A Structural Equation Model of Digitalization Barriers in the Construction Industry: Evidence from Jordan

Abstract

Many construction institutions have adopted Industry 4.0 principles because of their positive impact on the quality and efficiency of projects; digitalization is one of the most basic principles of Industry 4.0. This study aims to identify the most important benefits of adopting digitalization and assess digitalization barriers in the Jordanian construction industry by the construction project’s major players. In this study, a systematic questionnaire was adopted as the quantitative approach. Data from 438 respondents were collected and analyzed using JMP and SPSS software. The following statistical tests were conducted: Mann-Whitney U, Kruskal-Wallis H, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM). This study identified six benefits and assessed 20 barriers to adopting digitalization in construction. 64.61% of the respondents agreed on the importance of digitalizing the constructions to manage data and documents more effectively, with slight differences among the respondents according to their age. The 20 barriers were grouped into five main factors, with deficient support from top management for digitalization adoption considered as the most critical barrier. Furthermore, the relationships between the primary factors and the barriers have verified the assumed model. Where the CFA model confirmed the required conditions, the 2 log likelihood value is 23,586.193, the P value=0.00, and RMSEA=0.0591. The significance of this study relies on identifying digitalization benefits and assessing digitalization barriers for all project parties, verifying the impact of the five factors in hindering digitalization adoption, and revealing the relationships between the primary factors and the barriers they contain, as the previous studies were limited to identifying digitalization benefits and barriers from one of the project parties’ perspectives. This study delves into Industry 4.0 adoption within Jordan’s construction sector, focusing on how digitalization can bolster project management. It pinpointed six major benefits and 20 obstacles to digitalization as perceived by industry stakeholders. Participants widely agree on the importance of digitizing processes for better data management, though barriers vary. To promote digitalization, this study advocates for addressing these barriers and involving all stakeholders. The findings emphasize the potential for digitalization to streamline construction processes, boost productivity, and cut costs. This underscores the need for a comprehensive strategy to overcome barriers and maximize digitalization’s benefits, aligning with the research goals.