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
Abstract
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
