Kristianu Epidiato, Putu Ika Wahyuni^b, I Wayan Muka^c , José Manuel Maniquim^d, Canossa de Araujo Lopes^e

^{a*, b, c, d, e} Master of Infrastructure and Environmental Engineering, Postgraduate Program, Warmadewa University, Denpasar

^{d, e} Faculty of Engineering, University of da Paz, Timor Leste

*Correspondence: epidepidto@gmail.com, ikawahyuni9971@yahoo.com, iwymuka@gmail.com, jmaniquin.0508722@gmail.com, canossaraujolopes@gmail.com

Submit……, accepted……, published………

Abstract

The development of Labuan Bajo as the second-largest tourism destination after Bali is significant. By 2024, all government-planned tourism facilities, such as the integrated marina area and the waterfront city hotel, will be completed. By 2025, Labuan Bajo will have a thousand rooms, including the Crowne Plaza Labuan Bajo Nawa Hotel, and the Marina Hotel. All of these are strategic investment projects in Labuan Bajo. Limited project resources hinder contractors' flexibility in managing projects, as the region still relies on building materials supplied from outside Labuan Bajo according to their specifications. The building materials supply chain faces numerous challenges, resulting in low project performance. However, management is required to develop useful innovations that positively impact project performance. Management plays a crucial role in project implementation, including adherence to regulations and contracts at the outset.

This study aims to: 1. Identify the factors that shape fabric supply management, and enhance performance through innovation as a supporting factor. 2. Develop a model of the relationship between fabric supply, management, performance, and innovation. 3. How is the most significant model influencing performance? The method used in analyzing this research is Smartpls student version. Based on the results of data analysis, the influence of independent variables on dependent variables through intervening variables can be explained as follows. 1. The influence of supply chain on innovation through management is significantly positive at 0.580. 2. The influence of supply chain on performance through management is significantly positive at 0.292. 3. The influence of management on performance through innovation is significantly positive at 0.441. 4. The influence of supply chain on performance through management and innovation is significantly positive at 0.379. Thus, contractor innovation in managing projects has a significant influence on performance (Cost, Quality, Time, Safety and Environment)