Urban Development Management Strategies to Enhance Regional Competitiveness: Evidence from Urban Planning in Medan City

Pretty Naomi Sitompul; Cindy Yolanda

doi:10.61255/jeemba.v4i4.929

Authors

Pretty Naomi Sitompul Politeknik Unggulan Cipta Mandiri https://orcid.org/0009-0009-8892-0269
Cindy Yolanda Universitas Tjut Nyak Dhien https://orcid.org/0009-0008-6245-9788

DOI:

https://doi.org/10.61255/jeemba.v4i4.929

Keywords:

Regional competitiveness, Resource optimization, Urban development management, Urban governance, Urban planning

Abstract

Purpose – Rapid urbanization and fragmented urban governance have created significant challenges for regional competitiveness in emerging metropolitan cities such as Medan, Indonesia. This study examines how urban development management strategies enhance regional competitiveness, with resource optimization positioned as a mediating mechanism.

Design/methodology/approach – This study adopted a quantitative explanatory approach through a cross-sectional survey involving 120 stakeholders engaged in urban planning and development in Medan City, including government officials, academics, planning professionals, and private-sector actors. Data were gathered using structured questionnaires and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM).

Finding/Results – The findings reveal that urban development management significantly improves resource optimization (β = 0.68) and regional competitiveness (β = 0.31). Resource optimization also positively affects regional competitiveness (β = 0.44) and partially mediates the relationship between urban development management and regional competitiveness (β = 0.30). These findings indicate that governance capability contributes to competitiveness both directly and indirectly through operational efficiency mechanisms.

Originality/Value – This study extends the application of the Resource-Based View (RBV) in the urban governance context by demonstrating that resource optimization functions as an operational mechanism linking strategic urban management and competitiveness outcomes. The findings suggest that improving regional competitiveness requires not only integrated governance structures but also stronger operational efficiency in urban resource utilization.

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