Firm performance and information technology utilization in the construction industry

El-Mashaleh, M; O'Brien, W J and Minchin Jr, R E (2006) Firm performance and information technology utilization in the construction industry. Journal of Construction Engineering and Management, 132(5), pp. 499-507. ISSN 0733-9364

Abstract

This paper, which is written to both researchers and practitioners, examines the impact of information technology (IT) on construction firm performance. Based on data collected from 74 construction firms, regression analysis is used to test the relationship between performance and IT. Analysis provides empirical evidence that IT is positively associated with firm performance, schedule performance, and cost performance. Firm performance is a composite score of several metrics of performance: schedule performance, cost performance, customer satisfaction, safety performance, and profit. The regression analysis shows that for every 1 unit increase in IT utilization, there is an increase of about 2, 5, and 3% in firm performance, schedule performance, and cost performance, respectively. No relationship is found between IT use and customer satisfaction, safety performance, and profitability.

Item Type: Article
Uncontrolled Keywords: computer aided operation; construction companies; construction costs; information management; performance evaluation
Index terms: evidence, practitioner, performance evaluation, cost performance, information technology, safety performance, schedule performance, profit, construction company, construction firm, customer satisfaction, profitability, construction industry, regression analysis, composite, firm performance, construction cost
Subjects: financial and cost management, economic analysis, computing systems, practitioner, materials science, organization, evaluation and assessment methods, statistical analysis, industry analysis, occupational health and safety management, project controls, service delivery, business analysis, economics, performance measurement
Topics: Digital Applications, Quality Management, Time Control, Business Strategy, Cost Management, Health and Safety, Research Practice, Construction Materials, Stakeholder Management, Roles and Professions
Descriptive scope: 4 PCTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here