Analyzing the critical factors of digital readiness for construction enterprises

Chen, B.; Luo, M.; Yu, H. and Zhang, N. (2026) Analyzing the critical factors of digital readiness for construction enterprises. Engineering, Construction and Architectural Management, pp. 1-22. ISSN 0969-9988

Abstract

Purpose – The construction industry is implementing digital transformation. Adequate digital readiness can increase the success rate of a company's digital transformation. Hence, this paper aims to investigate the factors influencing digital readiness and their interaction mechanisms. Design/methodology/approach – Based on the technology-organization-environment (TOE) framework, this study identified factors influencing the digital readiness of construction enterprises through literature review. Then, taking digital dynamic capability as a mediating variable, hypotheses regarding the relationships among the factors were proposed. Moreover, a questionnaire survey was designed and distributed to professionals from the construction industry. Then, the partial least squares – structural equation modeling (PLS-SEM) was employed to examine the critical factors and their relationships with digital readiness. Findings – The findings claimed that the digital leadership and organizational change play a positive role in improving the digital readiness. Additionally, digital dynamic capabilities mediate the positive effects of technological resources, organizational change and environmental dynamism on digital readiness. Originality/value – This study could offer effective recommendations for construction enterprises to optimize resource allocation and address the challenges of the digital transformation's cold start. Additionally, it provides theoretical insights and practical references for understanding the digital readiness of construction enterprises.

Item Type: Article
Uncontrolled Keywords: construction enterprises; critical factors; digital readiness; TOE framework
Index terms: transformation, dynamic capability, questionnaire, survey, organizational change, critical factor, interaction, resource allocation, methodology, partial least square, literature review, construction industry, structural equation modelling
Subjects: statistical analysis, business, research methods, industry analysis, management, resource management, risk assessment, behavioral psychology, data collection methods, data analysis and analytics
Topics: Business Strategy, Risk Management, Organizational Design, Site Management, Research Practice
Descriptive scope: 5 PCTEA

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