Digitalization: Potentials of Digital Technology Capabilities in the Construction Industry

Abstract

Digital technology is an essential component of construction management. It evolves to highlight effective forms of project management in ensuring the high profits in construction businesses. However, there is no comprehensive assessment of the adoption and significance of digital technology (DT) that has been shown to be helpful in the organisation management. As a result, the lack of a reliable source that can establish the significance of a construction firm, the extent of technology application as competitive advantage is also uncertain. This restricts direct interaction between the parties involved in the project management. Therefore, digital technology capability (DTC) is not disclosed the level of utilisation and importance in project management that influence organisation in driving organization innovation for future investment. To fill the gap, this paper aimed to identify the key elements, to map the state and interpret the available evidence through resource-based view (RBV) theory of DT utilize according to firm requirement related to procurement, logistics, construction and marketing. The results of four elements which twenty-five DTC were interpreted into quantitative questionnaire by using dual Likert-scale and 341 out of 363 participants are gathered. It has been tested for validity and reliability using ranking and Important-Performance analysis (IPA) approach. The study found that the majority of participant have vigorous in connectivity, intermediate in digital access and emerging technology but shallow in automation technology. Therefore, it provides a current picture to government, practitioner, leader and subordinate in the organization to optimize DTC that is often used and effective to all management parties involved in the firm. In fact, this is able to set an organization innovation strategy in the digital age.