questionnaires was constructed in manner designed
to gauge the respondents opinions of how their companies QMSs were developed;
the perception of the construction companies to the way that QMSs were being
operated to comply with the ISO 9001 principles and elements; what do the
construction companies perceive as the major difficulties impeding the process of
attaining their QMSs; and successful outcomes of ISO 9001 certified contractors in
the three cities (i.e. Manado, Makassar, and Jakarta) in Indonesia.

For questions pertaining to organisational culture assessment, the Organizational
Culture Assessment Instrument (OCAI) developed by Cameron and Quinn (2006),
and based on their Competing Values Framework (CVF) (ibid 2006) was utilised.
This instrument was used to identify the most closely fitting type of culture for a
company, i.e. whether it is predominantly a hierarchy, market, clan, or adhocracy
culture. This measurement tool has been used by numerous researchers when
studying the organisational culture profile of companies in various business sectors,
and has been proven to facilitate organisations in successfully changing and
improving their cultures. It was the instrument used by Koh and Low (2008) when
they studied the relationship of organisational culture and TQM implementation in
construction firms in Singapore. It was also used by Thomas et.al (2002) to compare
the organisational culture with quality outcomes in thirteen Australian construction
projects. Nummelin (2006) used it to measure organisational culture in the Finnish
construction sector, while Novana and Ogunlana (2006) used this approach when
assessing Thai construction companies organisational culture profiles. Oney-Yazc
et al. (2007) also used it to examine the cultural profile of construction within the
context of the Turkish construction industry.

84

Table 3.2 summarises the construction, measurement items and development of the
questionnaire, and sources of information for the main sections, corresponding with
the research objectives. A sample of the questionnaire is presented in Appendix A.

Table 3.2 Construction and Development of Questionnaire
Research
Objectives
Constructs
Measurement Items and
Development
Sources

To examine the
effectiveness of
QMSs being
operated in
Indonesian
construction
companies

Development
stage of
QMS
( 4 items)

2.1 The use of consultant and
their portion of role and
involvement in setting up
QMS
2.2 The way the fundamental
QMS documentation was
developed
2.3 Length of time from the start
of preparation to the
achievement of ISO 9001
certification
2.4 Motives for developing
QMS


Results of
preliminary
interviews
(January 8, 2010)

Ofori, Gang and
Briffett (2002),
Chini and Valdez
(2003),
Susilawati, Salim
and Soesilo
(2005), Turk
(2006),
ISO9000Council.
org (2009)

To examine the
effectiveness of
QMSs being
operated in
Indonesian
construction
companies

The practice
of ISO 9001
principles
(8 items)

3.1 The level of implementation
of customer focus
3.2 The level of implementation
of leadership
3.3 The level of implementation
of involvement of people
3.4 The level of implementation
of process approach
3.5 The level of implementation
of system approach to
management
3.6 The level of implementation
of continual improvement
3.7 The level of implementation
of factual approach to
decision making
3.8 The level of implementation
of mutually beneficial
supplier relationships

Tricker (2008, 26-
29)






85


Table 3.2 Construction and Development of Questionnaire (continued)
Research
Objectives
Constructs
Measurement Items and
Development
Sources

To examine the
effectiveness of
QMSs being
operated in
Indonesian
construction
companies

The practice
of ISO 9001
elements (20
items)

4.1 The level of implementation
of management responsibility
4.2 The level of implementation
of quality system
4.3 The level of implementation
of contract review
4.4 The level of implementation
of design control
4.5 The level of implementation
of document and data control
4.6 The level of implementation
of purchasing
4.7 The level of implementation of
control of customer-supplied
product
4.8 The level of implementation of
product identification and
traceability
4.9 The level of implementation
of process control
4.10 The level of implementation
of inspection and testing
4.11 The level of implementation
of control of inspection,
measuring and test equipment
4.12 The level of implementation
of inspection and test status
4.13 The level of implementation
of control of non-conforming
product
4.14 The level of implementation
of corrective and preventive
action
4.15 The level of implementation
of handling, storage,
packaging, preservation and
delivery
4.16 The level of implementation
of control of quality records
4.17 The level of implementation
of internal quality audits
4.18 The level of implementation
of training
4.19 The level of implementation
of servicing
4.20 The level of implementation
of statistical technique

Chung (1999,
38), Rumane
(2011, 104)

86


Table 3.2 Construction and Development of Questionnaire (continued)
Research
Objectives
Constructs
Measurement Items and
Development
Sources

To identify any
current
problems within
the
implementation
of QMSs

Barriers to
implementing
QMSs
(14 items)

5.1 Difficulty in the process of
attaining QMS due to
management attitude and
purposes
5.2 Difficulty in the process of
attaining QMS due to ISO 9001 is
a documentation matter instead of
opportunity to make a change
5.3 Difficulty in the process of
attaining QMS due to lack of
corporate commitment
5.4 Difficulty in the process of
attaining QMS due to lack of
strong motivation
5.5 Difficulty in the process of
attaining QMS due to lack of
effective management response
5.6. Difficulty in the process of
attaining QMS due to difficulty in
understanding ISO 9001
terminology
5.7 Difficulty in the process of
attaining QMS due to ISO 9001-
QMS is a matter of fulfilling audit
requirements
5.8 Difficulty in the process of
attaining QMS due to failure in
disseminating ISO 9001-QMS
5.9 Difficulty in the process of
attaining QMS due to lack of a
well-design reward system
5.10 Difficulty in the process of
attaining QMS due to lack of
effective internal communication
5.11 Difficulty in the process of
attaining QMS due to poor
external communication
5.12 Difficulty in the process of
attaining QMS due to uncertainty
with sub-contractors and supplier
quality systems
5.13 Difficulty in the process of
attaining QMS due to resistance
to QMS implementation
5.14 Difficulty in the process of
attaining QMS due to lack of
funding for QMS implementation

Results of
preliminary
interviews
(January 8,
2010)

Landin
(2000),
Susilawati,
Salim and
Soesilo
(2005), Turk
(2006),
ISO9000Cou
ncil.org
(2009),
Novessro
(2009)















87


Table 3.2 Construction and Development of Questionnaire (continued)
Research
Objectives
Constructs
Measurement Items and
Development
Sources

To examine
the key
performance
of certified
QMS-ISO
9001
companies

Companys
key
performance
indicators
during
implementing
QMSs
(8 items)

7.1 The level of company
performance in terms of
profitability for the preceding two
years
7.2 The level of company
performance in terms of sales
growth for the preceding two
years
7.3 The level of company
performance in terms of market
shares in its region for the most
recent year
7.4 The level of company
performance in terms of global
market contracts acquired
7.5 The level of company
performance in terms of quality of
services and products
7.6 The level of company
performance in terms of
sustainable construction products
7.7 The level of company
performance in terms of new
product innovation and
development
7.8 The level of company
performance in terms of
generating employee satisfaction

Adopted and
modified from
the subjective
effectiveness
measures
(Denison and
Mishra 1995)

Yip Robin and
Poon (2009),
Coffey (2010)

Results of
preliminary
interviews
(January 8,
2010)











88


Table 3.2 Construction and Development of Questionnaire (continued)
Research
Objectives
Constructs
Measurement Items and
Development
Sources

To assess the
organisational
culture profiles
of Indonesian
construction
companies and
analyse the
influence of
different
organisational
culture profiles
on QMS
implementation

Company
organisational
culture
profiles
(24 items)


6.1 Fundamental assumptions and
values characterized by the four
culture types that match with the
culture dimension of dominant
characteristics
6.2 Fundamental assumptions and
values characterized by the four
culture types that match with the
culture dimension of
organisational leadership
6.3 Fundamental assumptions and
values characterized by the four
culture types that match with the
culture dimension of management
of employees
6.4 Fundamental assumptions and
values characterized by the four
culture types that match with the
culture dimension of organisation
glue
6.5 Fundamental assumptions and
values characterized by the four
culture types that match with the
culture dimension of strategic
emphases
6.6 Fundamental assumptions and
values characterized by the four
culture types that match with the
culture dimension of criteria of
success

Adopted from
the
Organizational
Culture
Assessment
Instrument-
OCAI
(Cameron and
Quinn 2006)









89

3.3.2 Sample Design

Designing a suitable sample for data collection is an obvious necessity, since it is
rarely possible to investigate an entire population due to source restrictions in most
research studies. According to Fellows and Liu (2008, 159), the objective of
sampling is to provide a practical means of enabling the data collection and
processing components of research to be carried out whilst ensuring that the sample
provides a good representation of the population. This section outlines the specific
criteria used to select the respondents for the questionnaire, and to form a panel of
experts for the purpose of this research.

Questionnaire Respondents
The target population of the study in the Indonesian context was the grade 7 (G-7)
construction companies, the highest grade of Indonesian contractor qualification, as
well as all G-7 companies holding ISO 9001certification. Fellows and Liu (2008, 23)
state that surveys operate on the basis of statistical sampling; only extremely rarely
are full population surveys possible, practical or desirable. The principles of
statistical sampling - to secure a representative sample are employed for economy
and speed. Therefore, the determination of the sample size for a questionnaire must
secure a sufficient number to represent the population, while govern estimated non-
response rate, cost, time, and operational constraints, with the results being able to be
generalized to the population as a whole. With these guidelines being taken into
account, this study adopted complex probability sampling designs, in particular,
stratified random sampling and cluster sampling.

The stratified random sampling is a method employed to randomly choose a number
of samples representing each stratum of a population (Fink 2009); it has advantages
of high generalizability of findings, and is the most efficient among all probability
designs (Sekaran and Bougie 2009). This method was used to select respondents
representing a typical construction practitioner, i.e. Quality Management
Representatives (QMRs), Managers (MRs) and Project/Site Engineers (SEs). These
respondents represent the high level (QMRs), middle level (MRs), and low level
(SEs), within the organisational structure, and were considered as an appropriate
representative sample of the population of interest to provide data in terms of quality
90

management system implementation within their construction companies. This
sample can also be considered to be representative of the Indonesian construction
industry as a whole. The Quality Management Representative is specifically chosen
being considered to meet the criteria for the survey, to provide opinions on the
current QMS practices in their companies. He/she is a quality management specialist,
who leads the development and/or implementation of a companys quality
management system, and ensures the quality system complies with the ISO 9001
standards.

Cluster sampling is used primarily to choose the location of designated construction
companies; these were in the capital city of Jakarta, and the two capital cities of
Manado and Makassar for North Sulawesi Province and South Sulawesi Province,
respectively. Rea and Parker (2005) state that a cluster sample is a sample which is
determined based on a specified group (cluster) to delineate characteristics of the
group, such as countries, provinces, cities, blocks and so forth. This sampling design
is most useful when a heterogeneous group is to be studied at one time (Sekaran and
Bougie 2009).

Based on data provided by the National Construction Services Development Board
(LPJK 2009a), out of 913 (total of G-6 and G-7) construction companies, only 305
have ISO 9001 certification and all these are in the G-7 qualification category. Of
these 305 contractors, about 150 have dominant business lines covering building and
civil engineering works, of which, 126 (84%) are located in the three cities (LPJK
2009a; Indonesian Contractors Association 2009, 2010). However, due to some
operational constraints, only 118 civil contractors were able to be targeted and be
sent the questionnaire booklets.

Israel (2003) presents the strategies for determining sample size, either by using
published tables or formulas, to calculate an appropriate sample size. Table 3.3
shows the basis for deciding the sample size for this study. The sample sizes in Table
3.3 have been based on the assumption that the attributes being measured are
distributed normally or almost so, and are considered appropriate for meeting a
combination of the sample size for precision, confidence level and degree of
variability (ibid 2003).
91


Table 3.3 Sample Size for 5%, 7% and 10% Precision Levels, a Confidence
Level of 95% and P= .05
Size of
Population
Sample Size (n) for Precision (e) of:
5% 7% 10%
100 81 67 51
150 110 86 61
200 134 101 67
250 154 112 72
300 172 121 76
350 187 129 78
400 201 135 81
Source: Israel (2003)

For the total population of ISO 9001 certified civil contractors (150 companies), the
sample size determined for investigation in this study was 118 companies. This
complies with the eligibility of Israels (2003) required sample size of n=110 (e =
5%).

Respondents in the Focus Group Discussion
Following the completion of the development of the framework for the culture-based
improved quality management system (QMS) implementation, it was decided that a
follow-up focus group discussion would be helpful to evaluate the framework in
order to improve the design and development of the research findings. A focus group
discussion (FGD) comprising of representatives of construction practitioners, policy
makers and academics, was invited to participate, some of whom had participated in
the questionnaires phase, and some in the preliminary studies. Due to the constraints
relating to operational costs and time needed to assemble multiple groups, one focus
group can be regarded as acceptable, as long as the data is interpreted cautiously
(Morgan and Scannel 1998). In addition, the composition and the characteristics of
the participants, as well as the dynamics of their discussion, ensure that the content
of the discussion is appropriately focused when dealing with the limitations of using
just one focus group (ibid 1998).

92

In relation to the number of participants in a FGD, Phillips and Stawarski (2008)
suggest that the group size should be kept small, with between 8 and 12 participants
being regarded as being appropriate for most focus groups. A group needs to be large
enough to ensure representation of different points of views but small enough to
provide a chance for each participant to exchange comments freely (ibid 2008). A
panel of experts was therefore established according to these guidelines. Fourteen
panellists were invited to participate in the FGD data collection to ensure a sufficient
number of respondents for valid data collection. These experts were academics,
policy makers and construction practitioners. Nine of the 14 invitees expressed their
agreement to participate in the FGD. The number of respondents conformed with the
recommended size of a FGD for representation of the three sectors covered by this
component of the study.

The focus group needs to be characterized by homogeneity, but with sufficient
variation amongst participants to allow for contrasting opinions Krueger and Casey
(2009). The FGD composition (i.e. five construction practitioners, three policy
makers, one academic expert) suggests enough variation within the group to get
contrasting opinions on the topic discussed, with the construction practitioners being
considered to be more experienced and better educated within a ISO 9001 certified
construction company, while the policy makers represented those in charge of
decision-making and with experience in substantial national infrastructure projects.


3.3.3 Preliminary Studies

Before the formal data collection was undertaken, preliminary studies in the form of
interviews and pilot testing of questionnaires were conducted. The preliminary
interviews was aimed at ensuring the significance of the topic being researched,
while also establishing a working communication base for further data collection and
validation in the main survey. A pilot test questionnaire provided an opportunity to
validate the accuracy of the questionnaire statements/questions, and solicit comments
and feedback from respondents for improving and finalising the essence of the main
questionnaire. The preliminary study was conducted in the two months, December
2009 and January 2010.
93

The Preliminary I nterviewees
A total of 29 respondents took part in the preliminary interviews (see Appendix C,
Table C-1). The first phase of the interviews involved 17 participants who were
made up of Directorate General for Construction and Human Resources
Development, Centre for Construction Implementation Development, and Centre for
Construction Research Organisation (four participants), all of which are under the
Ministry of Public Works, National Construction Services Development Board
(NCSDB) in Jakarta (four participants), South Sulawesi Construction Services
Development Board in Makassar (two participants) and North Sulawesi Construction
Services Development Board in Manado (two participants), Indonesian Contractors
Association (ICA) (three participants), and the National Contractors Association of
Indonesia (NCAI) (two participants).

The choice of the 17 participants (R1 R17) (see Appendix C, Table C-1) was made
with regard to their roles as policy makers and in being functional in developing and
enhancing the role of the national construction services that can contribute to the
economic growth of the country (Indonesian Contractors Association 2010). In
addition, the Directorate General for Construction and Human Resources
Development (R5) within the Ministry of Public Works has particular responsibilities
to motivate and enhance the role of Indonesian contracting companies in becoming
qualified and professional organisations capable of undertaking construction projects
both nationally and overseas.

The second part of the interviews involved 12 construction professionals (R18 R
29) from leading construction companies in Jakarta and Manado that have more than
15 years of professional experience in the industry. The companies represented had
been involved in a number of construction projects both locally and internationally.
The level of representation of the interviewees included - Operations Director (one
participant), Quality Manager/Quality Management representative for ISO 9001-
QMS (QMR) (six participants), Project Control Manager, QHSE Management
System Manager, Project Manager (five participants). These high-ranking
professionals possessed a wealth of experience in a diverse range of infrastructure
projects, with a focus on roads and highways, and power plants. They were invited to
participate in the preliminary interviews because it was considered that they could
94

provide valuable comments and inputs, particularly regarding problems associated
with the effective operations of their companies QMSs.

Format of the Preliminary I nterviews
Prior to the conduct of the preliminary interviews, informal contact was made with
the proposed Boards, companies and/or individual participants, followed by
electronically sending them a covering letter, Participant Information Consent for
QUT Research Project, and interview questions sheet.

Each interview lasted at least one hour. In each case, the author spent the first five
minutes explaining the background of the research (for example, the topic of the
research, research background and problems, research aims and objectives). The
terminology used in this study, such as the definition of organisational culture, was
also explained to the participants before commencing the preliminary interviews. The
interviewees were asked to express their opinions and inputs on quality works and
project products issues, quality management systems, and organisational culture in
the construction organisation. They were encouraged to comment on the issue
questions in the context of their experience in their current organisations, and also to
discuss any other issues about quality and organisational culture in construction that
they felt was important.

There were six main questions covered in the preliminary interviews (see Appendix
C, Table C-2). These questions were also in some cases supplemented by supporting
or sub-questions which served to further explore the specific issues of the main
questions. The opinions of the interviewees on the questions were recorded and then
transcribed to text documents. Subsequently, the responses were categorised and
related opinions grouped. The collective opinions and inputs relating to a number of
the preliminary interview questions are summarised in Appendix C.

Summary of Output from Preliminary I nterviews
The preliminary interviews concluded that: (1) the effective implementation of
construction companys QMS, especially for the local contractors, is still far below
the companies expectations; (2) an appropriate organisational culture does appear to
influence improved QMS implementation; (3) organisational culture at the level of
95

local contractors is perceived as a good way of working while national contractors
saw themselves as possessing a strong operating profile which had benefitted from
the organisational culture in supporting the company systems, including those based
on the QMS-ISO 9001.

The officers and practitioners were interested in, and supported, the research project,
as it was regarded that the results of the study would have the potential to contribute
to quality management practices in the Indonesian construction industry. However,
they acknowledged that the research topic, particularly the research on successful
quality management systems implementation by construction companies reviewed
from the angle of corporate culture, is a new group of topics that have not been
studied before in Indonesia. The research findings are expected to help provide
solutions to quality problems in the construction sector, and if applied, to improve
contractors competitiveness and profitability.

The composition of the interviewees from multiple backgrounds, their significant
positions in the companies, both private and public sectors, and their substantial
experience in the infrastructure industry, suggest that their collective views collated
in the preliminary interviews, can be regarded as fully representative of current,
holistic stakeholder and industry perceptions of the quality and quality system in
general, and QMS-ISO 9001 practice in particular.

The results of the meetings were also helpful in strengthening the research topic and,
clarifying key research questions, while also providing a good means of obtaining
valuable inputs regarding the current situation and conditions on quality production
and quality management issues, in the Indonesian construction industry. The
meetings were helpful in clearly defining the research gaps that could not be
identified from available research literature, and in particular, were helpful in
constructing appropriate questions for the main questionnaire.

Finally, in order to ensure the ultimate efficacy of the survey, the Board and the
Associations agreed to support the main data collection exercise through the
provision of letters of support to the respondents scheduled to participate in the main
96

survey, and to also assist in monitoring the progress of questionnaire completion
numbers.

Pilot-testing the Questionnaire
The pilot-testing of the questionnaire consisted of two phases, the first phase
involving completing the pilot questionnaire, and the second phase involving the
conduct of a follow-up feedback interview in relation to pilot survey respondents
thoughts on the pilot survey. Basically, the pilot respondents were asked whether
they understood the instructions for completing the survey, and whether the wording
and places to mark responses to each question were clear. Another issue which was
addressed was the average time required to complete the questionnaire, as it was
acknowledged that if it would take a long time for the respondents to complete, they
might be reluctant to participate and this would has a negative impact on collection
numbers and nature of responses. An appropriate schedule to administer the main
questionnaire as well as an efficient and effective matter for the distribution,
monitoring, and collecting of the questionnaire, were also emphasized in the follow-
up feedback interview.

Many scholars advise that a pilot study can be beneficial to trial a questionnaire
before it is used in the main survey. It provides opportunities to test the format of,
and instructions contained in the questionnaire, and helps ensure that the questions
are understandable to respondents and can later be easily analysed (Bell 2005;
Naoum 2007). Since a survey must be reliable and valid, by conducting a pilot study,
its reliability can be justified when answers provided by respondents are consistent
and validity is proven by the degree of accuracy of the information obtained (Fink
2009).

For pilot testing to be effective, the pilot respondents need to be similar to those who
will form the sample population in the main survey (Fink 2009). Hence, the
respondents to this pilot questionnaire were drawn from seven private construction
companies that have the ISO 9001 certification in Manado, North Sulawesi Province,
and two companies in Jakarta who were also engaged in the actual survey. The
questionnaire involved 23 respondents: eight Quality Management Representatives
97

(QMRs), six Project Managers (PMs) and nine Site Engineers (SEs) (see Appendix
C, Table C-3).

Both the English and Bahasa versions of the pilot questionnaire were tested. The two
versions were sent to the two construction companies in Jakarta, while companies in
Manado received only the Bahasa version. Finally, 27 questionnaire booklets were
sent to the targeted pilot respondents; of these, 23 were completed and returned.
Most sections were fully answered; however, two respondents did not provide full
answers relating to the companys organisational culture, while a third respond did
not respond to the section. In addition, only one respondent provided ideas in
response to the open-ended question relating to motives surrounding the
implementation of a quality management system. After consideration, it was
therefore decided not to include open-ended questions seeking opinions, in the main
survey. The open-ended questions were instead prepared for use in a focus group
discussion.

The findings of the follow-up feedback interview to the pilot questionnaire are
summarised below:

Time for Completion
The average time required to complete the questionnaire was 20 - 25 minutes.
According to respondents, this time-spent was appropriate. It was therefore
anticipated that respondents in the main survey would also be responsive and that
time commitment required for the survey would not negatively influence the
outcome.

I nstructions, Questionnaire Wording, and Layout
Most of the instructions were thought to be well-developed and were understood.
However, some of the pilot respondents experienced some confusion in regard to the
instruction asking them to assess their organisational culture. Therefore, this
component of the questionnaire was further developed by providing an example
indicating how to address the issue. Some suggestions were also given by the pilot
respondents in relation to improving the wording in parts of the questionnaire
98

(making it less technical). No changes were needed for the layout of the
questionnaire, as all the pilot respondents indicated that it was clear and attractive.

Topics I nvestigated
Most of the respondents identified that the content of the questionnaire was clear and
understandable. All respondents indicated that the questionnaire covered the essential
elements relating to the barriers, QMS practices and performance during the
implementation of QMSs in construction companies. However, for most respondents,
the completion of the component of the questionnaire relating to the assessment of
the companys organisational culture was a very new experience for them. The pilot
respondents also provided inputs to modify some questions in the section relating to
company details, in order to provide a clearer picture of a companys profile. In
addition, the Jakarta respondents, based on their companys experience,
recommended the addition of a question regarding a companys motives of
developing a QMS.

Additional Comments on Technical I ssues
All respondents in Manado City stressed that the researcher should ensure a strict,
yet appropriate time-period for distribution and completion of the main
questionnaire, to ensure full participation of some respondents who might
procrastinate in completing the survey. The pilot respondents recommended that the
best time for the main survey would be in the period of February to March or May to
July; these being periods when they were less committed to other activities. They
also recommended that the questionnaire booklet be distributed by mail or direct
delivery, rather than by e-mail.

In summary, all the pilot questionnaire respondents, some of whom were also
involved in the interviews and discussions, supported the proposed research topic,
and none reported difficulties in responding to the questionnaire, while they also
expressed support and readiness to participate in later surveys. As Walker (1997,
152) points out, pilot studies are a useful tool in providing a focus mechanism to
establish the research direction more clearly. After undertaking a preliminary study,
the research question boundaries became clearer and the research became more
focused.
99

3.3.4 Questionnaire Survey

The feedback from the preliminary studies assisted in finalizing the format of the
main questionnaire and preparing the ground for the main survey. The questionnaire
was sent to respondents and was used to achieve research objectives: (1) the
examination of the effectiveness of the QMSs being operated in Indonesian
construction companies, including identify current problems within the systems and
the examination of companies performance while implementing their QMSs; (2) the
assessment of the organisational culture profiles of Indonesian construction
companies and an analysis of the influence of different organisational culture profiles
on QMSs implementation.

Considering the information needs, including the type of data required from the
designated population and its sample representation for achieving the objectives of
the study, according to Sekaran and Bougie (2009, 197) means that a questionnaire
is an efficient data collection mechanism when the researcher knows exactly what is
required and how to measure the variables of interest. In addition, survey techniques
(such as questionnaires) are suitable when a large amount of data needs to be
collected from people in relation to their views and experience relating to a particular
phenomenon, and time available to collect the data is limited (Naoum 2007; Fink
2009). The reason questionnaires are a popular method for collecting data is because
of their suitability to deal with time constraints and a large sample size, which were
also the main considerations in this study.











100

The overall approach to operation of the survey is illustrated in Figure 3.4.











Figure 3.4 Approach of Questionnaire Survey


Administering Questionnaires
Based on the information gathered from the pilot survey, most respondents preferred
to receive the questionnaire by hand-delivery or mail, rather than in electronic form.
In relation to conducting a postal questionnaire, Oppenheim (1992 ) and Phillips and
Stawarski (2008) remind researchers of some disadvantages of this approach,
including a low response rate, and a lack of opportunity to provide explanations and
encouragement to respondents to answer all questions. However, these authors also
present recommendations for overcoming these potential constraints, including
providing a supporting letter, statement of confidentiality and anonymity, and return
envelopes, as well as providing regular reminders and considering the appearance
and/or layout of questionnaire; these should all be noted critically by a researcher
(ibid 1992; ibid 2008).

Based on recommendations drawn from the literature review and experience during
the conduct of the pilot survey, the questionnaires for the surveys in Manado and
Makassar were hand-delivered, while postal questionnaires to companies in Jakarta
were sent by post with return envelopes enclosed. The questionnaires were
Sampling selection
Covering Letter, Consent Form,
and Recommendation Letter

Follow-up by
email and telephone
QUESTIONNAIRE
SURVEY
Organising and analysing
questionnaire results

Results:
(1) Statistical relationships between all variables.
(2) QMS improvement elements.
(3) Profile of construction companies organisational culture.



Monitoring returned
questionnaires

101

accompanied by a covering letter, participant information for QUT research project,
and supporting letter from the Construction Services Development Board. The
participant information for QUT research project form mainly outlined the role of
participant, expected benefits for participating in the survey, confidentiality of
responses, and low-risk categorisation for the survey.

Fink (2009) refers to the fact that even though the research method adopted in this
study might be familiar to the proposed respondents, it is important that researchers
continually monitor progress and completion. Hence, after the questionnaires were
delivered, the researcher regularly conducted progress monitoring, and reminded
respondents of the timeframe for questionnaire completion. The reminders were
provided by e-mail and telephone contact.

Distribution of the questionnaire booklets started in mid September 2010, while the
process of questionnaires collection commenced in mid October and was completed
by mid December 2010. The questionnaires in Manado and Makassar were collected
directly from respondents, while those in Jakarta were collected from the office of
the National Construction Services Development Board. One of the important
lessons learned from the survey was that, building a good approach and
communicating well with the targeted respondents, contractors associations and the
related institutes, is very important for good data collection.

Quantitative Data Analysis
As noted above, data collected from the questionnaires was quantitative data, which
was the output required from the survey. This data was then processed, analysed and
interpreted by using statistical techniques, to provide the information needed.
Quantitative data analysis involves both looking at the general trends in the data and
fitting statistical models to the data (Field 2009). The Statistical Package for Social
Sciences (SPSS) version 19 was used for the statistical analysis.

A descriptive statistical analysis of frequency distribution (numbers and percentages)
was first undertaken to provide an overview of the development phase of contractors
QMSs. In particular, measurement of central tendency (mean, median and mode),
and the measurement of variation (standard deviation), were utilised to depict initial
102

motives driving the development of QMS under ISO 9001. Continuing the
descriptive analysis, the results depicted the current status of the QMSs
implementation including the levels of the existing QMS implementation, the levels
of barriers that affect QMSs implementation, and the levels of companys key
performance during QMSs implementation.

The second category of analyses undertaken was the conduct of parametric tests
using:
Principal Component Analysis (PCA) was conducted in particular to
summarise a large number of QMS variables into a smaller set of component
or factor in order to obtain sets of more meaningful QMS variables.
Pearson Correlation in order to statistically assess the relationships among the
QMS variables.
Analysis of Variance (ANOVA) was conducted to statistically test whether
different profiles of organisational culture variables have different influence
on the QMS variable.
Structural Equation Modelling (SEM) was conducted to test the entire model
of the theoretical framework on the relationships among the QMS variables
and between the QMS and the organisational culture variables.

The parametric test used in this study fulfilled the three main conditions noted by
Bryman and Cramer (2009), these being: (1) the scale of measurement be treated as
interval scale (Sekaran and Bougie 2009); (2) the distribution of the data is normal;
and (3) the assumption of homogeneity of variance is not violated.

The questions pertaining to contractors organisational culture profiles used Cameron
and Quinns (2006) Organizational Culture Assessment Instrument - OCAI
worksheet and Competing Values Framework - CVF diagram. Therefore, deeper
analysis and interpretations involved reference to several different perspectives
proposed by the authors (ibid 2006). Four comparison standards are referred to in
relation to meeting the second research objective, these being:
1) The dominant type of culture
2) The strength of the culture type
103

3) The congruence of the culture profiles
4) A comparison of Indonesian construction companies culture profiles with the
average culture profiles of other construction industries that have been
surveyed by Cameron and Quinn and other researcher using this instrument.

The comparison standard of discrepancies (Cameron and Quinn 2006) was not
interpreted in this research, as the research was focused only on the assessment of the
current culture of construction companies and not the preferred future culture
profiles. The discrepancy standard is normally applied for observing the areas that
differentiate the current and the preferred future culture profiles. Due to
consideration of the concept of organisational culture and its proper practices being a
new insight for the majority of the targeted research respondents, thus the researcher
focused on an examination of the existing picture of the way an organisation operates
and which values characterize it. Another reason for this approach was, the results
from the current culture profiles assessment are being utilised to indicate the
fundamental organisational cultures possessed by Indonesian construction
companies; these may later be used to drive companies effective QMS
implementation, and used to facilitate companies to recognise their preferred culture
profile and make appropriate changes or maintain and strengthen the existing culture
profile.

This study fully adopted Cameron and Quinns (2006) requirements for diagnosing
an organisations culture, both for the format of the questionnaire instrument and the
method of data analysis. However, it is noted that a few other studies have preferred
to use a Likert scale, instead of using the original scoring system of the OCAI format
(Novana and Ogunlana 2006; Oney-Yazc et al. 2007; Koh and Low 2008).


3.3.5 Focus Group Discussion

The second strategy applied to collect new data, as well as assist in validating
previous data, for this research was to use a focus group discussion. The use of a
focus group discussion is designed to satisfy the third research objective, that is, to
communicate the proposed culture-based quality management system (QMS)
104

improvement implementation framework, and also to obtain an evaluation regarding
the perceived the usefulness and validity of the framework from specific audiences
who are closely involved with the QMS application.

The focus group discussion method is a valuable approach, as it provides an
environment for homogeneous groups of professionals, experts or users, to interact
and freely exchange ideas and opinions, and at the end of the discussion, establish a
consensus view on a particular topic (Morgan 1997; Rea and Parker 2005; Fellows
and Liu 2008). In addition, this strategy is one of the best-known methods for
interviewing and generating qualitative data (Fellows and Liu 2008; Phillips and
Stawarski 2008). When compared with other qualitative surveys, including some
interview based approaches, the strengths of a focus group discussion is that this
method is socially oriented in an atmosphere more relaxed than a one-to-one
interview (Marshall and Rossman 2011). The focus group discussion was considered
the most appropriate strategy for getting answers to the last research question in this
study (Research Question 3).

Format of the Focus Group Discussion
Each potential panellist was first contacted by telephone, followed by one-on-one
meetings to invite them to participate in the discussion, one month before the
scheduled focus group discussion (FGD). In these meeting, each potential panellists
was introduced to the aims of the FGD. On agreeing to participate, they were then
each sent a Focus Group Kit that included a Covering Letter, a Participant
Information for QUT Research Project, the Focus Group Protocol containing a series
of questions (see Appendix B), and a full copy of the Culture-based QMS
Framework. During the week before conducting the FGD, each participant was re-
contacted to ensure their continued readiness to participate in the discussion. Of 14
panelists invited, nine confirmed they would fully participate.

Prior to the discussion, the researcher (who took on the role of moderator/facilitator)
introduced herself, explained the aim of the FGD, addressed confidentiality concerns,
and ran through the main processes of the FGD. Each panellist subsequently signed a
consent form, that the ethics of the research would always be honoured (Bell 2005).
105

The process of the discussion were both video and tape-recorded. However, as it had
been stated in the participant consent form, all comments and responses were treated
confidentially and were kept anonymous when transcribed.

Figure 3.5 illustrates the main steps in the FGD for achieving best practices and
consensus for the framework. In Step 1, the panellists were asked to introduce
themselves and to indicate their job or responsibilities in their
companies/organisations. They were then led through the introductory questions to
get them to start thinking about the discussion topics, as well as to encourage
interaction and conversation among the panelists. Transition questions were
presented to panelists before moving the discussion into the key questions for
discussion.

In Step 2, four key questions were presented to the panelists. The first question dealt
with overall opinions of the arrangement and structure of the generic integrated
framework. The second question related to seeking opinions of the culture change
elements in the framework. The third question focused on the efficacy of the QMS
improvement elements in the framework from the perspective of a construction
organisation. The final question related to the applicability of the QMS improvement
elements framework as a part of the companys QMS implementation strategy.
During the discussion of each question, the participants interacted with each other,
listened to all views and gave a good airing to the topic. The moderator formed a
consensus of the views expressed and summarised the key points. While only 30
minutes allocated for Step 1, in reality this Step took about 130 minutes of the total
FGD input time.

