Technical Papers
Jul 27, 2012

Interaction Effects of Information Technologies and Best Practices on Construction Project Performance

Publication: Journal of Construction Engineering and Management
Volume 139, Issue 4

Abstract

Building from considerable empirical research in the general business literature, this paper quantitatively explores the view that the benefits of information technologies manifest themselves through improvement in work processes. In turn, better work processes lead to increased project performance. Using an overall sample of 133 projects (missing data make specific correlation sample sizes smaller) from the Construction Industry Institute Benchmarking and Metrics database, this paper analyzes correlations between technology use and integration, best practices, and project performance measured with cost, schedule, and rework metrics. Data are also used to assess the complementary interaction between technology use, work processes as measured by best practices, and performance. The findings show that there are limited significant beneficial correlations between information technology use and performance, slightly more significant beneficial correlations between best practice use and performance, and several significant correlations between information technology use and application of Best practices. Interaction effects of the combined use of information technologies and best practices against performance are assessed, finding several positive correlations, although limited data availability prevents robust statistical evaluation. Overall, the paper concludes there is evidence that the benefits of information technologies in construction are found through changes in work processes. This paper thus challenges more common approaches that attempt to directly correlate the impact of information technology use on project performance with corresponding implications for both academic and industrial attempts at assessment.

Get full access to this article

View all available purchase options and get full access to this article.

Acknowledgments

The authors thank the National Institute of Standards and Technology who partially supported this study under contract No. SB1341-07-SE-0623 and the Construction Industry Institute which provided the data for analysis.

