Exploratory Factor Analysis of Construction Industry Problems in a Developing Country

Various problems faced by the construction sector have hampered the performance and growth of the construction industry in many countries, including Indonesia. This research aims to quantitatively investigate the factors that hinder the performance of the construction industry in Indonesia. Through a literature review approach, 54 inhibiting factors were identified. Next, a questionnaire was conducted to measure the perceptions of Indonesian construction practitioners. The data obtained was analyzed through exploratory factor analysis. This research found seven underlying factors inhibiting the performance of the Indonesian construction industry, namely (1) poor system and practice, (2) incompetency of stakeholders, (3) global challenges, (4) poor site management, (5) poor resource management, (6) slow technology adoption, and (7) lack of detailed planning and decision-making. In addition, these findings are compared with results from similar research that has been conducted in other 14 countries so that it can provide a more comprehensive understanding regarding the criticality of construction industry problems globally. This research contributes by providing a current insight of construction industry problems in developing countries. The results can be used by the government and construction organizations in mapping underlying problems in the construction industry and determining appropriate strategic steps to overcome these problems. (c) 2024 American Society of Civil Engineers.