Prior to Step 3 (the last step) of the FGD, the moderator briefly summarised the main
points of the discussion. The panelists were then offered an opportunity for
concluding questions in order to bring closure to the discussion and enable panelists
to add or amend the summary. Step 3 lasted about 20 minutes. At the end of the
FGD, the moderator made closing statements that summarised the results of the
evaluation and associated discussion, and thanked the panelists for their valuable
time.

106
















Figure 3.5 Obtaining Best Practices and Consensus for the Framework
Refinement


Qualitative Data Analysis
After the data was collected from the focus group discussion, it was subject to
analysis. However, prior to analysis, some preliminary data processing was
undertaken. The evaluations of the panellists of the frameworks were video and tape-
recorded, and then transcribed into text document files. Subsequently, the transcribed
data was edited, coded, and then arranged in an order by categories of participants.

The classic analysis approach (Krueger and Casey 2009) was used to allow the
results and analysis to be category based on the substance of the key questions.
During the process of analysis, decisions on the comments or themes were made by
considering several factors including the frequency of the comments made, the
specificity of the comment or comments with details, extensiveness of comments,
and participants emotion and enthusiasm. These considerations allowed the
systematic and thorough analysis of the panellists perceptions for evaluating and
validating the Culture-based QMS Framework. The final outcome of the research
Opening
questions
Step 1
Introduction
Panelists job/profession in
companies
Best Practices and Consensus
9 Panellists
Introductory
questions
Transition
questions
Step 3
Conclusions
Concluding
questions
Focus Group
Discussion Steps
Questions
Observation of current QMS
implementation
Understanding OC and its impact
on QMS practices
Amendment of views based on
previous comments
Key Questions
Evaluation of the Culture-based
QMS Framework
Step 2
Probing
107

was the refinement of the framework aimed at driving future improvement of the
implementation of quality management systems within the highest grade (G-7) of
Indonesian construction companies.


3.4 Summary

This chapter describes in detail, the strategic design of the research adopted in this
study. It outlines the overall research plan, including the development of the
theoretical framework in reference to the research questions, which it was aimed to
answer in a research context. It also identifies the types and sources of data which it
was aimed to collect, leading to the designated research methods adopted to meet the
research objectives. The Preliminary Studies described served the need of ensuring
the significance of the research topic and of pilot-testing questionnaire, followed by a
description of the two distinctive data collection approaches used, the Questionnaire
and Focus Group Discussion. The justification for the use of each data collection
approach is presented, followed by descriptions of the data collection processes and
methods of analysis. Instruments developed and their formats are also explained.
Ethics issues to ensure that participants were fully aware of the purpose of the
research and that they understand their rights were considered and applied
successfully during the process of data collection. The results derived from the
Questionnaire provide a strong basis for the development of Framework for Culture-
based Quality Management System Improvement Implementation. The results
derived from the Focus Group Discussion provide confirmation of the practical use
and validation of the framework, as well being used to refine the framework.

The next two chapters present the analysis and the results and related discussion of
the results for the two sets of data collected, the questionnaire (Chapter 4) and focus
group discussion (Chapter 5).

108

CHAPTER 4
INDONESIAN CONTRACTORS QUALITY
MANAGEMENT SYSTEM AND ORGANISATIONAL
CULTURE


4.1 Introduction

This chapter describes the analysis and results of the questionnaire survey which was
performed, and contains the following components: (1) the investigation of the
current status of quality management systems (QMSs) implementation in Indonesian
construction companies; the chapter examines in detail, the main components of the
establishment of a QMS; the motives which underlie the development of QMSs; the
implementation of ISO 9001 principles and elements, together with problems
influencing effective QMS implementation; and company performance in terms of
major achievements during the implementation of QMS; (2) the identification of the
profiles of organisational culture of Indonesian construction companies; and (3) an
examination of the theoretical framework including an analysis of the influence of
the culture profiles on QMS implementation. Following an analysis of the results, the
discussion section provides insights to the above, based on a comparison with
existing theory as covered in the literature review in Chapter 2. Chapter 4 is focused
on meeting the first and second research objectives.

This chapter is divided into four main sections: Section 4.3 concentrates on the
analyses and the presentation of results of current QMS implementation; Section 4.4
reports the contractors organisational culture profiles; Section 4.5 presents the
results of the examination of the theoretical framework for this study; Section 4.6
discusses the findings of the earlier analysis and results sections.



109

4.2 Profiles of Respondents

The respondents for the questionnaires were drawn from ISO 9001 certified
construction companies in the three provincial capitals of Manado, Makassar, and
Jakarta. The companies chosen are mainly engaged in the construction of buildings
and/or civil engineering works including roads and bridges, construction of highways
and irrigation systems. The main reason for drawing respondents from these ISO
9001 certified construction companies and developers in the three cities, was that
they represented the environment of the construction industry of typical small,
medium, and large cities in Indonesia. Specifically, there were three groups
representing typical construction companies - Quality Management Representatives
(QMRs), Managers (MRs) and Project/Site Engineers (SEs). These groups of
respondents also represented the high level (QMRs), middle level (MRs), and low
level (SEs), in the organisational structure.

With the assistance of the National Construction Services Development Board
(NCSDB) and the Indonesian Contractors Association (ICA), a list of the grade 7 (G-
7), as well as ISO 9001 certified contractors, in the three cities was obtained. Nine
hundred questionnaire booklets were delivered to 118 companies, 13 companies
located in Manado (100% of the population of G-7 contractors), 25 companies
located in Makassar (100%) and 80 companies in Jakarta (89%). Seventy-seven
companies returned the questionnaires, giving a company response rate of 65.25%,
with a minimum of three responses and a maximum nine responses, in each company
grouping. This response rate was considered satisfactory for the required purposes,
since the sample represented approximately 51.3% of the total number of building
and civil engineering certified companies in Indonesia. A total of 403 useable
questionnaires, equivalent to an individual response rate of 44.8%, were completed
by 67 Quality Manager Representatives (QMRs), 215 Managers (e.g., Project
Managers, Purchasing Managers, Logistic Managers, Maintenance Managers,
Finance Managers), and 121 Project and Site Engineers. The sample size response
rates met the required sample sizes for the purposes of the survey, with a response
rate between 25-35% being regarded as adequate for postal questionnaires in
construction industry related studies (Fellows and Liu 2008). Table 4.1 summarises
the levels of respondents for specific categories.
110


Table 4.1 Individual Respondents Levels
City
High level (n=67) Middle level (n=215) Low level (n=121)
QMRs Managers Project/Site Engineers
Total % Total % Total %
Manado 11 16.4 56 26.0 33 27.3
Makassar 22 32.8 66 30.7 42 34.7
Jakarta 34 50.8 93 43.3 46 38.0



Table 4.2 shows that about 60% of respondents in the low level group, and 80% of
the respondents in the other two groups, had more than five years of professional
experience in the construction industry, making them well-qualified to respond to the
questionnaires.

Table 4.2 Individual Respondents Work Experience
Years with
organisation
High level (n=67) Middle level (n=215) Low level (n=121)
Total % Total % Total %
< 5 years 11 16.4 39 18.1 51 42.1
5 10 years 21 31.4 73 34.0 38 31.4
11 15 years 11 16.4 33 15.3 9 7.4
16 20 years 13 19.4 40 18.6 18 14.9
> 20 years 11 16.4 30 14.0 5 4.2



Table 4.3 summarises the years in which companies were originally certified under
QMS-ISO 9001. All but one of the local contractors in Manado and Makassar
originally obtained their ISO 9001 certification between 2001 and 2008, with the
most significant number (10 in Manado and 12 in Makassar) receiving the
certification in the period 2005 - 2008. The concentration of local contractor
certification in this period reflected the impact of a government regulation enacted in
2004, which required G-7 contractors to hold ISO 9001 certification in order to
tender for projects.

111


Table 4.3 Companies First Certified Under ISO 9001
Period Manado
(n=13)
Makassar
(n=23)
Jakarta
(n=41)
Total
(N=77)
%
1993 - 1996 - - 3 3 3.8
1997 - 2000 - 1 13 14 18.2
2001 - 2004 3 10 16 29 37.7
2005 - 2008 10 12 7 29 37.7
2009 - 2010 - - 2 2 2.6



Reflecting the type of company ownership, the company survey respondents were
grouped into three categories - public, foreign, and national private companies (Table
4.4). The data in Table 4.4 shows that the respondents from the Manado and
Makassar companies which were all privately owned Indonesian companies, with
only 12 of the overall total of 77 companies being public or foreign owned
companies.

Table 4.4 Companies Ownership
Type of ownership
Manado
(n=13)
Makassar
(n=23)
Jakarta
(n=41)
Total
(N=77)
%
Public - - 7 7 9.1
Foreign - - 5 5 6.5
National Private 13 23 29 65 84.4



Table 4.5 shows that 27 companies (35.1%) have been involved in the construction
business for over 10 years, while 42 companies (54.5%) have more than 20 years
construction experience. This data clearly indicates that majority of the company
respondents (89.6%) have extensive experience in the Indonesian construction
industry and have been able to survive the Indonesian financial and economic crisis
of 1997/1998.



112


Table 4.5 Company Age
Years of operation
Manado
(n=13)
Makassar
(n=23)
Jakarta
(n=41)
Total
(N=77)
%
< 10 years 6 1 1 8 10.4
10 20 years 4 14 9 27 35.1
> 20 years 3 8 31 42 54.5


The data summarised in Table 4.6 shows that all the local contractors have only been
engaged in government projects, and that this is a reflection of the market orientation
for G-7 local contractors. National contractors, on the other hand, have worked in
both government and private projects, but only a small number of these contractors
undertook foreign projects. The small number of foreign projects undertaken is a
reflection of the tight business competitiveness in the foreign sector.

Table 4.6 Major Companies Client
Major customer
Manado
(n=13)
Makassar
(n=23)
Jakarta
(n=41)
Total
(N=77)
%
Government/public
sector
13 23 19 55 71.4
Foreign sector - - 3 3 3.9
Private sector - - 19 19 24.7



4.3 Current Quality Management System Implementation

This section summarises the data obtained from the quality management systems
(QMSs) survey. It outlines and analyses the perception of the construction
practitioners in relation to the development and level of implementation of QMS-ISO
9001 in their companies, along with the identification of barriers affecting the
effectiveness of the QMS implementation. The contractors performances,
particularly during the implementation of the QMS, are also examined.


113

4.3.1 Development of Quality Management Systems

This section examines experiences of the construction companies in relation to the
development of quality management systems.

Consultant Services During the I SO 9001 Registration Process
For a construction company to develop a QMS based on ISO 9001, is not an easy
task. The process usually requires the assistance an ISO 9001 consultant to help the
company set up the program of activities that would allow the company to achieve
ISO 9001 certification. However, for those companies that already have a consistent
internal quality system, usually only adjustments to their existing quality system or
documentation is needed, to comply with the requirements of ISO 9001. Such
companies are therefore not usually dependent on ISO 9001 consultant input.

As shown in Table 4.7, there were 77 ISO 9001 contractor respondents, of which 65
(84.4%) responded Yes in reference to the question relating to the need to employ
consultants to assists them in setting up their QMS. Contractors which indicated the
need for consultant assistance included all the Manado contractors (13 companies),
the majority of the contractors in Makassar (19 of the 23 companies) and Jakarta (33
of the 41 companies).

Table 4.7 Use of Consultants Assistance for QMS Development
City (no of
companies)
Consultant assistance
Yes
(n=65)
%
No
(n=12)
% Total %
Manado (n=13) 13 100 - - 100
Makassar (n=23) 19 82.6 4 17.4 100
Jakarta (n=41) 33 80.5 8 19.5 100


For companies that answered Yes to the need for consultant assistance, the
respondents were further asked to give opinions regarding the consultants role,
categorising the assistance in terms of being - (1) not helpful, (2) fairly helpful, (3)
helpful, (4) very helpful. The companies were then asked to rate the involvement
(role) of the consultants in relation to the the establishment of the companys QMS
114

documentation (Quality Manual, Quality Procedures, Project Quality Plan) in one of
the following categories: (1) less then 25%, (2) 25 50%, (3) 51 75%, (4) 76
100%.

Table 4.8 summarises the results received from 341 respondents regarding opinions
of the consultants roles, while Table 4.9 summarises the level of the assistance
provided by the consultants. The majority of the respondents (Manado 61 of 100,
Makassar 46 of 103, Jakarta 83 of 138) admitted that the involvement of the
consultants was helpful, while about 24 (24%) respondents in Manado, 30 (29.1%) in
Makassar, and 28 (20.3%) in Jakarta categorised the consultants role was very
helpful. In reference to the level of assistance by the consultants in the development
of the QMS manual and procedures, most respondents categorised the consultants
assistance in the range 25-50% (Manado 42 of 100, Makassar 69 of 103, Jakarta 55
of 138).

Table 4.8 Opinions of Consultant Roles
City (no of
respondents)
VH % H % FH % NH % Total %
Manado (n=100) 24 24.0 61 61.0 13 13.0 2 2.0 100
Makassar (n=103) 30 29.1 46 44.7 23 22.3 4 3.9 100
Jakarta (n=138) 28 20.3 83 60.1 27 19.6 - - 100
Notes: NH=not helpful, FH=fairly helpful, H=helpful, VH=very helpful

Table 4.9 Level of Consultant Roles
City (no of
respondents)
<25
%
%
25-50
%
%
51-75
%
%
76-100
%
%
Total
%
Manado (n=100)
10 10.0 42 42.0 35 35.0 13 13.0 100
Makassar
(n=103)
18 17.6 69 67.0 15 14.5 1 0.9 100
Jakarta (n=138)
15 10.9 55 39.8 56 40.6 12 8.7 100



Development of Quality Management Systems Documentation
In the questionnaire survey, companies were asked about their varying approaches in
developing QMS documentation. The development of QMS documentation is one of
the important steps in the establishment of QMS-ISO 9001. A company with
115

consultant assistance normally has templates of the QMS documents that the
company Quality Assurance (QA) team and/or, together with the consultant, refer to
in order to develop a quality manual and quality procedures. However, it is noted that
sometimes the consultant may themselves prepare all the required QMS
documentation. Another approach is that of the QA team being trained to develop the
manual and procedures of ISO 9001 standard, in order to independently develop the
QMS documentation. As the ISO 9001 standards are implemented by all company
divisions, all the divisions are required to prepare drafts of the procedures of their
operational processes which, in turn, are redesigned by QA team and or the
consultant.

Table 4.10 summarises the results of the survey showing that in Manado, six (46.1%)
company QA teams developed their quality documents, five (38.5%) company
divisions were required to draft QMS documents, while two (15.4%) companies
entrusted the consultants to design their QMS documents. In Makasar, 14 (60.9%)
contractors QMS documents were drafted by every division, while seven (30.4%)
contractors QMS documents were developed by their QA team. Likewise, in
Jakarta, 28 (68.3%) contractors required divisions to prepare QMS documents, and
11 (26.8%) contractors required their QA team to develope the quality documents. It
is apparent from this data, that contractors QMS documentation were mainly
developed by the QA team in accordance with the requirements of ISO 9001, or
alternatively, all divisions were required to make draft descriptions of their operation
processes.

Table 4.10 Approaches in Developing QMS Documentation
Development of QMS
documentation
Manado
(n=13)
Makassar
(n=23)
Jakarta
(n=41)
Total
(N=77)
n % n % n % N %
QA team and the consultant
developed the document
- - 2 8.7 2 4.9 4 5.2
The consultant developed
the document
2 15.4 - - - - 2 2.6
QA team developed the
document
6 46.1 7 30.4 11 26.8 24 31.2
Every division prepared a
draft of the document
5 38.5 14 60.9 28 68.3 47 61.0



116

Length of Time for I SO 9001 Certification
As part of the examination of the development of QMS-ISO 9001, the company
respondents were asked how long it took for the company to be registered after
officialy starting the preparations for ISO 9001 certification. The
ISO9000Council.org (2009) states that the duration required for obtaining
certification depends on the size of a company and the motivation of the company
and its staff to get certification. Usually the fastest certification takes between three
and four months following the completion of the ISO 9001 documentation; however,
it can often take up to two years if a company has to write their ISO 9001 quality
manual and procedures from scratch, rather than base them on a template or proven
sample of the QMS documentation.

Table 4.11 summarises the company responses in the survey, regarding length of
time for ISO 9001 certification. Overall, 41.6% (32) of companies surveyed stated
that it took the company less than six months to be registered from the start of
preparations to the achievement of ISO 9001 certification; 49.4% (38) of the
surveyed companies reported taking between six and 12 months; 3.9% (3) of the
surveyed companies took between 13 and 18 months, while 5.2% (4) of companies
took between 19 and 24 months.

Table 4.11 Length of Time for ISO 9001 Certification
Period
Manado
(n=13)
Makassar
(n=23)
Jakarta
(n=41)
Total
(N=77)
n % n % n % N %
< 6 months 8 61.5 16 69.6 8 19.5 32 41.5
6 12 months 5 38.5 7 30.4 26 63.4 38 49.4
13 18 months - - - - 3 7.3 3 3.9
19 24 months - - - - 4 9.8 4 5.2


Motives for Seeking I SO 9001 Quality Management System Certification
In the development stage of establishing a companys quality management system
(QMS), it is regarded as being important to investigate the motives behind a
company wishing to have a certified QMS. The survey questionnaire was therefore
also designed to gauge the motives of companies in seeking ISO 9001 certification.
Respondents were given a choice of eight motives for seeking ISO 9001 certification,
117

based on information derived from the literature review. Survey respondents were
asked to rank the motives from 1 (most) to 8 (least), in terms of how close these
motives reflected their companies circumstances. The data was then analysed in
terms of finding the most representative values chosen by the majority of
respondents, to indicate the most prevalent motives of construction professionals in
pursuing the establishment of QMS.

Of the 403 responses, 63 were excluded due to missing data. The final sample size
was therefore 340. Table 4.12 summarises the mode, median and mean ranking for
each motive. The motives of companies in seeking ISO 9001 certification were
classified into three categories, rankings based on their importance. The highest
ranking motive was to effectively and efficiently control project activities; this was
also as the most prevelant motive selected. The second category of motives, was for
the betterment of the companys overall management system, to fulfil clients
requests as part of the bidding process, to improve business performance and to
minimise poor quality of construction processes and products. Respondents chose
as a requirement from the Ministry of Public Works, to improve the companys
prestige (e.g. image, reputation) and to enter the international construction market,
as their less important motive.

Table 4.12 Initial Motivation of Companies in Applying for ISO 9001
Certification (N=340)
Rank
Motives driven the devlopment of companys QMS
under ISO 9001
Mode Median Mean SD
1
st
To effectively and efficiently control project activities 1 2 3.29 2.21
2
nd

For the betterment of the companys overall
management system
3 4 3.84 1.92
2
nd
To fulfil clients requests as part of the bidding process 2 4 4.20 2.34
2
nd
To improve business performance 4 4 4.33 2.26

2
nd

To minimise poor quality of construction processes
and products
3 4 4.36 1.95
3
rd
As a requirement from the Ministry of Public Works 8 5 4.91 2.47
3
rd

To improve the companys prestige (e.g. image,
reputation)
8 6 5.48 2.11
3
rd
To enter the international construction market 8 6 5.61 1.99
Notes: 1
st
= first ranked motive ( most important), 2
nd
= second ranked motive, 3
rd
= third ranked
motive


118

In summary, the examination of important steps in the development stage of QMSs
in Indonesian construction companies reveals that more than 80% of the companies
relied on external consultants to assist them in setting up their QMSs. The roles of
the consultants were considered helpful, particularly when they were involved in
between 40-60% of companies, in the development process for quality manuals and
procedures. However, the fundamental development of QMS documentation was
independently prepared by company quality assurance teams or company divisions.
The move to ISO 9001 certification required less than six months for the majority of
the local companies, while the national contractors the process took between six and
12 months from the commencement of preparations to the achievement of
certification.


4.3.2 Levels of Quality Management System Implementation

The main part of the quality management system (QMS) questionnaires distributed to
the construction practitioners consisted of three component parts. The first part
related to questions aimed an examination of how construction companies perceived
the way their QMSs were being operated to comply with both ISO 9001 principles
and elements. This examination is based on the definition of an effective QMS
implementation which describes as the fulfillment of a companys own specified
quality requirements, and the prescribed quality objectives in relation to the eight
quality management principles and the requirements of the ISO 9001 standard (Kam
and Tang 1997; Al-Nakeeb et al. 1998).

Table 4.13 summarises the responses of the construction practitioners regarding the
level of implementation for each major principles (i.e. X
th
P) within the ISO 9001
standard for their companies. The analysis was based on the respondents rating for
the level of implementation of each item in the questionnaire, with a rating of 1 =
yet to be implemented, 2 = minimally implemented, 3 = not so fully
implemented and 4 = fully implemented.



119

Table 4.13 Company Implementation Levels of ISO 9001 Principles (N=403)
Rank QMS-ISO 9001 Principles Mean SD 95% CI LoI
1 Customer focus (1
st
P) 3.41 .62 3.35-3.47 3
2 Mutually beneficial supplier relationships (8
th
P) 3.31 .67 3.24-3.38 3
3 Leadership (2
nd
P) 3.21 .73 3.14-3.28 3
4 Systems approach (5
th
P) 3.19 .74 3.12-3.26 3
5 Continual improvement (6
th
P) 3.19 .81 3.11-3.27 3
6 Process approach (4
th
P) 3.15 .75 3.08-3.23 3
7 People involvement (3
rd
P) 3.09 .74 3.02-3.16 3
8 Factual approach to decision making (7
th
P) 3.06 .80 2.98-3.14 3
Total QMS-ISO 9001 Principles 3.20 .48 3.16-3.25 3
Notes: Level of Implementation (LoI): 4 = fully implemented (mean = 3.51 - 4.00), 3 = not so fully
implemented (2.51 - 3.50), 2 = minimally implemented (1.51 - 2.50), 1 = yet to be implemented (<
1.50)

The data in Table 4.13 indicates that all of the eight major ISO 9001 principles were
at a level of implementation 3, which represents a state of being not so fully
implemented. This is reflected in the mean scores for the level of implementation,
which ranged from 2.51 to 3.50. The standard deviations (SDs) were relatively small,
indicating that the data points were close to the means (Field 2009). These results
also reflect that the mean is an appropriate statistical metric for summarising the
current implementation level of ISO 9001 principles. The 95% confidence interval
(CI) for the mean was calculated to examine the cut-off point for the determination
of the four levels of the ISO 9001 principles implementation.

The ANOVA test was used to assess differences in implementing the ISO 9001
principles, between the three levels of respondents. There were no significant
differences between the three levels of respondents in relation to the evaluation of the
implementation of ISO 9001 principles, with the exception for the first principle
(1
st
P) (F = 3.61, Sig = .028) (see Appendix D, Table D-1a-b). The middle level
respondents were more likely to put an emphasis on the implementation of customer
focus (1
st
P) than the other two levels of respondents (Table 4.14).

Table 4.14 ANOVA Results: Siginificant Group Response for Implementation
Level of ISO 9001 Principles
Item Group Mean F Sig.
First QMS principle
High level 3.24
3.61 .028* Middle level 3.47
Low level 3.41
Note: *p < .05
120

Table 4.15 presents the responses from construction practitioners regarding the levels
of implementation for each element of the ISO 9001 standard, in their own
companies. The survey findings indicate that, for a large percentage of companies
surveyed, 19 elements were at level 3 of implementation, which was recognised as
not so fully implemented; mean scores ranged from 2.84 to 3.47. One element
(statistical techniques) was at level 2 of implementation (mean = 2.38) indicating
that the element was implemented only minimally. The standard deviations (SDs)
were in general relatively small, indicating that the mean is also an appropriate
summary statistic.

Table 4.15 Company Implementation Level of ISO 9001 Elements (N=403)
Rank QMS-ISO 9001 Elements Mean SD 95% CI LoI
1 Control of a nonconforming product (13
th
E) 3.47 .69 3.40-3.53 3
2 Process control (9
th
E) 3.43 .66 3.36-3.49 3
3 Contract review (3
rd
E) 3.40 .68 3.34-3.47 3
4 Control of quality records (16
th
E) 3.40 .70 3.33-3.47 3
5
Inspection, measuring and test equipment
(11
th
E)
3.37 .77 3.29-3.44
3
6 Inspection and testing (10
th
E) 3.36 .68 3.29-3.43 3
7 Corrective and preventive action (14
th
E) 3.35 .68 3.28-3.41 3
8 Internal quality audits (17
th
E) 3.35 .75 3.28-3.42 3
9 Inspection and test status (12
th
E) 3.34 .71 3.27-3.41 3
10
Handling, storage, packaging, preservation,
and delivery (15
th
E)
3.34 .71 3.27-3.41
3
11 Purchasing (6
th
E) 3.32 .69 3.25-3.38 3
12 Design control (4
th
E) 3.27 .69 3.20-3.33 3
13 Document and data control (5
th
E) 3.25 .75 3.17-3.32 3
14 Product identification and traceability (8
th
E) 3.20 .74 3.13-3.28 3
15 Servicing (19
th
E) 3.19 .79 3.12-3.27 3
16 Quality system (2
nd
E) 3.10 .65 3.04-3.16 3
17 Training (18
th
E) 3.09 .81 3.01-3.17 3
18 Management responsibility (1
th
E) 3.03 .76 2.95-3.10 3
19 Control of customer-supplied product (7
th
E) 2.84 .82 2.76-2.92 3
20 Statistical techniques (20
th
E) 2.38 .73 2.31-2.45 2
Total QMS-ISO 9001 Elements 3.22 .46 3.18-3.27 3
Notes: Level of Implementation (LoI): 4 = fully implemented (mean = 3.51 - 4.00), 3 = not so fully
implemented (2.51 - 3.50), 2 = minimally implemented (1.51 - 2.50), 1 = yet to be implemented (<
1.50)

An ANOVA test was also used to assess differences in implementing the ISO 9001
elements between the three levels of respondents. This test shows that there are
significant differences between the three levels of respondents in evaluating the
implementation of the 5
th
(F = 6.54, Sig = .002), 7
th
(F = 3.23, Sig = .041), and 14
th

(F = 3.63, Sig = .027) elements of ISO 9001 (see Appendix D, Table D-2a-b). The
higher management level of respondents identified the implementation of document
121

and data control (5
th
element) as being more important than the other two levels.
This element is particularly emphasized by Quality Management Representatives
(QMRs) since the assurance that all documents related to the quality of products and
services are used and controlled properly, falls under their responsibility in order to
meet the conformance status of this element. The middle level (Managers)
respondents appear more likely to pay attention to the implementation of control of
customer-supplied product (7
th
element) and corrective and preventive action (14
th

element); these being two areas where managers are more able to ensure their
customers obtain satisfaction from product/service delivery.

Table 4.16 ANOVA Results: Significant Group Responses for Implementation
Level of ISO 9001 Elements
Item Group Mean F Sig.
QMS element 5
High level 3.51
6.54 .002* Middle level 3.25
Low level 3.10
QMS element 7
High level 2.67
3.23 .041* Middle level 2.93
Low level 2.77
QMS element 14
High level 3.31
3.63 .027* Middle level 3.43
Low level 3.22
Notes: *p < .05


4.3.3 Problems Affecting Effective Quality Management System Implementation

The second part of the QMS questionnaire survey was designed to evaluate the major
difficulties impeding the process of fully implementing construction companies
QMSs. A list of the most common problems related to the rolling out QMSs in the
construction industry was sourced from an extensive literature review, and some of
the more typical problems were confirmed in a series of interviews with several
construction practitioners in Manado and Jakarta, during a preliminary study. In the
questionnaire, the respondents were asked to identify the problems that the company
faced in relation to QMS implementation, based on their experience, using a rating of
4 as being often experienced, 3 as being sometimes experienced, 2 as being
very seldom experienced and 1 as being not experienced.

122


Table 4.17 Barriers to the Effective Quality Management System Practices
(N=403)
Rank Barriers Mean SD 95% CI LoB
1 ISO 9001is a matter of fulfilling audit requirements (B7) 2.90 .92 2.81-2.99 3
2 Misleading QMS purposes (B1) 2.86 .94 2.77-2.96 3
3 Lack of a well-design reward system (B9) 2.83 .93 2.74-2.92 3
4 Failure in disseminating ISO 9001-QMS (B8) 2.67 .88 2.58-2.75 3
5 Lack of effective management response (B5) 2.66 .92 2.56-2.75 3
6 Lack of strong motivation (B4) 2.63 .97 2.53-2.72 3
7 Lack of funding for QMS implementation (B14) 2.53 .85 2.44-2.61 3
8
Uncertainty with sub-contractors and supplier quality
systems (B12)
2.50 .90 2.41-2.59 2
9 Lack of effective internal communication (B10) 2.47 .92 2.38-2.56 2
10 Lack of corporate commitment (B3) 2.44 .98 2.34-2.53 2
11 Resistance to QMS implementation (B13) 2.41 .82 2.33-2.49 2
12 Difficulty in understanding ISO 9001 terminology (B6) 2.32 1.03 2.21-2.42 2
13
ISO 9001 is a documentation matter instead of
opportunity to make a change (B2)
2.31 1.01 2.21-2.40 2
14 Poor external communication (B11) 1.91 .93 1.81-2.00 2
Total Barriers 2.53 .61 2.47-2.59 3
Notes: Level of Barrier (LoB): 4 = often experienced (mean = 3.51 - 4.00), 3 = sometimes experienced
(2.51 - 3.50), 2 = very seldom experienced (1.51 - 2.50), 1 = not experienced (< 1.50)


The data in Table 4.17 show that the level of barriers (LoB) fall mainly into the two
categories, level 3 sometimes experienced (mean = 2.51 3.00) ranked from 1 to
7, and level 2 very seldom experienced (1.51 2.50) ranked from 8 to 14. The
95% confidence interval for the mean was calculated to examine the cut-off point
in relation to the determination of the four levels of barriers. Meanwhile, the mean
rating of the barriers shows that the most considered barriers were ISO 9001 is a
matter of fulfilling audit requirement (B7), management attitude and purposes
(B1), and lack of a well-design reward system (B9).

The ANOVA test, which relies on the differences in experiencing barriers to the
effective QMS practices amongst the different level of respondents (see Appendix D,
Table D-3) shows that there was no significant difference between the different
levels of the respondents.




123

4.3.4 Key Performance Indicators of ISO 9001 Certified Contractors

The last part of the QMS questionnaire evaluated the success of outcomes of ISO
9001 certified contractors in the three cities in Indonesia, after almost a decade of
implementation their QMSs. This assessment was mainly based on the several key
performance indicators (KPIs) of effective organisations adopted from Denison and
Mishra (1995), and later used by Coffey (2010) in his work related to culture-driven
performance in Hong Kong construction companies. The results of the interviews
conducted during the pilot study with the Indonesian construction practitioners also
revealed the improvements that they expected to gain from QMS implementation for
the duration of their companies foreseeable business operations.

In order to examine the performance of Indonesian construction companies during
QMS implementation, respondents were asked to rate the level of their companies
current key performance indicators (KPIs) with 4 being very high performance,
3 being high performance, 2 being low performance, and 1 being very low
performance. Table 4.18 presents the means, standard deviations and performance
levels of each KPI.

Table 4.18 Contractors Key Performance Indicators (N=403)
Rank Key Performance Indicators (KPI) Mean SD 95% CI LoKPI
1 Quality of services and products (KPI5) 2.95 .51 2.90-3.00 3
2 Sales growth for the preceding two years (KPI2) 2.87 .64 2.81-2.93 3
3 Profitability for the preceding two years (KPI1) 2.83 .62 2.77-2.89 3
4 Sustainable construction products (KPI6) 2.75 .63 2.69-2.81 3
5 Market shares for the most recent year (KPI3) 2.72 .64 2.66-2.78 3
6 Generating employee satisfaction (KPI8) 2.69 .68 2.63-2.76 3
7 New product innovation and development (KPI7) 2.43 .72 2.36-2.50 2
8 Global market contracts acquired (KPI4) 1.40 .51 1.35-1.45 1
Total KPI 2.58 .37 2.55-2.62 3
Notes: Level of KPI (LoKPI): 4 = very high performance (mean = 3.51 - 4.00), 3 = high performance
(2.51 - 3.50), 2 = low performance (1.51 - 2.50), 1 = very low performance (< 1.50)


The results show that the means for all eight KPIs were less than 3.00, ranging from
1.40 to 2.95. This indicates that there are three levels of KPI. Global market
contracts acquired (mean = 1.40) is regarded to represent the worst level of
performance of KPI 1. The lowest level of performance of KPI 2 was identified as
new product innovation and development (mean = 2.43). However, all companies
124

achieved a relatively high performance level of KPI 3 in reference to quality of
services and products (mea n= 2.95), sales growth (mean = 2.87), profitability
(mean = 2.83), sustainable construction products (mean = 2.75), market share
(mean = 2.72) and generating employee satisfaction (mean = 2.69).

The ANOVA test results on the differences in the performance of the ISO 9001
certified contractors among the different levels of respondents (see Appendix D,
Table D-4) show that there were no significant differences among the levels of
respondents.


4.4 Contractors Organisational Culture Profiles

This section presents the assessment of the organisational culture profiles of 74
Indonesian construction companies. As it was intended to partly answer the second
research question, the assessment was in general, aimed at identifying the
organisational culture profiles of Indonesian construction companies. The assessment
consists of two parts; the first part focused on the determination of the overall
dominant organisational culture profiles in the companies; the second part focused on
the determination of the dominant culture profiles within the six cultural dimensions.

Using the Organizational Culture Assessment Instrument (OCAI) questionnaire
developed by Cameron and Quinn (2006), each respondent was asked to rate (from 0
100) a set of statements that related to the six cultural dimensions. These
statements related to - dominant characteristics, organisational leadership,
management of employees, organisation glue, strategic emphasis, and criteria of
success. The rating level was based on whether the dimensions were similar (or not)
to the current situation in the company of the respondent. This instrument was used
to identify the most closely fitting category of culture for the company, i.e., whether
it is predominantly a Clan, Adhocracy, Market, or Hierarchy culture. The
questionnaire used for this survey is shown in Appendix A.