References

Andresen, J., et al. (2000). “A framework for measuring IT innovation benefits.” ITcon, 5, 57–72.
Aral, S., and Weill, P. (2007). “IT assets, organizational capabilities and firm performance: Do resource allocations and organizational differences explain performance variation.” Organiz. Sci., 18(5), 763–780.
Barki, H., and Pinsonneault, A. (2005). “A model of organizational integration, implementation effort, and performance.” Organiz. Sci., 16(2), 165–179.
Barney, J. (1991). “Firm resources and sustained competitive advantage.” J. Manage., 17(1), 99–120.
Barua, A., Kriebel, C. H., and Mukhopadhyay, T. (1995). “Information technologies and business value: An analytic and empirical investigation.” Inf. Syst. Res., 6(1), 3–23.
Becerik, B., and Pollalis, S. N. (2006). Computer aided collaboration in managing construction, Harvard Univ. Graduate School of Design, Cambridge, MA.
Bharadwaj, A. S. (2000). “A resource-based perspective on information technology capability and firm performance: An empirical investigation.” MIS Q., 24(1), 169–196.
Borcherding, J. D., and Garner, D. F. (1981). “Work force motivation and productivity on large jobs.” J. Constr. Div., 107(3), 443–453.
Brilakis, I., German, S., and Zhu, Z. (2011). “Visual pattern recognition models for remote sensing of civil infrastructure.” J. Comput. Civil Eng., 25(5), 388–393.
Brynjolfsson, E. (1993). “The productivity paradox of information technology: Review and assessment.” Commun. ACM, 36(12), 67–77.
Brynjolfsson, E., and Hitt, L. (1996). “Paradox lost? Firm-level evidence on the returns to information systems spending.” Manage. Sci., 42(4), 541–558.
Brynjolfsson, E., and Hitt, L. M. (1994). “New evidence on the returns of information systems.”, Sloan School of Management, MIT, Cambridge, MA.
Brynjolfsson, E., and Hitt, L. M. (2000). “Beyond computation: Information technology, organizational transformation and business performance.” J. Econ. Perspect., 14(4), 23–48.
Construction Industry Institute (CII). (1986a). “Constructability improvement during conceptual planning.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (1986b). “Constructability: A primer.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (1991). “Construction changes and change orders: Their magnitude and impact.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (1992). “Benefits and costs of constructability: Four case studies.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (1995). “Pre-project planning handbook.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (1997). “Team alignment during pre-project planning of capital facilities.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (1999). “Planning for startup: Analysis of the planning model and other success drivers.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (2000). “Benchmarking and metrics data report for 2000.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (2001). “Quantifying the comulative impact of change orders for electrical and mechanical contractors.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (2004). “Benchmarking & metrics implementation toolkit.”, The Univ. of Texas at Austin, Austin, TX.
Construction Industry Institute (CII). (2011). “CII best practices guide: Improving project performance.”, The Univ. of Texas at Austin, Austin, TX.
Dossick, C. S., and Sakagami, M. (2008). “Implementing web-based project management systems in the United States and Japan.” J. Constr. Eng. Manage., 134(3), 189–196.
Eastman, C., Teicholz, P., Sacks, R., and Liston, K. (2008). BIM handbook: A guide to building information modeling for owners, managers, designers, engineers and contractors, Wiley, NJ.
Ekstrom, M., and Bjornsson, H. (2004). “Information technology and purchasing strategy: Two necessary enablers of more efficient construction processes.”, Center for Integrated Facility Engineering, Stanford Univ., Stanford, CA.
El-Mashaleh, M., O’Brien, W. J., and Minchin, R. E., Jr. (2006). “Firm performance and information technology utilization in the construction industry.” J. Constr. Eng. Manage., 132(5), 499–507.
Fischer, M., Haymaker, J., and Liston, K. (2003). “Benefits of 3D and 4D models for facility owners and AEC service providers.” 4D CAD and visualization in construction—Developments and applications, R. A. Issa, I. Food, and W. O’Brien, eds., Balkema, Rotterdam, The Netherlands, 1–32.
Fischer, M., and Tatum, C. B. (1997). “Characteristics of design-relevant constructability knowledge.” J. Constr. Eng. Manage., 123(3), 253–260.
Gao, J., and Fischer, M. (2008). “Framework & case studies comparing implementations & impacts of 3D/4D modeling across projects.”, Center for Integrated Facility Engineering, Stanford Univ., Stanford, CA.
George, R. T., and Back, W. E. (2007). “Information flow to support front end planning.”, Construction Industry Institute, Austin, TX.
Hester, W. T., Kuprenas, J. A., and Chang, T. C. (1991). “Construction changes and change orders: Their magnitude and impact.” Source document 66, The Construction Industry Institute, Austin, TX.
Kang, Y., O’Brien, W. J., Thomas, S., and Chapman, R. E. (2008). “Impact of information technologies on performance: Cross study comparison.” J. Constr. Eng. Manage., 134(11), 852–863.
Kangari, R. (1995). “Risk management perceptions and trends of U.S. construction.” J. Constr. Eng. Manage., 121(4), 422–429.
Kelley, M. R. (1994). “Productivity and information technology: The elusive connection.” Manage. Sci., 40(11), 1406–1425.
Khanzode, A., Fischer, M., and Reed, D. (2008). “Benefits and lessons learned of implementing building virtual design and construction (VDC) technologies for coordination of mechanical, electrical, and plumbing (MEP) systems on a large healthcare project.” J. Inf. Technol. Constr., 13, 324–342.
Kohli, R., and Devaraj, S. (2003). “Measuring information technology payoff: A meta-analysis of structural variables in firm-level empirical research.” Inf. Syst. Res., 14(2), 127–145.
Koo, B., and Fischer, M. (2000). “Feasibility study of 4D CAD in commercial construction.” J. Constr. Eng. Manage., 126(4), 251–260.
Leavitt, H., and Whisler, T. L. (1958). “Management in the 1980’s.” Harvard Bus. Rev., 36(6), 41–48.
Leonard, C., Fazio, P., and Moselhi, O. (1988). “Construction productivity: Major causes of impact.” Transactions of the American Association of Cost Engineers Conf., Vol. 32, D.10.1–D.10.7.
Melville, N., Kraemer, K., and Gurbaxani, V. (2004). “Information technology and organizational performance: An integrative model of IT business value.” MIS Q., 28(2), 283–322.
Myers, C. W., Shangraw, R. F., Devey, M. R., Hayashi, T., Corporation, R., and Program, P. S. S. (1986). Understanding process plant schedule slippage and startup costs, RAND Corporation, Washington, DC.
Nitithamyong, P., and Skibniewski, M. J. (2004). “Web-based construction project management systems: How to make them successful?” Autom. Constr., 13(4), 491–506.
O’Brien, J. W. (2000). “Implementation issues in project web sites: A practitioner’s viewpoint.” J. Manage. Eng., 16(3), 34–39.
O’Connor, J. T. (1985). “Impacts of constructability improvement.” J. Constr. Eng. Manage., 111(4), 404–410.
O’Connor, J. T., and Dodd, S. (2000). “Achieving integration on capital projects with enterprise resource planning systems.” Autom. Constr., 9(5–6), 515–524.
O’Connor, J. T., and Yang, L. R. (2004). “Project performance versus use of technologies at project and phase levels.” J. Constr. Eng. Manage., 130(3), 322–329.
Oh, W., and Pinsonneault, A. (2007). “On the assessment of the strategic value of information technologies: Conceptual and analytical approaches.” Manage. Inf. Syst. Q., 31(2), 239–265.
Olomolaiye, P. O., Jayawardane, A. K. W., and Harris, F. (1998). Construction productivity management, Longman, Essex, England.
Palmer, R. N., and Mar, B. W. (1989). “Automation of civil engineers: Some observations.” J. Manage. Eng., 5(3), 286–300.
Pocock, J. B., Kuennen, S. T., Gambatese, J., and Rauschkolb, J. (2006). “Constructability state of practice report.” J. Constr. Eng. Manage., 132(4), 373–383.
Rimal, R. N. (2001). “Perceived risk and self efficacy as motivators: Understanding individuals’ long term use of health information.” J. Commun., 51(4), 633–654.
Stratopoulos, T., and Dehning, B. (2000). “Does successful investment in information technology solve the productivity paradox?” Inf. Manage., 38(2), 103–117.
Sommerville, J., and Craig, N. (2006). Implementing IT in construction, Taylor & Francis, London.
Song, J., Haas, C. T., Caldas, C., Ergen, E., and Akinci, B. (2006). “Automating the task of tracking the delivery and receipt of fabricated pipe spools in industrial projects.” Autom. Constr., 15(2), 166–177.
Tatari, O., Castro-Lacouture, D., and Skibniewski, M. J. (2007). “Current state of construction enterprise information systems: Survey research.” Constr. Innovation, 7(4), 310–319.
Taylor, J. E. (2007). “Antecedents of successful three-dimensional computer-aided design implementation in design and construction networks.” J. Constr. Eng. Manage., 133(12), 993–1002.
Teece, D. J., Pisano, G., and Shuen, A. (1997). “Dymanic capabilities and strategic management.” Strategic Manage. J., 18(7), 509–533.
Thomas, S. R., Lee, S. H., Spencer, J. D., Tucker, R. L., and Chapman, R. E. (2004). “Impacts of design/information technology on project outcomes.” J. Constr. Eng. Manage., 130(4), 586–597.

