The relationship between government policies and projects: A strategic management perspective in renewable energy industry

Fitria Astuti Firman, Ine Minara Ruky, Ratih Dyah Kusumastuti, Harris Turino Kurniawan

Research output: Contribution to journalReview articlepeer-review


This paper aims to identify the internal attributes of a firm that act as mediators by integrating research on Entrepreneurship, Strategic Management, and Project Management. Previous research shows that entrepreneurial orientation and capabilities are important attributes that mediate the relationship between institutional context and project level. Project in this paper refers to a strategic project — a bundle of activities that are intended to achieve a business goal of a firm. Thus, project performance has a broader definition in this case. Six hypotheses of the research model were analysed using Structural Equation Modelling (SEM). The specific context of the renewable energy power generation industry is chosen to confirm the research model. This industry is highly regulated; the government has a critical role in creating and shaping the market. In this industry, the return of capital is regulated, and there is only one buyer. The units of analysis are Independent Power Producers (IPPs), which are project-based companies dedicated to building, operating and maintaining power generation projects. Structural model analysis shows that only four hypotheses are supported by data. Findings indicate the relationship between government policies and project performance is mediated by two firm attributes: entrepreneurial orientation and network capability. Further study is needed for an indepth understanding of the relationship between project management capability and project performance.

Original languageEnglish
Pages (from-to)85-102
Number of pages18
JournalPertanika Journal of Social Sciences and Humanities
Issue numberAugust
Publication statusPublished - Aug 2018


  • Entrepreneurial orientation
  • Government policies
  • Project performance
  • Resource orchestration


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