125


4.4.1 Overall Dominant Organisational Culture Types

In the analysis, each respondents score for each statement within the six cultural
dimensions was incorporated into one of four groups within each culture type. The
average of each group of statements then was plotted into the Cameron and Quinns
(2006) Competing Values Framework (CVF) diagram, to depict the current type of a
companys organisational culture. When referring to the overall culture plot for the
organisational culture profile of each company, the quadrant in which scores are the
highest indicates the culture type that is most dominant in that company.

Figure 4.1 presents an example of the Organizational Culture Assessment Instrument
(OCAI) results for the dominant organisational culture profile, for one construction
company respondent. The company viewed their current strongest organisational
culture as a Clan (A) type, with the average value of 30, while the two weakest
culture types were considered to be Adhocracy (B) and Hierarchy (D), with an
average value of 22. Market (C) type of culture had the average value of 26.



Figure 4.1 Dominant Clan Type of a Construction Organisational Culture


0
5
10
15
20
25
30
35
40
A
B
C
D
Organisational
Profile
Now
Adhocracy
Market
Hierarchy
Clan
126

Of the 77 company responses, only 74 responses were included in the analysis, as the
responses for three company respondents were incomplete. A minimum of three sets
and the maximum of nine sets of questionnaires obtained from each company were
used in the OCAI analysis. Table 4.19 summarises the overall organisational culture
profiles of the 74 construction companies. Following the charting of the overall
culture profiles of the construction companies, deeper analysis was undertaken
according to the perspectives proposed by Cameron and Quinn (2006).

As shown in Table 4.19, overall, Clan type (67.5%) was emphasized most in the
Indonesian construction companies. This means that the companies emphasized
friendly place to work and a focus on internal integration, with a need for flexibility
and discretion. Clan companies operate more like a family, with the strong team
work characteristic. They value cohesion, commitment and loyalty. Success is
defined in terms of sensitivity to customers, concern for human resources
development, and empowerment. Respondents identified Market type as the second
most dominant organisational culture in their companies (18.9%). These two
predominant cultures were followed by Hierarchy type (9.4%), while only one
company emphasized Adhocracy type (1.4%).

The culture category No dominant type (2.8%) indicates that more than one culture
type is incorporated into the companies organisational culture. These results indicate
that an eclectic culture exists in Indonesian construction companies, with no single
ideal culture category being emphasized (Cameron and Quinn 2006).

Table 4.19 Dominant Culture Types of Indonesian Construction Organisational
Culture

Clan
type
Adhocracy
type
Market
type
Hierarchy
type
No
dominant
type
n % n % n % n % n %
Manado (n=13) 11 14.8 - - 1 1.4 - - 1 1.4
Makassar (n=21) 15 20.3 - - 2 2.7 3 4.1 1 1.4
Jakarta (n=40) 24 32.4 1 1.4 11 14.8 4 5.3 - -
Total 50 67.5 1 1.4 14 18.9 7 9.4 2 2.8
Note:
= total number of most culture types possessed by the respondents

City
Culture
types
127

4.4.2 Dominant Types of Six Cultural Dimensions

By individually plotting each of the questions under the six cultural dimensions on
the Organizational Culture Assessment Instrument (OCAI) worksheet, the analysis of
the companies six cultural dimensions was focused on indicating whether the six
culture dimensions were in congruence or not. The existence of congruence implies
all the six culture dimensions have a similar dominant culture type.

Figure 4.2 presents an example of the OCAI results of the dominant culture type for
each cultural dimension from the same company respondent, as stated above. The
company emphasized Clan (A) culture in the dimension of organisational leadership
(31), management of employees (36), organisation glue (33), and criteria of success
(31). Market (C) culture was strongest in the dimension of strategic emphasis (33),
whereas Adhocracy (B) and Market (C) cultures were slightly stronger than the other
two culture types in the dimension of organisational characteristics (28).



















128































Table 4.20 summarises the dominant culture types of the six cultural dimensions
possessed by most of the 74 construction companies.


1 Dominant Characteristics 2 Organisational Leadership
3 Management of Employees 4 Organisational Glue
5 Strategic Emphasis 6 Criteria Success
Figure 4.2 An Example of Contractor Culture Profiles

0
5
10
15
20
25
30
35
40
45
50
A
B
C
D

0
5
10
15
20
25
30
35
40
45
50
A
B
C
D

0
5
10
15
20
25
30
35
40
45
50
A
B
C
D

0
5
10
15
20
25
30
35
40
45
50
A
B
C
D

0
5
10
15
20
25
30
35
40
45
50
A
B
C
D
M

0
5
10
15
20
25
30
35
40
45
50
A
B
C
D
129

Table 4.20 Dominant Culture Types of Six Cultural Dimensions
Cultural profiles
Clan
type
Adhocracy
type
Market
type
Hierarchy
type
No dominant
type
n % n % n % n % n %
1
st

Dominant
characteristics (DC)
31 41.9 11 14.9 22 29.7 5 6.8 5 6.8
2
nd

Organisational
leadership (OL)
18 24.3 8 10.8 21 28.4 22 29.7 5 6.8
3
rd

Management of
employees (ME)
42 56.8 4 5.4 11 14.9 13 17.6 4 5.4
4
th

Organisation glue
(OG)
49 66.2 3 4.1 7 9.5 5 6.8 10 13.5
5
th

Strategic emphasis
(SE)
13 17.6 6 8.1 26 35.1 15 20.3 14 18.9
6
th

Criteria of success
(CS)
34 45.9 - - 11 14.9 23 31.1 6 8.1
Note:
= total number of most prevalent culture types possessed by respondents in each
cultural dimension


Overall, respondents perceived that the dominant characteristics or the core values of
the construction companies is most represented by the Clan culture (41.9%); this is
consistent with the overall result of dominant culture type possessed by the majority
of Indonesian construction companies. The core values of Clan type in this first
dimension is the sense of family and the importance of sharing. In reference to the
style of the organisation leader, most of the construction companies are strongly
Hierarchy oriented (29.7%), with the leaders being hard drivers, producers, and
competitors. The management style used to manage employees is strongly Clan
oriented (56.8%) which is characterized by the value of team work, consensus, and
participation. The organisation glue that holds companies together is also the Clan
culture (66.25%); loyalty and mutual trust are key norms of this Clan type in this
fourth cultural dimension. The companies strategic emphasis is strongly Market
oriented (35.1%), the Market culture having a competitive and achievement focus.
Success criteria of companies as perceived by employees as the Clan culture (45.9%)
that believes that their success lies on the development of human resources,
commitment, and concern for people.

In summary, the six cultural dimensions do not have a single dominant culture type,
indicating these six cultural profiles were not in congruence. In addition, Clan type is
most emphasized in the four cultural profiles.
130

4.5 Examination of the Theoretical Framework

This section examines the relationships among quality management system (QMS)
variables and between some of these variables and organisational culture variables.
The following statistical analysis tools were used to explore these relationships:
Principal Component Analysis (PCA) was conducted, in particular to
summarise the large number of QMS variables into a smaller sets of
components or factors in order to obtain sets of more meaningful QMS
variables.
The identified smaller set of factors resulting from the PCA were brought
into a Pearson Correlation in order to statistically assess the relationships
among the QMS variables.
Analysis of Variance (ANOVA) was conducted to statistically test whether
different profiles of organisational culture variables have different
influences on the QMS variables.
Structural Equation Modelling (SEM) was conducted to test the entire
model of the theoretical framework on the relationships among the QMS
variables, and between the QMS and the organisational culture variables.


4.5.1 Sets of Meaningful Quality Management System Variables

Prior to conducting correlation analyses, principal component analysis (PCA) was
carried out to obtain a more meaningful structure of the QMS variables by combining
them into smaller sets of QMS factors or groups. PCA is useful as an initial step in
factor analysis, and is usually chosen to empirically summarise data sets (Tabachnick
and Fidell 2007).

The PCA was conducted on the 50 quality management system (QMS) variables,
which consisted of eight QMS-ISO 9001 principles, 20 QMS-ISO 9001 elements, 14
QMS barriers, and eight QMS-key performance indicators (KPIs). These sets of
variables were analysed in terms of which variables formed coherent subsets of
variables (variables that were correlated with one another), but largely independent
of other subsets of variables were combined into factors (i.e. groups of variables)
131

(Tabachnick and Fidell 2007). When the PCA was performed on the 50 QMS
variables, a reduced set of factors which form the underlying structure of the QMS
variables was obtained and these factors were used as the representative variables for
use in the subsequent analysis.

It should be noted that a large sample size is preferred for factor analysis (Pallant
2011). Winter, Dodou and Wieringa (2009) recently suggested N = 50 as a sensible
absolute minimum for exploratory factor analysis, but a sample size of 100 or larger
is preferred (Hair et al. 2006). Thus, the sample size of 403 in this research would be
regarded as highly acceptable. The main steps in the PCA were as follows:

Step 1: Suitability of data
Besides the sample size, another issue to be considered in conducting the factor
analysis, is the strength of the relationship among the variables. A check of the
correlation matrix between the variables revealed the presence of many coefficients
of .3 and above indicating that the data were suitable for PCA. The Kaiser-Meyer-
Olkin (KMO) measure verified the sampling adequacy for the analysis. The KMO
value was .893 exceeding the recommended value of .6 (Kaiser 1974). The Bartletts
Test of Sphericity, with a significance level of .000 (p < .001), indicated that the
correlations between variables were sufficiently large for PCA. The significant result
for Bartletts test supports the factorability of the correlation matrix (Pallant 2011).
Table 4.21 presents the results of these preliminary analyses for PCA.

Step 2: Initial eigenvalues and the scree plot
An initial analysis was run to obtain eigenvalues, which showed the amount of
variance accounted for by each variable (Allen and Bennett 2010). The result was
that 11 factors had eigenvalues over Kaisers criterion of 1.00 and in combination
explained 62.11% of the variance (see Appendix D, Table D-5). Kaiser (1960)
recommends retaining all factors with eigenvalues greater than 1.00, and that an
eigenvalue of 1.00 represents a substantial amount of variation (Field 2009).
However, using the Kaisers criterion resulted in too many factors being extracted. It
132

was therefore important to also look at the scree plot. The scree plot
1
showed there
were inflexions in components 5 (see Appendix E, Figure E-1), suggesting that only
components above this point were retained.

Step 3: Factor rotation and factor loading
Finally, to improve interpretation, the Varimax
2
rotation method was used to simplify
the interpretation of factors. A decision had to be made regarding which variables
make up which factors by examining the factor loadings. Hair et al. (2006) have
provided guidelines for identifying significant factor loadings based on sample size;
for example, .30 for a sample size of 350 or greater, while Stevens (2002)
recommend a value greater than .4 (which explains around 16% of the variance in the
variable) is best included for factor interpretation. However, in this study, some
variables had factor loadings above .4 on multiple factors. To facilitate interpretation,
a factor loading of .6 was chosen for inclusion of a variable into a factor. The results
from the Rotated Factor Matrix (see Appendix D, Table D-6) showed the loadings
between the factors and variables after rotation had occurred. It appears that six
variables loaded onto factor 1, eight variables loaded onto factor 2, three variables
loaded onto factor 3, three variables loaded onto factor 4, and three variables loaded
onto factor 5, which, when combined, accounted for 43.10% of the total variance.
The results of the factor analysis for all the QMS variables are presented in Table
4.21.









1
Scree plot was first proposed by Cattell (1966) as a way of identifying the number of useful factors
to retain (Allen and Bennett 2010, 205). He argued that the cut-off point for selecting factors should
be at the point of inflexion of the curve.
2
Varimax is the most commonly used of the orthogonal rotation methods that attempt to maximize
the dispersion of loadings within factors; it therefore tries to load a smaller number of variables onto
each factor, resulting in more interpretable clusters of factors (Field 2009, 644).
133

Table 4.21 Principal Component Analysis Results for the QMS Variables
(N=403)
Questionnaire items
Factors
1 2 3 4 5
17
th
E Internal quality audits .77
19
th
E Servicing .73
16
th
E Control of quality records .73
18
th
E Training .70
10
th
E Inspection and Testing .67
2
nd
E Quality System .66
B3 Lack of corporate commitment .80
B4 Lack of strong motivation .78
B5
Lack of effective management
response

.72

B10
Lack of effective internal
communication

.70

B2 ISO 9001 is a documentation matter
instead of opportunity to make a
change
.65
B6
Difficulty in understanding ISO
9001

.63

B9 Lack of a well-design reward system .62
B11 Poor external communication .60
4
th
P Process approach .64
6
th
P Continual improvement .64
7
th
P Factual approach to decision making .61
KPI2 Sales growth .88
KPI1 Profitability .81
KPI3 Market shares .78
KPI6 Sustainable construction products .68
KPI5 Quality of services and products .63
KPI7
New product innovation and
development

.61
% Variance 15.11 11.39 7.15 5.30 4.16
Cumulative % 15.11 26.50 33.65 38.95 43.11
Kaiser-Meyer-Olkin (KMO) Measure of
Sampling Adequacy
.89

Bartletts Test of Sphericity Chi-Square 9747.19
df 1225
p < .001


Table 4.21 contains the final results of the PCA. The variables grouped on the same
factors suggest that:
Factor 1 represents a practice on QMS-ISO 9001 elements
Factor 2 represents a barrier to QMS implementation
Factor 3 represents a practice on QMS-ISO 9001 principles
Factor 4 represents a key performance indicator (KPI) on business
performance
Factor 5 represents values of the construction product
134

These results were actually compatible with the structure of the QMS questionnaire,
which was divided into sections similar to factors 1, 2, and 3 and the combination of
factors 4 and 5.

Subsequently, Cronbachs alpha was used to evaluate the internal consistency of the
construction of the factors, the results of which are shown in Table 4.22. The closer
Cronbachs alpha is to 1, the higher the internal consistency. An alpha over .80 is
considered to be good, between .70 and .80 is acceptable while below .70 is poor
(Sekaran and Bougie 2009). The Cronbachs alpha for factor 1 was .853, factor 2 was
.880, factor 3 was .682, and factor 4 was .828, all were greater than .60. The internal
consistency of the measures used in this study can therefore be considered to be
acceptable for the measurement of QMS. However, since the Cronbachs alpha
coefficient for factor 5 was lower than .6, this factor was not considered for inclusion
in the subsequent statistical analysis.

Table 4.22 Reliability of Internal Consistency (N=403)
QMS variables Number of questions Cronbachs alpha
Factor 1: QMS practice-elements 6 .85
Factor 2: QMS barriers 8 .88
Factor 3: QMS practice-principles 3 .68
Factor 4: QMS-KPIs-business performance 3 .83
Factor 5: QMS-KPIs values 3 .59


In summary, the four factors which accounted for 38.95% of the total variance are
considered to be the four most important factors in the factor model. These factors
shaped the patterns of response of current QMS implementation within Indonesian
construction companies. Factor 1 (QMS practice-elements) and Factor 3 (QMS
practice-principles) were combined into one-factor (QMS practices) - later in the
next chapter was identified as QMS improvement elements - which consists of the
following variables:
17
th
E Internal quality audits
19
th
E Servicing
16
th
E Control of quality records
18
th
E Training
10
th
E Inspection and testing
135

2
nd
E Quality system
4
th
P Process approach
6
th
P Continual improvement
7
th
P Factual approach to decision making

Factor 2 (QMS barriers) comprised the following variables:
B3 Lack of corporate commitment
B4 Lack of strong motivation
B5 Lack of effective management response
B10 Lack of effective internal communication
B2 ISO 9001 is a documentation matter instead of an opportunity to make
change
B6 Difficulty in understanding ISO 9001
B9 Lack of a well-design reward system
B11 Poor external communication

Factor 4 (QMS KPIs) comprised the following variables:
KPI2 Sales growth
KPI1 Profitability
KPI3 Market share

These factors (QMS practices, QMS barriers, QMS KPIs) and the associated
variables in each factor thereafter, are further developed as fundamental design
elements in the development of a culture-based QMS improvement implementation
framework. An examination of the histograms of the total variables within the three
factors, indicates that the data were normally distributed (see Appendix E, Figure E-
2a-c). Table 4.23 presents the descriptive analysis of the total variables in each
factor, to allow an examination of the overall levels of QMS implementation.





136

Table 4.23 Descriptive Analysis of QMS Factors (N=77)
Factors
Number of
variables
Min Max Mean SD
Total QMS practices 9 1.56 4.00 3.15 .47
Total QMS barriers 8 1.38 3.75 2.54 .57
Total QMS KPIs 3 1.56 3.67 2.74 .45


The above table shows that the mean score of total QMS practices was 3.15,
indicating that the total QMS practices was in the level of implementation 3, which
is equated with the status of not so fully implemented (see also Table 4.13 and
Table 4.15). The level of total QMS barriers was 3 (mean = 2.54), indicating that
barriers were sometimes experienced by the companies (see also Table 4.17). The
mean score of total QMS KPIs was 2.74; this indicates that the level of performance
of the companies is relatively high (see also Table 4.18).


4.5.2 Relationships among Quality Management System and Organisational
Culture Variables

The relationships among quality management systems variables and with the
organisational culture variable, are shown in Figure 4.3 that follows. The
examinations of the relationships were conducted with reference to the formulation
of the associated research questions and their sub-questions.

Research Question 1:
What is the current status of the quality management systems (QMSs) being
implemented by Indonesian construction companies?

R1 - The relationships between barriers and the effectiveness of QMS
implementation, are associated with:
sub-question 1.1:
Do the barriers to the implementation of an effective quality management
system significantly relate to the quality management system practices?

137

R2 - The relationships between the barriers and performance of construction
companies certified under the QMS-ISO 9001, are associated with:
sub-question 1.2:
Do the barriers to the implementation of an effective quality management
system significantly relate to the key performance of construction companies?

R3 - The relationships between the effectiveness of QMS implementation and
the performance of construction companies, are associated with:
sub-question 1.3:
Does the identified presence of quality management system practices
significantly relate to the key performance of construction companies?

Research Question 2:
What are the organisational culture profiles of Indonesian construction companies?

R4 - The influence of construction companies organisational culture profiles
on the effectiveness of implementation of quality management systems, are
associated with:
sub-question 2.1:
How do the organisational culture profiles of Indonesian construction
companies influence their QMSs implementation?













138











Figure 4.3 Main Variables and their Relationships in the Theoretical
Framework


Relationships among QMS Variables
Pearsons correlation (or Pearsons r) was used in the study of the relationships (R1,
R2, R3) among quality management system (QMS) variables. This statistical tool is
typically used to assess the strength and direction of the linear relationship between
two or more continuous variables (Allen and Bennett 2010). The Pearson correlation
analyses were conducted in SPSS 19.

The results of the Pearson correlation analyses are summarised in Table 4.24. There
are significant negative relationships between the presence of the barriers to
implementing effective quality management systems and the quality management
system practices (r = -.43, p < .01), and between the presence of the barriers to
implementing effective quality management systems and contractor key performance
(r = -.34, p < .01). However, the presence of the quality management system
practices was not significantly related to the contractor key performance (r = .13).
These results suggest that higher levels of the QMS barriers will have a negative
impact on QMS practices and the QMS KPIs, resulting in lower performance.
However, the QMS practices did not affect the QMS KPIs.



Key
Performance
of
construction
companies
variable



Effective
quality
management
system
(QMS)
practices
variable
Barriers to
implementing
effective QMS
variable

Organisational
culture profiles
variable

R1
R2
R3
R4
139


Table 4.24 Pearsons rho Correlation Matrix (N=77)
Variables
Total
QMS barriers
Total
QMS practices
Total
QMS KPIs
Total QMS barriers - -.43** -.34**
Total QMS practices - .13
Total QMS KPIs -
Note: ** Correlation is significant at the .01 level


Relationships between QMS Variables and Organisational Culture Variables
A One-Way Analysis of Variance (ANOVA) test is used to test for statistically
significant differences between three or more independent sample means (Allen and
Bennett 2010). An independent variable can be a categorical or continuous variable
with three or more distinct categories, while a dependent variable is a continuous
variable (Pallant 2011). The independent variable in this research is the four distinct
culture types in each cultural dimension, while the dependent variable is the total
score of the QMS practices. This ANOVA test was aimed at examining whether
QMS practices differ between organisational culture types in the six cultural
dimensions; the test was used to study the influence of construction companies
organisational culture profiles on the effectiveness of implementation of quality
management systems (R4).

From the 77 surveyed companies, only 74 companies organisational culture profiles
were identified to have complete data, and were therefore included in ANOVA test.
The ANOVA test was conducted to examine whether there are significant differences
in the mean scores on the QMS practices across the four different culture types types
(Clan, Adhocracy, Market, Hierarchy). Six analyses were conducted with the QMS
practices scores under the six cultural dimensions (e.g., (1
st
) Dominant
characteristics-DC, (2
nd
) Organisational leadership-OL, (3
rd
) Management of
employees-ME, (4
th
) Organisation glue-OG, (5
th
) Strategic emphasis-SE, and (6
th
)
Criteria of success-CS). For example, the first analysis tested whether QMS practices
scores in the DC dimension, differ across the four culture types. In this analysis, the
independent variable are the culture types in the DC dimension, while the dependent
variable is the total QMS practices. Pairwise comparisons (e.g., Contrast test) were
140

then used as follow-up tests to find out where the differences lie. The ANOVA
analysis was conducted in SPSS 19.

Preliminary analysis for homogeneity of variance assumption testing was conducted
through Levenes test. This tests whether the variance is the same for each of the four
culture types. The assumption of homogeneity of variance is not violated if the p-
value for Levenes test is greater than .05 (Pallant 2011). From the Levenes test
results, it can be concluded that the assumptions of homogeneity of variances were
not violated for the current analysis (see Appendix D, Table D-7a-b).

The results of the ANOVA test (Table 4.25) show that there is a significant
difference in the total QMS practices across the different types of organisational
culture in the first dimension (Dominant characteristics-DC) (F = 3.06, p = .034).
The Contrast test (Table 4.26) results show that in the first dimension, the
implementation of QMS practices was significantly higher in the Hierarchy type than
Clan type (Difference (D) = -.62, p = .007). In addition, the implementation of QMS
practices was significantly higher in the Hierarchy type than Adhocracy type (D = -
.53, p = .036).

The results also show that there is a significant difference in total QMS practices
across different types of organisational culture in the third dimension (Management
of employees-ME) (F = 3.78, p = .015) (Table 4.25). The Contrast test (Table 4.26)
results show that in the third dimension, the implementation of QMS practices was
significantly higher in the Market type than Clan type (D = -.41, p = .01). In
addition, the implementation of QMS practices was significantly higher in the
Market type than Adhocracy type (D = -.81, p = .003).






141


Table 4.25 ANOVA Results: QMS Practices on the Six Cultural Dimensions
Culture
Profiles
Clan
type
Adhocracy
type
Market
type
Hierarchy
type
ANOVA
M SD M SD M SD M SD F Sig
1
st
(DC) 3.05 .50 3.14 .55 3.28 .39 3.67 .14 3.06 .034*
2
nd
(OL) 3.16 .39 3.18 .38 3.25 .48 3.02 .59 .80 .497
3
rd
(ME) 3.09 .49 2.69 .44 3.49 .30 3.14 .43 3.78 .015*
4
th
(OG) 3.21 .41 2.85 .18 2.98 .68 2.98 .55 1.29 .287
5
th
(SE) 3.27 .37 3.23 .46 3.21 .38 2.96 .63 1.37 .262
6
th
(CS) 3.15 .48 - - 3.31 .34 3.10 .49 .77 .466
Notes: DC = Dominant characteristics, OL = Organisational leadership, ME = Management of
employees, OG = Organisation glue, SE = Strategic emphasis, CS = Criteria of success
* p < .05
= significant result


Table 4.26 Pairwise Comparisons in the Six Cultural Dimensions of QMS
Practices between the Four Culture Types
Comparisons between
each pair of culture types
Differences in the comparisons
1
st
(DC) 2
nd
(OL) 3
rd
(ME) 4
th
(OG) 5
th
(SE) 6
th
(CS)
Clan - Adhocracy -.09 -.01 .40 .36 .04 -
Clan - Market -.23 -.08 -.41* .23 .05 -.16
Clan - Hierarchy -.62* .14 -.06 .23 .31 .05
Adhocracy - Market -.14 -.07 -.81* -.13 .02 -
Adhocracy - Hierarchy -.53* .16 -.46 -.13 .27 -
Market - Hierarchy -.39 .23 .35 -.00 .26 .21
Notes: DC = Dominant characteristics, OL = Organisational leadership, ME = Management of
employees, OG = Organisation glue, SE = Strategic emphasis, CS = Criteria of success
* p < .05
= significant result


The results of the ANOVA (Table 4.25), however, should be interpreted with
caution, due to the small sample sizes of some comparison groups (see Table 4.20).
For example, in the first dimension (Dominant characteristics), Hierarchy type was
excluded from the analysis since it has only had a sample size of 5, Adhocracy type
was excluded from the analyses of the second, third, fourth, fifth, and sixth
dimensions, on account of the sample sizes being less than 10. Therefore, the
142

ANOVA analysis was run a second time, based on the inclusion of only on the
groups with a sufficient number of observations (see Appendix D, Table D-8). The
non-significant results are likely to have been due to insufficient power. Finally, the
results from the first run of ANOVA were used as a basis for interpretation and
discussion. In summary, the ANOVA results showed that different profiles of
organisational culture can have different influences on the quality management
system implementation.

A Structural Equation Modelling (SEM) analysis (Figure 4.4) was conducted in order
to test the entire model of the theoretical framework on the relationships among the
QMS variables (R1, R2, R3), and the relationship between the QMS practices and
the organisational culture variables (R4). A Bayesian model was selected using
Marcov Chain Monte Carlo estimations to fit the SEM. This approach allows for
categorical variables in SEM (Lee 2007). This method provides an alternative to the
maximum likelihood estimation, which is based on strict assumption and can only be
fitted to normally distributed data. Using the Bayesian approach for SEM, posterior
distributions for the parameter estimates were formed. In the current SEM, missing
data were excluded. The six culture profiles were included with paths to QMS
practices. For QMS barriers, the paths were entered to QMS practices and QMS
KPIs. Finally, a path was entered from QMS practices to QMS KPIs. QMS barriers,
QMS practices and QMS KPIs were entered as continuous variables. The culture
profiles were entered as categorical variables. The SEM was conducted in Amos 19.

The results of the SEM analysis are presented in Figure 4.4. The model fitted well
(convergence statistics < 1.01) (see Appendix D, Table D-9). Significant paths from
organisational culture profiles to QMS practices were observed for Dominant
characteristics (DC), Management of employees (ME) and Strategic emphasis (SE).
This suggests that DC, ME and SE dimensions or profiles have an influence on QMS
practices. As expected, a significant link was found between QMS barriers and QMS
practices. Corresponding to the above correlation analysis, more QMS barriers will
result in lower levels of QMS practices. In addition, the link between QMS problems
and QMS KPIs was significant, indicating more QMS problems will result in lower
QMS KPIs. As well as corresponding to the correlation analysis, QMS practices
showed no significant relationship with QMS KPIs. In summary, observations from
143

the SEM was consistent with the above bi-variate correlations. This strengthens the
validity of the results in relation to the examination of the relationships within the
proposed theoretical framework.












Note: *p < .05 for significance

Figure 4.4 Regression Weights from a Structural Equation Model of the
Theoretical Framework






Effective QMS
practices
Key
performance
indicators
(KPIs)
Barriers to
implementing
effective QMS
Sixth culture profile
(Criteria of success)

Fifth culture profile
(Strategic emphasis)

Fourth culture profile
(Organisational glue)

Third culture profile
(Management of
employees)

Second culture profile
(Organizational
leadership)

First culture profile
(Dominant
characteristics)
.01
.15*
.09
.37*
.25*
.01
.20*
.05
.12*
= paths that were statistically significant
144

In the following section, the results presented above are discussed with the support
form associated literature review, to pave the way for the development of a
Framework of a Culture-based Quality Management System Improvement
Implementation for Indonesian construction companies.


4.6 Discussion of Results

The discussion of the questionnaire results is divided into three parts: (1) current
quality management system implementation; (2) contractors organisational culture
profiles; and (3) the examination of the theoretical framework. The results are
discussed in the context of the literature reviewed in Chapter 2, to further explain the
findings on the subject of quality management systems and organisational culture in
construction, as applied specifically in the context of Indonesia, which is regarded to
have relevance to other emerging and developing countries.

Current Quality Management System Implementation

The results of this study show that the companies motives in developing and
implementing QMS in the first instance, were encouraged by positive intentions to
successfully operate projects without substantive time-delays and cost overruns. This
scenario is common for construction organisations that are in the early stages of
familiarisation with QMS-ISO 9001, and bears similarities to the US construction
industry where the application of ISO 9001 has lagged behind other industries. The
survey results also reveal that, as indicated in some earlier studies, the main initial
motivation for ISO 9001 certification was to have an effective tool for improving
quality management procedures in companies (Chini and Valdez 2003; Turk 2006).
Some authors have opined that ISO 9001 certification is being pursued both for
company marketing reasons and in response to customers requests (Chini and
Valdez 2003; Turk 2006; ISO9000Council.org 2009). The results from this study of
the Indonesian construction industry indicate similar motivations, but not specifically
in reference to establishing a foothold in international construction markets (see
Table 4.12).

145

As indicated in Table 4.12, the second ranked motive is to meet clients requests as
part of the bidding process, reflecting the implication of the Government policy on
QMS in 2004; this is likely to have influential on the duration of the certification
processes (see Table 4.11). Most local construction companies took less than six
months to achieve ISO 9001 certification, while national contractors took between
six and 12 months. Although it is common for the length of time taken for ISO 9001
certification to reflect the number of employees and the readiness of company to
prepare the ISO 9001 documentation (ISO9000Council.org 2009), this does not
seem to apply in the case of the Indonesian construction industry. Indonesian
companies seem to be motivated in getting QMS-ISO 9001 certification in the
shortest possible time.

The common motive that least drives Indonesian construction companies to apply for
ISO 9001 certification, is to enter the international construction market. This
indicates that the Indonesian contractors appear to still doubt the many advantages
associated with implementing the system, which may result in having low
competitiveness. As Pamulu (2010) notes, low competitiveness is one of the reasons
for Indonesian listed construction companies have not been able to capture such
opportunities to attain a higher level of performance. Another least common motive
is to improve the companys prestige. This result is contrary to the literature that
reveals that it is solely for prestige that Indonesian contractors and builders obtain
ISO 9001 certification, and this is one of the main root-cases for the ineffective
application of the system (Novessro 2009). Prestige in this instance is just to be
recognised for having the system and thus being able to tender for the Government
projects. However, researchers agree that the proper implementation of QMS-ISO
9001 does have the potential to benefit Indonesian construction companies, in
particular, allowing them to become recognised and to in future become involved in
global markets, particularly the Asian and Middle Eastern construction markets.

Specifically in relation to the implementation stages of QMS-ISO 9001 systems, the
results of this study show that much effort is still needed from Indonesian
construction companies, to achieve full implementation of an effective QMS, and
gain the potential full benefits of holding their certification. The seventh principle
and the 20
th
element, are the two attributes of the standard which are identified as
146

being less implemented by Indonesian contractors. The findings also confirm the
earlier recent study which indicated a lack of use of cause and effect diagrams and
statistical process control as typical tools used to take a measurement of
construction processes (Ahmed et al. 2005). This is significant, as some studies
report that effective decisions on quality processes are made based mainly on the use
of data analysis and information with the assistance of some statistical tools (Tricker
2008; Center for the Advancement of Process Technology 2011).

Full implementation requires all internal stakeholders of companies to apply quality
standards without doubt to the whole business process of the organisation
(Trigunarsyah, Coffey and Willar 2011). As previously described, construction
industry efforts to improve quality have been slow and fragmented (Leonard 2010)
as well as being fraught with difficulties in implementing ISO 9001, or instilling a
holistic and systematic Total Quality Management philosophy (Haupt and Whiteman
2004; Hoonakker, Carayon and Loushine 2010; Shibani, Soetanto and Ganjian 2010)
due to the characteristics of the construction industry and its dynamic project
processes. However, for QMS implementation and an approach such as ISO 9001 to
be a real solution for the problems within, and high quality demands of, the
construction industry, all levels of a companys structure need to be bound by a
strong commitment, effective development of internal and external communication
and people involvement and participation. Methods and strategies for implementing
QMSs may vary substantially between companies; in addition, the commitment of
internal organisational stakeholders is also essential.

With regard to the issues affecting effective QMS implementation, the results of this
study show that apparently Indonesian construction companies do not often
experience problems with implementing ISO 9001. However there were some
misunderstandings from the managers surveyed regarding the purpose for obtaining
the ISO 9001 certification. Many managers saw this solely in terms of a marketing
initiative, or a necessity due to customer pressure, and also to be safe from receiving
non-conformance reports (NCRs) during audits. Such misconceptions have clearly
inhibited any internal improvements to a companys effectiveness in implementing
its QMS, and this raises the question of how does the construction industry
overcome the problems related to quality?
147

Focusing construction companies efforts on effective practices and continuous
improvement of their QMSs can result in developing the capability to deliver an
improved ultimate quality of project works. Love, Edwards and Sohal (2004)
concede the purpose of implementation of TQM in construction companies must be
in line with the companys organisational culture. Other researchers in the
construction quality systems and organisational culture area (Koh and Low 2008;
Yip Robin and Poon 2009) endorse this view by revealing that quality culture and
corporate culture are considered to be determinant factors in contributing to the
successful or unsuccessful implementation and maintenance of an ISO 9001 quality
system. The assessment of culture is a particularly determinant factor to the
successful implementation of such a QMS and is cited in Koh and Low (2008) as a
mutually reinforcing relationship, due to the fact that if the corporate culture is good,
the quality system will be applied appropriately. Therefore, much effort remains
necessary to exploit such successful QMS practices and quality results within
Indonesian construction companies.

