A Fuzzy Cognitive Map for Identifying the Interrelationship of Critical Success Factors for Digital Transformation Implementation by Construction Contractors

Abstract

Digital transformation (DX) is imperative for every business entity that wants to be competitive in its industrial sector. The rapid rise and widespread propagation of the coronavirus (COVID-19) has hastened DX across various industries, especially the construction industry. As a result, construction companies are on the verge of radical DX, which is primarily driven by digital innovation and advancement. However, knowledge regarding DX implementation for construction firms is limited and fragmented, leading to unsuccessful DX implementation for most of the construction companies. This paper investigates the interrelationship of the critical success factors (CSFs) for DX implementation by construction contractors. A fuzzy cognitive map (FCM) is adopted to analyze the interrelationship of these factors, constructed based on inputs from 17 experts with extensive experience in construction and digital technologies. The outdegree, indegree, and total degree values of the FCM indicate the factors that influence other factors the most, the factors that are influenced by other factors the most, and the most important factors, respectively. It is found that effective leadership has the highest outdegree value and total degree value, whereas the research and development capability of organizations has the highest indegree value. These findings provide the fundamentals of DX implementation in construction businesses and their interrelationship. For example, understanding that effective leadership strongly influences other success factors enables firms to prioritize leadership development initiatives early in the DX process. Likewise, recognizing that research and development capability is highly influenced by other factors helps contractors identify which upstream capabilities must be strengthened first. By leveraging these insights, construction contractors can embrace digital innovations and technologies for their businesses successfully.