Impact of Digital Technology Adoption on the Comparative Advantage of Architectural, Engineering, and Construction Firms in Singapore
Publication: Journal of Construction Engineering and Management
Volume 149, Issue 12
Abstract
With a plethora of digital technologies, and some having high capital and running costs, it is critical to know which of these give architectural, engineering, and construction (AEC) firms a comparative advantage. Comparative advantage is measured using these metrics: higher project quality (Y1), productivity (Y2), ability to win tenders (Y3), and reputation (Y4), compared to AEC firms’ nearest competitors. This study investigated which specific digital technologies give rise to a comparative advantage for adopters in the AEC sector. The research design was an online survey using a structured questionnaire. Data were collected from AEC professionals in Singapore. The research found that the adoption of five digital technologies is significantly associated with higher project quality, productivity, and reputation compared to AEC firms’ nearest competitors. These ‘super technologies’ are cloud-based technology, design for manufacturing and assembly (DfMA), Internet-of-Things (IoT), robotic technology, and artificial intelligence (AI). The study discovered some digital technologies that are not correlated with any comparative advantage metrics. The contribution to knowledge is the creation of the digital technology adoption model that potential adopters may use to help them decide which specific digital technologies to adopt to achieve comparative advantage. For firms that are already adopting digital technologies, the adoption model serves as a benchmarking tool to measure comparative advantage. The implication for practice is for potential adopters to zoom in on the ‘super technologies’ and eschew those that do not provide comparative advantages.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
Some or all data generated and analyzed in the current study are also available from the corresponding author upon reasonable request.
References
Adane, M. 2022. “Business-driven approach to cloud computing adoption by small businesses.” Afr. J. Sci. Technol. Innovation Dev. 15 (2): 166–174. https://doi.org/10.1080/20421338.2022.2058338.
Ahn, C. R., S. Lee, C. Sun, H. Jebelli, K. Yang, and B. Choi. 2019. “Wearable sensing technology applications in construction safety and health.” J. Constr. Eng. Manage. 145 (11): 03119007. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001708.
Bashin, H. 2021. “Direct competition—Definition, examples and strategy.” Accessed August 1, 2023. https://www.marketing91.com/direct-competition/.
BCA (Building and Construction Authority). 2001. “One-stop CORENET system.” Accessed April 24, 2023. http://www.corenet.gov.sg/.
Berger, R. 2016. Digitalization in the construction industry: Building Europe’s road to construction 4.0. Munich, Germany: Roland Berger Gmbh.
Cha, Y. J., W. Choi, and O. Büyüköztürk. 2017. “Deep learning-based crack damage detection using convolutional neural networks.” Comput.-Aided Civ. Infrastruct. Eng. 32 (5): 361–378. https://doi.org/10.1111/mice.12263.
Chen, X., A. Chang-Richards, F. Y. Ling, T. W. Yiu, A. Pelosi, and N. Yang. 2022a. “Developing a readiness model and a self-assessment tool for adopting digital technologies in construction organizations.” Build. Res. Inf. 51 (3): 241–256. https://doi.org/10.1080/09613218.2022.2136130.
Chen, X., A. Chang-Richards, T. W. Yiu, F. Y. Ling, A. Pelosi, and N. Yang. 2023. “A multivariate regression analysis of barriers to digital technologies adoption in the construction industry.” Eng. Constr. Archit. Manage. https://doi.org/10.1108/ECAM-11-2022-1051.
Chen, X., A. Y. Chang-Richards, A. Pelosi, Y. Jia, X. Shen, M. K. Siddiqui, and N. Yang. 2022b. “Implementation of technologies in the construction industry: A systematic review.” Eng. Constr. Archit. Manage. 29 (8): 3181–3209. https://doi.org/10.1108/ECAM-02-2021-0172.
Chen, Y., Y. Yin, G. J. Browne, and D. Li. 2019. “Adoption of building information modeling in Chinese construction industry: The technology-organization-environment framework.” Eng. Constr. Archit. Manage. 26 (9): 1878–1898. https://doi.org/10.1108/ECAM-11-2017-0246.
Cheng, J. C., and Q. Lu. 2015. “A review of the efforts and roles of the public sector for BIM adoption worldwide.” J. Inf. Technol. Constr. 20 (27): 442–478.
Chua, D. K. H., K. W. Yeoh, and Y. Song. 2010. “Quantification of spatial temporal congestion in four-dimensional computer-aided design.” J. Constr. Eng. Manage. 136 (6): 641–649. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000166.
Davis, F. D. 1989. “Perceived usefulness, perceived ease of use, and user acceptance of information technology.” MIS Q. 13 (3): 319–340. https://doi.org/10.2307/249008.
Davis, F. D. 1993. “User acceptance of information technology: System characteristics, user perceptions and behavioral impacts.” Int. J. Man Mach. Stud. 38 (3): 475–487. https://doi.org/10.1006/imms.1993.1022.