Studies examining the effects of QMS implementation in the construction industry
show that not only do customers benefit substantially from it (Liu 2003), but so do
the construction companies themselves (Hoonakker, Carayon and Loushine 2010).
An overview of the current performance of surveyed companies suggests that after
almost a decade of QMS implementation in Indonesia, the G-7 contractors
achievements in several key performance areas have not yet been reflected in terms
of a very high performance level. However, despite this, ISO 9001 certified
companies have gained some level of esteem in both local and national construction
markets and are also making some attempt to provide better quality services and
products. Examples from construction industries elsewhere in the world indicate that
construction companies have been driven to attain ISO 9001 certification for the
purpose of gaining a foothold in non-local markets, and that there is an
understanding that this will become obligatory for entry to global markets in the near
future (Turk 2006; Elghamrawy and Shibayama 2008).

Despite the views noted above, the results of this study indicate a contrary view, with
most Indonesian companies seeking ISO 9001 certification not actually possessing
aspirations relating to entry into the global construction market. This being said,
148

Indonesian contractors do see obvious potential benefits from adopting and
implementing their QMSs, and they also appear ready and enthusiastic to accept and
implement QMSs effectively, and this is well underpinned by significant government
support. There also exists a strong belief that participating in the global construction
market is beneficial to certified contractors.


Contractor Organisational Culture Profiles

The findings from the study of the identification of dominant culture types within
Indonesian construction companies indicates that the organisational culture within
most Indonesian construction companies is predominantly of the Clan type, where
the company is focused on internal maintenance with flexibility, family-like
relationships having a concern for people, and sensitivity towards its customers. This
predominant culture type is also emphasized most in the cultural dimension related to
how employees are managed, how the organisation is held together, and how the
organisations success in its achievements is defined. This finding is fundamental to
the perspective of organisational culture within Indonesian construction companies.
With the rapid and remarkable growth rate in the construction industry, it is
important for this sector to recognise its individual and collective cultural patterns, in
order that they can be used to evaluate companies current operational activities,
achievements, and future successes. In addition, it needs to be recognised that
adoption of the predominant company cultural profile allows companies to adapt and
respond to challenges, and hence later set up appropriate cultural changes or maintain
and strengthen the existing fundamental culture profile.

The dimension labelled organisational leaderships is related to the dominant
leadership style and approach used by leaders and managers in those companies
which are more hierarchy-focused than the other three culture types. This indicates
that the leaders and managers are generally considered to exemplify coordinating,
organising, and smooth-running efficiency. For an ISO 9001 certified company, this
finding confirms that the role of leaders and managers is to set an example in the
day-to-day operational activities of the companies (Ahmed et al. 2005; Mahmood et
al. 2006; Mller and Turner 2007; Mller and Turner 2010), to become the focal
149

points within the organisation in which the operational activities are largely governed
by standardized procedures. In the Indonesian cultural profile of leadership,
according to Rini (2002), the leader has a function to directly control with authority,
and this indicates that hierarchical control is the most effective way in managing an
organisation. Another profile of Indonesian leaders according to Danandjaja (1985),
is based on the vertical synchronization used by the leaders to pattern duties and
moral responsibilities in order to maintain staff and assure success; bad patterns of
duties and responsibilities may lead to staff frustration and demotivation (ibid 1985).
This coincides with the profile of hierarchical-leadership that tends to be expected by
the ISO 9001 certified construction companies, rather than the leader being a mentor
or parental figure (more typical of clan leaders).

The dimension labelled as strategic emphasis, the area of emphasis that drives the
organisations strategy, in this study is Market type dominant, wherein the
company emphasizes permanence and stability; efficiency, control and smooth
operations, as the important company strategies. This finding suggests that current
form of Indonesian construction strategy is focused more on profit and goal
accomplishment, due to high competitiveness in both domestic and international
markets. Contractors focus on profit and market-orientation, in fact, is in line with
of The Ministry of Public Works policy to enforce Indonesian construction to take a
role in global markets, as the industry can no longer just depend on the domestic
market (Surtiningsih and Abidin 2009).

The results for the six dimensions of organisational culture of the 74 company
respondents (see Appendix F, Table F-1) show that none of the companies exhibited
true congruence in the six cultural dimensions. It is evident that different culture
types are emphasized in the six cultural dimensions, reflecting various elements of
cultural values that exist in an organisations operating activities. This indicates that,
either the culture is unclear to respondents, or that the complexity of the environment
requires multiple emphases in different areas of the organisation (Cameron and
Quinn 2006). These possible reasons for the presence of an incongruent culture also
apply to the sampled companies that have no single dominant culture type.
Conversely, having a congruent culture can eliminate many complications and
obstacles that might prevent an organisation from performing effectively (ibid 2006),
150

because the values of people are congruent (Nummelin 2006). In addition, the
determination that a particular strong culture is needed for an organisation to be
successful in its environment (Cameron and Quinn 2006), appears to indicate that the
possession of a single culture type within the whole of an organisations operating
activities would suggest that the construction industry is operating effectively
(Nummelin 2006).

However, there are many different perspectives regarding the efficacy of a
companys strength and congruence being dominated by a single cultural type.
According to Choi et al. (2010), there is no single right type of culture that an
organisation must have in order to be more effective or successful, since there are
many sub-units within an organisation that have different cultures at different
organisation levels (Cameron and Quinn 2006). Coffey (2010) on the other hand
indicated that construction companies that have a dominating combination of
organisational culture traits, such as, mission with consistency and involvement with
consistency, are stable in performance (Coffey 2010). In the case of the Indonesian
construction organisational culture, the differences among cities of the operations of
the sampled construction companies with respect to market demand, business
environment, and social culture, may require the companies to have a different
emphasis of cultural values in the six dimensions, and this may result in there being
no dominant culture type. As stated by Marbun (1980), the people of Indonesia have
many cultural tribes, known as Bhineka Tunggal Ika which directly or indirectly
affect organisation and/or management traits within companies.

The strength of the culture according to Cameron and Quinn (2006), is determined
by the number of points awarded to a specific culture, where the higher is the score,
the stronger or more dominant is that particular culture. Research has revealed that
strong cultures are associated with homogeneity of effort, clear focus, and higher
performance in environments where unity and common vision exist within an
organisation (ibid 2006). From the CFV diagrams of the organisational culture
profile of the 74 companies covered by the survey, 46% of companies in Manado,
33% in Makassar and 25% in Jakarta have a strong dominant organisational culture
(see Appendix F, Table F-2). This indicates that the cultures in these companies are
lucid for their employees (ibid 2006). The fact that less than 50% in each city were
151

classified as having strong culture profiles, suggests many companies still have to
achieve a clear understanding with, and support of, their employees.

A comparison between the overall dominant organisational culture type within
Indonesian construction companies, possessing a culture type similar to that of other
global construction companies, shows the differences that exist with construction
industries elsewhere in the world. Hong Kong construction companies appear to
emphasize the strong Clan type (Cheng 2005), while the Hierarchy type dominates
the construction industry in Thailand (Novana and Ogunlana 2006). From surveys
conducted by Cameron and Quinn (2006), they found that, on average, the Market
type was the predominant culture profile in the construction sector. A similar finding
was reported by Numeelin (2006) for Finnish construction companies. In the case of
the construction industry in China, a mixture of culture types exists, with Hierarchy
Market culture dominance being reported by Liu, Zhang and Leung (2006) and
Hierarchy Clan culture dominance reported by Zhang and Liu (2006); the culture
profiles of Chinese contractors varieties between geographical regions (Zhang and
Liu 2006). The Turkish construction industry has a mixture of Clan and Hierarchy
cultures (Oney-Yazc et al. 2007). Having different pictures of culture profiles in the
construction industries suggests that the construction industry has not yet been able
to define a typical culture profile, such as those based on Cameron and Quinns
culture typologies. The culture profiles within the construction industry reflect the
construction market demand and business environment, in each country, and the
goals of each construction company.

Construction market demand is changing rapidly, and through the CVF culture
measurement model, this research undertook an assessement of the Indonesian
construction organisational culture, and makes suggestions for a mixture of
construction companys culture profiles. There is a clear need for companies to have
understand their current cultures before any culture change is undertaken. Liu, Zhang
and Leung (2006) state that the understanding of organisational cultures (overlaid
with national cultures) is an important element of any business enterprise.



152

Examination of the Theoretical Framework

The examination of the relationships between variables representing the presence of
barriers to implementing an effective QMS and the QMS practices (R1), and between
the QMS barriers and contractors key performance (R2), confirm that the problems
faced by construction companies in relation to effective ISO 9001 implementation
are key determinants of ineffective QMS-ISO 9001 implementation, and of
unsuccessful organisational business performance while implementing their QMSs.
This study found that higher levels of experiencing the eight variables of QMS
barriers significantly contributed to the rolling out lower levels of effective
implementation of the nine variables of QMS practices. Consistent with the
arguments of Haupt and Whiteman (2004) and Shibani, Soetanto and Ganjian (2010),
problematic issues associated with the implementation of ISO 9001 and TQM inhibit
the eventual successful implementation of the system. An ISO 9001 certified
contractor must overcome or reduce the frequency of problems experienced by the
company, and this requires a total commitment of all units within the company, and
most importantly, a strong commitment from the top management. Watson and
Howarth (2011) also strongly state that in order to effectively implement QMS-ISO
9001, a quality manager must have the full support from the top management to have
authority and power, as well as having access to relevant resources needed for the
success of the ISO 9001 implementation.

Overall, it is found that that a strong corporate commitment reflects a strong
management commitment. A strong management commitment, in turn, needs the
support and recognition of employees, as well as the development of effective
internal and external communications. Successful with these, will lead to a full
corporate commitment to understanding and recognising the essence of the effective
implementation of ISO 9001.

In reference to the relationship between the QMS barriers and QMS KPIs, this study
found that a higher level of experience of the eight variables of QMS barriers
significantly contributed to the lower level of performance of the three QMS KPIs
variables. This finding is consistent with that of other earlier studies undertaken by
Asa, Abidin and Latief (2009), which stated that Indonesian ISO 9001 construction
153

companies that intend to raise the companys profitability performance should
consistently implement their QMS and overcome their difficulties when following
their QMS (ibid 2009). The typical QMS barriers investigated in this study are
representative of those commonly experienced by ISO 9001 certified contractors,
that can hinder achieving a high level of business performance in the company, due
to low levels of sales growth, low profitability and poor market shares, or in general,
due to a declining capacity to be able to compete in a free-trading industrial
construction market.

In contrast to the above examination of R1 and R2, the examination of the
relationships between the QMS practices variable and contractors key performance
variable (R3), in particular, the relationship to business performance, shows that
there is no significant relationship between them. This means that, in this study, the
higher level of effective implementation of the nine QMS practices variables was not
associated with the higher level of performance of the three QMS KPIs variables.
Previous studies on the relationship between the two variables, such as undertaken by
Naveh and Marcus (2005), Morris (2006) and Benner and Veloso (2008), found that
companies that become ISO 9001 certified failed to have nancial performance
benets. However, there are other similar studies of this relationship which have
argued that ISO 9001 construction companies do have benefits in terms of being
chosen to bid in both local and global market contracts, achieving quality
performance at organisation and project levels, as well as improving corporate
profitability (Ofori, Gang and Briffett 2002; Turk 2006; Farooqui and Ahmed 2009;
Watson and Howarth 2011). The results of this study cannot be clearly related to the
results of earlier studies. The fact that the surveyed contractors, although being
categorised as not so fully implemented with regard to QMS practices but having
achieved high performance in relation to QMS KPIs (the business performance), it
is concluded that the current high business performance cannot be directly attributed
to the possession of ISO 9001 certification.

In reconciling the results relating to the examination of R3, it is suggested that
Indonesian ISO 9001 certified contractors do not, in practice, regarded QMS
certification as a means for effectively and efficiently controlling project activities
aimed at achieving an improved performance in all organisation areas; rather, QMS
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certifications regarded as a matter relating to fulfilling tender administration
requirements. From the preliminary interviews, it was noted that since relatively few
local construction companies possess ISO 9001 certification, it is therefore not
surprising that it is only this small number of contractors who always win project
tenders, without being properly selected based on the bidding procedures. Likewise,
in national infrastructure projects, the winning contractors are often based on
corruption-collusion-nepotism (CCN), rather on quality and performance records of
the company. Mochtar (2004) also discovered and reported that Indonesian
contractors only make average efforts to make improvements or innovations in
their services, as their attitude is focused on fees policies rather than effective
marketing practises and the provision of innovative products and/or quality
promotion. Similarly, Siregar (2006) has argued that CCN and unhealthy competition
practices are the two greatest obstacles to strategic marketing of Indonesian
construction services. These findings should help reinforce the need for Indonesian
contractors to end current bad practices, and adopt procedures and practices that are
capable of forming the basis to become a reputable construction industry (ibid 2004).
Current government policy is to implement Good Corporate Governance (GCG)
within the construction services is also as an effort to eradicate fraudulent activities
within construction business entities (Minister of Public Works of the Republic of
Indonesia 2007; Minister of State-Owned Enterprises of the Republic of Indonesia
2011).

In reference to free-trade competition in the global construction market, as shown in
the results of the survey of ISO 9001 contractors KPIs achievement (see Table
4.18), Indonesian construction companies, in addition to being champions in the
domestic market, are also expected to compete in global construction markets. They
also need to be more aware of the increasing competition of foreign companies for
national infrastructure projects, as well as private projects. The predominance of
Indonesian companies in domestic markets but non-showing on global markets
supports the policy of the Indonesian Ministry of Public Works in pushing
Indonesian contractors to prepare to work in foreign markets (Secretariat of
BPKSDM 2009). In particular, Indonesian Contractors Associations (2010) has
pushed its members (the majority of whom are the G-7 contractors), to increase their
level of competitiveness within domestic and foreign service provision markets. To
155

become more prestigious in national and international sectors, the adoption of QMS
by Indonesian companies can no longer be just for administrative purposes. Proper
and effective QMS implementation is needed to clearly reflect the profile of
companies in the context of being qualified and innovation, and able to satisfy
customers.

The last examination, R4, of the theoretical framework in this study relates to the
most important aspect of the research analysis. In this examination, the different
profiles of construction companies organisational culture is analysed in reference to
the different influences on effective quality management system implementation.
There is evidence to suggest that QMS practices differ across the four culture types,
particularly in the cultural dimensions of dominant characteristics of the organisation
(DC), and style of how employees are treated and the working environment is like
(ME). In the analysis results of dominant types of the six cultural dimensions of the
surveyed contractors, Clan type was the most emphasized in the two dimensions, DC
and ME. However, in the analysis of the relationships between organisational culture
profiles and the QMS practices variables, in the DC dimension, the implementation
of QMS practices was significantly higher in the Hierarchy type culture than Clan
type, while, in the ME dimension, the implementation of QMS practices was
significantly higher in the Market type than Clan type culture.

Rahman et al. (2003) argue that construction organisations should build their
required project cultures and possess a flexible organisational culture, in order to
improve their internal critical success factors to remain competitive and survive into
the future, and this view is strongly supported by Coffey (2010). In conjunction with
this view, Prajogo and McDermott (2005) argue that different subsets of TQM
practices are determined by different types of culture. They (ibid 2005) found that
the Hierarchy culture has a significant relationship with certain TQM practices. In
contrast, Thomas et al. (2002) argue that construction companies with a Clan culture
produce better quality outcomes than companies with a Market culture. The Market
culture was indeed found in Cameron and Quinns study, to be more common on
construction companies (Cameron and Quinn 2006).

156

In relation to this study, the Indonesian large-scale construction industry has been
cautious of reference to its domestic project competitiveness and is in a state of
short-term transition in relation to the global market. There have been some doubts
relating the qualifications and reputation of some G-7 and ISO 9001 contractors, in
reference to some unhealthy marketing practices seen on domestic infrastructure
projects. A Hierarchy oriented culture is expected to drive companies in building and
sharing values of standardisation, control, a well-defined structure for authority and
decision-making, and to support the successful implementation of QMS. In addition,
a global Market orientation is an important culture strategy to help drive companies
in building successful external relationships with customers and achieve success with
proven quality product results. These insights are strategic, as Koh and Low (2008)
found that modification of organisational culture and fortification of customer and
process management are clear strategies for successful of TQM implementation. It
therefore appears plausible that once the traits and typologies of Hierarchy-Market
shared values and underlying assumptions within the construction organisation, that
allow the organisation to operate effectively, are bound into strong organisational
cultures and that are understood by all internal stakeholders and are in existence and
integrated, there will be a positive impact on effective QMS practices. This will, in
turn, lead to improvements in organisational effective performance.

From the above findings, it is concluded that ISO 9001 certified Indonesian
construction companies should make the cultural change from a now Clan culture
to future hybrid Hierarchy-Market culture. As a pragmatic approach, this would be
the best-fit cultural profile for Indonesian construction companies to effectively
implement their QMSs and achieve optimal business performance. Moreover, in
order to bring about changes to the effectiveness and operational efficiency of QMSs
across all qualification categories of Indonesian contractors, there is a clear need for
a cultural shift within the small and medium-scale companies if they are to become
competitive and serious in the future national market, and also for supporting their
parent companies in global markets. This cultural change is needed to drive
successful QMS development and implementation and to achieve the changes
desired by the Indonesian government and the aspirations of communities affected by
infrastructure project delivery. Based on the application of the principles espoused
from the Competing Values Framework (Cameron and Quinn 2006), these mixed-
157

cultures can be applied specifically in the areas of organisational leadership,
organisational effectiveness, and human resources management roles; all of which
are bound with the quality management practices. This would then make Indonesian
construction companies more open to developing strong culture-based quality
management systems practices that will, in turn, be reflected in an enhanced
Indonesian construction industry performance profile.


4.7 Summary

The main aim of Chapter 4 was to answer the first and second research questions,
which were concerned with the identification of quality management system
development and implementation, as well as the identification of Indonesian
contractors organisational culture profiles, and the analysis of the influence of
different organisational culture profiles on QMSs implementation. The chapter also
goes some way to partly answer the third research question relating to the
development of a culture-based QMS improvement implementation framework.

The predominant motive for construction companies to establish and implement ISO
9001 based QMSs is identified as being to effectively and efficiently control project
activities. The respondents apparently do not often experience any general problems
relating to QMS implementation. However, in order to fully implement and improve
the effectiveness of their current QMSs, the study highlights those ISO 9001
principles and elements that still require to be more critically applied by Indonesian
construction organisations. The findings also suggest that, although certified, many
contractors have not yet achieved a satisfactory performance level to enable them to
be competitive outside of Indonesia, in global markets.

The findings from the identification of the overall dominant organisational culture
type within Indonesian construction companies suggest that most companies are
characterized by a Clan type of culture. This predominance of this culture type is
reflected particularly in how employees are managed, how the organisation is hold
together, and how the organisations success is defined. The dimension of
organisational leadership is more Hierarchy-focused than the other three culture
158

types, while the dimension of strategic emphases is Market-type dominant. It is
evident that different culture types are emphasized in the six cultural dimensions
which reflect the varying elements of cultural values which exist in an organisations
operational activities.

Within the examination of the relationships among the QMS variables, it was found
that the presence of barriers to implementing an effective QMS was significantly
related to the QMS practices, and was also significantly negatively related to the
contractors KPIs. However, it was also found that the QMS practices did not affect
the QMS KPIs. With respect to the examination of the relationship between the QMS
practices and the organisational culture variables, different organisational culture
profiles of construction companies were found to have different influences on
effective QMS implementation.

Based on the results of the examination of the theoretical framework concerning the
relationships among the QMS and with the organisational culture variables, the
findings were discussed within the context of existing literature and preliminary
interview evidence. In the Indonesian construction sector, problematic issues
associated with understanding, and operating the actual roll-out of, ISO 9001, inhibit
the successful implementation of the system. Certified contractors must therefore
overcome or reduce the frequency and magnitude of the problems experienced by
their companies; this requires a total commitment of all units within the company,
the most important of which is strong commitment of top management. Unhealthy
marketing practices and some fraud that still exists in the construction business
sector are diversions from the companies motivations in seeking ISO 9001
certification. Possessing certification is primarily perceived as a pre-requisite for
fulfilling tender requirement. However, Indonesian contractors can no longer survive
with such perceptions in more competitive and global marketing environment,
including within Indonesia. A strong mixed Hierarchy and Market culture needs to
be developed within the construction companies in Indonesia, as the driver to support
proper and successful implementation of QMSs, in order to provide qualified,
innovative and deliverable project and service outcomes, and therefore enhance
business performance in a quality performance-oriented Indonesian construction
industry.
159

The findings of these quantitative results and the related discussion, paved the way
for the development of the Framework of a Culture-based Quality Management
System Improvement Implementation for Indonesian construction companies. The
proposed framework was disseminated and validated in focus group discussion, the
results of which are reported in Chapter 5.


























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CHAPTER 5
CULTURE-BASED QUALITY MANAGEMENT SYSTEM
IMPROVEMENT IMPLEMENTATION FRAMEWORK


5.1 Introduction

The analysis and interpretation of the returned questionnaire contained in Chapter 4
with the support of literature review, have been utilised to develop framework of a
culture-based quality management system (QMS) improvement implementation for
Indonesian construction companies. The development of the framework has enabled
the researcher to accomplish the third objective of this research, the design and
development of a Culture-based Quality Management System Improvement
Implementation Framework for Indonesian construction companies to effectively
implement QMSs, designed to achieve better bottom-line outcomes, while also
facilitating the evaluation of the usefulness and applicability of such a framework.

This chapter explains in detail, the process of development and evaluation of the
framework, which crystallize the findings of this research. First is the explanation of
the process of the development of the framework which contains the description of
culture-based types, and construction of components of the framework. The profile
of the panel of a focus group discussion is listed before the analysis and results of the
frameworks evaluation. The presentation of related discussion then followed. The
final section is the resulting refinement of the framework of a culture-based QMS
improvement implementation.


5.2 Development of a Framework

Using the data extracted from the Principal Component Analysis, together with the
findings from the examination of the theoretical framework (the relationships among
quality management system variables, and the influence of different organisational
culture profiles on quality management system implementation), a Culture-based
161

Quality Management System Improvement Implementation Framework was
designed and developed. This section provides descriptions of the preferred types of
culture-based QMS, and the construction of the framework components.


5.2.1 Types of Organisational Culture

As identified in the results and analysis, different profiles of organisational culture
have different influences on quality management system implementation (Section
4.5.2). There are two culture profiles that significantly influence the implementation
of QMS-ISO 9001: (i) the Hierarchy culture which generally dominates the
construction organisation, and (ii) the Market culture which has a strong impact on
the management of employees and in creating the working environment atmosphere.
The Hierarchy and Market cultures are therefore proposed as the best-fit models of
culture profiles for driving the successful implementation of effective quality
management systems in Indonesian construction companies. Though the Market
profile only was highlighted in relation to the management of employees, this culture
type is also an important driver for all organisational processes within a construction
company, since all processes involve individuals and/or groups of employees.
Rameezdeen and Gunarathna (2003) state that management style and the competence
of leaders need to be part of the dominant culture type within any organisation.

In order to utilise the culture traits and typologies of Hierarchy and Market cultures
as the culture drivers, relating to a Competing Values Framework (CVF) (Cameron
and Quinn 2006), there are also additional cultural values and attributes of the two
cultures provided by Cameron and Quinn, which can assist in culture development
and culture change. The authors provide four areas of applicability of the competing
values within a model, reflecting how organisations work and how they are managed.
However the model is regarded as being applicable in other areas of organisations as
well (ibid 2006). The four major areas of the cultural applicability are: organisational
leadership, organisational effectiveness, total quality management, and human
resource management roles. These four areas of the applicability of the competing
values model are considered to be in line with the issues relating to the cultural
barriers to effective implementation of ISO 9001, outlined in Section 2.5.2.
162

In the process of development of the framework for this study, the organisational
area of total quality management, is that, which relates to the implementation of the
QMS improvement elements. The QMS improvement elements were identified in
Section 4.5.1, and for the purposes of the development of this chapter on framework
development, are referred to as the nine QMS improvement elements. The
requirement that organisations should master the implementation of the QMS
improvement elements, needs to be supported by the other three organisational areas.
The values and attributes of the applicability of Hierarchy-Market culture, is
considered to be an organisations quality strategy, which is also a part of the
implementation of the QMS improvement elements. The applicability of the
Hierarchy-Market profile in relation to the four organisational areas, is illustrated in
Figure 5.1.




Figure 5.1 The Applicability Model of Hierarchy-Market Culture
(adapted from Cameron and Quinn 2006)


A matrix showing a detail model of the applicability of Hierarchy-Market culture,
comprising the cultural traits, typologies, and attributes associated with the four
organisational areas, is shown in Table 5.1.

TQM / The nine
improved QMS-
ISO 9001
elements
Human
Resources
Management
Roles

Organizational
Effectiveness

Organizational
Leadership
Hierarchy -
Market leader
types
Hierarchy -
Market
organisational
effectiveness
Hierarchy -
Market quality
strategies
Hierarchy-
Market human
resources roles
and
competencies
163

Table 5.1 Applicability of Hierarchy-Market Culture in
Four Organisational Areas

Organisational Areas Hierarchy Market Culture Profiles
(1) Organisational
leadership
: Control-oriented and competition oriented.
: Values that drive effective leaders are efficiency
consistency uniformity, and goal achievement
profitability.
: A good leader in coordinating, monitoring and
organising people and work processes, as well as a hard-
driver, competitor and good producer.
Managemen style : Security of the job, results and profits, with incentives
for achievement.
(2) Organisational
effectiveness
: Control and efficiency with capable processes produce
effectiveness.
: Competition creates an impetus for higher levels of
productivity and therefore higher levels of effectiveness.
Espoused values : Every activity is governed by established rules and
procedures of the organisation, standardisation, control,
and a well-defined structure for authority and decision
making.
: Importance of goals accomplishment and production, to
search for a more effective business approach.
Criteria of success : High weightage to smooth scheduling of organisational
activities and strict time targets.
: Market penetration, profitability, bottom-line results,
strength in market niches, stretch targets and secure
customer bases.
(3) Quality strategies of
QMS-ISO 9001
: Non-conforming services/products are identified and
segregated, corrective and preventive action undertaken,
monitoring and measurement of processes and products,
the use of statistical techniques for data analysis
measuring customer preferences, improving
productivity, creating external partnerships, enhancing
competitiveness, involving customers and suppliers.
(4) Human resources
management roles
: Administrative specialist who focuses on reengineering
processes and creating an efficient infrastructure.
: Srategic business partner who can align human
resources with business strategy, and facilitate bottom-
line (financial) impacts of all human resource activities.
HR Competencies in : Process improvements, customer relations; service
needs assessment; general business skills; strategic
analysis; strategic leadership.
Source: Rameezdeen and Gunarathna (2003), Cameron and Quinn (2006), Tricker
(2008), Tharp (2012).

Accordingly, the applicability model of Hierarchy-Market culture, together with their
typical traits and typologies within the three organisational areas (excluding the area
of quality strategies of QMS-ISO 9001), were designed as a culture driver for each
improvement element of QMS-ISO 9001, within the framework of a culture-based
164

QMS improvement implementation. The area of quality strategies of QMS-ISO 9001
was designed to be well-integrated into the implementation of the nine QMS
improvement elements.


Culture Change Process
Through the Competing Values Framework (CVF) culture measurement model, this
research has assessed the Indonesian construction organisational culture, which
found that Clan culture was emphasized most within companies. However, the
results from the further examination on the relationships between culture profiles and
effective QMS practices suggest the need for a mixture of Hierarcy-Market culture
profiles to support successful practices of companys QMS. It is therefore suggested
that many Indonesian construction companies would need to change their culture to
achieve a strong-congruence of culture, in order to achieve successful QMSs
implementation.

The cultural change process needs to be incorporated into the structure of a Culture-
based Quality Management System Improvement Implementation Framework to
assist companies in finally possessing a strong-congruent Hierarchy-Market
organisational culture profile, which might then obtain full staff involvement in
support of a QMS, and ultimately gain more business opportunities. However, in
order to develop a strong and relevant organisational culture profile, the culture itself
must be sufficiently flexible to allow changes in both the internal and external
organisation environment. Thus, if a company needs to change its current culture in
order to achieve future preferred cultural profile, Figure 5.2 shows the culture change
flow for the construction organisation to follow. Details of the culture change process
are presented in Section 5.5, as is the initial framework needed for a culture-based
QMS improvement implementation framework.






165











Figure 5.2 Flow of Culture Change


5.2.2 Construction of Framework Components

The main aim of the development of a framework is to facilitate Indonesian
construction companies in achieving better managed and controlled processes, to
then achieve improved outcomes in terms of meeting customers needs and
requirements, reflecting a better quality project and quality delivery which will lead
to improved company business performance.

The framework consists of a generic integrated framework for culture-based quality
management system improvement implementation in Indonesian construction
companies. This framework provides the elements of culture development, QMS
improvement elements, and the elements of organisational performance improvement
outcomes. In addition to the single framework for a company to undertake culture
change, a further nine frameworks provide the guidelines for Indonesian construction
companies to successfully implement each of QMS improvement elements.

The culture change framework was constructed to provide a step-by-step process for
culture change in a construction company. This culture change framework is aimed
to provide guidance for the company in undertaking culture change should it be
necessary, or to strengthen the current culture style. The strategies for effecting
Current
culture
Internal
forces
External
forces
Strategies
and culture
change
processes
Strong current
culture
Internal
involvement
External
opportunity
INPUT PROCESS OUTPUT
Repeated process
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culture change contained in the framework were mainly adopted from Cameron and
Quinns (2006) steps for designing an organisational culture change process.

Nine individual frameworks were constructed to shape the following:
Framework component for the identification of barriers to implementing
effective QMS improvement elements
This framework component aims to reveal identified problems mostly faced
by construction companies that are associated with the effective practice of
the QMS improvement elements. The list of barriers identified from the final
results of the factor analysis (Factor 1 QMS barriers) need to be overcome
in order to successfully implement the QMS improvement elements.

Framework component to act as culture drivers for effective QMS
improvement elements
This framework component proposes the applicability model of Hierarchy-
Market culture profile as the drivers in the area of organisational leadership,
organisational effectiveness, and human resource management roles, to
support the practice of each QMS improvement element. These culture
drivers should be integrated into the services and activities areas within a
construction company.

Framework component for effective QMS improvement elements
This framework component incorporates several recommended actions that
could enable a construction company to be more successful in implementing
the requirements of the QMS improvement elements under ISO 9001, in a
more amenable way. The list of the recommendations was constructed based
on the ISO 9001 requirement relating to each QMS improvement element,
and also with other literature support. This framework component is
additional strategies to be embedded in the existing companys current
strategies and procedures for implementing the ISO 9001. The QMS
improvement elements were identified from the final results of the factor
analysis (Factors 1 and 3 QMS practices).


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Framework component related to results and benefits
The framework describes the expected results and benefits from effective
implementation of the QMS improvement elements. The list of results and
benefits was identified from the final results of the factor analysis (Factor 4
QMS KPIs-business performance), in addition what was also extracted from
a rigorous literature review and construction companies best practices,
focusing on the perceived benefits and outcomes due to an effective quality
management system implementation.

All the frameworks were disseminated with the panel of a focus group discussion, for
validation and adjustment, as regarded necessary. The comprehensive validated
designs of the frameworks are provided in a later section (Section 5.5).


5.3 Evaluation and Validation of Framework

A one-round Focus Group Discussion (FGD) was launched in 8 July 2011, in a
meeting room of the Agency for Construction Development, Ministry of Public
Works, Jakarta. The panel comprised a group of nine experts who participated in a
discussion which lasted for about three hours.


5.3.1 Composition of the Panel Group

This section introduces the composition and profiles of the expert respondents and
their organisation profiles. The panel of experts was established according to the
guidelines discussed in Section 3.3.2. Fourteen panellists were invited to participate
in the FGD data collection to ensure a sufficient number of respondents for valid data
assessment.

These experts comprised academics, policy makers and construction practitioners,
who were the last also participated in the Questionnaire survey. Nine of the 14
invitees expressed their agreement to participate in the FGD. The number of
respondents who agreed to participate was regarded as appropriate for a FGD, and
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involved representation from all the three sectors related to the data collected, and
represented a balanced input and consensus to meet the aims of the data collection
exercise (Table 5.2).

Table 5.2 Invited and Agreed Focus Group Panellists
Sector
Number of Panellists
Invited Agreed
Construction Practitioners 9 5
Policy Makers 4 3
Academics 1 1
Total 14 9


An overview of each participant follows, providing background details of their work
experience, role and level in their organisations profile, while also being generalised
to maintaining anonymity.

Panelist 1 (Mr SH)
Mr SH has been a Quality Management Representative (QMR) since 2006,
and has 10 years work experience in the construction company. The
company, located in Manado, was established in 2000 and is currently one of
the largest contractors in the provincial of North Sulawesi. The companys
strong business lines are in road construction and environmental work. It has
held ISO 9001 certification since 2006.

Panelist 2 (Mr ZAZ)
Mr ZAZ is a QMR and concurrently a project supervisor with 10 years work
experience in one of the leading G-7 contractors located in Makassar. The
company was established in 2001 and obtained ISO 9001 certification in
2005. Its major business focus is the construction of highways.

Panelist 3 (Mr AM)
Mr AM is a Director of Human Resources and a QMR, with three years work
experience in a construction company located in Makassar. Prior to this
position, he worked in foreign construction companies. The company was
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established in 1967 and implemented its ISO 9001-QMS in 2009. It is a well-
established and fast growing construction company, with activities at both
local and national levels. Its major business lines are in the construction of
highways, roads, airfields and bridges, and construction of ports/harbours and
river related work.

Panelist 4 (Mr HBS)
Mr HBS has been a QMR since 2005 in the company and has 23 years of
work experience in the construction industry. The company, located in
Jakarta, was established in 1971 as a national construction company. Its
capabilities are in the areas of oil and gas production facilities, cross-country
pipeline, water treatment plants, railways, and multi-storey buildings. The
company was first certified under ISO 9001 in 2005.

Panelist 5 (Mr HS)
Mr HS is a Manager of Human Resources, while also holding the position of
QMR for the last three years, in a well-known, publicly listed construction
company in Jakarta. He has more than 20 years of work experience in the
company. The company was established in 1953 and was originally certified
under ISO 9001 in 1994. The company is a leader in the construction of high
rise buildings, housing and settlement projects. It also has its own university
to provide training and human development programs both for internal and
external customers.

