Industry structure influences production and productivity of a sector because industry structuredetermines the number of asset production such as number of equipment, human resources, and labor aswell as technology employed within the sector. Industry structure are determined by investment programof the industry player which is determined by their strategy based on their perception of market sizeopportunity, easiness of doing business, transaction cost economy, time horizon considered within the_frame work of business sustainability and competitiveness. Strategy choice .available are based on the twobasic business strategy which are resources base strategy or market base strategy. Consequences of thechoice will a_/_'feet the investment direction within the industry and in turn the asset production will beaccumulated accordingly then to form industry structure. In research Cause and Eject between variablewill be determined a-priori wise _first to check whether this a-priori assumption is correct and accurateenough then followed by confirmatory analysis using Structural Equation Modeling will be performed.Relation parameters are estimated using factor scores regression. Casuall relation are developed basedon Fisman & Sarria - Alende pervious research. Investment are determined by industry players strategywhich is based on transaction cost economy, entry regulation easyness for the industry and by analogy ofSimon Theory is also determined by long term vision, availability of resources, capacity of the company,and market size. Specialization strategy trends is driven by long term vision, low transaction costeconomy. Generalization strategy trends is driven by smaller market size, and entry regulation easinessto enter for the industry. Casual relation as found by Sarria - Alende, and theory postulated by Simon didnot materialize in the construction industry case. |