Critical success factors for digital transformation implementation in the construction industry: an integrated fuzzy cognitive map and ranking analysis approach

Abstract

The process of digital transformation (DX) involves the systematic integration of digital technologies, processes, and skills at all levels and functions within an organization, industry, or ecosystem. The emergence and rapid spread of the coronavirus are accelerating DX in all industies and the construction industry is not an exception. Construction companies are on the verge of significant transformation driven by advancements and the adoption of digital technologies. However, knowledge and information about how to implement DX efficiently in construction firms are fragmented and limited. This leads to the failure of DX journey of the majority of construction firms. This research develops a DX implementation roadmap and investigates the Critical Success Factors (CSFs) for DX adoption in the contractors’ perspective. Fuzzy cognitive map (FCM) technique and ranking analysis are applied to analyze the relationship between these factors and rank their importance. Among the 30 CSFs identified through ranking analysis, we found that effective leadership, data security, and the ability to turn data into assets be the most crucial factors for the successful implementation of DX in construction contractors. The results from FCM analysis highlighted that the three most influential factors were effective leadership, the perceived benefits of DX, and the development of a digital strategy and transformation areas. Meanwhile, the three factors that were most influenced by other variables were the research and development capabilities of the organization, the organizational flexibility and adaptability to the market, and the ability to turn data into valuable assets. These research findings contribute to advancing the digital transformation efforts in the construction industry and promoting enhanced business outcomes for contractors in the rapidly evolving digital landscape.