Structural Equation Modeling Development of The Quality Culture of Indonesian State-Owned Construction Companies to Reduce The Level of Construction Failure

Construction failure is still a major issue in the construction world, especially in Indonesia. There were so many construction failures in Indonesia hence the Indonesian government suspended all infrastructure projects and gave sanctions to the companies. This research was conducted at several state-owned construction companies in Indonesia. There were 7 main variables to be examined in this research, i.e. National Culture, Professional Culture, Policy, Organization Culture, Quality Management System, Quality Culture, and Construction Failure. The quality culture variables are divided into 3 i.e. Leadership, Communication, and Maturity. This research was designed through 3 stages i.e. archive analysis, respondent survey, and expert validation. The respondent survey was conducted by distributing a closed questionnaire to 150 respondents. Structural Equation Modeling (SEM) was used to analyze the relationship of the variables. Then the results were validated by experts in the field of construction quality management with more than 25 years of work experience. The analysis shows that National Culture, Policy, and Quality Management System variables significantly influence quality culture namely the Leadership system but Professional Culture and Organization Culture variables don't influence quality culture namely the Leadership system. Quality Culture variable is represented by Leadership significantly influence to Failure Construction. This research can serve as a basis for the development of a quality culture strategy to reduce construction failures.