Heuristic Decision Making: Answers or Bonkers (Analysis in Construction Project)

Jean Richard Jokhu
Faculty of Business, President University

Rofikoh Rokhim
Faculty of Economic and Business, Universitas Indonesia


This study mainly focused on introducing a heuristic decision-making process as a central process in project-based firms in a developing country. This research shed light on a project-based firm from an underdeveloped region with a different decision processing method. In the construction industry, competition is decided since they choose the project. Therefore, this study used small and medium-sized enterprises (SMEs) in the construction industry as a unit analysis to investigate how firm and government institutions can affect project performance chosen by the heuristic decision-making process. The data was collected from 129 project-based SMEs in Indonesia and the structured equation modelling from LISREL was used to analyse the data. The results showed a significant relationship between a firm with a heuristic decision-making process and a firm toward project performance.

Keywords: Heuristic, Firm resource, Government regulation, Project quality