Impact of Digital Technology Adoption on the Comparative Advantage of Architectural, Engineering, and Construction Firms in Singapore

Abstract

With a plethora of digital technologies, and some having high capital and running costs, it is critical to know which of these give architectural, engineering, and construction (AEC) firms a comparative advantage. Comparative advantage is measured using these metrics: higher project quality (Y1), productivity (Y2), ability to win tenders (Y3), and reputation (Y4), compared to AEC firms’ nearest competitors. This study investigated which specific digital technologies give rise to a comparative advantage for adopters in the AEC sector. The research design was an online survey using a structured questionnaire. Data were collected from AEC professionals in Singapore. The research found that the adoption of five digital technologies is significantly associated with higher project quality, productivity, and reputation compared to AEC firms’ nearest competitors. These ‘super technologies’ are cloud-based technology, design for manufacturing and assembly (DfMA), Internet-of-Things (IoT), robotic technology, and artificial intelligence (AI). The study discovered some digital technologies that are not correlated with any comparative advantage metrics. The contribution to knowledge is the creation of the digital technology adoption model that potential adopters may use to help them decide which specific digital technologies to adopt to achieve comparative advantage. For firms that are already adopting digital technologies, the adoption model serves as a benchmarking tool to measure comparative advantage. The implication for practice is for potential adopters to zoom in on the ‘super technologies’ and eschew those that do not provide comparative advantages.