Barriers to implementing digitalization in the Indian construction industry

Abstract

PurposeThis research paper aims to analyze the critical barriers to implementing digitalization in the Indian construction industry as Indian construction companies are lagging in the implementation of digital technologies in the work environment.Design/methodology/approachIn this research paper, a qualitative research approach is adopted, and multiple detailed interviews are conducted with industry and academic experts. Further, multi-criteria decision-making (MCDM) techniques are used to finalize the prioritization among various alternatives. The fuzzy-decision-making trial and evaluation laboratory (Fuzzy-DEMATEL) and interpretive structural modeling (ISM) techniques are employed to find the exact relationship among the identified alternatives.FindingsThis study identifies 14 critical barriers from an extensive literature review and multiple interviews with industry professionals, and further driving and critical barriers are identified.Research limitations/implicationsIn this research paper, an exploratory study with a limited number of respondents from a large Indian construction company is carried out. Further, a detailed longitudinal analysis can be done to assess the subjectivity of the participants with more advanced statistical tools. However, this research discusses several points pertaining to the implementation of digitalization in the construction industry. The research further identifies the critical barriers to digitalization in the Indian construction industry.Practical implicationsThe finding of the study has two-pronged implications. First, it provides a road-map to the construction industry by highlighting the engagement of top management as the key focus area for successful digitalization. Second, the finding also shows similarity of the digitalization process to the adoption of process improvement techniques like lean and total quality management (TQM), wherein the top management plays a crucial role in ushering in the implementation of a disruptive change.Originality/valueThe research is unique in two ways. First, this is one of the very few attempts to understand digitalization in the Indian context. Second, the research also demonstrates that the combination of fuzzy DEMATEL and ISM techniques can be successfully employed in the emerging field of construction digitalization research.

Implementation of Digital Technologies in Construction Companies: Establishing a Holistic Process which Addresses Current Barriers

“…It becomes transparent that besides the keywords digital technologies and construction industry, the keywords obstacles and difficulties are not existent in the visualized network. Only the keyword barriers is used four times [6,[18][19][20][21].…”

“…Another key finding which might lead to the rarity of a generalized implementation process are the variety of country-based studies on digital technologies in the construction industry, e.g., to boost productivity in New Zeeland [42]. It is noticeable that most of the country-specific research from the CLD is from Asia (China [24], Singapore [43,44], India [6,45] and Russia [46,47]) or Africa (Nigeria [19,48] and South Africa [33,49]). While this research provides insights for the researchers and construction industry in the corresponding countries, the viewpoint is limited towards a specific region and individual requirements.…”

“…The initial decision for or against a digital technology builds a barrier on its own and is dependent on the customers [34], the phase of the construction project [1], the strategy of the individual construction company, their culture, employees and organisational management [25,50] as well as the technology itself [24,28]. Furthermore, Bajpai and Misra [6] argued that the high initial implementation cost and the long return on investment periods build financial barriers. After the initial implementation, organisational barriers arise, especially the lack of training opportunities [51] and thus low competence of the employees [18], the operational management not approaching, monitoring and controlling the use of digital implementation [6,21] and concerns about data security [19].…”

“…When planning to integrate (new) digital technologies, it is essential that possible barriers are known so that the introduction can take place as efficiently and successfully as possible [2,6]. Currently, there is a lack of standardized processes that could be used for the introduction of digital technologies.…”

Blockchain-based framework for a smart supply chain management in construction

“…The construction industry requires digitized and automated construction processes, as well as the optimization of business models. Due to a lack of operational efficiency and innovative strategies, the sector's main challenge is time and expense overruns [1]. The information flow in the construction supply chain (CSC) stands out for being inefficient and lacking automation.…”