Panelist 6 (Mr TDW)
Mr TDW is the Secretary of the Agency for Construction Development
within the Ministry of Public Works. The Construction Development Agency
has responsibility for the task of organising the technical and administrative
services to all units within the Agency. In addition, he has a special role
relating to motivating and enhancing the role of Indonesian contractors in
becoming professional organisations capable of undertaking construction
projects both at the national level and overseas. The Agency, on behalf of the
Ministry of Public Works, also engages in the development of regulations and
policy relating to the development of construction building capacity.
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Panelist 7 (Mr P)
Mr P is the Head of South Sulawesi Construction Services Development
Board (CSDB), or LPJK, in Indonesia. The Board functions as a forum for
communication, coordination and consultation, among construction services,
between the Government and construction services, and between Indonesian
construction services and foreign construction services, as well as helping to
find solutions to related problems faced by local construction services. As a
partner to the Government, the Board has roles in the formulation of policy
and strategy for the construction sector, to improve the role of the national
construction services in contributing to economic growth in the country. He is
also involved in national consultant associations in Makassar.

Panelist 8 (Mr AR)
Mr AR is one of the Vice-Heads of the North Sulawesi Construction Services
Development Board. His specific duty is to facilitate the accreditation of local
company associations. He is an active member of several national
construction associations.

Panelist 9 (Mr MT)
Mr MT is an academic and concurrently a member of the Quality Assurance
Division of higher education institution that hold ISO 9001 certification. His
background is that of a civil engineer specialising in construction and project
management. He is also a lead auditor of QMS-ISO 9001.

The above panel composition and profile of panelists, indicate that the comments and
suggestions collected in the Focus Group Discussion represent a holistic view of
industry, government and institutional representation. The panellists have distinctive
construction professional and experts backgrounds related to national infrastructure
projects and programs, and have significant decision-making roles in relevant
organisations. The majority of these experts also have duties and roles as Quality
Management Representatives, which suggests their views represents an Indonesian-
wide context of ISO 9001 certified construction companies. In addition, some of the
panellists who have professional concerns about quality management in the
171

construction industry, indicated that the consensus of the panelists in the FGD might
be taken further and used for the improvement of the national construction industry.


5.3.2 Analysis and Results

The data analysis and results of the Focus Group Discussion (FGD) are presented in
accordance with the three key parts related to the culture-based QMS improvement
implementation framework. The first part is the Generic Integrated Framework for
Culture-based Quality Management System Improvement Implementation; the
second part is the Culture Change Framework; and the third part is the nine
frameworks of the QMS improvement elements. Other comments, relating to best
practices, consensus, and recommendations obtained from the panelists that enrich
the FGD findings were also included in the analysis. The descriptive summary for
each key component is presented as follows:

First Part: The Generic I ntegrated Framework for Culture-based Quality
Management System Improvement Implementation

The Generic Integrated Framework for Culture-based Quality Management System
Improvement Implementation in the FGD, was first presented to the FGD with the
aim of introducing all elements within the framework, including its structure and its
logistics. All respondents confirmed that the structure and its elements were clear and
understandable. In particular, the panellists provided an evaluation on each of the
three levels contained in the framework, which were recognised by them as level one
pertaining to organisational culture; level two pertaining to quality management
system (QMS) practices; and level three pertaining to company performance
outcomes. The main output from the results for the evaluation and recommendations
of each level are summarised as follows:

The panellists identified the first level in the framework as the organisational culture.
Panellists from the construction companies opinied that the organisational culture is
the most important element within the company. They further opinied that since
future direction of a company should be started from the companys vision and
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mission, the importance of the organisational culture is the foundation for setting the
companys vision and mission. Both sectors of panellists recommended including the
companys vision and mission within level one of the framework The elements of
culture change and three culture drivers were agreed upon as the most important
cultural elements for driving the effectiveness of QMS implementation. Some of the
important comments relating to this topic are as follows:

The organisational culture should be the most important one, because from the
organisational culture a companys vision and mission is established to direct
organisational strategies in future.

It would be better to include companys vision and mission in the first level, so
that we know the companys vision and mission and the organisational culture
are synergistic.

Cultural change, organisational leadership and the role of human resources
are highly relevant to the core of the culture of contracting organisation.

For the success of QMS, the most important thing is the support of the
organisational culture for the implementation of QMS. To me, organisational
leadership is the most important culture.


The second level of the framework contains the nine QMS improvement elements.
This level was perceived by the panellists as containing the important and crucial
QMS elements currently being operated by the companies. They also agreed to
validate all the elements as the QMS-ISO 9001 improvement standards; this means
that more attention and strategies need to be considered into the implementation of
these standards. They acknowledged that level two has interrelationships and
correlations with level one and level three. This means that the successful
implementation of the nine QMS improvement elements is depended on level one
while also strenghthening this level, while this, in turn, will affect the improvement
of elements in level three. Typical comments by the panellists included:

We are struggling to properly implement these nine QMS elements - we know
these all are important quality standards, but we often wonder how to
successfully implement them.

With the successful implementation of the nine elements, we also expect there
will be a cultural change in they way our staff do their work that will finally
impact on improving the performance of the company.
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The success of implementing QMS-ISO 9001 will enhance the business
performance of our company. For that reason, the organisational culture
should be built in the company and strengthened to support the implementation
of QMS.


The three elements of organisational performance improvement outcomes (level
three) were perceived by the national construction panellists as the burning
outcomes in every construction company, especially in relation to profitability and
market share. An awareness in providing quality improvement was also being the
focal issue within the national construction companies in relation to their wish to
achieve the performance improvement outcomes. The two local contractors
acknowledged that they relied on local government infrastructure projects in order to
maintain their companys cash flow each year, since they did not engage in any
private project construction. A failure to win contracts for local government projects
would result in no annual profit for their company. Based on this information,
national construction practitioners and policy makers concluded that the financial
performance outcomes for local contractors is very much dependent on the national
budget allocation allocated to provincial governments. This circumstance would be
no good for local contractors longer term benefits. Responses from the panellists
included:

It is true we are expecting the success in implementing a QMS, in real terms,
reflected in company profits. We now require quality based achievements to win
the construction market contracts.

We are promoting in our companys slogan in the company projects, a
quality for profit, so quality is a must in order for us to survive in this
business.

'Profit and winning market share are the ultimate goals for us. Although we
are already in a comfort zone, we still need to improve quality to compete
globally.

To be honest, we never work for a private project. Our companys profits
depend on the government to give us the project.

What the local contractors have achieved (profit and domestic market)are not
guarantees for the future. This is because in the future competitiveness will be
tougher, it will not be as easy as today in achieving the three elements of
contractors performance outcomes.
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Second Part: Culture Change Framework

Construction practitioners regarded the culture change framework as generally
acceptable. They argued that the steps to implement the culture change were
company challenges. Specific strategies to implement the new culture need to be
designed and developed during the culture change processes, in order to successfully
implement any culture change. Different companies have different characteristics
and therefore different strategies are required to successfully promote the culture
change framework within a company.

This framework is something new for us, and we think we need a strategy to
disseminate this framework to all staff, including specific strategies for the
company to possess a strong organisational culture.

The corporate culture is really very important, but the culture characteristics
differ from one company to another, including strategies for dealing with
employees. In my opinion, management should seriously consider a cultural
strenghthening program and should have a strategy for the program to be
accepted by all employees.

Our biggest challenge is to implement a culture change at the project level.
However, we also need a change of culture in order for our staff to have good
work patterns that are quality orientated.

Based on experience, national construction panellists indicated the need for
consideration of potential company financial gains for successful implementation of
any organisational culture change, that culture change that is suited to the business
environment. Some of the significant remarks related to the discussion on this topic
are as follows:

Our experience when discussing the development of the organisational
culture in our company is that we also need to convey the benefits of the impact
of possessing a strong culture, in terms of the impact on company profits in the
current business environment.

With our company culture, we value our customers in getting satisfaction with
project results, so that we gain more trust from the clients, and this will
ultimately lead to an increase in corporate profits. By disseminating this point,
we try to encourage our employees to be interested in the organisational
culture.

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Third Part: Nine Quality Management System Improvement Elements
Frameworks

The descriptive summary of the analysis and results relating to the third part is
divided into four components. First, a component pertaining to the identified barriers
to implementing the QMS improvement elements. Second, a component pertaining
to the culture drivers for effective implementation of QMS improvement elements.
Third, a component pertaining to recommendations for effective implementation of
QMS improvement elements. Fourth, a component pertaining to results and benefits.

Component 1: Identified Barriers to Implementing QMS Improvement Elements

Generally, the construction panellists confirmed the importance of the presentation of
the identified barriers to implementing effective QMS improvement elements
within the nine QMS improvement elements frameworks. Most clearly recognise the
barriers that can be associated with the implementation of each QMS improvement
element, as they have had experience with the barriers. The QMS barriers issue was
the most common item brought up during the focus group discussion and also
dominated the discussion, as the issue was perceived as a major hindrance to
effective ISO 9001 implementation. While comments of some panellists on the QMS
barriers merely agreed with the provided lists of QMS barriers, others provided more
QMS barriers-specific remarks. Some of the main comments are as follows:

The primary key relates to management commitment. There is the need of a
good role model from management.

We rely on our human resources understanding of QMS that are finite,
especially for local construction workers.

It is not easy to introduce the system to all employees, due to the amount of
documentation preparation, good and proper filing.

Due to the limted number of ISO 9001 certified contractors in local areas, it
is only these companies that are successful in getting contracts for local
government projects. As a result, ISO 9001 is only a formal label, as the
companies are assured to get projects without any propert review and
evaluation by relevant government agencies.

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At the national level, local companies do receive competition from national
contractors or othe large regional companies. Therefore, the smaller local
companies generally do not want to compete at levels higher than they are
confortable with at the local or regional level. This is regarded as a big
problem if it is desired that local contractors be able to penetrate bigger
markets. The vision is for them to be able to do so in the future, supported by
their effective quality system implementation.

The ISO 9001 certification facilitates trading. However, this is not a main
problem. The main problem relates to how the Government can evaluate the
quality of products of contractors, and how to determine if a company has a
good corporate culture and QMS.

It is important and there is an urgent need for, the improvement of local
labour and site employees competencies, including those of experts.

Remarks of panellists relating to the barriers to the implementation of Quality Audit
element, included the following:

The aim of an internal audit is to find mistakes instead it being a solution-
based auditing system.

It is very difficult to audit top management, because they normally do not like
to be audited by their employees, or even external auditors, as they feel they
are the boss. But if top management is really committed to implementing a
robust, effective and efficient quality management system, they usually will not
mind being auditedand you can find that their whole company has customer-
focussed and quality culture.

Major remarks related to the barriers to the implementation of Training and
Development element:

Training program is seen as an added cost, instead of an investment for the
company. In other words, training is regarded as a burden.
The lack of technical competence results in the need for a training agency
that can provide programs for construction workers to improve their technical
skills.

Major remarks related to barriers to implementing Quality Management and Quality
System element:

ISO 9001 is perceived as a tool required by project owners or as company
labels, only to meet tender requirements.

Question come from employees: what are the benefits of this system? The
documentation procedures are perceived as being too burdensome.
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Major remark related to barriers to implementing Process Approach element:

A lack of understanding of what is the process approach results in meeting
the required time guidelines but is not reflected in quality.


Component 2: Culture Drivers for Effective Implementation of QMS Improvement
Elements

Like the QMS barriers, the organisational culture issue was also a dominant element
brought up across all sectors during the group discussion. More often than not, the
organisational culture element evolved around the quality management system issue.
In reference to the culture driven elements aimed as supporting the effective
implementation of the nine QMS improvement elements, the construction panellists
emphasized the implementation of these elements throughout all organisational
levels, from the top management to regular employees. Some of the major remarks
relating to discussion of this topic are as follows:

From the hierarchical aspect of the framework, we (the contractors) agree
that these three culture drivers must be considered before the QMS elements,
because we perceive these cultural values must first be in place within our
companies so that they can support the quality strategies, such as the
implementation of the ISO 9001 standard.

Of course we see that the success in spreading of companys culture depends
on strategic action by key personnel, such as the policy makers and other
management staff, to spread the cultural values throughout all levels of the
organisation.We believe that if the cultural values successfully shared at all
levels of the company, all handicaps relating to QMS implementation will be
broken down.

Our company has developed an organisational culture and we have
experienced the benefits of this in our company, and have based our best
practices on our culture this needs to be understood at all levels of the
company.

Management commitment is a must, for without it a quality process cannot be
implemented.


Construction panellists opined that to be appropriate culture drivers, the three
cultural values must be reflected in a way that the staff can apply the quality plan and
procedures without any doubts. They also commented that, although the culture
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values must be forced in the first instance, these values must then be willingly
adopted and implemented by staff, or must be self-driven by employees, with
eventually these culture values being naturally forwarded from one staff or group to
another. Some of the major remarks of panellists relating to this topic are as follows:

It is about applying the cultural values without doubt. We would like to see
our project workers implementing the project plan and working effectively. In
the case an employee cannot do the work, other staff can replace that
employee without difficulty.

A companys culture must be self-driven by employees, otherwise they the
apply the culture with complaining and not with sincerity. If they see their
fellow workers do their work appropriately and efficiently, they will also be
keen to work in the same way, here we can see the importance of the
organisational culture.

Company cultures should also address issues related to meeting customer
satisfaction.

In particular, the cultural driver of human resource management roles was
discussed in detail and with enthusiasm. Construction and policy maker sectors
recognised the importance of having capable human resources and their role in
enhancing organisational effectiveness and producing quality project outputs. Most
of the construction panellists equated the human resources management roles with
staff competences. The right man on the right place is basic to effective systems.
While there were also some pessimistic comments relating to Indonesian
construction human resources, all panellists appeared to be optimistic when
considering the Governments policy aimed at improving Indonesian construction
workers competencies and professionalism when undertaking construction work.
Responses from the panellists included:

It depends on the companys strategies to empower their human resources,
because the companys business relies on having capable and qualified human
resources.

Human resources role and involvement are very important culture driver
elements. The human resources is the compnys asset that must be well-
managed and well-empowered. If we mistreat them, how can the culture values
be successfully adopted.

Our workers must be competent. Human resource management involves
putting the right person in the right place or job. We think, training
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programmes are very important for increasing staff competency. Staff without
regular training is like a plant which is not regularly watered and fertilized.

The capability of our construction workers is only average, and some are
even below standard. In the context of the ASEAN construction market, every
country must have its own construction workers standards in order to be
recognised and accepted by the market. It is up to our Government to ensure
that our construction workers are well-qualified and well-recognised within
the ASEAN market.


Component 3: Recommendations for Effective Implementation of QMS
Improvement Elements

For all sectors of panellists, how to effectivelly implement QMS-ISO 9001 was
singled out as the primary concern in pursuing successful QMS implementation and
gaining the potential related benefits. The listing of recommended actions for
implementing QMS improvement elements is not something new for them. They
reasoned that some of the recommendations have already been stated in quality
documentation procedures and also some had been discussed with their QMS
consultants during training programmes. However, according to the construction
panellists, the ISO 9001 standard which was outlined in the company ISO 9001
documentation, was regarded as being difficult to understand by management and
staff. On the other hand, the construction panellists perceived that the
recommendations would be easy to implement if the company bears in mind that it is
not seen as only a matter of fulfilling ISO 9001 requirements; rather it should be
perceived in the context of the company strategy to survive in a competitive industry,
and to gain the stated results and benefits. In addition, the panellists eventually
recognised that to effectively impelement the ISO 9001 requirements and/or the
recommendations part of QMS improvement elements, this must be done with a full
awareness of the QMS barriers and understanding the culture drivers. Some of the
main remarks of panellists are provided below:

The system must be understandable and clear to everyone. It does not take
into account educational level, and if some people do not understand the
system, it will not be able to be operated successfully.



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We need regular program for understanding the system at project level. For
example, the task force/team is appointed to discuss the QMS before the
project starts, including evaluation and quality-cost-time control planning.

This framework should be seen as the companys strategy to achieve
companys profit and quality performance.

These recommendations are not an independent part. It should be overlooked
over the problems and the understanding of the culture to support QMS. This
should make the implementation of this framework easier.


Main remarks related to recommended actions for effective Quality Audit element:

A minimum of two or three internal audits each year, and the audit results
should state the facts relating to which process is successful, and which one is
not. An external audit at least once a year. The aim of the audit should be to
straighten out matters relating to effectiveness.

Internal audit must be counducted by certified internal auditors.

Main remarks related to recommended actions for effective Training and
Development element:

Construction workers always change, therefore, their competence must be
always evaluated, and training must be provided if they do not meet the
standard of competency required.

The training program must be based on an evaluation of staff competency or
training need assessment of the company. Staff who will be promoted to higher
levels must be provided with relevant training on staff management and job
competency.

Main remark related to recommended actions for effective Verification of Product
Realization element:

Verification starts from the selection of vendor. The vendor must be
evaluated before being selected. Supplier recognition must be made before a
contract is signed.



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Main remark related to recommended actions for effective Quality Management and
Quality System element:

Every unit must have quality control with a PIC, quality supervisor or
quality officer. He must be independent and report directly to the head of
department.

Local contractors have doubts relating to the continual improvement of their QMS.
However, they realise this must be done through having an appropriate framework
relating to how they can continue to improve their QMS. Main remarks related to
recommendations for effective Continual Improvement element:

In a management review agenda, quality purposes, customer complaints, and
quality innovation, must all be discussed.

Regularly conduct quality induction to continue to remind staff and
management about QMS in every meeting, from the level of management
reviews to project team meetings. It shows the results of quality achievement
through changing from an attitude of quick settlement of quality issues to
sustainably improvement of the goal of quality.

There is a need of reward for successful achievement and punishment for
failure.

Main remark related to recommendations for effective Factual Approach to Decision
Making element:

Evaluation must be more based on data analysis, with a commitment of
management to give more concern to project quality, quality time and customer
complaints.


Component 4: Results and Benefits

Construction panellists emphasized the importance of including a section on results
and benefits within the nine QMS improvement elements frameworks. The inclusion
of this section is anticipated to help management in introducing the frameworks,
especially when staff ask about the benefits from implementing the framewoks.
The listing of results and benefits were seen by the panellists as helping the need for
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company performance improvement and organisational effectiveness, as a result of
implementing QMS, staff competence development and satisfaction, and also
customer satisfaction and external stakeholder purpose. Some of the major remarks
related to the discussion of this topic included the following:

Among private construction companies a question that always arises is -
what are the benefits of the system?

It is hoped that the real outcome of the system is improved profitability in
addition to meeting the project time requirement as stated in the contract
document. In future, because of the quality of our product, the output we want
is to gain market share.

Main remark related to results and benefits of Control of Quality Record element:

Documents are properly filed, easy to control and find. Every staff can have
access to documents relating to his or her job.


The construction panellists acknowledged that, though they have not yet got
maximum potential benefits from the system, there have been many measureable
improvements. The implementation of the quality documentation procedures and
work instructions, have also been reflected in more positive employee behaviour
when undertaking their work responsibilities. Major remarks relating to the results
and benefits of the Quality Management and Quality System element included the
following:

It is an outcome to be effective in all lines, including the terms of project cost,
time and accuracy of project completion.

Our best practice from the success of the ISO 9001 implementation has been
not to have to rely on a particular person; instead, any person can understand
the system and follow the existing patern, so that the results are the same.

We (local contractors) expect and want our QMS to run smoothly; i.e.
whenever and wherever we develop our quality system at project level, it will
operate successfully. The project staff will be able to implement it without any
doubts and fully understand the system.

The companies will have sustainable customer.



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Applicability of the Framework

In order for the framework to be successfully applied, according to the panellists, it
depends on the willingness of the company to look forward to establishing a high
quality business. In addition, if companies rely on focusing on customer satisfaction,
the implementation of the framework should not be difficult. Another consideration
regarding the usefulness of the framework, the local contractors panellists reminded
each other, is that their companies need to gain credibility, not only for government
projects, but also private projects. In saying so, they acknowledged the framework as
a guidance to assist them in properly implementing QMS in order to improve the
quality of their project works and to gain trust from customers. The construction
panellists expect support from the Government to guide the dissemination of quality-
mindfulness and QMS implementation within all Indonesian construction categories,
but particularly in the middle and large-scale categories. Responses from the
panellists included:

How can these frameworks be successfully implemented? There will be still
some challenges, especially relating to issues outside the direct responsibility
of companies, which may not be easy to deal with. The answer is in the
companys hand, if they are looking forward to more competitive advantage
and quality reputable construction products.

If the aim is to satisfying construction project customers by providing
qualified construction project services. And, the results and benefits from the
successful implementation of the frameworks should be the aim of all
Indonesian construction companies.

We (local contractors) should be aware of our good reputation for gaining
more kinds of customers trust. We hope we can use these frameworks as our
guidelines together with our existing quality documentation.

The Government must pay full attention of the quality of Indonesian
construction companies, as well as their QMS operations. Regulations and
polices must be established by the Government to support this quality program,
including the applicability of these farmeworks.








184

Other Focus Group Comments

Both the construction practitioner and policy maker groups provided additional
comments to their overall responses. Some of these are included in this section. For
anonymity and privacy reasons, the identities of the speakers cannot be provided.

Construction Company:
If indeed the QMS is a standard required by the Government and private
customers, then for its effectiveness, these frameworks must be adopted by all
construction companies. The Government should take an active role in order to
convey the quality system to become successful and sustainable improvements
achieved.

Policy Maker:
So that the quality standards are the same in the 33 provinces,these
initiatives should not just be centrally focused. We know that the level of
competitiveness in Jakarta is already strong, and these service providers
already have their own formulas to survive. We hope that local contractors are
aware of this issue,for those who are not aware of the concern for quality work
outputs, will in future, be cast aside automatically.

Construction Company:
It is sometimes ironic for us in the local construction market, even though we
already produce quality works, on time, to satisfied customers, to not
guarantee to the QMS in order to still be able to have other new projects in
the next year. This is unique in our construction services.

Policy Maker:
In conclusion, our concern is how these frameworks could be implemented
successfully by the construction companies. It is also important for the
Government to provide rewards to contractors that are fully committed to high
quality construction works.

Policy Maker:
The Government has been trying to regulate QMS implementation at project
level, but most of the contractors perceive quality as an odd goal.This
discussion has involved the large scale contractors, but we have concerns that
small and medium scales contractors do not realise how important quality
work is.They complete project work of poor quality because they have won
the contract - this is our homework.


185

5.4 Discussion of Results

The discussion of Focus Group Discussion analysis and results consists of an
evaluation on the three parts related to the Culture-based QMS Improvement
Implementation Framework, regarding the usefulness, applicability and validity of
the framework. These parts are: (1) Generic Integrated Framework for Culture-based
Quality Management System Improvement Implementation; (2) Culture Change
Framework; and (3) Quality Management System Improvement Elements
Frameworks. These reflect the essential parts of the framework. While the Generic
Integrated Framework for Culture-based Quality Management System Improvement
Implementation is an overall presentation of key elements of the framework, the
Culture Change Framework and Quality Management System Improvement
Elements Frameworks, comprise more specific parts presentations.

1. Generic Integrated Framework for Culture-based Quality Management System
Improvement Implementation

Organisational culture issues and construction quality awareness are generally at a
high level among all panelists. Given the hierarchical structures and its elements
under each structure or level, there is a clear linkage between level one and level two,
and between level two and level three, among all sectors of panellists. The overall
presentation of the generic integrated framework attracted the attention from all
panelists to come up with their understanding and conclusion that, culture drivers
(level one) are the determinants of successful QMS practices (level two), and, the
successful practice of QMS improvement elements contributes to organisational
performance improvement outcomes (level three) while also strengthening the
culture drivers. With an understanding of the overall presentation of the generic
integrated framework, right from its inception, in practical terms it is easy for
Indonesian G-7 construction companies to start applying this framework and move
forward to other frameworks.

There is a consensus that it is important to integrate a companys vision and mission
within level one, indicating that the companys future direction synergizes with the
companys organisational culture. The usefulness of the Competing Values
186

Framework model is to help organisations to set up their declarations of future
directions, based on the four characteristic culture types within the CVF (Cameron
and Quinn 2006; Cameron and Quinn 2011). As the culture-based driver of practices
in the QMS improvement elements in this study is the Hierarchy-Market type, the
vision and mission of a company should essentially emphasize values that are best
categorised by the mixed culture type.

The views of panellists from the construction sector on the significance of
implementing the QMS-ISO 9001 improvement elements, as well as the struggle in
implementing them, are generally quite similar. Even the national contractors, who
have been implementing the quality system for much longer, found that their
practices on the nine ISO 9001 improvement elements are still without many
beneficial outputs. Concerns raised in relation to these elements have been
emphasized during their current QMS implementation have included considering the
nine culture-based QMS improvement implementation frameworks as an additional
QMS strategy for companys QMS implementation.

To optimistic national construction panellists, the elements of organisational
performance improvement outcomes are described as their watchwords, with
quality improvement as a compliment. It is recognised by the panellists that
enhanced business performance (profitability, market share and shares growth), is
still most desirable aims for measuring their construction companies performance. It
is acknowledged that ISO 9001 certified companies, in addition to improving their
operational efficiency, also have improvements in business performance (Cow-Chua,
Goh and Tan 2003; Sharma 2005; Marn and Ruiz-Olalla 2011). However, for local
construction panellists, there remain uncertainties with local contractors not being
sure of consistent (or even improved) business performance after implementing
QMSs; they therefore remain pessimistic about their achievability if they are not
successful in gaining local government projects. These two contradictory states
between national and local contractors form a basis for gradually, yet forcefully,
encouraging local contractors to take greater consideration in using the quality
approach in constructing projects, to enable them to expand their activities in
undertaking private projects.

187

2. Culture Change Framework

Given the extensive discussions in relation to developing an organisational culture in
construction companies, there is a rising consciousness of culture change. Culture
change is recognised as the starting point of organisational culture development
initiatives in construction organisations. For the usefulness and applicability of the
culture change framework, the recommendation for a culture change process is
considered as fundamental in approaches adopted.

The distinctive steps in undertaking the culture change process itself should be
acknowledged as being depended on the character of a company and what cultural
profile(s) should be emphasized in the company. As the emphasis on making culture
change in construction organisations should be due to pressure both from internal
and external factors, the degree and rapidly of change in the external environment,
such as a competitive business environment, is a pervasiveness of the need for
culture change (Cameron and Quinn 2011; Tijhuis and Fellows 2012).

Profitability continues to be the underlying company performance element during
the evaluation of this framework. However, while the culture change output (current
culture and internal involvement), is validated as an intangible output, the other
output, external opportunities, must be overlooked when addressing tangible
concerns, such as the profitability outcome, during the time of implementing the
culture change processes. This is critical, as the management aim to successfully
convince staff to apply culture change in their companies, is one of the first steps in
implementing effective QMSs.

3. Quality Management System Improvement Elements Frameworks

It was apparent in the Focus Group Discussion that barriers to implementing the
QMS improvement elements concerned all sector of panelist when ensuring
successful QMS-ISO 9001 implementation and the qualified delivery of construction
projects. Some of the conspicuous QMS barriers, such as management commitment,
human resources competence and staff involvement in the QMS programme, are
associated with aspects of cultural values. The presentation of the culture drivers
188

component in the culture-based QMS framework for QMS improvement elements,
provides key organisational areas where the culture profiles and values need to be
addressed, in order for the Indonesian construction companies to practice effective
QMSs.

In this respect, each element of the culture drivers for effective QMS improvement
elements need to be raised and agreed upon within the context of the three culture
drivers needed to support the effective ISO 9001 improvement elements
implementation. Organisational leadership becomes crucial and necessary, especially
for coordinating, controlling and leading a company to achieve its goals, as these
validate the profile of a Hierarchy-Market culture. However, management
commitment, which is strongly emphasized in a typical Clan organisation, is still also
a necessary culture driver value. Subsequently, for organisational effectiveness to be
a culture driver in the Hierarchy-Market orientation, established rules and procedures
with a clear structure for authority and decision making, are highlighted as the
espoused values within the organisation. It is perceived that, with a full involvement
and participation of all management and staff (Clan values for organisational
effectiveness), the application of the rules and procedures becomes smoother and
effective. Human resources management roles was also validated as the third culture
driver. Besides the Hierachy-Market values of expert and competent staff, Clan
human resources values of human resources development and satisfied staff are also
perceived as important culture drivers.

To advance the validity of the culture drivers part, it is important to address some
values of Clan culture in each element of the Hierachy-Market based culture drivers.
As identified in Section 4.4, the overall dominant organisational culture type within
Indonesian construction companies is characterized by a Clan type of culture. It is
noted that that the current culture type should not be abandoned or ignored, when
there is culture change towards another particular type of culture (Cameron and
Quinn 2006; Cameron and Quinn 2011).

The recommendations part has been singled out as one of the primary parts in
improving an effective implementation of QMS. The lists of recommendations for
each QMS improvement element cannot be seen as only pertaining to the ISO 9001
189

requirement, but more as a gateway to achieving tangible and intangible results and
benefits, as a result of implementing effective QMS. This understanding motivates
staff to take an active part in implementing the recommended actions. Rising
successfulness in the implementation of the recommendations part also requires an
awareness in preventing potential barriers to implementation, thorough an
understanding of the culture drivers by all internal stakeholder at both company and
project level. Premised on this part, the framework is then advanced into the next
part the results and benefits.

The group discussion on the list of primary results and benefits, reflect consensual
opinions of the group of highly experienced construction industry professionals,
academic experts and policy makers, on both intangible and tangible parameters,
relating to the effective implementation of the QMS improvement elements. Each
QMS improvement element is evaluated in terms of its results and benefits. This part
mainly covers the benefits to company effective performance, business excellence,
and satisfaction of management and staff, customer and other external stakeholders.
With regards to all these, this component (with most demanding profitability and
market share benefits) is an indispensable component of the strategy required by
management to successfully introduce a companys QMS.

Last but not least, external parties support and involvement is perceived as critical
for the usefulness and applicability of the culture-based QMS improvement
implementation framework. As the Government is perceived as the figure-head for
Indonesian construction industry development, it naturally has inherent authority in
moving the industry in the direction of quality demand and competitive advantage.
Given its influence on construction organisations and project development, the
Construction Service Development Board (CSDB) is also tasked with the
responsibility to turn the quality and competitiveness goals into reality.

Based on the findings from the analysis and results (Section 5.3.2) together with
conclusions of the above discussion, final versions of the Generic Integrated
Framework for Culture-based Quality Management System Improvement
Implementation (Figure 5.3), Culture Change Framework (Figure 5.4), and Culture-
based Quality Management System Framework for Improvement QMS-ISO 9001
190

Elements (Figure 5.5 5.13), were established. The framework serves as an
additional guideline for Indonesian construction companies in understanding and
implementing effective QMS-ISO 9001 standard, while in the same time developing
and strenghthening a Hierarchy-Market based culture within the companies.


5.5 The Framework

This section presents the Culture-based Quality Management System Improvement
Implementation Framework, which encapsulates the Generic Integrated Framework
for Culture-based Quality Management System Improvement Implementation, the
Culture Change Framework, and the nine frameworks of the culture-based quality
management system improvement elements. The overall frameworks are respectively
presented as follows:
Generic Integrated Framework for Culture-based Quality Management
System Improvement Implementation
Culture Change Framework in Construction Organisations
Culture-based QMS Framework for Quality Audits Improvement
Culture-based QMS Framework for Servicing Improvement
Culture-based QMS Framework for Control of Quality Records Improvement
Culture-based QMS Framework for Training and Development Improvement
Culture-based QMS Framework for Verification of Product Realization
Improvement
Culture-based QMS Framework for Quality Management and Quality System
Improvement
Culture-based QMS Framework for Process Approach Improvement
Culture-based QMS Framework for Improvement of Continual Improvement
Culture-based QMS Framework for Improvement of Factual Approach to
Decision Making
191





















Culture Drivers for Quality Management Systems Improvement
Organisational Performance Improvement Outcomes
Organisational
Leadership
Organisational
Effectiveness
Human
Resources
Management
Roles
Quality
Audits
Servicing
Control of
Quality
Records
Training and
Development
Verification
of Product
Realization
Quality
Management
& Quality
System
Process
Approach
Continual
Improvement
Factual
Approach to
Decision
Making
Sales Growth Profitability Market Share

Culture
Change
Figure 5.3 Generic Integrated Framework for Culture-based Quality Management System
Improvement Implementation
Quality Management System Improvement Elements
2 3 4 5 6 7 8 9 10
1
Company
Vision and
Mission
192

Culture Change Input




























Definition of Culture in Construction Organisations
Shared values and underlying assumptions within the construction organisation that drive its
personnel to feel, think and perform tasks as well as mutually support each other in a correct way,
which allow the organisation to operate its business processes effectively.
Current Culture

Results of measuring and
identifying type(s) of
current culture, and
whether it matches the
environment in which it
operates.
Recommendations for Culture Change Processes

1. Action research to be carried out by a set of the companys key personnel (e.g. culture
change task force team) to analyse results of culture change input (culture gap) and
develop a range of solutions and recommendations for the current culture and the desired
future culture, to top management.
2. Top management needs to convince other levels of management, as well as staff, of the
correct way of working and determining the changes to be made, while retaining
unaltered values.
3. A task force team prepares a scenario for every value changing action: how it merges into
a companys business operation and what effects changing the desired future culture will
have on the companys business operations. This process is communicated throughout all
levels the company to obtain evaluation and feedback for a sensible articulated vision of
the companys future.
4. Consensus will be moderated by a task force team who will then develop a rational
strategic implementation plan, a plan involving and supported by committed personnel
throughout the entire company.
5. The integration of the desired culture change into a companys business operation is
evaluated and monitored by top management and a task force team. This is as an
organisational learning process to ensure the companys personnel contribute to the new
culture and hence the company is better able to respond to a changing business
environment.
Internal Forces

Results of identifying and
recognizing the need for
organisation personnel.
External Forces

Results of examining
local demands and global
tendencies for trends and
sustainability in
construction
development.
193

Culture Change Output










Figure 5.4 Framework 1: Culture Change in Construction Organisation

















Current Culture

A strong organisational
culture profile drives the
central principle of
Quality Management
System and continuous
process improvement.
Internal Involvement

Any value changes
within the company are
accepted as shared
values and underlying
assumptions, and
become the norm.
External
Opportunities

Any changing market is
seen as an opportunity to
practice culture change
since a sustainable
organisational culture is
adaptable to the most
recent business
environment.
194

Culture Drivers for Effective Quality Audits



























Identified Barriers to Implementing Effective Quality Audits
Activity reports are completed at the last minute prior to the implementation of an internal
and/or external audit.
The Quality Management System is perceived as just being needed to fulfill the internal and/or
external audits requirements.
There is a lack of understanding of the requirement to conduct quality audits throughout all
levels in the company.
There is a lack of staff involvement and participation in internal and/or external quality audits
due to: (a) ineffective internal communication processes between management and staff and
amongst staff; and (b) low levels of satisfaction.
Organisational
Leadership

All levels of management
coordinate quality
initiatives from the
planning to the conduct of
quality audits, and monitor
and organize the quality
audits in their units.
Organisational
Effectiveness

Comprehensive quality
auditing procedures
including the structure
for authority to control
follow-up action of audit
results, is seen as part of
the companys culture.

