Building the digital age: Management of digital transformation in the construction industry

Nyqvist, R; Peltokorpi, A; Lavikka, R and Ainamo, A (2025) Building the digital age: Management of digital transformation in the construction industry. Construction Management and Economics, 43(4), pp. 262-283. ISSN 0144-6193

Abstract

This study aims to deepen the understanding of digital transformation in the construction industry. While studies on digital transformation exist at the industry level, studies at the company level, looking at how companies can proactively manage change, are largely missing. This study addresses this gap by exploring how three companies in the construction industry are navigating and leveraging digital transformation for international growth. Employing a multiple case study methodology and a systemic framework, the research provides insights into the interplay of technological innovation, business development, and ecosystem evolution through company cases. The research synthesizes and details three key barriers to managing digital transformation in the construction sector: (1) fragmentation, (2) insufficient demand from clients, and (3) limited influence of a single actor in the ecosystem, and three key drivers: (1) shift to data-driven industry, (2) targeted technological solutions, and (3) standardization and process modification. This study pairs the barriers and drivers with relevant managerial actions, and dimensional positioning to provide new valuable insights on digital transformation in the construction industry and beyond. The research provides insights both for construction industry companies and researchers seeking to manage digital transformation.

Item Type: Article
Uncontrolled Keywords: artificial intelligence; business development; construction; digital transformation; ecosystems; technological innovation
Index terms: methodology, evolution, business development, construction sector, fragmentation, technological innovation, standardization, artificial intelligence, construction industry, case study, transformation
Subjects: environmental science, innovation and technology management, research methods, artificial intelligence, business, data collection methods, industry analysis, performance measurement
Topics: Business Strategy, Research Practice, Organizational Design, Digital Applications, Sustainability, Engineering Principles, Quality Management
Descriptive scope: 4 PCTE

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