HRMARS - In recent years, the construction industry has developed significantly and has become one of the leading sectors for societal and economic advancement. The market for construction services in Indonesia is highly promising, with government and private sector investment activities increasing annually. A common challenge faced in project implementation is the unidentified and unmanaged project risks, which hinder the achievement of project goals in terms of time, cost, and quality. This research utilized the Smart PLS application, with the study population consisting of construction service companies affiliated with the Indonesian National Construction Contractors Association (GAPENSI) in East Java Province. The study sample included 97 respondents. The findings indicate that credit risk and effectiveness significantly affect company performance. Interest rate risk, foreign exchange risk, market risk, and liquidity risk do not significantly affect company performance. Foreign exchange risk, credit risk, and liquidity risk do not significantly affect effectiveness. Foreign exchange risk and market risk significantly affect effectiveness.
Hartantyo et al. (2026) studied this question.