CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND

This thesis studied the digitalisation of construction organisations in South Africa. This it does
by exploring diverse issues relating to the adoption of the digitalisation concept as well as
possible directions towards attaining digital transformation in the industry. This introductory
chapter provides an insight into the general overview of the study. The chapter further
provides the components and structure of the research.

1.1.1 Overview of the Construction Industry

The construction industry is crucial to the economy of any nation. According to Anaman and
OseiAmponsah (2007), the activities of the industry is important if socio-economic
development goals of providing shelter, infrastructure and employment are to be achieved in
any nation. In South Africa, the construction industry is key in the country’s economy and its
role in the economic growth of the nation cannot be overemphasised (Construction Industry
Development Board, CIDB, 2012). Ayodele and Alabi (2011) observed that a healthy
economy usually experiences an increase in construction activities. Furthermore, Saka and
Lowe (2010) stressed that the industry contributes significantly to the Gross Domestic Product
(GDP) and the employment level of most countries around the world. According to Chitkara
(2004), the construction industry in many countries accounts for 6% to 9% of their GDP,
while Bhimaraya (2001) stated that it reaches up to 10% of the GDP of some other countries.
In South Africa, the construction sector has contributed 8% of both formal and informal
employment which represents 9.6% in the GDP between 2008 and 2016 (CIDB, 2017).
Therefore, it is evident that the product of the industry is crucial to every country’s
development and the growth of other industries that exist within each country.

Despite the high importance attached to the construction industry, it is not without its
challenges and difficulties. According to Behm (2008), the industry is demanding and
characterised by large, dynamic, and complex activities. These activities are evolving as a
result of construction clients’ growing demand, technological advancement resulting in the
complex nature of designs, and rapid growth of innovations (Oke and Ogunsemi, 2011).
Every day clients taste and demand increases, and construction participants are saddled with
the responsibility of meeting these demands through every method available. This creates a
highly competitive environment especially for construction organisations whose responsibility
is to meet these client’s ever-changing demand in return for financial gain. To stay relevant
and survive this obviously competitive environment, Abidin, Adros and Hassan (2014) noted
that these organisations will have to continuously improve their service delivery through
careful planning of their strategies and adoption of innovative ideas. Dimick (2014) further
stressed that organisations need to imbibe the culture of working smarter, not harder if they
are to stay relevant. This submission re-echoes the need for innovations in construction
organisations earlier noted by Lansley (1987). Furthermore, Welch and Byrne (2001)
submitted that since the construction environment is filled with uncertainties, organisations
therein need some amount of contingency in order to improve their standard of service
delivery, achieve quality, and attain optimum client’ satisfaction. Only through this can
survival within the industry be assured. Therefore, adopting innovations, new technologies,
and changes that is faster than those of their competitors, and the external environment, is
crucial for the survival of construction organisations. Castagnino, Rothballer and Gerbert
(2016) believed that the key towards achieving this development is “digitalisation”.

1.1.2 Digitalisation in the construction industry

The word “digitalisation” has come with diverse meaning since the advent of the fourth
industrial revolution which brings about the use of a more digitalised form of production.
Digitalisation according to Dall’Omo (2017) is now a common feature in individual devices
and large industrial systems. It has become a popular concept around the world today due to
its ability to create efficiency in operations, effectiveness, and provide new opportunities.
According to Kalavendi (2017), the term digitalisation is the increased use of digital or
computer technology in the operations of an organisation. This point to the fact that by going
through the route of digitalisation, an organisation will have to attain digital transformation by
jettisoning the old analogue ways (paper and processes) for a more digital-oriented approach.
However, words like digitisation, digital technology, digital collaboration, and
computerisation have over time been used in place of digitalisation. In some cases, this
exchange has been made wrongly (I-Scoop, 2016). Rouse (2017) viewed digitisation as the
process of transforming information into digital format. By doing this, information is
organised into distinct units of data that can be separately addressed. This is the binary data
that computers and many devices with computing capacity can process. I-Scoop (2016)
described digitisation as the creation of a digital (bits and bytes) version of analogue/physical
things such as paper documents, microfilm images, photographs, sounds etc. This implies that
digitisation involves simply converting and/or representing something non-digital into a
digital format, which then can be used by a computing system for diverse purposes.