De Soto, G. B., I. Agusti-Juan, J. Hunhevicz, S. Joss, K. Graser, G. Habert, and B. T. Adey. 2018. “Productivity of digital fabrication in construction: Cost and time analysis of a robotically built wall.” Autom. Constr. 92 (Aug): 297–311. https://doi.org/10.1016/j.autcon.2018.04.004.
Fang, Y., Y. K. Cho, S. Zhang, and E. Perez. 2016. “Case study of BIM and cloud–enabled real-time RFID indoor localization for construction management applications.” J. Constr. Eng. Manage. 142 (7): 05016003. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001125.
Gao, S., S. P. Low, and K. Nair. 2018. “Design for manufacturing and assembly (DfMA): A preliminary study of factors influencing its adoption in Singapore.” Archit. Eng. Des. Manage. 14 (6): 440–456. https://doi.org/10.1080/17452007.2018.1502653.
Ghosh, A., D. J. Edwards, and M. R. Hosseini. 2020. “Patterns and trends in Internet of Things (IoT) research: Future applications in the construction industry.” Eng. Constr. Archit. Manage. 28 (2): 457–481. https://doi.org/10.1108/ECAM-04-2020-0271.
Haas, C., P. Goodrum, and C. Caldas. 2008. Leveraging technology to improve construction productivity. Austin, TX: Univ. of Texas at Austin.
Hair, J. F., G. T. M. Hult, C. M. Ringle, and M. Sarstedt. 2014. A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks, CA: SAGE.
Hong, Y., A. W. A. Hammad, and A. A. Nezhad. 2022. “Optimising the implementation of BIM: A 2-stage stochastic programming approach.” Autom. Constr. 136 (Apr): 104170. https://doi.org/10.1016/j.autcon.2022.104170.
Hwang, B. G., J. Ngo, and P. W. Y. Her. 2020. “Integrated digital delivery: Implementation status and project performance in the Singapore construction industry.” J. Cleaner Prod. 262 (Jul): 121396. https://doi.org/10.1016/j.jclepro.2020.121396.
Hwang, B. G., J. Ngo, and J. Z. K. Teo. 2022. “Challenges and strategies for the adoption of smart technologies in the construction industry: The case of Singapore.” J. Manage. Eng. 38 (1): 05021014. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000986.
Institute for Work and Health. 2005. “What researchers mean by statistical significance.” Accessed April 24, 2023. https://www.iwh.on.ca/newsletters/at-work/40.
Irizarry, J., E. P. Karan, and F. Jalaei. 2013. “Integrating BIM and GIS to improve the visual monitoring of construction supply chain management.” Autom. Constr. 31 (May): 241–254. https://doi.org/10.1016/j.autcon.2012.12.005.
Jones, T. L., M. A. J. Baxter, and V. Khanduja. 2013. “A quick guide to survey research.” Ann. R. Coll. Surgeon Engl. 95 (1): 5–7. https://doi.org/10.1308/003588413X13511609956372.
Kranz, M. 2016. Building the internet of things: Implement new business models, disrupt competitors, transform your industry. Hoboken, NJ: Wiley.
Kumar, V. P., M. Balasubramanian, and S. J. Raj. 2016. “Robotics in construction industry.” Indian J. Sci. Technol. 11 (23): 1–7. https://doi.org/10.17485/ijst/2018/v11i23/125641.
Lee, J., and J. Kim. 2017. “BIM-based 4D simulation to improve module manufacturing productivity for sustainable building projects.” Sustainability 9 (3): 426. https://doi.org/10.3390/su9030426.
Liao, L., E. A. L. Teo, R. Chang, and X. Zhao. 2020. “Diffusion of building information modeling in building projects and firms in Singapore.” Sustainability 12 (18): 7762. https://doi.org/10.3390/su12187762.
Liu, H., S. Han, and Z. Zhu. 2023. “Blockchain technology toward smart construction: Review and future directions.” J. Constr. Eng. Manage. 149 (3): 03123002. https://doi.org/10.1061/JCEMD4.COENG-11929.
Love, P., and J. Matthews. 2019. “The ‘how’ of benefits management for digital technology: From engineering to asset management.” Autom. Constr. 107 (Nov): 102930. https://doi.org/10.1016/j.autcon.2019.102930.
Ma, Q., S. Li, P. X. Teo, and F. Y. Y. Ling. 2022. “Barriers to adopting integrated project delivery practices.” Eng. Constr. Archit. Manage. https://doi.org/10.1108/ECAM-09-2019-0498.
Milliou, C., and E. Petrakis. 2011. “Timing of technology adoption and product market competition.” Int. J. Ind. Organ. 29 (5): 513–523. https://doi.org/10.1016/j.ijindorg.2010.10.003.
Mrazovic, N., and M. Fischer. 2022. “Assessment framework for additive manufacturing in the AEC industry.” J. Constr. Eng. Manage. 148 (5). https://doi.org/10.1061/(ASCE)CO.1943-7862.0002272.
