The role of construction clients in digital innovation: Insights from scenario analysis

Kussl, S and Wald, A (2025) The role of construction clients in digital innovation: Insights from scenario analysis. Construction Management and Economics, 43(5), pp. 381-404. ISSN 0144-6193

Abstract

The dynamic relationship between clients and the construction industry has been pivotal for construction innovation. While existing research focuses on procurement or Building Information Modeling (BIM) implementation, the client's digital transformation, as a decisive factor in fostering broader construction innovation, is often overlooked. This study investigates how construction client organizations influence industry innovation through their digital transformation, aiding in the development of refined industry-specific innovation strategies and long-term planning. The study develops a conceptual framework to map the digital transformation of construction clients, providing insights into how this transformation is influenced by innovation dynamics—competition versus collaboration—and varying levels of digital maturity, incorporating principles of Construction 4.0, which emphasizes integrated digital systems beyond isolated technology adoption. Through in-depth interviews, this study develops and analyzes various scenarios for public construction client organizations' digital transformation. These scenarios—the pragmatic adopter, standard setter, collaborator, and visionary—emerge from the narratives of opinion leaders and the development of 'Digital Transformation Dynamics' and 'Digital Component' portfolios. Each scenario includes a distinct composition of these portfolios and results in a specific role that construction clients play in promoting digital innovation within the industry. However, real-world actions of construction clients likely vary and may span across the described scenarios, resulting in an ambiguous client role characterized by goal conflicts and tensions, complicating industry adoption. This study enhances awareness of these complexities and highlights that the client's role in innovation may diverge from traditional industry expectations.

Item Type: Article
Uncontrolled Keywords: construction 4.0; construction client; digital innovation; digital transformation; interaction vs. competition; scenario analysis
Index terms: conceptual framework, complexity, construction innovation, collaboration, narrative, competition, client organization, interview, implementation, interaction, construction industry, innovation strategy, technology adoption, public construction, dynamics, scenario analysis, transformation, construction client, building information modelling, construction 4.0
Subjects: data collection methods, business, industry analysis, information systems, systems engineering, management, qualitative and interpretive research, innovation and technology management, contractual arrangements, digital engineering, policy studies, client relations, practitioner, market analysis, building construction, behavioral psychology, theoretical framing
Topics: Engineering Principles, Procurement, Digital Applications, Organizational Design, Research Practice, Business Strategy, Governance, Roles and Professions, Stakeholder Management
Descriptive scope: 5 PCTEA

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