Solis (2016) stated that digitalisation is the strategic realignment of investment with
technology, business models, and processes, in order to effectively compete in an
everchanging digital world. On more simplified terms, Ochs and Riemann (2018) described
the term digitalisation as the integration of digital technologies into everyday life, through
digitising anything that is capable of being digitised. These digital technologies are known to
enable a large amount of information to be compressed on small storage devices for easy
preservation and transportation. They include all types of electronic equipment and
applications that use information in the form of numeric code. These devices range from
personal computers, calculators, automobiles, traffic light controllers, compact disc players,
cellular telephones, communications satellites, and high-definition television sets and other
innovations geared towards making the conduct of certain activities easier and more effective
(IGI-Global, 2018; Quora, 2018). Dimick (2014) viewed digital technologies from three facets
and these are software, information technology (IT) equipment (computers and related
hardware), and communications equipment. Yoo, Henfridsson, and Lyytinen (2010) earlier
stressed that what makes digital technologies different from other earlier technologies is their
ability to be re-programmed, the use of homogenous data, and their self-referential nature.
Thus, while digitisation is seen as the digital transformation of specific processes that were
not digital, using digital technologies, digitalisation is the deployment of these transformed
processes into the business life of the organisation.
Based on the aforementioned descriptions, in the context of this study, the term ‘digitalisation’
is conceptualised as - the innovative use of digital technologies and processes in the delivery
of tangible and intangible services within a construction organisation with a view to gaining a
competitive advantage over other competitors and provide better service delivery. This
implies that an organisation within the construction industry can be said to have attained
digitalisation when such organisation is able to optimally utilise existing digital technologies
in the delivery its services and at the same time gain better advantage over its counterparts in
the industry.

Understanding that digital technologies include the software, IT equipment and communications
equipment (Dimick, 2014), digital technologies and processes in this study include the use of
Building Information Modelling (BIM) which according to Ashcraft (2007) “utilises cutting-
edge digital technology to establish a computable representation of all the physical and
functional characteristics of a facility and its related project/life-cycle information, and it is
intended to be a repository of information for the facility owner/operator to use and maintain
throughout the life-cycle of a facility”; augmented reality, which is an innovation that gives and
augmented view of objects or designs using specific gadgets (Celaschi, 2017); Internet of Things
(IoT) which implies an overall system of network which are linked to each other and uniformly
addressed objects by means of standard conventions (Vaidya, Ambad, and Bhosle, 2018); big
data which is viewed as the most vital technology in relation to the large collection, preparation,
and investigation of unorganised and organised information with savvy algorithms (Petrillo, De
Felice, Cioffi, and Zomparelli, 2018); autonomous robots used in performing autonomous
production methods, cloud computing, 3D printing and many more, for the service delivery of
construction organisations. Viewing digitalisation from this perspective is premised on the fact
that these different technological innovations are based on digital operations. Gerbert et al.
(2016) have earlier mentioned that as a result of digitalisation construction around the world will
soon be depicted by the connection of systems using sensors, intelligent machines, mobile
devices, and new software applications that will all be integrated on a central platform of BIM.
This further strengthens the notion of this study that digitalisation can be regarded as the
digitisation of construction processes using the aforementioned digital technologies in the
attainment of a digitally transformed built environment.
In construction, there seems to be an agreement among researchers regarding the slow
adoption of digital technologies that could help improve service delivery and transform the
industry (Argawal, Chandrasekaran, and Sridhar, 2016; Castagnino et al., 2016; Ibem and
Laryea, 2014; Osunsanmi, Aigbavboa and Oke, 2018). Kane, Palmer, Phillips, Kiron and
Buckley (2015) in a study conducted among business organisations in different countries and
industries, discovered that the construction and real estate sector ranked the least in terms of
digital adoption. It was also noticed that construction organisations are lagging in the
development of digital strategies that are geared towards transforming their businesses.
However, Ibem and Laryea (2014) have earlier noted the growing interest in the adoption of
BIM within the industry, and according to Dos Santos et al. (2015), it is mostly used for
building modelling, and installation. This implies that the problem of slow digitalisation
adoption within the construction industry may not to be that of awareness, but the willingness
and proper adoption of same. If the construction industry is to overcome its challenges and
projects are to be delivered with less effort and higher accuracy, then there is the need for the
industry to change from partially adopting digitalisation, to fully implementing the principle
in all facets of its activities. It is based on this backdrop that this research set out to develop a
digitalisation capability maturity model for construction organisations in South Africa, in a
bid to ascertaining the digitalisation capability maturity of these organisations and providing a
roadmap towards achieving digital transformation in construction organisations in South
Africa.

