Impact of digital technology adoption on the comparative advantage of architectural, engineering, and construction firms in Singapore

Ling, F Y Y; Heng, G T H; Chang-Richards, A; Chen, X and Yiu, T W (2023) Impact of digital technology adoption on the comparative advantage of architectural, engineering, and construction firms in Singapore. Journal of Construction Engineering and Management, 149(12): 04023125, ISSN 0733-9364

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.

Item Type: Article
Uncontrolled Keywords: competitiveness; digital technology; digitalization; productivity; quality; reputation; technology adoption
Index terms: artificial intelligence, technology adoption, internet, competitiveness, running cost, productivity, research design, Singapore, benchmarking, digital technology, questionnaire, construction firm, survey, digitalization
Subjects: performance measurement, management, Geography, market analysis, research design and methodology, organization, data collection methods, computing systems, digital technology, financial and cost management, artificial intelligence, innovation and technology management
Topics: Business Strategy, Cost Management, Research Practice, Geographical Context, Engineering Principles, Digital Applications, Quality Management
Descriptive scope: 4 PCEA

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