The Effects of Digital Tools on Management Practices in the AEC Industry

Abstract

The past decade has witnessed a major breakthrough in technological advancements due to numerous factors, including the COVID-19 pandemic. The literature has shown a growing interest in digital tools in the Architecture, Engineering, and Construction (AEC) industry. Various technologies have been developed to monitor construction processes, reduce costs, manage safety hazards, increase efficiency, enhance performance, improve productivity, and facilitate coordination and communication. So far, most studies have focused on specific digital tools, on how these affect performance, or firms’ resistance to change. However, far less attention has been paid on how these digital tools are shaping management practices in the AEC industry. This study aims to explore this gap in the literature. 9 semi-structured interviews were conducted with experts in the field from different countries leading in technological solutions. Through an abductive approach and the grounded theory method, this qualitative study identifies three variables that mediate the relationship between digital tools and management practices: efficiency, effectiveness, and experience. Furthermore, resistance to change works as a moderating variable between these two concepts. Based on this, three new management practices are created and added to the model originally developed by Bloom and Van Reenen (2007). (1) Efficient target setting is defined as a strategy comprised of an adequate optimiser based on important considerations that seeks to accelerate the fulfilment of targets in a construction project. (2) Effective monitoring is the collection of data comprised of the facilitator and the inhibitor that determine the degree to which the monitoring of a construction project is successful. And (3) perceptual assessment is the evaluation of objective and subjective human performance measurements. The findings suggest that the sole existence of trendy digital technologies does not translate to performance improvement within an organisation, rather, careful evaluation of these is recommended. Additionally, the successful implementation of digital tools in a construction firm implicates a modified organisational structure that promotes digital transformation. Further research could strengthen the results through quantitative methods.

Limitations of the study: First, only 9 participants were interviewed due to time constraints, although their quality was remarkable. Second, the participants were intended to be from countries where management practices have already been studied, since these are contingent on the firm’s environment. But the difficulty to recruit high quality individuals and the fact that some countries do not have access to LinkedIn (e.g. China), made this difficult to achieve. And third, management practices are a broad subject, which made it challenging to discuss about each of their 18 key indicators during the interviews. Because of this, the results show a general understanding of how digital tools are shaping management practices in the AEC industry.