Involvement and
participation of
management and staff in
quality audit programmes
is seen as part of the
companys culture.
Human Resources
Management Roles

Capable internal auditors
are needed to fulfill ISO
9001 requirements, as
well as being responsible
persons.
Recommendations for Effective Quality Audits
Companies must regularly conduct formal internal audits (e.g., once every 6 months) to examine
all activities affecting quality, and evaluate their compliance against each companys
documented procedures (e.g., work instructions, quality plans) and ISO 9001 requirements.
Quality audits should be set up to assess the effectiveness of the quality management system.
Planned arrangements of internal audits should be on the basis of status and importance of the
activities being audited, and as a result of previous audits, based on specific criteria, scope,
frequency and method of the audit.
Top and middle management should review results of internal audits and proceed with prompt
corrective and preventitive actions on internal audits with critical results. The critical issues
arising from internal audit results should be further taken into account as priority subjects that
need to be corrected prior to subsequent external audits.
195









Figure 5.5 Framework 2: Quality Audits Improvement



















Results and Benefits
Top management will obtain regular visible results of the implementation of the companys
quality management system at determined periods, which could lead to the maintenance of
compliant status and improvement of important processes and areas in the quality management
system, as well as attending to the results of previous audits.
Improved effective responsiveness due to management coordinating and monitoring the review
of audit results, which will lead to the improvements in the companys quality management
and quality system.
Effective corrective and preventive actions, once implemented, can satisfy management and
enable staff to be more consistent with work instructions, procedures, and productive, and
therefore, the company can achieve higher level of effectiveness.
196

Culture Drivers for Effective Servicing



























Identified Barriers to Implementing Effective Servicing
There is a lack of company commitment to consistently control all services provided to
customers.
Internal communication processes between management and staff and amongst staff lack
effectiveness.
There is a lack of well-trained and qualified personnel engaged in undertaking construction work
and providing any related services.
Staff productivity does not operate at a high level due to low levels of motivation and
satisfaction.
Organisational
Leadership

Top management
commitment, consistency
and uniformity in goal
achievement, needs to be
exercised to ensure that
quality servicing is
provided for work
processes.

Management is required to act
in the roles of coordinator,
controller and organizer to
create effective internal
communication between
management and staff.
Organisational
Effectiveness

High levels of staff
efficiency and outpacing
competition support in
construction servicing.

Control and competition
orientation is realised for
effective servicing.

Committed and satisfied
staff and effective
teamwork is realised for
effective servicing.
Human Resources
Management Roles

Well-trained and
qualified staff are better
able to carry out
construction servicing
and customer relations.

Strategic business
specialist to specifically
align staff with business
strategy, and facilitate
bottom-line impact of all
staff activities.


Recommendations for Effective Servicing
Company must define and determine its principle objectives of customer needs and satisfaction,
and ensure these are communicated throughout all levels in the company.
Servicing provided by companies must be consistently controlled and evaluated, including
design, the use of equipment and tools, the use of trained and qualified personnel, and the end-
constructed product prior to delivery.
Companies must document all services procedures and methods undertaken in construction
work and processes.
Companies must regularly review service procedures and methods undertaken in construction
work and processes, to adapt to customers changing requirements and to development and
innovate in the construction industry.
Companies should ensure effective external communication with their sub-contractors and/or
suppliers, as well as customers.

197







Figure 5.6 Framework 3: Servicing Improvement














Results and Benefits
Customers better satisfied with the quality servicing because their expectations are understood,
determined, defined, reviewed, and monitored by the company. Customer satisfaction leads to
the companys recognition and high reputation.
Recognition and high reputation will secure market and customer bases, and improve the
companys business and performance.
198

Culture Drivers for Effective Control of Quality Records

























Figure 5.7 Framework 4: Control of Quality Records Improvement


Organisational
Leadership

All levels of management
need to coordinate and
control staff in relation to
the correct procedures for
control of quality records.

Organisational
Effectiveness

There needs to be greater
involvement and
accomplishments of
management and staff in
complying with the
procedures for the
control of quality
records.

Human Resources
Management Roles

Competent
administrative staff are
better able to maintain
records of service and
work prossesses,
including process
improvements.
Recommendations for Effective Control of Quality Records
Companies must determine the suite of quality records needed to contain obvious and
understandable procedures, to ensure effective planning, operations, and control of processes.
Companies need to ensure the availability of quality records that demonstrate compliance of
quality procedures, and these must be identified, legible, accurate, filed and indexed properly,
easily retrievable, and retained for a specified period of time.
Companies can design quality records that are less prescriptive and have a more flexible lay-out.

Results and Benefits
Reduction in non-conformance in audit findings related to the control of quality records.
The use of the system is properly recorded for better traceability if required.
Identified Barriers to Implementing Effective Control of Quality Records
There is a lack of obvious and understandable procedures for the control of quality records.
Completing and updating of quality records occurs only at the last minute prior to the conduct
of an internal and/or external audit.
The internal communication processes between management and staff, and amongst staff,
regarding handling of record keeping and maintenance, are ineffective.
A perception exists that quality documentation is solely restricted to the quality manual and the
six major procedures, and there is therefore not sufficient consideration to keeping quality
records.

199

Culture Drivers for Effective Training and Development



























Identified Barriers to Implementing Effective Training and Development
There is no effective management response for settlement of staff grievances and needs.
No well-designed reward system is in place to motivate employees to espouse the QMS values,
such as staff training and capability development.
No strategic planning exists for staff training and development programmes to be roled out
within a prescribed time schedule.
Organisational
Leadership

Management needs to
understand and recognise
that human resources
development will
produce more effective
services and work
output.

Management is required
to communicate the
importance of
developing quality staff
to carry out work that
contributes to quality
objectives.
Organisational
Effectiveness

Human resources
development is
critically required for
organisational
effectiveness.
Staff in training and
capability development
programmes will foster
productivity and
confidence for
competition.

Human Resources
Management Roles

Well-trained and
qualified staff should be
tasked to take on specific
organisational roles and
responsibilities, such as,
in undertaking
measurement-analysis-
improvement of the
quality systems,
measuring customer
preferences, undertaking
strategic analysis and
strategic leadership.


Recommendations for Effective Training and Development
Companies must conduct strategic identification of job competency gaps that will address
skills and training needs if actioned.
Companies need to ensure they provide appropriate training for staff to be prepared and
promoted based on their particular skills, through a structured training and development
programme.
Companies should regularly evaluate the effectiveness of staff training and development by
ensuring that programmes produce more skilled and qualified staff to accomplish tasks and
work towards achieving a companys quality objectives.
Companies are required to ensure that, for every staff training and development programme or
action undertaken, adequate record keeping is provided and maintained for future staff
performance evaluation, and to place staff in correct roles with suitable responsibilities.

200









Figure 5.8 Framework 5: Training and Development Improvement








Results and Benefits
Only competent and qualified staff should perform tasks and undertake work affecting quality
processes and results.
All staff will be able to learn from competent and qualified staff; this will lead to a better and
more professional working environment.
Effective and efficient team building and team-work, if developed, should lead to less conflict.
Competent and qualified staff enhance process improvement, customer relations, and general
business skills
Productive staff should be impelled to create competition.
201

Culture Drivers for Effective Verification of Product Realization



























Figure 5.9 Framework 6: Verification of Product Realization Improvement
Organisational
Leadership

All levels of management
need to become producers
who coordinate and control
staff in procedures of
verification of product
realization.
Organisational
Effectiveness

There needs to be greater
involvement and
accomplishment by
management and staff in
complying with the
procedures of
verification of product
realization.
Human Resources
Management Roles

Competent staff are
better able to control and
manage all processes,
from start to finish, as
well as to ensure devices
are measured.

Recommendations for Effective Verification of Product Realization
Companies must develop standard operating procedures for verification to take place at all
critical stages of processes related to selecting vendors, receiving of raw materials, work in
process, and final inspection.
Inspection and testing activities (including any inspection and test plans) should demonstrate
how the subcontractors product shall be verified; the location of inspection and test points;
acceptance criteria; witness verification points (customer as well as regulatory).
Companies need to ensure inspection and testing of activities, indicating where, when and how
the customer requires third parties to perform: type of tests; witnessing of testing;
service/product verification; and material, service/product, process or personnel certification.
Records of either conformity or non-conformity must be kept.
Results and Benefits
Effectively implementing verification of product realization procedures will enhance and
support the value of product and service delivery system.
Effectively implementing verification of product realization procedures will eventually facilitate
a smooth transition from product design activities to product realization activities.

Identified Barriers to Implementing Effective Verification of Product
Realization
The verification of product realization lacks obvious and understandable procedures such as not
including important set-up information or useful hints for performing a particular task, and/or
written procedures containing classic quality systems controls.
There is a lack of understanding of ISO 9001 QMS based terminology which is not fully
integrated into companies operating procedures for verification of product realization (clause 7).
202

Culture Drivers for Effective Quality Management and Quality System





























Organisational
Leadership

All levels of management
are driven with the value of
commitment to
communication
development to become
producers, coordinators,
and controllers to operate
and maintain the
companys quality
management system.
Organisational
Effectiveness

A well-defined structure
for authority and
decision making will
produce effective
implementation of the
companys quality
management system.

Committed and satisfied
staff will produce
effective QMS practices.
Human Resources
Management Roles

Competent Quality
Manager with authority
and competence and a
well-trained Quality
Assurance Team to
ensure the companys
quality management
system is effectively
impelemented,
maintained and
improved.
Recommendations for Effective Quality Management and Quality System
Although top management might not need to oversee the daily operations of the quality
management system, they are required to establish the quality policy and the quality objectives,
conduct management reviews, ensure availability of resources, and communicate the
importance of meeting customer requirements and any applicable regulatory mandates.
Top management must be involved during the development, as well as the implementation,
review and analysis, of the quality management system for maintenance and continuous
improvement.
All levels of management should ensure that all services provided and related activities are
planned, implemented, controlled and monitored.
All levels of management must be responsible for identifying and facilitating the
communication of problems and take action to resolve them.
Companies must clearly define every role of management and staff for effective internal
communications, controlling both each other and the work to be carried out.

Identified Barriers to Implementing Effective Quality Management and
Quality System
Corporate commitment is lacking and there is inconsistency of management action and
decision-making.
Strong motivation is lacking in all levels of management and there is no effective management
response to settle staff grievances and needs.
Internal communication processes between management and staff, and amongst staff, are not
always well defined and lead to misunderstandings.
The purpose of obtaining the ISO 9001 certification from the perspective of management is
solely seen as a marketing initiative or as being due to customer pressure.
There is a difficulty in understanding ISO 9001 terminology in order to integrate it fully into a
companys operating procedures.
203










Figure 5.10 Framework 7: Quality Management and Quality System
Improvement

















Results and Benefits
Confident and cooperative staff perform work better, because responsibilities and authority
are defined, communicated, and understood. This leads both to better work and less conflict.
Personnel in the company will benefit from better working conditions, increased job
satisfaction, improved health and safety, improved incentives for achievement, and improved
stability of employment.
Customers will receive products and services that conform to requirements. This leads to
improving company market share and shows a highly recognizable business performance.
There needs to be top management idealism in implementing the quality management system
to effectively and efficiently control project activities, and for the betterment of the
companys overall management system, which will then be reflected in similar positive
attitudes of company staff.

204

Culture Drivers for Effective Process Approach




























Organisational
Leadership

Efficiency, consistency,
goal achievement, and
customer focus, are the
management factors that
drive an effective process
approach.
Organisational
Effectiveness

Control fosters efficieny,
and competition creates
an impetus for higher
levels of productivity;
therefore higher levels of
effectiveness.
Human Resources
Management Roles

Capable staff who focus
and prioritize
opportunities for
improvement, and
effectively use
companys resources.
Recommendations for Effective Process Approach
Understanding, meeting and adding value to customer requirements should become the main aim
of the managing the construction process.
All activities and related resources needed, are to be managed as a process that affects the quality
of services and product.
A process owner should master, with full responsibility and authority, the input-output-control
processes, as well as obviating non-conformance.
Effective and continual improvement objectives need to be established for every process plan,
implementation, evaluation and measurement.

Identified Barriers to Implementing Effective Process Approach
The nature of diverse services and activities found in the construction sector means that it is a
challenge for construction companies to place every activity within the concept of process
approach.
The lack of understanding of the essence of the process approach of ISO 9001 QMS is evident
throughout all levels in many companies.
There is a lack of integration of the fundamental elements of a process approach of ISO 9001
QMS into many companys operating procedures.
The shortage of effective internal communication processes between management and staff, and
amongst staff, is evident in companies.
A shortage of effective communication processes between the company and its external
stakeholders, particularly in the project execution stage, exists.

205











Figure 5.11 Framework 8: Process Approach Improvement

















Results and Benefits
More efficient use of cost resources, with results from costs being controlled and operations
having a shorter process cycle times.
Reworking, defects, delays and waste, can be reduced because all project stakeholders
understand and recognise their role in meeting company needs and customer requirements.
An effective process approach allows a process, service and product to be appropriately
controlled and measured for the assurance of the quality of work.
An effective process approach leads to ongoing improvements in the all processes within a
company.
Undertaking an effective process approach leads to an opportunity for improvement of the
companys quality management system.
Undertaking an effective process approach leads to fast market penetration and increased
profitability.

206

Culture Drivers for Effective Continual Improvement




























Organisational
Leadership

Management commitment,
consistency and rewards to
staff, drives continual
improvement of the quality
management system.
Organisational
Effectiveness

There needs to be greater
involvement and
accomplishments of
management and staff in
complying with the
standard operating
procedures and work
instructions.

Human Resources
Management Roles

Capable staff are better
able to coordinate
improved activities, and
to be flexible in reacting
to opportunities quickly.

Recommendation for Effective Continual Improvement
Companies should set up quality policies that clearly show a commitment to continuous
improvement.
Companies need to set up quality objectives that can be measured, with the results being
monitored and communicated.
Companies should understand information about, and regularly analyse, customer satisfaction,
product conformance, product and process characteristics and trends, and supplier
performance.
Companies should take action to improve the quality management system in the following
areas: clauses 4.2, 4.2.1, 4.2.3, 4.3.4, 5.5, 6.2, 6.3, 7.2, 7.3, 7.4, 7.5.
Management reviews should identify continuous quality and quality system improvement.
Corrective and preventive actions will eliminate the causes of potential and/or actual non-
conformities.
Continuous quality awareness programme should be set up in all levels of company.
Companies need to set up a well-designed reward system to increase staff motivation and
satisfaction.
Identified Barriers to Implementing Effective Continual Improvement
Top management only considers compliance to ISO 9001 as a documentation task rather than
the opportunity to change to an improved and systematic management style.
The lack of understanding of ISO 9001 QMS based terminology needs to be fully integrated into
a companys operating procedures.
There appears to be a distinct shortage of strong motivation in all levels of management.
There is a shortage of an effective management response to settle staffgrievances and needs.
No well-designed reward system, such as training, development and promotion, and/or a
financial bonus, exists to motivate employees to espouse QMS values.
Internal communication processes between management and staff, and amongst staff, are not
always well defined and lead to misunderstandings.
207









Figure 5.12 Framework 9: Improvement of Continual Improvement



















Results and Benefits
Improved company organisational capability, coordination and flexibility in reacting to
opportunities more quickly.
Effective continual improvement of the quality management system will positively affect the
companys business operations, making them more effective.
Improved working environment and effectiveness, as well as increased worker satisfaction and
retention.
Increased customer satisfaction that might lead to increased market share, sales growth and
profitability.

208

Culture Drivers for Effective Factual Approach to Decision Making



























Figure 5.13 Framework 10: Improvement of Factual Approach to Decision
Making
Organisational
Leadership

Management commitment,
consistency and goal
achievement drive
effective decision-making
based on sound analysis of
data and information.
Organisational
Effectiveness

Staff are more efficient
and productive as a
result of management
decisions that are based
on a factual approach.
Human Resources
Management Roles

Capable staff are better
able to operate statistical
analysis tools for
reviewing and analyzing
data and information.

Recommendations for Effective Factual Approach to Decision Making
Appropriate statistical methodologies should used to analyze data from, and obtain results of,
customer satisfaction, company conformance to customer requirements, characteristics and trends
of processes and products, and supplier performance.
The results of data analysis should be communicated and reviewed by management.
Companies should take action to resolve problems arising from analyses for the improvement of
the quality management system.
Results and Benefits
Improved ability to conduct reviews based on analysis using statistical methodologies.
Appropriate analysis of data can help determine the cause of problems.
Improved ability to face challenges and change opinions, based on sound decision-making.
Owners and investors can benefit from improved operational results, increased sales growth,
increased profits, and increased market share.
Identified Barriers to Implementing Effective Factual Approach to Decision
Making
Statistical analysis is not generally used to analyze data such customer satisfaction, conformance
to product requirements, and characteristics and trends (and opportunities) for preventive action.
Decision-making is not based on sound analysis of relevant data and information.
209

5.6 Summary

This chapter presents the basic types of organisational culture, and construction of
the framework components to be incorporated in the development of the culture-
based quality management system improvement implementation framework.
Following the development of the framework, is the evaluation and validation of the
framework through a Focus Group Discussion.

This chapter presents the findings of the data analysis from the focus group
discussion. Specifically, it presents the results of the evaluation of the generic
integrated framework for culture-based quality management system improvement
implementation, the culture change framework, and the nine frameworks of the
QMS-ISO 9001 improvement elements. Nine targeted construction practitioners,
from the largest-scale Indonesian construction companies, as well as ISO 9001
certificate holders, policy makers, and academic experts, were involved in the group
discussion. All have substantial experience in civil engineering projects, and
provided holistic accounts of current construction industry and policys opinions on
the usefulness, applicability and validity of the framework.

The findings of the Focus Group Discussion data analysis and related discussion
have been used for the development of the final version of the Culture-based Quality
Management System Improvement Implementation Framework, as the final output
of this research. The final section (Section 5.5) of this chapter presents the
framework in full.








210

CHAPTER 6
CONCLUSIONS


This chapter summarises the conclusions of the research study. First, it summarises
the significance of the major findings in relation to the research aim and objectives. It
then presents the contributions of the study in terms of theory, practice, and policy.
Finally, this chapter reviews the limitations of the study, and provides
recommendations for further research.


6.1 Conclusions

The aim of the study was to develop a comprehensive Culture-based Quality
Management System Improvement Implementation Framework for Indonesian
contractors and builders, suitable for integration into their own company and project
quality management practices, to help them achieve better project quality delivery.
This aim was achieved through the collection and analysis of data, combined with
the incorporation of extant literature to address issues relating to the effectiveness
and continual improvement of the implementation of quality management systems,
with the support of a strong organisational culture, within the context of the
Indonesian construction organisations. The study fills the gaps between the espoused
values of ISO 9001 in ensuring the ultimate delivery of a well-operated QMS being
capable of giving customer satisfaction, and presence practical evidence of the QMS
within the Indonesian construction industrial context. It also identifies the lack of
research intention in the organisational culture profiles of Indonesian construction
organisation, to probe the issue of the importance of the role of organisational culture
in driving successful QMS-ISO 9001 implementation. The following conclusions are
made from the study:

This study provides empirical evidence in support of the notion that
problematic issues associated with the implementation of QMS-ISO 9001 can
211

have an impact on the effective implementation of the QMS, and contribute
to the lower level of business performance of the ISO 9001 certified
construction companies. The typical QMS barriers contained in the Culture-
based Quality Management System Improvement Implementation
Framework are meant to raise the interest of constructions companies to
these barriers, which are the chief inhibitors to successful QMS-ISO 9001
implementation, as well as being barriers to companies wanting to achieve
higher levels of business performance. The three main elements of culture
drivers contained in the framework (organisational leadership, organisational
effectiveness, and human resources management roles) are suggested as
potential measures to mitigate and prevent the existence of the QMS barriers.

Within Indonesian context, the study provides empirical evidence to conclude
that the status of having high business performance of the ISO 9001 certified
construction companies cannot be directly attributed to the possession of ISO
9001 certification. In practice, obtaining ISO 9001 certification is regarded as
a matter to fulfilling tender administration requirements for domestic
infrastructure projects, results in Indonesian contractors being confined to
their safe zone, and they do not see any real value-adding from the
possession of the certification. However, this status will not longer exist for
much longer into the future, with Indonesian contractors facing reforms in the
national construction industry and global competitiveness challenges. If the
Culture-based Quality Management System Improvement Implementation
Framework can be made to work, it suggests that the frameworks can help the
ISO 9001 certified contractors in utilising the adoption of QMS-ISO 9001 in
assisting them with better project quality delivery, while also making them
become more competitive.

The identified organisational culture profiles most emphasized within
Indonesian construction companies contributes to the recognition of the
current contractors cultural pattern, and this can be a basis for a company to
consider further measures for matching the current culture profiles with the
future demands of its environment, including future challenges and
212

opportunities to be faced by the company. This will then advantage the
company in setting up appropriate culture changes and/or strengthening its
current culture profile in order to possess the most adaptable organisational
culture; that culture will, in turn, help the company to successfully deal with
the complexities of construction business entities.

One-Way Analysis of Variance (ANOVA) analysis in this study provided a
valuable understanding of the influence of different profiles of organisational
culture on QMS-ISO 9001 standard implementation by Indonesian
construction companies. Two different culture profiles, Hierarchy and Market
types, have a significant influence on the implementation of QMS-ISO 9001
standards, with the implementation of QMS-ISO 9001 being significantly
higher in the Hierarchy culture, while in the culture climate relating to the
management of employees, the implementation of QMS-ISO 9001 was
significantly higher in the Market culture type. This empirical evidence
supports the development of a Culture-based Quality Management System
Improvement Implementation Framework to provide guidance for Indonesian
construction companies to effectively and continuously implement their
QMS, and enable the companies to experience benefits from their QMS
implementation.

The focus group discussion with professional construction practitioners,
policy makers and academic experts, validated the framework for providing
guidance to Indonesian construction companies in effectively implementing
the QMS-ISO 9001 improvement elements. The discussion output also offers
a consensus on the usefulness and applicability of the framework in relation
to their suitability to be integrated into a companys QMS implementation
strategy and construction project practices, in order to help a construction
company achieve better project quality delivery.



213

6.2 Research Contributions

This research study has introduced the Framework of a Culture-based Quality
Management System Improvement Implementation for construction companies in
Indonesia, which have never been previously adopted by Indonesian construction
organisations. The research contributions can be viewed from three different
perspectives: (i) a contribution to the body of knowledge; (2) a contribution to the
construction industry; and (3) a contribution for policy.

Due to the lack of the research in this area, there is a scarcity of literature on the
Competing Values Framework and QMS-ISO 9001 implementation, in construction
organisations. For the body of knowledge, by empirically examining the theoretical
framework developed for this study, the results reported contribute to and enrich the
literature in this area. Specifically, past studies on organisational culture assessment
and QMS practices in construction organisations, coupled with the findings of this
research, have enhanced the body of literature and imparted new insights relating to
our knowledge of organisational culture and QMS implementation, in construction
organisations context. The past and current studies have also contributed to the
knowledge in the area of Indonesian constructions organisational culture and quality
management system development. The findings from this study have also provided
additional recommendations for more effective QMS-ISO 9001 implementation.

In addition to the contribution to the body of knowledge, this study has also
demonstrated the methods for analysis of the relationships between the
organisational culture profiles (independent variable) and QMS practices (dependent
variable), for which the original Cameron and Quinns analysis model was used. By
framing the culture profiles as a categorical variable (with QMS practices being a
continuous variable), the study shows additional ways for analysing the relationships
between the two variables.

As discussed in Chapter 1, part of the objectives of the research has been the
development of practical quality management systems. To the end, the research has
established a set of Culture-based Quality Management System Improvement
214

Implementation Framework for the successful and effective implementation of
quality system strategies aimed at improving quality deliverables in Indonesian
construction services and projects. This framework is the crystallization of the
research, and reflect an attempt to move the Indonesian construction companies
towards becoming more qualified and competitive companies, in local, national and
global construction markets.

The research found that there is an increased awareness among the construction
organisations and project practitioners, of the importance of pursuing quality.
Generally, they accept the fact that quality is the basis for moving companies
forward, both in relation to satisfying clients and in the attainment of a sustainable
competitive advantage. The framework will help improve the understanding among
company internal stakeholders, and provide them practical guidelines and strategic
tools for advancing the quality culture and QMS-ISO 9001 of construction projects.
The framework potentially fit all grades in the large-scale Indonesian construction
industry, enabling them to develop strong corporate cultural profiles in order to
successfully achieve effective quality management practices and quality deliverables
in infrastructure project delivery.

The framework of Culture Change in Construction Organisations, in particular, be a
useful and practical framework to assist construction organisations to identify,
strengthen or develop their desired organisational culture that is adaptable to the
most-recent business environment. The expected outcome of changing culture
enables all internal stakeholders to be self-driven on the awareness and
understanding of quality; this then will be seen in the quality climate atmosphere
within organisation that direct quality management process and improvement.

In the context of the contribution to policy, the research findings, especially relating
to the framework, will provide a future reference for facilitating consultation and
communication among the construction services providers, construction companies
associations, the CSDB and the Government, in defining and determining policy for
more widespread promotion and implementation of organisational culture and
QMSs, in the Indonesian construction industry. As found in this study, with the
215

exception of the adoption of the QMS-ISO 9001 standard to assist construction
companies in measuring their performance of services and products delivery, and
whether they comply with customer requirements, there is a lack of measurement
tools for assessing a contractors performance for services and projects results, as
well as achievements on defined key performance indicators (KPIs) in an Indonesian
construction context. The framework will therefore provide a stepping stone for the
development standards for performance measurement for Indonesian construction
companies to assess their companies performance outcomes against defined
standards, as well as for the evaluation of their performance relative to other similar
service providers.


6.3 Limitations and Recommendations for Future Research

Although this study provides insights into the Culture-based Quality Management
System Improvement Implementation Framework, in particular the role of
organisational culture in driving the effective implementation of the quality
management system, it has some limitations.

First, given that the measurement of the organisational culture profiles within the
construction companies was conducted under current conditions, the empirical
study and conceptual arguments relating to preferred future culture profiles were
not able to be fully met in this study. Future research should therefore cover the
measurement of the preferred future culture profiles within large-scale construction
companies, to meet their perceived needs relating to internal developments and the
future business environment, including challenges and opportunities to be faced by
the companies. It is recommended that proposed future research be undertaken to
confirm the dominance of the mixed culture profile found in this study.

Second, despite the examination of the relationships between the organisational
culture and quality management system practices variables, and of the relationships
among some of the quality management systems variables, further analysis should be
considered to fully examine the relationships among all variables in the theoretical
216

framework developed in this study. A Structural Equation Modelling (SEM) analysis
could be used to undertake such data analysis.

The third limitation relates to the empirical study of the implementation of the
research findings in this study, that has formed the Framework for Culture-based
Quality Management System Improvement Implementation. Due to the time-
constraint relating to the process of data collection, this study was not able to explore
the implementation of the framework within construction companies, which is about
the performance outcomes of companies during the time of implementing the
framework. Therefore, future research could focus on sampled construction
organisations, which are willing to be pilot-projects for the framework
implementation. A Case Study could be utilised to collect data for an in-depth
investigation of the frameworks implementation.

Fourth, although the culture factor adopting Cameron and Quinns (2006) concept in
this study is considered as having covered other related factors that are also
impacting construction companys quality system and quality product delivery, these
related factors (i.e. leadership, market forces, strategy practices) are recommended in
future research to be variables that can specifically be measured in relation to the
effective implementation of construction quality management system. Another
concern relates to those external factors such as corruption-collusion-nepotism, and
unhealthy competition practices. Since the focus of this research was on the
identification of the typical Indonesian contractors organisational culture profiles
based on the Competing Values Framework model, and on the examination of the
influence of the culture profiles on quality management system implementation,
these additional external factors were not considered in this study. However, it is
acknowledged that external factors can potentially influence appropriate practices of
the strong organisational culture of the Indonesian contractors, and therefore the
quality management system implementation. The influence of these external factors
would, therefore, be an appropriate topic for future research.


217

The fifth limitation relates to the lack of involvement of certain external respondents
in the questionnaire surveys (e.g., project owners, professional associations,
academics, and end-user customers). In this study, where the aim was to identify the
organisational culture profiles of Indonesian construction companies, based on
responses which are internal to the organisations, external respondents are regarded
as being inappropriate. These external respondents involvement might be utilised to
obtain a complete and comparative picture of the implementation of ISO 9001 by
contractors, as well as company performance, from the perspective of external
stakeholders.

Finally, given the fact that the participating respondents and the case organisations
were all from Indonesia, the framework developed are specifically applicable to
Indonesian construction organisations rather than countries more broadly. Different
countries have different and specific national cultures, different legal guidelines, and
different political and business environments, which might influence an
organisations culture. However, this study might have potential value for the
examination of culture-based quality management system implementation in
construction organisations in other emerging and developing countries and on a
wider global basis. In addition, the lessons from this study might potentially provide
a good source of reference material related to construction organisations elsewhere
around the world.












218

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235

APPENDIX A Sample of Questionnaire
(English Version)


QUALITY MANAGEMENT SYSTEM (QMS) AND ORGANIZATIONAL CULTURE
QUESTIONNAIRE
Reference: SNI 19-9001:2001 (ISO 9001:2008)
FOR IMPROVING QMS IMPLEMENTATION
IN INDONESIAN CONSTRUCTION COMPANIES

AIM
The aims of this survey are:
1. To investigate the current status of quality management system implementation in
Indonesian construction companies;
2. To identify organisational culture profiles of Indonesian construction companies.

CONFIDENTIALITY
All information provided in this survey will be treated as strictly confidential, no
companies or individuals will be identified in any subsequent research report, and all
information collected will be used purely for the purposes of academic research.

FEEDBACK OF RESULTS
After all surveys are collected and analysed, feedback on the overall research results will
be provided upon request to interested respondents in this study.

CONTACT DETAILS
If you have any questions regarding this survey, please do not hesitate to contact:
Debby Willar on +61 4344 91551 or e-mail: debby.willar@student.qut.edu.au

This research is being funded by the Ministry of National Education through DIKTI
Scholarships 2009-2012












236


QUESTIONNAIRES

Please kindly respond to the following questions by ticking ( ) the appropriate
box, circling the appropriate figure, or writing your answer in the space provided.

Position of Respondent

Quality Manager/Quality Management Representative
Project Manager
Purchasing Manager
Logistics Manager
Maintenance Manager
Finance Manager
Site Engineer
Other (please specify)
How long have you been employed by the company?
< 5 years 5 10 years 11 15 years 16 20 year > 20 years


The Company Details

Type of contractor (most usual type
of projects)
: Building Civil
Other (please specify)

Type of company : Public Ownership
Foreign Ownership
National Private Company
How long has the organisation been
operating?
: < 10 years 10 20 yrs > 20 yrs
Annual turnover : IDR
Go-public company? : Yes No
City of main operation /
Headquarters
: Manado Makassar Jakarta
Major customer sector :
Government
Private Foreigner
237


Section II Questions related to the development stage of QMS
2.1 Did your company employ consultants to assist in setting up the QMS?
Yes No (please go to 2.2)
IF YES
What is your opinion of the consultants role?
Very helpful Helpful Fairly helpful Not helpful
What percentage of involvement did the consultants have in the establishment of the
companys QMS documentation (e.g. Quality Manual, Quality Procedures, Project
Quality Plan)?
< 25% 25 50% 51 75% 76 100%

2.2 How was the fundamental QMS documentation (e.g. Quality Manaual, Quality
Procedures, etc) generally developed?
Every division/sub-division prepared the draft of the documents
Quality Assurance Team developed the documents
The consultant developed the documents
Quality Assurance Team and the consultant developed the documents

2.3 Length of time from the start of preparation to achievement of ISO 9001
certification:
< 6 months 6 12 months 13 18 months 19 - 24 months > 24
months

2.4 Please rank order, from 1 (most) to 8 (least), the motives you find important for the
company to develop a QMS certified under ISO 9001.
Motives for developing QMS
. To effectively and efficiently control project activities _____
. To minimise poor quality of construction processes and products _____
. To enter the international construction market _____
. For the betterment of the companys overall management system _____
. As a requirement of the Ministry of Public Works _____
. To fulfil clients requests as part of the bidding process _____
. To improve the companys prestige (e.g. image, reputation) _____
. To improve business performance _____




238

Section III Questions related to the practice of ISO 9001 principles
3 Based on your experience, please tick ( ) the appropriate box which indicates the
level of implementation of each major principle of ISO 9001 standard in your company.

4 = Fully implemented 3 = Not so fully implemented 2 = Minimally implemented 1 = Yet
to be implemented

The eight major ISO 9001 principles 4 3 2 1
3.1 The company focuses on customer requirements and
expectations.