1.2 RESEARCH PROBLEM STATEMENT

Past studies have established that construction industries in most developing countries (South
Africa inclusive) are underperforming especially in terms of cost, time, quality, and overall
satisfaction (Agarwal et al., 2016; Akindoyeni, 1988; Alabi, 2012; Emuze and Smallwood,
2011; Khalfan and Anumba, 2000Mbachu and Olaoye, 1999; Ogunsemi and Jagboro, 2006;
Oshodi et al., 2017). Construction industries in these countries are said to be synonymous
with cost and time overrun, with projects rarely completed at the agreed time and estimated
budget. The South African construction industry suffers this same fate. Emuze (2011) reported
that it is highly unlikely for the dream of construction clients to come to a complete realisation
in South Africa. This is due to the poor performance of construction companies in the delivery
of construction projects within the country. These companies are characterised by poor project
performance, poor construction processes, and projects delivered above budget.

The reasons for these poor performances of the construction industry have been attributed to
several factors. One of these is the poor adoption of technological advancement such as the
use of digital technologies. Chilipunde (2010) observed that in the area of technological
advancement, limited skill in construction information technology affects contractor’s
productivity in Malawi. In Singaprore, Fadhi and Tan (2001) observed that technological
advancement is part of the factors responsible for the poor performance of construction works
in the country’s construction industry. CIDB (2007) also affirmed that technology
advancement issues are some of the factors affecting the South African construction industry.
In Nigeria, Mbamali and Okotie (2012) observed that increase in the application of
technological approach among constructions companies and professionals will go a long way
in positively increasing the poor performance of construction projects within the country.

However, the problem of poor adoption persists within the construction industry of these
countries. Studies have shown that these construction industries have lagged in implementing
the use of technological innovations to its full potential, and, therefore, has been seen to lack
innovativeness (Folkesson and Lonnroos, 2018; and Jensson, 2017). Old approaches to
construction such as the use of tape measures, paper drawings are still common sights within
these industries (Hudson, 2017). There is the need for some cultural shift as sticking to the
traditional methods will only leave construction organisations at the tail of the value chain,
and by extension create more dissatisfaction in the product they deliver (Welch and Byrne,
2001).

Adopting digital technologies can aid significant improvement in the delivery of construction
projects within developing countries. With the clamour for a Construction 4.0, coined from
the famous Industry 4.0 (Osunsanmi et al., 2018), where construction projects are digitally
handled and delivered, construction industries in developing countries cannot continue to shy
aware from the adoption of digital technologies. Digitalising construction process is believed
to be capable of solving issues surrounding poor construction performance. The adoption of
digital technology within the South African construction industry can immensely help the
industry in its contribution to the socio-economic development of the country (Aghimien,
Aigbavboa, and Oke, 2018b). Considering the immense benefit digitalisation proposes, one
question stills remains pertinent; how ready are organisations in the South African
construction industry in fully and effectively adopting digitalisation in all aspect of their
construction service delivery? This question begs the need for a maturity model that shows the
digital maturity of construction organisations in attaining digital transformation. Dall’Omo
(2017) in a report on digitalisation maturity in Africa discovered that South Africa as a
country has an “established” maturity level. This means that the country has the capability to
be a digital leader in Africa, but at the moment, when compared to international standards, it
still needs some improvement in the aspect of better and affordable internet services as well as
training of digital man-power. While the report focused on the manufacturing, energy and
transport industry, its finding is a pointer to the fact that South Africa has the enabling
environment for digitalisation. Construction organisations in the country can see this as an
eye-opener in terms of the opportunities in the country for them to be digitally transformed.

It has been noted that digitalisation is not a once-off event but rather should be considered as a
piecemeal activity (Liska and Strukova, 2012). In order words, drastic digital changes within
an organisation might not bring the digital transformation being sought but rather might lead
to some negative outcome such as agitation among workers due to fear of replacement. It is
imperative for organisations to understand that skills should be enhanced through digital
technology adoption and not replaced through it (Holopainen and Jokikaarre, 2016).
Therefore, knowing what skill to improve, what technology adopt in improving this skill, and
what process and strategy to take in achieving this skill improvement and at the same time
achieve the organisational objective of digital transformation and increased competitive
advantage is important. It is, however, worrisome to notice that there is a paucity of
information in literature as regards digitalisation within the South African construction
industry. Considering the attributed poor performance of the country’s construction industry,
and the benefits proposed by digitalisation, it is evident that a gap exists in literature that
needs to be filled. With the complex and dynamic nature of both the construction industry and
the digital world (Navo, 2005; Solis, 2016), having a digitalisation roadmap that tells the
digital maturity level of construction organisations and the way towards achieving digital
maturity is important.