Information & Authors

Information

Published In

Go to Journal of Construction Engineering and Management
Journal of Construction Engineering and Management
Volume 139Issue 4April 2013
Pages: 361 - 371

History

Received: Jun 29, 2011
Accepted: Jun 13, 2012
Published online: Jul 27, 2012
Published in print: Apr 1, 2013

Permissions

Request permissions for this article.

Authors

Affiliations

Youngcheol Kang [email protected]
M.ASCE
Assistant Professor, OHL School of Construction, Florida International Univ., 10555 West Flagler St., EC 2934, Miami, FL 33174 (corresponding author). E-mail: [email protected]
William J. O’Brien [email protected]
M.ASCE
Associate Professor, Dept. of Civil, Architectural and Environmental Engineering, The Univ. of Texas at Austin, 1 University Station C1752, Austin, TX 78712. E-mail: [email protected]
Research Engineer, Construction Industry Institute, The Univ. of Texas at Austin, 3925 West Braker Ln. (R4500), Austin, TX 78759. E-mail: [email protected]
Stephen P. Mulva [email protected]
Associate Director, Construction Industry Institute, The Univ. of Texas at Austin, 3925 West Braker Ln. (R4500), Austin, TX 78759. E-mail: [email protected]
Stephen P. Thomas [email protected]
M.ASCE
Associate Director, Construction Industry Institute, The Univ. of Texas at Austin, 3925 West Braker Ln. (R4500), Austin, TX 78759. E-mail: [email protected]
Robert E. Chapman [email protected]
Chief, Applied Economics Office, National Institute of Standards and Technology, 100 Bureau Drive, Stop 8600, Gaithersburg, MD 20899. E-mail: [email protected]
David Butry [email protected]
Economist, Applied Economics Office, National Institute of Standards and Technology, 100 Bureau Drive, Stop 8600, Gaithersburg, MD 20899. E-mail: [email protected]

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.

Cited by

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share