van der Vlist, A J; Vrolijk, M H and Dewulf, G P M R (2014) On information and communication technology and production cost in construction industry: Evidence from the Netherlands. Construction Management and Economics, 32(6), pp. 641-651. ISSN 01446193
Abstract
The interplay between information and communication technology (ICT) and the competitiveness of construction firms is considered. More specifically, the question is whether firms that invest in information and communication technology have a production cost advantage. The economics literature hypothesizes that ICT brings about a production cost advantage, as ICT brings flexibility and improves the planning, organization and control of work. To test this proposition for the construction industry, a production cost function allowing for the inclusion of ICT is formulated. Using statistical nearest-neighbour matching methods it is possible to identify the effect of ICT on production costs thereby controlling for economic moderators. Data from a sample of Dutch construction firms reveal that those firms that installed ICT capital do have a production cost advantage. The results indicate further that firms need a minimum level of ICT capital to fully benefit from its production cost advantage.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction firms; information and communication technology; nearest neighbour matching; panel data |
| Index terms: | competitiveness, construction industry, evidence, information and communication technology, production cost, construction firm, Netherlands |
| Subjects: | evaluation and assessment methods, organization, computing systems, market analysis, industry analysis, manufacturing engineering, Geography |
| Topics: | Digital Applications, Business Strategy, Engineering Principles, Research Practice, Geographical Context |
| 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