It is pertinent to note that while several maturity models have been developed in different
industries and domains to measure different situations, there is the absence of a maturity
model designed to specifically address digitalisation issue within the construction industry.
Herein lays the problem of this research. While over 150 maturity models have been
developed over time in different industries (De Bruin et al. 2005), none has been targeted at
digitalisation of the construction industry itself. The few available digital maturity models
looked at technological issues, strategies, process and operations, organisational culture,
policy issues and the likes within the business, education, manufacturing, and
telecommunication arena. Although the construction industry operates in a similar manner
with these industries as it is business-oriented and delivers finished products to its consumers,
some other variables are deemed pertinent to the industry and must be considered. Thus, it is
crucial to see how these identified issues in digital maturity models from other industries and
those pertinent to the industry itself relate to the South African construction industry.

It is against this theoretical backdrop that this research sought to provide possible direction for
attaining digital transformation in construction organisations in South Africa, through the
development of a digitalisation capability maturity model. The developed maturity model
serves as a framework for self-assessment of construction organisations intending to attain
digital transformation. It can also be a benchmarking tool for those already in the
transformation process and a means for organisational learning.

1.3 AIM OF THE STUDY

In the manufacturing industry where the industry 4.0 emanated, Erol et al. (2016) noted that a
common agreement exists on the need for advancement in production technologies and
business models which will be in-line with the vision of the industry 4.0. However, the major
challenge faced is in terms of the vague nature of what is required for this advancement. This
challenge tends to affect the transformation of ideas into industrial practice. Similarly, in
construction, for there to be proper digital transformation and a safe transition from the
traditional method of construction service delivery, to a digitalised method, without negatively
affecting the human resources, understanding what is required to attain this transformation, is
necessary. Through this, the practical application can be easier and the transition, smoother.
Based on this knowledge, this study was aimed at developing a digitalisation capability
maturity model for construction organisations in South Africa, with a view to providing a
roadmap towards achieving digital transformation within the South African construction
industry.

1.4 RESEARCH MOTIVATION

The motivation for this study lies in the absence of a digitalisation capability maturity model
within the construction industry, especially in developing countries like South Africa, where
the use of digital technologies is slow and construction project is poor. There is the need to
ascertain the digital maturity of construction organisations in the South African construction
industry for the attainment of digital transformation. In addition, creating a strategy that is
suitable for these organisations in the quest for a more digitalised South African construction
industry was deemed necessary.

1.5 SIGNIFICANCE OF THE STUDY

1.5.1 General Significance

Past researches in developing countries have been tailored towards the performance of
construction projects, factors responsible and several suggestions have been proffered (Emuze
and Samllwood, 2011; Hussin, Rahman and Memon, 2013; Ibrahim et al., 2010; Kaming et
al., 1997; Memon et al., 2010; Ogunsemi and Jagboro, 2006; Omoregie and Radford, 2006;
Windapo and Cattell, 2013). However, recent trends have shown that if construction project
delivery is to improve, and construction companies are to gain better reputation, then the
construction process must be rooted in the realm of digital knowledge and strategically driven by
digital technology. Argawal et al. (2016) have stated that even though construction industry
around the world suffers from slow productivity growth and low financial returns, its embrace of
available process and technological innovations that could help it to do better, with respect to
both profitability and performance has also been slow. Thus, the industry cannot continue to
avoid the idea of digitalisation, if it expects to achieve effective and efficient construction
products, an increase in productivity growth, profitability, performance and overall satisfaction.

It has been established that digitalisation can be employed at various stages of construction
projects. Its strategic application at the design, construction and operation phases of
construction projects has been well documented. Parallel and robust design and engineering
can be enjoyed through the application of BIM, increase in the chances of accuracy in
estimating the budgeted cost and schedule of a project, more realistic designs that helps to
reduce issues of rework and its associated time and cost overruns, and proper facility
management, monitoring and maintenance can be achieved through the application of digital
tools (Argawal et al. 2016; Delgado et al., 2017; Gerbert et al. 2016; Castagnino et al., 2016;
Ibem and Laryea, 2016). Considering the obvious benefits of the use of this highly beneficial
development in the construction industry, there is still a paucity of evidence as regards the
digitalisation happenings within construction companies in South Africa despite their
shortcomings in the delivery of construction projects. Knowing ‘where we are’ and ‘where we
ought to be’ is necessary for the proper improvement of the industry. Capgemini Consulting
(2014) has earlier suggested that for digitalisation within the manufacturing industry,
manufacturing companies should undertake a detailed digital maturity assessment in order to
have a transparent view of their current level of digital readiness. This is a self-assessment
process for these companies in terms of their digitalisation level. Similarly, if construction
organisations are to achieve headway in the quest to increase their service delivery
capabilities, undertaking a digital maturity assessment that will serve as a roadmap towards
achieving this quest is necessary. This study provides that roadmap needed for construction
organisation seeking digital transformation.