3.2 The leaders establish unity of purpose and direction of
the company.

3.3 Employees are fully involved and their abilities are
empowered for the companys benefit.

3.4 Project activities and related resources are managed
as a process.

3.5 The company identifies, understands, and manages
interrelated processes as a system.

3.6 The company has a strategic objective for permanent
and continuous improvement of overall performance.

3.7 Decision-making is based on an analysis of relevant
data and information.

3.8 The company and its suppliers have a mutually
beneficial relationship.

Questions related to the pract
Section IV Questions related to the practice of ISO 9001 elements
4
Based on your experience, please tick ( ) the appropriate box which indicates the
level of implementation of ISO 9001 elements in your company.

4 = Fully implemented 3 = Not so fully implemented 2 = Minimally implemented 1 =
Yet to be implemented

The ISO 9001 elements 4 3 2 1
4.1
Management sets the company quality policy and
implements it by providing resources and training.

4.2 A Quality Manual and supporting procedures have
been created and are maintained.

4.3 Contracts reflect customers needs and expectations.

4.4 Design changes are carefully documented to ensure
that they become fully coordinated and are
approved internally and by clients.

4.5
Creation and modification of any quality
documentation is strictly controlled by established
procedures.

239

4.6
Purchasing procedures fully describe supplier
requirements and there is a formal system for
ensuring compliance to these standards.

4.7
Procedures detail methods of handling and
safekeeping of product supplied by clients.

4.8 Methods of tracking the dates and lot-codes of
products and raw materials, from arrival on site to
incorporation into construction, guarantee
traceability.

4.9
Work instructions, quality plans and workmanship
standards, verify that each job is being done
correctly.

4.10
Inspection and testing at receiving, in-process and
final inspection areas, ensure quality compliance.
Test and inspection records are retained and
preserved as part of the quality documentation
system.

4.11
Instruments and measuring tools are calibrated
regularly, and records maintained.

4.12 Only inspected materials may be used or processed
further. Inspected product is always identified.

4.13
Materials or products that fail to meet specifications
are rejected and separated from normal production.
Only the proper authorities may decide if rejected
material will be used as is, reworked or returned to
the supplier.

4.14
The corrective action system focuses on identifying
the root causes of quality concerns and any
corrective and preventative actions required.

4.15 Procedures outline practices that protect products
from damage during construction and delivery.

4.16 Quality records provide an audit trail for internal and
external auditors.

4.17 Trained teams verify that the company Quality
System is working, by evaluating whether the ISO
9001 requirements examined by the external
auditors, are being met on an on-going basis.

4.18
Training records are maintained for every employee
showing their levels of expertise and frequency of
training.

4.19
Where servicing is specified in the contract,
procedures are established to verify that servicing
meets the indicated requirements.

4.20
Control charts, graphs and other methods of analysis
determine how well a process is working and
facilitate continuous improvement.



240


Section V Questions related to the problems of QMS implementation
5 The following statements are related to problems that companies mostly faces in
relation to effective ISO 9001 implementation. Please tick ( ) the appropriate box
which indicates whether your company has also experienced these problems.

4 = Often experienced 3 = Sometimes experienced 2 = Very seldom experienced
1 = Not experienced

Difficulties in the process of attaining QMS 4 3 2 1
5.1 Management attitudes and purposes appear solely
focused on marketing effort or are solely due to
imposed customer requirements, resulting in a QMS
that often lacks any internally driven improvement
component.

5.2 Top management considers compliance to ISO 9001
a documentation task rather than the opportunity to
change to an improved and systematic management
style. Consequently, a Quality Manager is appointed
without authority to make any real changes.

5.3 Lack of corporate commitment and inconsistency of
management action and decision-making.

5.4 Lack of strong motivation from all levels of
management.

5.5 Lack of effective management response to settle
staff grievances and needs.

5.6 Difficulty in understanding ISO 9001 terminology in
order to integrate fully into companys operating
procedures.

5.7 Management and staff complete their activity
reports at the last minute, prior to the conduction
of an internal and/or external audit. Management
and staff perceive QMS as just a matter of fulfilling
the internal and/or external audit requirements.

5.8 Failure in disseminating the requirements of the
companys QMS to all organisational levels.

5.9 Lack of a well-designed reward system to motivate
employees to espouse the QMS values, such as
training, development and promotion, and/or a
financial bonus.

5.10 Internal communication processes between
management and staff, and amongst staff, are not
always well defined and lead to misunderstandings.


241


5.11 Poor external communication exists (e.g. with sub-
contractors and clients) and contributes to poor
quality outcomes.

5.12 Uncertainty exists with the effectiveness and/or
suitability of sub-contractors and suppliers quality
systems.

5.13 There is resistance to implementation of QMS
amongst staff.

5.14 Lack of identified funding in the company for
implementing QMS.

Implementatio
n QMS
Section V I Questions related to the companys organisational culture
The following statements are used to assess the companys organisational culture. Please
allocate a score (0 100) next to the corresponding statement to indicate in your view the
degree of correctness.

The highest score is given to the statement completely true describing the current
organisational culture of your company, followed by somewhat true, etc., while the
lowest points indicate never true. The total points score for each item should add up to
100.
E
X
A
M
P
L
E

The organisation is a very:

A personal place. It is like an extended family. People seem to share a lot of
themselves.
25
B dynamic and entrepreneurial place. People are willing to stick their necks
out and take risks.
45
C results-oriented. A major concern is with getting the job done. People are
very competitive and achievement-oriented.
10
D controlled and structured place. Formal procedures generally govern
what people do.
20
Total 100
6.1
The organisation is a very:

A personal place. It is like an extended family. People seem to share a lot of
themselves.

B dynamic and entrepreneurial place. People are willing to stick their necks
out and take risks.

C results-oriented. A major concern is with getting the job done. People are
very competitive and achievement-oriented.

D controlled and structured place. Formal procedures generally govern
what people do.

Total





242


6.2
The leadership in the organisation is generally considered to exemplify:

A mentoring, facilitating, and nurturing.

B entrepreneurship, innovation, or risk taking.

C a no-nonsense, aggressive, results-oriented focus.

D coordinating, organising, or smooth-running efficiency.

Total

6.3
The management style in the organisation is characterised by:

A teamwork, consensus, and participation.

B individual risk taking, innovation, freedom, and uniqueness.

C hard-driving competitiveness, high demands, and achievement.

D security employment, conformity, predictability, and stability in
relationships.

Total

6.4
The glue that holds the organisation together is:

A loyalty and mutual trust. Commitment to this organisation runs high.

B commitment to innovation and development. There is an emphasis on
being on the cutting edge.

C the emphasis on achievement and goal accomplishment.

D formal rules and policies. Maintaining a smooth-running organisation is
important.

Total

6.5
The organisation emphasizes:

A human development. High trust, openness, and participation persist.

B acquiring new resources and creating new challenges. Trying new
things and prospecting for opportunities are valued.

C competitive actions and achievement. Hitting stretch targets and
winning in the marketplace are dominant.

D permanence and stability. Efficiency, control, and smooth operations
are important.

Total

6.6
The organisation defines success on the basis of:

A the development of human resources, teamwork, employee
commitment, and concern for people.

B having the most unique or newest products. It is a product leader and
innovator.

C winning in the marketplace and outpacing the competition.
Competitive market leadership is key.

D efficiency. Dependable delivery, smooth scheduling, and low-cost
production are critical.

Total


243

Section VII Questions related to organisation performance during implementing
QMS

7 The following statements indicate several key performance indicators (KPIs) of a
construction organisation. How would you assess your organisational performance,
particularly during implementing a QMS such as ISO 9001? Please respond to each
statement by ticking ( ) the appropriate box.
4 = Very high performance 3 = High performance 2 = Low performance 1 = Very
low performance
Organisation performance 4 3 2 1
7.1 Profitability for the preceding two years
7.2 Sales growth for the preceding two years
7.3 Market share in your region for the most recent year
7.4 Global market contracts acquired
7.5 Quality of services and products
7.6 Sustainable construction products
7.7 New product innovation and development
7.8 Generating employee satisfaction


*** Thank you very much for your participation in this survey ***






















244


(Bahasa Version)

KUESIONER SISTEM MANAJEMEN MUTU (SMM)
RUJUKAN SNI 19-9001:2001 (ISO 9001:2008)
UNTUK MENINGKATKAN IMPLEMENTASI SMM PADA
PERUSAHAAN KONTRAKTOR INDONESIA

TUJUAN SURVEI
Tujuan survei ini adalah:
1. Untuk mengetahui tingkat penerapan sistem manajemen mutu di perusahaan
kontraktor Indonesia pada saat ini.
2. Untuk mengidentifikasi profil budaya organisasi perusahaan konstruksi
Indonesia.

KERAHASIAAN INFORMASI
Seluruh informasi yang diberikan dalam survei ini akan dirahasiakan, termasuk
identitas perusahaan dan responden tidak akan dimunculkan dalam laporan
penelitian. Seluruh informasi yang terkumpul hanya akan dipergunakan untuk
penelitian akademik.

INFORMASI HASIL SURVEI
Setelah seluruh informasi dikumpulkan dan dianalisis, temuan dari studi ini akan
disampaikan kepada instansi/perusahaan yang berpartisipasi dalam studi ini.

KONTAK
Apabila anda memiliki pertanyaan mengenai survei ini, disilahkan menghubungi:
Debby Willar di nomor +62821 9522 5341 atau melalui email:
debby.willar@student.qut.edu.au

Penelitian ini dibiayai oleh Beasiswa DIKTI-Kementerian Pendidikan Nasional periode
2009-2012













245

KUESIONER
Silahkan menjawab pertanyaan-pertanyaan di bawah ini dengan memberi tanda
centang ( ) pada kotak yang sesuai, melingkari nomor yang sesuai, atau menulis
jawaban anda pada ruang yang tersedia.

Posisi Responden

Manajer Mutu/Wakil Manajemen Mutu
Manajer Proyek
Manajer Pembelian
Manajer Logistik
Manajer Pemeliharaan
Manajer Keuangan
Insinyur Lapangan
Lainnya (silahkan ditulis)
Sudah berapa lama anda bekerja di perusahaan ini?
< 5 tahun 5 10 tahun 11 15 tahun 16 20 tahun > 20 tahun


Profil Perusahaan

Tipe kontraktor (jenis proyek yang
paling sering ada)
: Bangunan Sipil
Lainnya (silahkan ditulis)

Tipe perusahaan : BUMN
Modal Asing
Swasta Nasional
Sudah berapa lama perusahaan anda
beroperasi?
: < 10 tahun 10 20
thn
> 20 thn
Pendapatan per tahun : Rp
Apakah perusahaan anda telah go-
public?
: Ya Tidak
Kota tempat beroperasi/Kantor
Pusat
: Manado Makassar Jakarta
Pelanggan utama adalah sektor : Pemerintah Swasta Asing
246

Bagian I Pertanyaan-pertanyaan berkaitan dengan data SMM

1.1 Pada tahun berapa perusahaan anda pertama kali disertifikasi dengan ISO 9001?
Tahun
1.2 Apa ruang lingkup sertifikasi perusahaan anda, sesuai dengan yang tercetak pada
sertifikat ISO 9001?


1.3 IS0 9000 adalah SMM yang relevan untuk industri konstruksi:
Sangat
setuju
Setuju Tidak setuju Sangat tidak setuju
1.4 Apakah dengan memiliki sertifikasi ISO 9000 volume kontrak proyek perusahaan
anda meningkat?
Sangat signifikan
Signifikan
Tidak signifikan Tidak sama sekali


Bagian II Pertanyaan-pertanyaan berkaitan dengan tahap pengembangan SMM
2.1 Apakah perusahaan anda menggunakan konsultan untuk membantu anda
mengembangkan SMM?
Ya Tidak (silahkan lanjut ke 2.2)
JIKA YA
Apa pendapat anda tentang peran konsultan anda?
Sangat membantu Membantu Cukup membantu Tidak
membantu
Berapa persentase keterlibatan konsultan di perusahaan anda dalam
mengembangkan SMM?
< 25% 25 50% 51 75% 76 100%

2.2 Bagaimana dokumen-dokumen seperti manual mutu, prosedur mutu, rencana mutu
proyek, dan lain-lain, umumnya dikembangkan?
Setiap devisi/sub devisi menyiapkan konsep prosedur
Tim Penjaminan Mutu (Tim QA) yang mengembangkan dokumen
Konsultan yang mengembangkan dokumen
Tim QA dan konsultan yang mengembangkan dokumen
2.3 Panjangnya waktu mulai dari awal persiapan sampai dengan perolehan sertifikat ISO
9001:
< 6 bulan 6 12 bln 13 18 bln 19 - 24 bln > 24 bln
247

2.4 Silahkan diurut motif-motif berikut menurut tingkat kepentingannya bagi perusahaan
anda dalam mengembangkan SMM berbasis ISO 9001. Nilai 1 (paling penting)
sampai dengan nilai 8 (kurang penting).
Motif-motif dalam mengembangan SMM-ISO 9001
. Untuk mengontrol aktivitas proyek secara efektif dan efisien _____
. Untuk mengurangi kualitas buruk proses dan produk konstruksi _____
. Untuk memasuki pasar konstruksi internasional _____
. Untuk memiliki SMM yang lebih baik _____
. Sebagai persyaratan dari pemerintah (Departemen Pekerjaan Umum) _____
. Untuk memenuhi permintaan pelanggan / bagian dari persyaratan tender _____
. Untuk meningkatkan prestise perusahaan _____
. Untuk meningkatkan kinerja bisnis perusahaan _____

Bagian III Pertanyaan-pertanyaan yang berkaitan dengan penerapan prinsip-
prinsip ISO 9001

3 Berdasarkan pengalaman anda, silahkan mencentang ( ) kotak yang sesuai yang
menunjukkan tingkat penerapan prinsip-prinsip ISO 9001 di perusahaan anda.
4 = Diterapkan sepenuhnya 3 = Diterapkan, tetapi belum sepenuhnya
2 = Diterapkan, tetapi minimal 1 = Belum diterapkan
Delapan prinsip utama ISO 9001 4 3 2 1
3.1 Perusahaan berfokus pada kebutuhan dan harapan
pelanggan.

3.2 Pemimpin membangun kesatuan tujuan dan arah
perusahaan.

3.3 Karyawan dilibatkan sepenuhnya berdasarkan
kemampuannya.

3.4 Kegiatan proyek dan sumber daya terkait dikelola
sebagai suatu proses.

3.5 Perusahaan mengelola proses-proses yang saling
terkait sebagai suatu sistem.

3.6 Perusahaan memiliki tujuan strategis untuk
meningkatkan kinerja perusahaan secara terus-
menerus.

3.7 Pengambilan keputusan berdasarkan pada informasi
dan analisis data yang relevan.

3.8 Perusahaan dan pemasoknya memiliki hubungan yang
saling menguntungkan.

the practi

248

Bagian IV Pertanyaan-pertanyaan yang berkaitan dengan penerapan elemen-
elemen ISO 9001

4
Berdasarkan pengalaman anda, silahkan mencentang ( ) kotak yang sesuai yang
menunjukkan tingkat penerapan elemen-elemen ISO 9001 di perusahaan anda.

4 = Diterapkan sepenuhnya 3 = Diterapkan, tetapi belum sepenuhnya
2 = Diterapkan, tetapi minimal 1 = Belum diterapkan
Elemen-elemen ISO 9001 4 3 2 1
4.1 Manajemen menyediakan sumber daya dan pelatihan.
4.2 Manual mutu dan semua prosedur telah dibuat dan
dilaksanakan.

4.3 Dokumen kontrak menjelaskan kebutuhan dan harapan
pelanggan.

4.4 Setiap perubahan pada desain: terdokumentasi,
terkoordinasi dan disetujui baik oleh internal maupun
eksternal.

4.5
Penyusunan dan revisi dokumen mutu dikontrol ketat
oleh prosedur terkait.

4.6
Persyaratan pemasok ditetapkan dalam prosedur
pembelian, dan pembelian yang dilakukan dipastikan
telah sesuai dengan standar.

4.7 Prosedur yang memuat metode penanganan dan
penyimpanan produk disediakan oleh pelanggan.

4.8 Tanggal dan kode material/produk sejak tiba di lokasi
konstruksi sampai pada penggunaannya dapat ditelusuri.

4.9 Instruksi kerja, rencana mutu dan standar mutu kerja
memastikan setiap kegiatan dilakukan dengan benar.

4.10 Inspeksi dan pengujian dilakukan sejak proses awal,
proses utama, sampai pada proses akhir untuk
memastikan kepatuhan pada mutu.

4.11 Instrumen dan alat ukur dikalibrasi secara teratur, dan
rekamannya dipelihara.

4.12 Hanya material yang telah diperiksa dan diidentifikasi
yang akan digunakan pada proses selanjutnya.

4.13 Material yang tidak memenuhi spesifikasi ditolak dan
dipisahkan dari material yang normal. Pihak berwenang
memastikan status material yang ditolak: diperbaiki atau
dikembalikan ke pemasok.

249

4.14 Tindakan koreksi berfokus pada identifikasi akar
permasalahan. Tindakan perbaikan senantiasa dilakukan.

4.15 Prosedur untuk melindungi produk dari kerusakan selama
konstruksi dan saat penyerahan telah dibuat dan
dilaksanakan.

4.16 Rekaman mutu senantiasa disiapkan, dan dapat dijadikan
referensi bagi auditor internal dan eksternal.

4.17 Auditor internal memastikan bahwa SMM diterapkan
sesuai dengan prinsip dan persyaratan/elemen ISO 9001.

4.18 Rekaman pelatihan setiap karyawan dipelihara dan
memuat tingkat keahlian dan frekuensi pelatihannya.

4.19 Prosedur yang membuktikan bahwa layanan perusahaan
memenuhi semua persyaratan pelanggan, telah dibuat.

4.20 Analisis data menggunakan teknik statistik. Analisis
dilakukan untuk menetapkan kinerja proses, dan hasil
analisis dijadikan referensi untuk peningkatan SMM
secara berkelanjutan.

elated to the prob

Section V Pertanyaan-pertanyaan berkaitan dengan permasalahan dalam
penerapan ISO 9001
MS
5 Pertanyaan-pertanyaan berikut ini berkaitan dengan permasalahan yang umumnya
dialami ketika menerapkan ISO 9001. Berdasarkan pengalaman anda silahkan
mencentang ( ) kotak yang sesuai yang menunjukkan apakah perusahaan anda
juga mengalami masalah-masalah ini.

4 = Sering mengalami 3 = Jarang mengalami 2 = Sangat jarang mengalami
1 = Tidak mengalami

Masalah-masalah dalam penerapan SMM 4 3 2 1
5.1 Sikap dan tujuan manajemen menerapkan SMM
tampaknya hanya terfokus pada aspek pemasaran dan
karena tuntutan pelanggan.

5.2 Pimpinan menganggap pemenuhan terhadap ISO 9001
hanya sebatas tugas dokumentasi, bukan kesempatan
untuk perbaikan manajemen yang sistematis.

5.3 Kurangnya komitmen perusahaan dan inkonsistensi
tindakan dan pengambilan keputusan manajemen.



250


5.4 Kurangnya motivasi yang kuat dari semua
tingkatan manajemen.

5.5 Kurangnya tanggapan manajemen yang efektif
untuk menyelesaikan keluhan dan kebutuhan
karyawan.

5.6 Kekurangan pembiayaan perusahaan untuk
penerapan SMM.

5.7 Kurangnya sistem bonus (mis.
pelatihan/pengembangan karyawan, promosi,
uang) untuk memotivasi karyawan mendukung
penerapan SMM.

5.8 Kesulitan dalam memahami istilah ISO 9001 untuk
diintegrasikan sepenuhnya ke dalam prosedur
operasional perusahaan.

5.9 Manajemen dan karyawan melengkapi pelaporan
mereka pada menit terakhir sebelum kegiatan
audit internal/eksternal.

5.10 Kegagalan dalam mensosialisasikan persyaratan
SMM perusahaan di semua tingkatan organisasi.

5.11 Penolakan karyawan terhadap penerapan SMM
perusahaan.

5.12 Proses komunikasi internal antara manajemen dan
karyawan dan diantara karyawan sering tidak
terdefinisi dengan jelas sehingga sering
menyebabkan kesalahpahaman.

5.13 Komunikasi yang kurang lancar dengan pihak
eksternal (mis. sub-kontraktor/pemasok,
pelanggan).

5.14 Ketidakpastian dengan efektifitas dan kelayakan
sistem mutu sub-kontraktor dan pemasok.










251

Bagian V I Pertanyaan-pertanyaan berkaitan dengan budaya organisasi
perusahaan
Pertanyaan-pertanyaan berikut ini digunakan untuk menilai budaya organisasi
perusahaan. Silahkan memberi nilai (0 100) di samping pertanyaan yang bersesuaian
untuk menunjukkan tingkatan pandangan anda.

Nilai tertinggi diberikan kepada pertanyaan yang sepenuhnya benar menggambarkan
budaya organisasi perusahaan anda, diikuti dengan agak benar, dan seterusnya. Nilai
terendah menggambarkan tidak benar. Nilai keseluruhan untuk setiap nomor
pertanyaan harus mencapai 100 (silahkan melihat pada contoh).
C
O
N
T
O
H
Organisasi ini:

A seperti sebuah keluarga besar. Orang-orang tampaknya saling berbagi.
25
B sangat dinamis dan bernuansa wirausaha. Orang-orang menampilkan
hal yang berbeda dan berani mengambil resiko.
45
C sangat berorientasi pada hasil. Perhatian terbesar pada menyelesaikan
pekerjaan. Orang-orang sangat kompetitif dan berorientasi pada
prestasi.
10
D adalah tempat yang sangat terkontrol dan terstruktur.
20
Total 100


6.1
Organisasi ini:

A seperti sebuah keluarga besar. Orang-orang tampaknya saling berbagi.

B sangat dinamis dan bernuansa wirausaha. Orang-orang menampilkan
hal yang berbeda dan berani mengambil resiko.

C sangat berorientasi pada hasil. Perhatian terbesar pada menyelesaikan
pekerjaan. Orang-orang sangat kompetitif dan berorientasi pada
prestasi.

D adalah tempat yang sangat terkontrol dan terstruktur.

Total

6.2
Kepemimpinan dalam organisasi dianggap menjadi contoh:

A dalam menasehati, memfasilitasi, dan saling memelihara.

B kewirausahaan, inovasi dan pengambilan resiko.

C konsistensi, agresif, fokus pada orientasi hasil.

D saling berkoordinasi, mengorganisir, atau dengan kata lain efisiensi
yang berjalan mulus.

Total

6.3
Gaya manajemen dalam organisasi ditandai dengan:

A kerja tim, konsensus, dan partisipasi.

B pengambilan resiko individual, inovasi, kebebasan, dan keunikan.

C persaingan yang ketat, permintaan yang tinggi dan keberhasilan.

D keamanan pekerjaan, konformitas, prediktabilitas dan stabilitas dalam
hubungan.

Total
252


6.4
Perekat yang mempersatukan organisasi adalah:

A loyalitas dan kepercayaan. Komitmen terhadap organisasi ini tinggi.

B komitmen terhadap inovasi, pengembangan, dan harus berada pada
posisi puncak.

C penekanan pada keberhasilan dan pencapaian tujuan.

D aturan dan kebijakan-kebijakan yang formal.

Total

6.5
Organisasi memberi penekanan pada:

A pembangunan manusia, kepercayaan yang tinggi, keterbukaan dan
partisipasi.

B perolehan sumberdaya-sumberdaya yang baru dan menciptakan
tantangan-tantangan yang baru.

C tindakan-tindakan yang kompetitif dan keberhasilan, mencapai target
yang meluas dan menang di pasaran.

D kemapanan dan stabilitas, efisiensi, kontrol, dan operasional yang lancar.

Total

6.6
Organisasi mendefinisikan kesuksesan berdasarkan pada:

A pengembangan sumber daya manusia, kerja tim, komitmen karyawan,
dan perhatian terhadap masyarakat.

B memiliki produk-produk yang paling unik dan terbaru.

C kemenangan dan kepemimpinan di pasaran yang kompetitif.

D efisiensi, pengiriman yang dapat diandalkan, penjadwalan yang lancar
dan biaya produksi yang rendah.

Total


Bagian VII Pertanyaan-pertanyaan berkaitan dengan kinerja perusahaan selama
pelaksanaan SMM

7 Pertanyaan-pertanyaan berikut ini menunjukkan indikator utama kinerja perusahaan
kontraktor. Silahkan anda menilai kinerja perusahaan anda selama penerapan SMM-
ISO 9001 dengan mencentang
( ) kotak yang sesuai.

4 = Sangat tinggi 3 = Tinggi 2 = Rendah 1 = Sangat rendah

Kinerja perusahaan 4 3 2 1
7.1 Profitabilitas pada dua tahun terakhir.
7.2 Pertumbuhan penjualan pada dua tahun terakhir.
7.3 Perolehan pangsa pasar daerah pada dua tahun terakhir.

253


7.4 Kontrak internasional yang diperoleh.
7.5 Mutu layanan dan mutu produk akhir.
7.6 Produk konstruksi yang berkelanjutan (sustainable).
7.7 Pengembangan produk-produk yang inovatif.
7.8 Kepuasan karyawan.

*** Terima kasih atas partisipasi anda dalam survei ini ***



















254

APPENDIX B Sample of Focus Group Discussion Protocol


























COVERING LETTER

8 June 2011
Dear Sir,

PhD Research Study Focus Group Discussion
We are the Supervisory Team for Ms. Debby Willar, a PhD student in the School of
Civil Engineering and Built Environment at Queensland University of Technology
(QUT), Brisbane, Australia. Debby Willar is currently undertaking a research
project to establish a culture-based quality management system (QMS)
implementation framework for improving QMS implementation in Indonesian
construction companies.
To this end, we would like to invite you as an expert in the construction industry,
to participate in a focus group discussion, which will last approximately three
hours. The information provided will contribute to the establishment of experts
evaluation and consensus opinions on the framework for an effective
implementation and continual improvement of QMS. This will assist Indonesian
contractors and builders in identifying and understanding their own corporate
cultures, and hence initiating changes in order to successfully prepare, develop and
apply more effective QMSs, and roll-out more efficient quality processes and
practices.
All responses will be kept confidential and no reference will be made to specific
individuals in the thesis.
On behalf of Debby Willar, we would very much appreciate your participation in
this research project, which has the prospect of providing quality, useable and
sustainable construction products.
If you have any queries about this project, please do not hesitate to contact us:
Email: v.coffey@qut.edu.au
Email: bambang.trigunarsyah@qut.edu.au

Thank you in advance for your participation.
Yours faithfully,
Dr. Vaughan Coffey Associate Professor Bambang Trigunarsyah
Principal Supervisor Associate Supervisor

255

FOCUS GROUP DISCUSSION
Jakarta, 8
th
July 2011

Aims:
To obtain an evaluation from focus group participants regarding the usefulness and
validity of the Framework of a Culture-based Quality Management System
Improvement Implementation in practice.

FOCUS GROUP PROTOCOL
Introduction
Moderator I ntroduction: Thank you for coming today. My name is Debby
Willar. I am going to lead the discussion we have planned for today. We are
here to discuss one of my research project findings, in particular, how the
Framework of a Culture-based Quality Management System Improvement
Implementation can be better improved and thus can be practically applied
by Indonesian construction companies, in order to effectively and continually
improve their QMSs implementation. The framework has been distributed to
you together with the invitation. I am focusing on your expertise and
experience in QMS practices in the construction organisation. We are going
to discuss whether the framework can be effectively applied, what problems
may exist from your perspective, and what suggestions you might have for
improving the framework. At the end of this discussion, we hope to come to a
consensus for validating the framework.
The process of the discussion will be both video and tape recorded. However
as it has been stated in the participant consent form, all comments and
responses will be treated confidentially and will be kept anonymous when
transcribed. No reference in the forms of either name of individual persons or of
companies will be quoted in this research. Only the aggregate results of focus
group discussions will be published as part of the final thesis. All the audio-
recorded files will be destroyed after transcription have been made.
There will be a sequenced of open-ended question, and you are encouraged
to respond, exchange ideas, and comment on each others points of view in
256

succession, until all responses have been heard. The proposed discussion will
take approximately three hours of your time.

Questions
Opening
[The moderator asks each participant to introduce themself and to further
indicate their job or profession, in their respective companies/organisations].
Introductory
What do you observe and understand in relation to the quality management
systems (QMSs) practices in an Indonesian construction context, and based
on your experiences, how are these implemented in your company?
Transition
What do you perceive to be the organisational culture of your company?
and how does it relate to, or impact on, QMS practices?
Key Questions (Referring to the culture-based QMS improvement
implementation framework)
I would like you to help me to evaluate this framework; in particular
whether it can be effectively applied in your company, what problems with its
application might exist from your perspective, and what sugegstions do you
have for improving the framework.

[The group will then openly discuss any comments, suggestions, or ideas,
until the moderator determines that the question has been thoroughly
discussed. During the discussion, the moderator will attempt to determine a
consensus or validation of the views expressed and will summarise the key
points].

1. What is your overall opinion of the arrangement and structure of the
generic integrated framework?
2. What is your opinion of the culture change elements in the
framework from the perspective of a construction organisation in
terms of:
257

a. The steps to carry out the culture change (input-process-
output)?
b. Whether this framework is sufficiently clear to be effectively
applied?
c. Any suggestions for improving this framework?
3. What is your opinion of the culture-based QMS improvement
implementation framework, from the perspective of a construction
organisation in terms of:
a. The structure or format of the framework?
b. The identified barriers that affect the effectiveness of the QMS
improvement elements implementation?
c. The three areas of the culture drivers required to support the
QMS improvement elements implementation?
d. The recommended actions for implementing the QMS
improvement elements effectively?
e. The results and benefits as eventual outcomes of effective QMS
implementation?
4. What do you perceive to be the applicability of the culture-based
QMS improvement implementation framework as a part of your
companys QMS implementation strategy?
a. If you feel that it is not applicable, please say why?
b. If it is applicable, what suggestions do you have to further
improve the framework?

Conclusions
[The moderator briefly summarises all of the main points of the discussion].
Concluding Questions
Is there anything that we missed during the discussion or which you would
like to add or amend, based on my summary?
Moderator closing sentences: A consensus has been reached after full
evaluation to improve/accept the framework, as well as to validate its
usefulness in practice. Thank you very much for your time and participation
in this focus group discussion.
258

APPENDIX C Results of Preliminary Studies
Table C-1 Profiles of the Preliminary Interviewees
No. Position Sector Role/Infrastructure
Expertise
R1 Board of Management
(Executive Director)
National Construction
Services Development
Board-NCSDB
Government partner in
developing and enhancing
the role of national
construction services
contribution to the economic
growth.
R2 Secretary of Board of
Management
NCSDB Government partner
R3 &
R4
Board of Management
(Members)
NCSDB Government partner
R5 Director for Construction
Business Development
Directorate General
for Construction and
Human Resources
Development
Government-Public Works
Department
R6 Head of Quality and
Reliable Construction
Centre for
Construction
Implementation
Development
Government-Public Works
Department
R7 &
R8
Senior Officers Centre for
Construction Research
Organisation
Government-Public Works
Department
R9 Deputy Executive
Director
Indonesian
Contractors
Association
Association
R10 Executive Director Indonesian
Contractors
Association
Association
R11 Head of Certification
Body
Indonesian
Contractors
Association
Association
R12 General Secretary National Contractors
Association
Association
R13 Deputy Executive
Director
National Contractors
Association
Association
R14 General Chairman South Sulawesi CSDB Provincial Government
partner
R15 Manager South Sulawesi CSDB Provincial Government
partner
R16 General Chairman North Sulawesi CSDB Provincial Government
partner
R17 Secretary North Sulawesi CSDB Provincial Government
partner
R18 Operations Director Public Ownership
Contractor
Roads and highways
R19 Project Control Manager National Private
Contractor
Power plants, oil and gas
plants, mining plants, and
fertilizer plants.
259

Table C-1 Profiles of the Preliminary Interviewees (continued)
No. Position Sector Role/Infrastructure
Expertise
R20 QHSE Management
System Manager
National Private
Contractor
Power plants, oil and gas
plants, mining plants, and
fertilizer plants.
R21 Project Manager National Private
Contractor
Power plants, oil and gas
plants, mining plants, and
fertilizer plants.
R22
to
R27
Quality Management
Representatives
Local Private
Contractor
Roads and highways
R28
&
R29
Project Managers Local Private
Contractor
Roads and highways


Table C-2 Preliminary Interview Questions
No. Questions Asked in the Preliminary Interview
1. In your opinion, what are your perceptions relating to:
a) The practice of QMS within Indonesian construction companies?
b) Problems when implementing it?
c) An effective implementation of QMS?
2. In what ways can QMS practices be further/continuously improved?
3. Do you consider that there is any relationship between the company corporate culture
(as you perceive it) and QMS practices? Can you elaborate?
4. In what ways do you feel company culture influences QMS practices?
5. What do you perceive about the organisational culture in your company?
6. What is your opinion regarding the need for a QMS framework as a guideline to
assist your company in implementing ISO 9001 effectively?


Findings from the Preliminary Interviews
The collective opinions and inputs relating to a number of the preliminary interview
questions are summarised below.

Concerns relating to quality in construction projects
All the interviewees agreed that the quality of construction projects has been a
serious concern of both government and the construction industry, and all
construction stakeholders need to pay attention to it. The interviewees from the
Government and the Construction Services Development Board therefore stated that,
260

in the medium term all grades of the construction companies must be certified by
ISO 9001. This vision reflects an attempt to ensure that all companies operate a
quality system that eventually will improve the qulity of work and processes within
construction projects. Respondents also stated that it is easy to establish a contractor
organisation within Indonesia, that the competition amongst these organisations is
high, and that the quality of construction work and evaluation of contractors work
performance, have recently become burning issues.

The practice of Indonesian contractors quality management systems
The interviewees from the local construction companies claimed that the operation of
the quality management system (QMS) within the grade-7 contractors still needs an
improved understanding and awareness of the system throughout the entire
organisation and this should be led by their leaders. There is a need for an
acknowledgement that the QMS is a need and not just a pre-requisite, for companies
to be eligible to tender for contracts. In addition, there is a need for this awareness to
not be perceived as a burden; rather that it is seen as a tool for improving company
business development and management practices. Some interviewees reflected that
despite the existence of QMS-based management, the QMS practices do not work
well.

