A SWOT Analysis of Digitalization in the Construction Firm: Challenges and Barriers to Managers Level in Malaysia

Abstract

The application of digital technology capabilities has been made easier by the deployment of digital systems in construction organisation. It develops to emphasise the most efficient planning, organising, and controlling of resources in maintaining the strict business innovation that opens up new revenue and value-producing potential for construction businesses. However, it has encountered several internal and external issues that have limited its use and hindered the diffusion of digitalization. Hence, this study aims to identify and access the major challenges and barriers to digital technology practises (DTP) and overcome their likely impacts. An empirical questionnaire survey of digitalization-related challenges and barriers to understand whether there is diversity in the identified contexts were assessed by 341 out of 363 various construction managerial levels. The data were analysed using mean, ranking, factor analysis and SWOT analysis. The results revealed that leader competency and capacity (weakness) and organization structure and strategy (threat) were the most critical challenges and barriers to DTP diffusion in Malaysia. Also, the SWOT model was developed as a predictive tool to evaluate and respond to the impact of these problems. It is recommended that industry practitioners and policymakers collaborate to create local context-based guidelines for facilitating DTP diffusion and monitor its implementation.