A Strategic Approach to Information Communication Technology Diffusion—An Australian Study

The construction industry can be characterised as fragmented as a consequence of its project-based nature and its quasi-firm supply chain (Eccles, 1981). Industry fragmentation may be decreasing with a shift from projects being regarded as independent entities towards an industry with an integrated activity flow through the supply chain. Information Communication Technology (ICT) forms the `glue' that binds the project supply chain members together, enabling closer and more effective coordination of project teams. A closer virtual engagement through ICT, together with increased acceptance of relationship based procurement systems such as Project Alliancing, has further cemented the shift towards supply chain activity integration. In this paper, we outline four case studies of Australian construction companies that have effectively embraced ICT as a tool for more productive coordination of their project teams. Through their use of ICT, these companies are preparing to embrace the concept of a virtual organisation linked by ICT to facilitate efficient project communication and information exchange for decision-making. These case studies identify how senior management has directed global strategy for change and the extent to which they have empowered team members at multiple-levels throughout their organisations to shape strategy and its implementation.