Munkvold, B. E. 1999. “Challenges of IT implementation for supporting collaboration in distributed organizations.” Eur. J. Inf. Syst. 8 (4): 260–272. https://doi.org/10.1057/palgrave.ejis.3000340.
Na, S., S. Heo, S. Han, Y. Shin, and Y. Roh. 2022. “Acceptance model of artificial intelligence (AI)-based technologies in construction firms: Applying the Technology Acceptance Model (TAM) in combination with the Technology–Organisation–Environment (TOE) framework.” Buildings 12 (2): 90. https://doi.org/10.3390/buildings12020090.
Ngo, J., and B. G. Hwang. 2022. “Critical project management knowledge and skills for managing projects with smart technologies.” J. Manage. Eng. 38 (6): 05022013. https://doi.org/10.1061/(ASCE)ME.1943-5479.0001095.
Park, E. S., and M. S. Park. 2020. “Factors of the technology acceptance model for construction IT.” Appl. Sci. 10 (22): 8299. https://doi.org/10.3390/app10228299.
Qin, X., Y. Shi, K. Lyu, and Y. Mo. 2020. “Using a TAM-TOE model to explore factors of building information modelling (BIM) adoption in the construction industry.” J. Civ. Eng. Manage. 26 (3): 259–277. https://doi.org/10.3846/jcem.2020.12176.
Qin, Y., and T. Bulbul. 2023. “An EEG-based mental workload evaluation for AR head-mounted display use in construction assembly tasks.” J. Constr. Eng. Manage. 149 (9): 04023088. https://doi.org/10.1061/JCEMD4.COENG-13438.
Rogers, E. M. 1962. Diffusion of innovations. 1st ed. New York: Free Press of Glencoe.
Rogers, E. M. 2003. Diffusion of innovations. 5th ed. New York: Free Press.
Sawhney, A., M. Riley, J. Irizarry, and M. Riley. 2020. Construction 4.0. London: Routledge.
Schwab, K. 2017. The fourth industrial revolution. New York: Crown Business.
Sepasgozar, S. M., M. Loosemore, and S. R. Davis. 2016. “Conceptualising information and equipment technology adoption in construction: A critical review of existing research.” Eng. Constr. Archit. Manage. 23 (2): 158–176. https://doi.org/10.1108/ECAM-05-2015-0083.
Shyam, G. K., and I. Chandrakar. 2018. “Resource allocation in cloud computing using optimization techniques.” In Cloud computing for optimization: Foundations, applications, and challenges. New York: Springer.
Thibaud, M., H. Chi, W. Zhou, and S. Piramuthu. 2018. “Internet of things (IoT) in high-risk environment, health and safety (EHS) industries: A comprehensive review.” Decis. Support Syst. 108 (Apr): 79–95. https://doi.org/10.1016/j.dss.2018.02.005.
Tornatzky, L. G., M. Fleischer, and A. K. Chakrabarti. 1990. Processes of technological innovation. Washington: Lexington Books.
Venugopal, M. 2019. “Announcing construction IQ preview, partner data integrations and other analytics capabilities for BIM 360.” Accessed October 4, 2022. https://blogs.autodesk.com/bim360-release-notes/2019/02/26/announcing-construction-iq-preview-partner-data-integrations-and-other-analytics-capabilities-for-bim-360/.
Vinzi, V. E., W. W. Chin, J. Henseler, and H. Wang. 2010. Handbook of partial least squares: Concepts, methods and applications. Berlin: Springer-Verlag.
Wanberg, J., C. Harper, M. R. Hallowell, and S. Rajendran. 2013. “Relationship between construction safety and quality performance.” J. Constr. Eng. Manage. 139 (10): 04013003. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000732.
Won, D., B. G. Hwang, and N. K. Binte Mohd Samion. 2022. “Cloud computing adoption in the construction industry of Singapore: Drivers, challenges, and strategies.” J. Manage. Eng. 38 (2): 05021017. https://doi.org/10.1061/(ASCE)ME.1943-5479.0001001.
Yu, T., X. Liang, and Y. Wang. 2022. “Factors affecting the utilization of big data in construction projects.” J. Constr. Eng. Manage. 146 (5): 04020032. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001807.
Yuen, K. F., L.-H. Cai, G.-Q. Qi, and X.-Q. Wang. 2021. “Factors influencing autonomous vehicle adoption: An application of the technology acceptance model and innovation diffusion theory.” Technol. Anal. Strategic Manage. 33 (5): 505–519. https://doi.org/10.1080/09537325.2020.1826423.
Information & Authors
Information
Published In
Copyright
© 2023 American Society of Civil Engineers.
History
Received: Mar 7, 2023
Accepted: Aug 16, 2023
Published online: Sep 28, 2023
Published in print: Dec 1, 2023
Discussion open until: Feb 28, 2024
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.