1.5.2 Sustainable Development Goals

Following the United Nation’s (UN) outline of seventeen life-changing sustainable

development goals (SDGs) in 2015 as against the eight old Millennium Development Goals
(MDGs), countries around the world have pledged their support to improve the planet by 2030
through focusing on different aspects of these goals. Two notable SDGs that this current study
support is SDG nine and SDG eleven which are industry, innovation and infrastructure, and
sustainable cities and communities. The SDG on industry, innovation and infrastructure
involves the delivery of resilient infrastructure and fostering innovation. Recall that the
construction industry is at the forefront of infrastructure development in any nation (Ayodele
and Alabi, 2011; Kazaz and Ulubeyli, 2009; Leibing, 2001). The digitalisation of the
construction industry will promote the introduction and adoption of innovations needed in
improving the infrastructure delivery in the country. Through a digitalisation capability
maturity model, organisations can improve their digitalisation capability and, in the process,
improve their service delivery to the country through the adoption of innovative digital
technologies. For example, the increase in their digital capability will see organisations in the
industry being able to adopt more innovative technologies like 3D printing which has been
adjudged to be highly effective in the delivery of cost-effective housing (Hager et al., 2016;
Lim et al., 2012; Sakin and Kiroglu, 2017; Mohd-Tobi et al., 2018). This will, to some extent,
bring about the attainment of SDG eleven which involve providing sustainable cities through
increase affordable housing.

1.5.3 National Development Plan 2030

The National Development Plan (NDP) 2030 which is a long-term development plan for
South Africa, among different goals, aim to achieve by 2030 an economy that absorbs labour
and increase focus on key capabilities of both the citizens and the country. These capabilities
were described in terms of “skills, infrastructure, social security, strong institutions and
partnerships both within the country and with key international partners” (Corporate
Governance Traditional Affairs, 2018). As earlier stated digitalisation is not about eliminating
skills, but rather enhancing them (Holopainen and Jokikaarre, 2016). It, therefore, implies that
by developing a digitalisation maturity model that considers not just the technology-related
issues needed for digital transformation, but also the people’s capability through which the
skilling and reskilling of the labour force are considered, this study contributes significantly to
the NDP 2030 goals. Recall that the construction industry is one of the largest employers of
labour (Abor and Quarte, 2010; Agumba, 2013; Anaman and Osei-Amponsah, 2007; CIDB,
2017; Saka and Lowe, 2010). By creating a model that is people inclusive and that encourages
labour reskilling, significant improvement can be made in the empowering of many the
country’s workforce. Also, the study promotes the 2030 goal of partnership capability as this
is considered a critical area through which digital transformation can be achieved for
construction organisations. Thus, it can be concluded that this research aligns itself with the
vision of the South African government in the quest to deliver a better future for the country.

1.6 THE STUDY

1.6.1 Research Questions

The research questions pertinent to achieving the aim of this research are as follows:

RQ1: To what extent does technology influence the attainment of the digital
transformation of construction organisations in South Africa?

RQ2: To what extent do the people’s capability within the construction organisations in
South Africa, influence the organisation’s digital transformation?

RQ3: To what extent does the strategies employed by the construction organisations in
South Africa, influence their digital transformation?

RQ4: To what extent does the process within construction organisations in South Africa,
influence their digital transformation?

RQ5: Does digital partnering have any significant influence on the digital transformation
of construction organisations in South Africa?

RQ6: Does environment pressure have any significant influence on the digital
transformation of construction organisations in South Africa?

RQ7: Can the developed digitalisation capability maturity model be validated for its
applicability in the South African Construction industry?