According to interviewees from the national construction companies, it is important
in the early stages of developing a QMS, to set up a clear understanding and
perception of the the companys QMS, including an understanding of the operations
of an ISO 9001. Interviewees stressed that the ISO 9001 clauses only provide key
control points, while the company itself must plan, define, verify and analyse the
details of its standards, and develop its quality manual in accordance with the
companys business processes. They shared their experience in successfully
operating the QMS by implementing the eight major QMS principles consistently. In
their opinion, the assistance of consultants only made the process of obtaining ISO
9001 certification faster because the consultants have the templates for quality
documentation, but do not really master the companys core processes. Interviewees
also stated that possessing ISO 9001 certification is not a quality guarantee; rather, it
261

leads a company to better manage its QMS and helps in applying efficient and
effective quality control processes.

Problems in, and resulting from, ineffective quality management system practices
The common problems in implementing a quality management system (QMS) that
were frequently mentioned by the respondents included:
A lack of top management commitment.
A lack of understanding and awareness of the essence of the QMS among
lower to middle strata of employees.
Employees do not care about the conduct of surveillance audit.
A perception that, without having an ISO 9001 certification, a project can still
be completed.
Companies still rely on consultant assistance even though certification has
been obtained.
Sub-contractors do not have a QMS while some of the poor back-up work is
done by parent contractors that have ISO 9001 certification

The national contractors practitioners stressed that the main issue relating to
ineffective practices of QMSs in construction companies was that there is no obvious
definition of a companys core business. The second important issue related to the
need for the development of the QMS control function in the early stages of the
development of a companys QMS. These were cited as the reasons why an ISO
9001 certified company is faced with high costs for its support quality system which,
in turn, leads to a low level of competitiveness, and finally the collapose of the
company.

In follow-up meetings with some Quality Management Representatives (QMRs),
they shared examples obstacles to QMS implementation, based on their experience.
They complained that usually management and staff complete their activities reports
at the last minute, prior to the conduct of internal and/or external audits.
Consequently, management and staff perceive QMS as just a matter of fulfilling the
internal and external auditing program requirements.
262

Organisational culture and the practice of quality management systems
All the practitioners agreed that the quality management system (QMS) practices
have a clear/obvious relationship with corporate cultures, in that the corporate culture
significantly influences the effective implementation of QMS. Nevertheless, most
contractors in the city of Manado appeared confused with the terms, organisational
or corporate culture. They noted that they have the companys vision, mission, and
quality policy. However, they did not believe that they actually had demonstrable
corporate cultures which were documented or formally widespread. According to the
respondents, they perceived the organisational culture in the context of being the
way that things get done around here (Martin 2006) and that good habits are
applied to management and staff in their regular work processes, including all
project activities.

However, one leading construction company in Jakarta responded that they believed
that their organisational culture powerfully supported all their internal systems,
including their QMS, and that there was no conflict between ISO 9001 and the
companys culture. The profile of their organisational culture was reflected in the
feelings of being a family; therefore the employees in the company aimed to
become loyal employees. One interviewee stated that with a high loyalty and
partnership style driving the employees way of work, the top management easily
transferred an ISO 9001-QMS to middle management and employees, so that
lower strata employees also easily applied the system at project levelthis is not
too overwhelming behavior because these acttions all come from the employees
heart.

According to the contractors, the features of an appropriate organisational culture
which can influence an effective practice of QMS, so that the QMS implementation
can be further/continuously improved, can be seen through a strong commitment of
all management and staff, including their involvement and participation in the
implementation of the QMS, and effective team work. In addition, programs such as
human resources training relating to the construction work, training to create lead
auditors, awareness programs to encourage people to accept and practise quality
management, and Quality Assurance team members on duty in every division, are
263

also important in contributing to the effective implementation of the QMS. In
summary, since the concept of organisational culture and its practice were perceived
as relatively new insights and tended to have a range of interpretations among
construction companies, it was decided to consider only the current organisational
culture profiles of the companies that needs to be identified in main surveys.

Framework guidelines for assisting construction companies in the effective
implementation of ISO 9001
Currently, most the local companies develop and implement QMS by engaging
consultants or through their own self-understanding of ISO 9001 clauses. The
respondents emphasized that they are badly in need of a practical QMS framework
for guiding them in the development and implementataion of effective and successful
QMSs.

Table C-3 Profiles of Pilot Questionnaire Respondents
Features Total
Position of respondents
Quality Management Representatives 8
Project Managers 6
Site Engineers 9
Respondents tenure in the firm
5 10 years 7
11 15 years 11
16 20 years 5
Types of most usual projects
Project Management and Engineering 1
Harbour and River Work 1
Roads and Bridges 5
Buildings 1
Years operating
< 10 years 3
10 20 years 2
> 20 years 4
City of operation
Manado 7
Makassar -
Jakarta 2

264

APPENDIX D Summary of Statistical Data Analysis (Tables)
Table D-1a ANOVA Table for QMS Principles

Sum of
Squares
df
Mean
Square
F Sig.
First QMS principle Between Groups
2.73 2.00 1.36 3.61 .028
Within Groups
151.07 400.00 .38
Total
153.80 402.00
Second QMS
principle Between Groups
1.49 2.00 .75 1.42 .243
Within Groups
210.16 400.00 .53
Total
211.65 402.00
Third QMS principle Between Groups
.12 2.00 .06 0.11 .897
Within Groups
220.66 400.00 .55
Total
220.78 402.00
Fourth QMS principle Between Groups
.90 2.00 .45 0.80 .451
Within Groups
225.56 400.00 .56
Total
226.46 402.00
Fifth QMS principle Between Groups
2.08 2.00 1.04 1.91 .149
Within Groups
217.59 400.00 .54
Total
219.67 402.00
Sixth QMS principle Between Groups
.22 2.00 .11 0.16 .851
Within Groups
265.45 400.00 .66
Total
265.67 402.00
Seventh QMS
principle Between Groups
3.03 2.00 1.51 2.37 .095
Within Groups
255.54 400.00 .64
Total
258.57 402.00
Eight QMS principle Between Groups
1.03 2.00 .52 1.17 .313
Within Groups
177.20 400.00 .44
Total
178.23 402.00


Table D-1b Report ANOVA for the First QMS Principles
Position of Respondent First Principle
High Level Mean 3.24
Std. Deviation .68
Middle Level Mean 3.47
Std. Deviation .61
Low Level Mean 3.41
Std. Deviation .59
Total Mean 3.41
Std. Deviation .62

265

Table D-2a ANOVA Table for QMS Principles

Sum of
Squares
df
Mean
Square
F Sig.
QMS element 1
Between
Groups 1.51 2.00 .76 1.32 .268
Within Groups 229.19 400.00 .57


Total 230.70 402.00


QMS element 2
Between
Groups 1.31 2.00 .65 1.57 .21
Within Groups 166.72 400.00 .42


Total 168.03 402.00
QMS element 3
Between
Groups .16 2.00 .08 .17 .841
Within Groups 186.91 400.00 .47


Total 187.07 402.00


QMS element 4
Between
Groups .48 2.00 .24 .50 .608
Within Groups 192.11 400.00 .48


Total 192.59 402.00
QMS element 5
Between
Groups 7.19 2.00 3.60 6.54 .002
Within Groups 219.99 400.00 .55


Total 227.19 402.00


QMS element 6
Between
Groups .86 2.00 .43 .91 .404
Within Groups 190.12 400.00 .48


Total 190.98 402.00
QMS element 7
Between
Groups 4.27 2.00 2.13 3.23 .041
Within Groups 264.25 400.00 .66


Total 268.52 402.00


QMS element 8
Between
Groups 2.34 2.00 1.17 2.17 .115
Within Groups 214.98 400.00 .54


Total 217.32 402.00
QMS element 9
Between
Groups 1.77 2.00 .89 2.08 .127
Within Groups 170.82 400.00 .43


Total 172.59 402.00


QMS element 10
Between
Groups .42 2.00 .21 .45 .638
Within Groups 186.41 400.00 .47


Total 186.83 402.00
QMS element 11
Between
Groups .60 2.00 .30 .51 .604
Within Groups 235.32 400.00 .59


Total 235.91 402.00




266

Table D-2a ANOVA Table for QMS Principles (continued)

Sum of
Squares
df
Mean
Square
F Sig.
QMS element 12
Between
Groups .35 2.00 .18 .34 .71
Within Groups 204.40 400.00 .51


Total 204.74 402.00
QMS element 13
Between
Groups 1.50 2.00 .75 1.59 .206
Within Groups 188.80 400.00 .47


Total 190.30 402.00


QMS element 14
Between
Groups 3.34 2.00 1.67 3.63 .027
Within Groups 184.03 400.00 .46


Total 187.37 402.00
QMS element 15
Between
Groups .53 2.00 .26 .52 .594
Within Groups 201.58 400.00 .50


Total 202.10 402.00


QMS element 16
Between
Groups 2.27 2.00 1.14 2.31 .1
Within Groups 196.41 400.00 .49


Total 198.68 402.00
QMS element 17
Between
Groups 1.83 2.00 .92 1.64 .196
Within Groups 223.83 400.00 .56


Total 225.67 402.00


QMS element 18
Between
Groups 1.62 2.00 .81 1.23 .293
Within Groups 262.80 400.00 .66


Total 264.42 402.00
QMS element 19
Between
Groups .71 2.00 .35 .57 .568
Within Groups 250.19 400.00 .63


Total 250.90 402.00


QMS element 20
Between
Groups .13 2.00 .07 .12 .884
Within Groups 213.02 400.00 .53


Total 213.15 402.00






267

Table D-2b Report ANOVA for the First QMS Principles
Position of respondent
QMS
element 5
QMS
element 7
QMS
element 14
High Level Mean 3.51 2.67 3.31
Std. Deviation .61 .89 .72
Middle Level Mean 3.25 2.93 3.43
Std. Deviation .73 .76 .62
Low Level Mean 3.10 2.77 3.22
Std. Deviation .83 .86 .75
Total Mean 3.25 2.84 3.35
Std. Deviation .75 .82 .68


Table D-3 ANOVA Table for QMS Barriers

Sum of
Squares
df
Mean
Square
F Sig.
QMS barrier 1
Between
Groups 1.17 2.00 .59 .66 .518
Within Groups 356.32 400.00 .89


Total 357.49 402.00


QMS barrier 2
Between
Groups 2.10 2.00 1.05 1.03 .359
Within Groups 409.36 400.00 1.02


Total 411.46 402.00
QMS barrier 3
Between
Groups .98 2.00 .49 .51 .603
Within Groups 386.16 400.00 .97


Total 387.14 402.00


QMS barrier 4
Between
Groups 3.07 2.00 1.53 1.65 .194
Within Groups 373.10 400.00 .93


Total 376.17 402.00
QMS barrier 5
Between
Groups 1.37 2.00 .69 .81 .447
Within Groups 339.69 400.00 .85


Total 341.06 402.00


QMS barrier 6
Between
Groups .45 2.00 .23 .21 .808
Within Groups 422.53 400.00 1.06


Total 422.98 402.00
QMS barrier 7
Between
Groups 3.03 2.00 1.52 1.80 .167
Within Groups 337.00 400.00 .84


Total 340.03 402.00



268

Table D-3 ANOVA Table for QMS Barriers (continued)

Sum of
Squares
df
Mean
Square
F Sig.
QMS barrier 8
Between
Groups 3.52 2.00 1.76 2.30 .102
Within Groups 305.93 400.00 .77


Total 309.44 402.00
QMS barrier 9
Between
Groups .28 2.00 .14 .16 .852
Within Groups 345.58 400.00 .86


Total 345.86 402.00


QMS barrier 10
Between
Groups 2.07 2.00 1.04 1.22 .297
Within Groups 340.23 400.00 .85


Total 342.30 402.00
QMS barrier 11
Between
Groups .92 2.00 .46 .48 .617
Within Groups 378.69 400.00 .95


Total 379.60 402.00


QMS barrier 12
Between
Groups .47 2.00 .24 .29 .751
Within Groups 328.28 400.00 .82


Total 328.75 402.00
QMS barrier 13
Between
Groups .11 2.00 .06 .08 .921
Within Groups 269.33 400.00 .67


Total 269.44 402.00


QMS barrier 14
Between
Groups .58 2.00 .29 .40 .672
Within Groups 289.90 400.00 .73


Total 290.48 402.00


269

Table D-4 ANOVA Table for QMS KPIs

Sum of
Squares
df
Mean
Square
F Sig.
KPI Profitability
Between
Groups .53 2.00 .26 .69 .504
Within Groups 153.32 400.00 .38


Total 153.84 402.00


KPI Sales growth
Between
Groups .22 2.00 .11 .27 .762
Within Groups 163.81 400.00 .41


Total 164.03 402.00
KPI Market share
Between
Groups .21 2.00 .11 .26 .769
Within Groups 163.10 400.00 .41


Total 163.32 402.00


KPI Global contract
Between
Groups .01 2.00 .01 .02 .977
Within Groups 105.06 400.00 .26


Total 105.07 402.00
KPI Quality service
Between
Groups .70 2.00 .35 1.33 .265
Within Groups 104.31 400.00 .26


Total 105.01 402.00


KPI Sustainable product
Between
Groups .48 2.00 .24 .61 .545
Within Groups 156.71 400.00 .39


Total 157.19 402.00
KPI Innovation
Between
Groups .02 2.00 .01 .02 .978
Within Groups 206.57 400.00 .52


Total 206.59 402.00


KPI Employee satisfaction
Between
Groups .77 2.00 .39 .84 .434
Within Groups 184.69 400.00 .46


Total 185.46 402.00


270

Table D-5 Result of Principal Component Analysis: Total Variance Explained
Initial Eigenvalues
Extraction Sums of
Squared Loadings
Rotation Sums of Squared
Loadings
Compo-
nent Total
% of
Var
Cumu-
lative %
Total
% of
Var
Cumu-
lative %
Total
% of Var
Cumu-
lative %
1 12.45 24.90 24.90 12.45 24.90 24.90 7.56 15.11 15.11
2 4.90 9.81 34.71 4.90 9.81 34.71 5.70 11.39 26.51
3 2.79 5.58 40.28 2.79 5.58 40.28 3.57 7.15 33.65
4 1.82 3.64 43.92 1.82 3.64 43.92 2.65 5.30 38.95
5 1.62 3.24 47.16 1.62 3.24 47.16 2.08 4.16 43.10
6 1.51 3.01 50.17 1.51 3.01 50.17 1.90 3.80 46.90
7 1.45 2.90 53.08 1.45 2.90 53.08 1.82 3.64 50.54
8 1.23 2.46 55.54 1.23 2.46 55.54 1.54 3.08 53.62
9 1.14 2.29 57.82 1.14 2.29 57.82 1.49 2.98 56.60
10 1.09 2.18 60.00 1.09 2.18 60.00 1.40 2.79 59.39
11 1.05 2.11 62.11 1.05 2.11 62.11 1.36 2.72 62.11
12 .99 1.98 64.08
13 .96 1.91 66.00
14 .93 1.87 67.86
15 .82 1.64 69.50
16 .80 1.60 71.09
17 .77 1.54 72.63
18 .72 1.45 74.08
19 .71 1.41 75.49
20 .68 1.35 76.84
21 .66 1.32 78.15
22 .64 1.27 79.43
23 .61 1.21 80.64
24 .60 1.20 81.84
25 .57 1.15 82.99
26 .55 1.10 84.08
27 .53 1.06 85.14
28 .52 1.03 86.17
29 .48 .97 87.14
30 .46 .92 88.06
31 .44 .89 88.95
32 .42 .85 89.80
33 .42 .84 90.64
34 .39 .78 91.41
35 .37 .75 92.16


271

Table D-5 Result of Principal Component Analysis: Total Variance Explained
(continued)
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Compo-
nent Total
% of
Var
Cumu-
lative %
Total
% of
Var
Cumu-
lative %
Total
% of Var
Cumu-
lative
%
36 .36 .72 92.88
37 .35 .69 93.57
38 .34 .68 94.25
39 .32 .65 94.90
40 .31 .62 95.52
41 .29 .59 96.10
42 .27 .53 96.64
43 .26 .53 97.16
44 .26 .51 97.67
45 .24 .47 98.15
46 .23 .46 98.61
47 .20 .40 99.00
48 .18 .36 99.36
49 .17 .34 99.70
50 .15 .30 100.00
Extraction Method: Principal Component
Analysis.

Table D-6 Result of Rotated Component Matrix(a)
Variables 1 2 3 4 5 6 7 8 9 10 11
QMS element 17 .77
QMS element 19 .73
QMS element 16 .73
QMS element 18 .70
QMS element 10 .67
QMS element 2 .66
QMS element 6
QMS element 9
QMS element 11
QMS element 15
QMS element 12
QMS element 3
QMS element 20
QMS element 5
QMS element 13
QMS element 1
QMS element 8

272

Table D-6 Result of Rotated Component Matrix(a) (continued)
Variables 1 2 3 4 5 6 7 8 9 10 11
QMS element 7
QMS barrier 3 .80
QMS barrier 4 .78
QMS barrier 5 .72
QMS barrier 10 .70
QMS barrier 2 .65
QMS barrier 6 .63
QMS barrier 9 .62
QMS barrier 11 .60
QMS barrier 12
QMS barrier 8
Fourth QMS principle .64
Sixth QMS principle .64
Seventh QMS principle .61
First QMS principle
Second QMS principle
Fifth QMS principle
Third QMS principle
Eight QMS principle
KPI Sales growth .88
KPI Profitability .81
KPI Market share .78
KPI Sustainable product .68
KPI Quality service .63
KPI Innovation .61
KPI Employee
satisfaction
QMS barrier 13 .68
QMS barrier 14 .64
QMS element 4
KPI Global contract .69
QMS element 14
QMS barrier 7 .70
QMS barrier 1 .63
Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 24 iterations.




273

Table D-7a Levenes Test Results for Organisational Characteristics
Test of Homogeneity of Variances
Total Pract 9var
Levene Statistic df1 df2 Sig.
1.74 3 65 .168


Table D-7b Levenes Test Results for Management of Employee
Test of Homogeneity of Variances
Total Pract 9var
Levene Statistic df1 df2 Sig.
1.122 3 66 .347


Table D-8 ANOVA Results (Second Run) for Hypothesis 4
Culture
Clan
type
Adhocracy
type
Market
type
Hierarchy
type
ANOVA
M SD M SD M SD M SD F p
1
st
(DC)
3.05 .50 3.14 .55 3.28 .39 e e
1.47 .239
2
nd
(OL)
3.16 .39 e e 3.25 .48 3.02 .59
1.13 .33
3
rd
(ME)
3.09 .49 e e 3.49 .30 3.14 .43 3.53 .035**
4
th
(OG)
e e e e e e

5
th
(SE)
3.27 .37 e e 3.21 .38 2.96 .63
1.98 .148
6
th
(CS)
3.15 .48
e e
3.31 .34 3.10 .49
.77 .466
Notes:
DC = Dominant Characteristics, OL = Organizational Leadership, ME = Management of Employee,
OG = Organizational Glue, SE = Strategic Emphasis, CS = Criteria of Success
** p < 0.05
e : excluded from ANOVA test
: no ANOVA test


















274

Table D-9 SEM Results: Regression Weights from a Structural Equation Model

1 2 3 4 5 6 7 8 9 10 11
DC to Practice* .15 .05 .25 <.01 .05 1.00002 .15 .14 .23 -.12 .42
Practice<--OL -.09 -.20 .02 <.01 .06 1.00001 -.09 -.09 .25 -.33 .21
Practice<--ME* .12 .02 .25 <.01 .06 1.00003 .12 .40 .50 -.12 .45
Practice<--OG -.05 -.17 .06 <.01 .06 1.00002 -.05 -.28 .83 -.35 .29
Practice<--SE* -.20 -.32 -.07 <.01 .06 1.00002 -.20 -.01 .18 -.50 .09
Practice<--CS .01 -.03 .06 <.01 .02 1.00001 .01 .24 .91 -.10 .14
Practice<--
Problems*
-.37 -.53 -.21 <.01 .08 1.00001 -.37 -.01 .12 -.75 .00
KPI<--Practice .01 -.23 .25 <.01 .12 1.00001 .01 .00 .10 -.59 .62
KPI<--Problems* -.25 -.45 -.05 <.01 .10 1.00001 -.25 .00 .09 -.72 .23
Notes:
1 : Mean
2 : 95% Lower bound
3 : 95% Upper bound
4 : Standard error
5 : Standard deviation
6 : Convergence statistics
7 : Median
8 : Skewness
9 : Kurtois
10 : Minimum
11 : Maximum





















275

APPENDIX E Summary of Statistical Data Analysis (Figures)

Figure E-1 Result of Scree Plot


Figure E-2a Normal Distribution Curve for Total QMS Practices



276

Figure E-2b Normal Distribution Curve for Total QMS Barriers

Figure E-2c Normal Distribution Curve for Total QMS KPIs

277

APPENDIX F Summary of Organisational Culture Profiles

Table F-1 Results of Organizational Culture Assessment Instrument
No City Code
Code
OC DC OL ME OG SE CS
City
Years
1 2 3 4 5 6
1 Mdo1 1 1 1 5 1 1 1 3 1
2 Mdo2 1 3 1 4 3 3 1 4 4
3 Mdo3 1 3 1 3 1 1 5 5 1
4 Mdo4 1 1 1 3 1 1 5 5 1
5 Mdo5 1 2 1 4 1 1 1 3 1
6 Mdo6 1 2 1 4 1 1 1 3 1
7 Mdo7 1 2 1 2 3 5 1 3 5
8 Mdo8 1 1 1 1 4 1 4 3 3
9 Mdo9 1 3 5 2 4 3 3 3 1
10 Mdo10 1 2 3 3 4 1 5 3 4
11 Mdo11 1 1 1 1 4 1 1 3 1
12 Mdo12 1 1 1 1 4 1 1 1 1
13 Mdo13 1 1 1 1 4 1 1 1 1
14 Mksr1 2 3 1 3 3 1 1 1 1
15 Mksr2 2 2 1 1 1 1 1 3 4
16 Mksr3 2 2 1 1 1 1 1 4 1
17 Mksr4 2 2 1 1 1 1 1 3 4
18 Mksr5 2 3 1 3 1 1 1 5 1
19 Mksr6 2 3 4 4 2 4 1 4 3
20 Mksr7 2 3 3 3 3 1 1 3 1
21 Mksr8 2 3 1 1 3 3 1 3 1
22 Mksr9 2 2 1 1 2 4 1 5 4
23 Mksr10 2 2 1 1 2 4 1 5 4
24 Mksr11 2 2 99 99 99 99 99 99 99
25 Mksr12 2 2 99 99 99 99 99 99 99
26 Mksr13 2 2 1 1 1 1 1 3 1
27 Mksr14 2 3 1 3 3 1 2 3 4
28 Mksr15 2 2 5 5 3 4 1 5 1
29 Mksr16 2 3 1 2 4 4 1 2 1
30 Mksr17 2 3 1 1 4 1 3 4 1
31 Mksr18 2 2 1 1 3 4 1 4 1
32 Mksr19 2 1 1 1 4 1 5 4 1
33 Mksr20 2 2 3 2 3 2 3 5 4
34 Mksr21 2 2 4 4 4 3 1 1 4
35 Mksr22 2 2 1 1 4 1 1 1 1
36 Mksr23 2 2 4 1 4 1 4 4 5
37 Jkt1 3 3 3 2 3 1 1 3 1

278

Table F-1 Results of Organizational Culture Assessment Instrument (continued)
No City Code
Code
OC DC OL ME OG SE CS
City
Years
1 2 3 4 5 6
38 Jkt2 3 3 1 1 4 1 1 1 1
39 Jkt3 3 3 4 3 5 2 2 4 5
40 Jkt4 3 3 3 3 3 3 3 3 5
41 Jkt5 3 3 3 3 4 1 1 1 3
42 Jkt6 3 2 3 2 5 3 1 3 1
43 Jkt7 3 3 1 3 1 1 1 4 4
44 Jkt8 3 3 1 3 3 1 1 1 1
45 Jkt9 3 3 1 3 4 1 1 2 1
46 Jkt10 3 2 3 3 3 3 5 3 3
47 Jkt11 3 3 1 1 1 4 1 4 4
48 Jkt12 3 3 3 3 3 3 4 5 3
49 Jkt13 3 2 3 3 3 1 3 5 3
50 Jkt14 3 3 1 2 1 3 5 2 3
51 Jkt15 3 3 1 1 2 1 1 5 4
52 Jkt16 3 3 4 1 5 4 1 5 4
53 Jkt17 3 3 4 3 3 4 1 4 4
54 Jkt18 3 3 1 1 5 1 5 3 4
55 Jkt19 3 3 1 5 1 2 1 3 4
56 Jkt20 3 1 1 1 3 1 3 1 4
57 Jkt21 3 2 1 1 4 1 1 2 4
58 Jkt22 3 3 1 1 3 4 1 4 3
59 Jkt23 3 2 3 3 3 1 1 3 4
60 Jkt24 3 3 1 1 4 4 1 1 1
61 Jkt25 3 3 3 2 2 3 5 3 3
62 Jkt26 3 3 2 2 2 2 1 3 1
63 Jkt27 3 2 1 1 1 1 1 4 4
64 Jkt28 3 3 4 2 4 4 4 4 5
65 Jkt29 3 3 1 1 3 1 1 3 4
66 Jkt30 3 3 1 3 3 5 1 5 5
67 Jkt31 3 3 1 3 1 4 2 3 1
68 Jkt32 3 3 99 99 99 99 99 99 99
69 Jkt33 3 2 1 5 4 1 1 5 1
70 Jkt34 3 3 3 2 5 5 4 3 3
71 Jkt35 3 3 1 5 1 1 5 1 1
72 Jkt36 3 3 1 1 2 5 5 2 1
73 Jkt37 3 3 3 3 2 3 3 5 3







279

Table F-1 Results of Organizational Culture Assessment Instrument (continued)
No City Code
Code
OC DC OL ME OG SE CS
City
Years
1 2 3 4 5 6
74 Jkt38 3 2 1 1 4 1 1 1 1
75 Jkt39 3 3 1 1 4 1 1 1 1
76 Jkt40 3 2 1 1 4 1 1 2 4
77 Jkt41 3 3 1 3 1 1 1 4 4
Notes:
Code City : 1 = Manado, 2 = Makassar, 3 = Jakarta
Code Years : 1 = < 10 years, 2 = 10 - 20 years, 3 = > years
OC : Organisational culture
DC : Dominant characteristics
OL : Organisational leadership
ME : Management of employees
OG : Organisation glue
SE : Startegic emphasis
CS Criteria of success
Culture Types : 1 = Clan, 2 = Adocracy, 3 = Market, 4 = Hierarchy
99 : Incomplete data


Table F-2 Results of the Strength of the Overall Dominant Culture Types
No City Code
Code C A M H Total Dominant

City Years Value Value Value Value Values and Strong Culture
Type
1 Mdo1 1 1
30 22 26 22
100 1
2 Mdo2 1 3
29 16 28 28
100 1
3 Mdo3 1 3
37 17 28 18
100 1
4 Mdo4 1 1
37 17 28 18
100 1
5 Mdo5 1 2
36 20 24 20
100 1
6 Mdo6 1 2
34 20 24 22
100 1
7 Mdo7 1 2
29 22 26 24
100 1
8 Mdo8 1 1
29 21 26 25
100 1
9 Mdo9 1 3
24 21 28 28
100 5
10 Mdo10 1 2
25 20 28 27
100 3
11 Mdo11 1 1
30 18 26 27
100 1
12 Mdo12 1 1
32 19 24 24
100 1
13 Mdo13 1 1
34 17 25 24
100 1
14 Mksr1 2 3
30 22 27 22
100 1
15 Mksr2 2 2
33 22 24 22
100 1
16 Mksr3 2 2
36 17 22 24
100 1
280

Table F-2 Results of the Strength of the Overall Dominant Culture Types
(continued)
No City Code
Code C A M H Total Dominant

City Years Value Value Value Value Values and Strong Culture
Type
17 Mksr4 2 2
30 25 22 23
100 1
18 Mksr5 2 3
28 22 25 24
100 1
19 Mksr6 2 3
22 22 24 32
100 4
20 Mksr7 2 3
25 21 30 24
100 3
21 Mksr8 2 3
30 18 29 23
100 1
22 Mksr9 2 2
28 23 25 25
100 1
23 Mksr10 2 2
28 23 25 25
100 1
24 Mksr11 2 2
99 99 99 99
100
99
25 Mksr12 2 2
99 99 99 99
100
99
26 Mksr13 2 2
29 23 23 25
100 1
27 Mksr14 2 3
26 24 25 24
100 1
28 Mksr15 2 2
27 22 27 24
100 5
29 Mksr16 2 3
28 27 20 25
100 1
30 Mksr17 2 3
33 17 22 28
100 1
31 Mksr18 2 2
35 21 17 27
100 1
32 Mksr19 2 1
33 21 18 28
100 1
33 Mksr20 2 2
18 30 32 20
100 3
34 Mksr21 2 2
26 16 25 33
100 4
35 Mksr22 2 2
30 22 25 23
100 1
36 Mksr23 2 2
28 18 18 36
100 4
37 Jkt1 3 3
27 23 29 21
100 3
38 Jkt2 3 3
30 20 22 27
100 1
39 Jkt3 3 3
26 22 25 27
100 4
40 Jkt4 3 3
23 22 30 24
100 3
41 Jkt5 3 3
27 24 28 22
100 3
42 Jkt6 3 2
28 24 29 20
100 3
43 Jkt7 3 3
29 18 27 27
100 1
44 Jkt8 3 3
28 21 26 25
100 1
45 Jkt9 3 3
27 25 26 22
100 1
46 Jkt10 3 2
20 23 38 20
100 3
47 Jkt11 3 3
32 19 22 27
100 1
48 Jkt12 3 3
16 21 34 29
100 3
49 Jkt13 3 2
20 19 38 23
100 3
50 Jkt14 3 3
26 25 24 25
100 1
51 Jkt15 3 3
32 21 20 28
100 1
52 Jkt16 3 3
28 18 24 30
100 4
53 Jkt17 3 3
24 20 26 30
100 4
54 Jkt18 3 3
29 24 26 21
100 1

281

Table F-2 Results of the Strength of the Overall Dominant Culture Types
(continued)
No City Code
Code C A M H Total Dominant

City Years Value Value Value Value Values and Strong Culture
Type
55 Jkt19 3 3
28 25 24 23
100 1
56 Jkt20 3 1
33 9 30 28
100 1
57 Jkt21 3 2
29 22 25 24
100 1
58 Jkt22 3 3
29 20 26 25
100 1
59 Jkt23 3 2
28 15 37 21
100 3
60 Jkt24 3 3
38 15 22 26
100 1
61 Jkt25 3 3
23 25 29 23
100 3
62 Jkt26 3 3
25 28 27 20
100 2
63 Jkt27 3 2
31 18 22 29
100 1
64 Jkt28 3 3
19 22 24 35
100 4
65 Jkt29 3 3
32 12 30 26
100 1
66 Jkt30 3 3
28 26 26 21
100 1
67 Jkt31 3 3
30 23 26 20
100 1
68 Jkt32 3 3
99 99 99 99
99 99
69 Jkt33 3 2
33 21 18 28
100 1
70 Jkt34 3 3
23 22 28 27
100 3
71 Jkt35 3 3
33 21 25 22
100 1
72 Jkt36 3 3
28 25 25 23
100 1
73 Jkt37 3 3
25 23 30 22
100 3
74 Jkt38 3 2
40 18 16 26
100 1
75 Jkt39 3 3
30 20 22 27
100 1
76 Jkt40 3 2
29 22 25 24
100 1
77 Jkt41 3 3
29 18 27 27
100 1
Notes:
Code City : 1 = Manado, 2 = Makassar, 3 = Jakarta
Code Years : 1 = < 10 years, 2 = 10 - 20 years, 3 = > years
C : Clan
A : Adhocracy
M : Market
H : Type
Culture Types : 1 = Clan, 2 = Adocracy, 3 = Market, 4 = Hierarchy, 5 = Mixed culture
: Dominant and strong culture type(s)
99 : Incomplete data



282

APPENDIX G List of Publications

Coffey, Vaughan, Willar, Debby, & Trigunarsyah, Bambang (2011) Quality
management system and construction performance. In Proceedings of 2011 IEEE
International Conference on Quality and Reliability, ICQR 2011, IEEE Computer
Society, Bangkok, Thailand.

Trigunarsyah, Bambang, Coffey, Vaughan, & Willar, Debby (2011) An empirical
study of applying ISO 9001 elements in large size Indonesian contractors. In Ahmed,
Syed M. (Ed.) 6th International Conference on Construction in the 21st Century
(CITC-VI), July 5-7, 2011, Kuala Lumpur, Malaysia.

Coffey, Vaughan, Willar, Debby, & Trigunarsyah, Bambang (2011) Profiles of
organisational culture in Indonesian construction companies. In Sai, On Cheung
(Ed.) Proceedings of the Sixth International Structural Engineering and
Construction Conference (ISEC-6), ETH Zrich, Zrich.

Willar, Debby, Coffey, Vaughan, & Trigunarsyah, Bambang (2010) An examination
of factors influencing effective and continuous improvement of Indonesian
contractors' quality management systems. In Wang, Yaowu, Yang, Jay, Shen,
Geoffrey, & Wong, Johnny (Eds.) Proceedings of 2010 International Conference on
Construction & Real Estate Management, China Architecture & Building Press,
Royal on the Park Hotel, Brisbane, Queensland, pp. 318-322.

Willar, Debby, Coffey, Vaughan, & Trigunarsyah, Bambang (2010) Improving
quality management system implementation in Indonesian construction firms : a
research project. In Proceedings of the 1st Makassar International Conference on
Civil Engineering (MICCE 2010), Civil Engineering Department, Hasanuddin
University, Indonesia, Clarion Hotel & Convention, Makassar, South Sulawesi.