1.6.2 Research Objectives

To achieve the aim of this research, the set objects are:

RO1: To determine the influence of technology on the attainment of digital

transformation in construction organisations in South Africa;
 RO2: To examine the extent to which the people’s capability within construction
organisations in South Africa, influence the organisation’s digital transformation;

RO3: To evaluate the extent to which the strategies employed by construction

organisations in South Africa, influence their digital transformation;

RO4: To examine the extent to which the process within construction organisations in
South Africa, influence their digital transformation;

RO5: To evaluate the extent to which digital partnering influences the digital
transformation of construction organisations in South Africa;

RO6: To evaluate the extent to which environment pressure influences the digital
transformation of construction organisations in South Africa;

RO7: To develop a digitalisation capability model for construction organisations in

South Africa.

RO8: To determine the validity of the conceptualised digitalisation capability maturity

model for construction organisations in South Africa.

1.6.3 Research Methodology

Research methodology describes an appropriate method and procedure for the achievement of
the specific objectives of the research. According to Rajasekar, Philominathan and
Chinnathambi (2013), the term methodology describes the specification of the procedure for
the collection and analysis of data necessary to solve the problem at hand. It is a science of
studying how research is to be carried out. Essentially, it is the procedure by which
researchers go about their work of describing, explaining and predicting phenomena. Its aim is
to give the work plan for research. Thus, this section gives a brief overview of the
methodology used in investigating the research questions raised for the study in order to
achieve the stated objectives of the research.
[Link] Research Design

Yin (2003) defined research design as a logical sequence that links empirical collection to
initial research questions and eventually to its conclusion. Kothari (2004) further stated that it
is the arrangement of conditions for collecting and analysing data in a manner that aims to
combine relevance to the research purpose. Since the purpose of this study was to develop a
digitalisation capability maturity model for organisations in the South African construction
industry, a pragmatism worldview which led to the use of a mixed-method design was deemed
suitable for the study. The quantitative and qualitative approaches were used sequentially. The
qualitative aspect involved the use of a Delphi study which gave contextual information and
confirmation of variables gathered from the review of existing literature as well as the human
subjective information needed for the development of the quantitative aspect of the study. The
quantitative aspect comprised of a survey that was based on a structured questionnaire
designed following the result from the Delphi study and geared towards harnessing
information from construction professionals as regards the stated objectives of the research.

[Link] Method of Data collection

Following the decision to adopt a mixed-method approach, two sets of data were gathered.
After the review of existing literature and determining the variables needed in achieving
digitalisation, a Delphi study was conducted among experts. Thus, the first set of data were
gathered from an expert panel of 13 experienced construction professionals in the country.
This was done over a two-round Delphi. The data gathered here served as the bases for
determining the applicability of the main dimensions and sub-attributes of digitalisation
gathered from models existing in other industries. Also, other crucial digitalisation issues
were assessed during the Delphi process in a bid to get clarity on the topic. These issues are
the future of digitalisation in the South African construction industry, the risk of adoption and
non-adoption of digital technologies in the industry, the hindrances to the adoption of digital
technologies in the industry, and the possible measures needed for the adoption of theses
digital technologies in the industry.

Following the results from the Delphi, a structured questionnaire was designed with the aim of
achieving the objectives of the research through a survey. This served as the quantitative strand
of the research and empirical data were also gathered. The population for the survey were
construction professionals currently practising within a government establishment, consulting
firm or a contracting organisation. To determine the total population for the study information
regarding the total number of professionals was gathered from the South African Council for the
Architectural Profession (SACAP), South African Council for the Quantity Surveying Profession
(SACQSP), Engineering Council of South Africa (ECSA) and the South African Council for
Project and Construction Management Profession (SACPCMP) annual reports. The total
population for the study was 40,188 construction professionals. Using appropriate statistical
analysis, a sample size of 548 was derived for the study and was considered adequate both for
generalisation of the findings and for the method of data analysis adopted.

[Link] Data analysis

Since the data collected was in two folds the data analysis conducted was also different. For the
Delphi, data gathered from the experts were analysed using interquartile deviation,
Kendall’s coefficient of concordance, and Chi-square technique together in ascertaining
consensus among experts. Median, mean, and standard deviation were also employed in
bringing clarity to the rating of the assessed variables. For the quantitative survey, a five-level
data analyses approach was employed. Determining the reliability, and validity of the research
instrument and the normality of the data gathered was the first stage while determining the
most frequent variable in the background information of the respondents, and the most
occurring variable in each of the research objectives through descriptive statistics was the
second stage. The third stage involved determining the variables with a statistically significant
difference between respondents from the three organization types using Kruskal-Wallis
HTest. Next was to determine the principal components for each identified construct using
exploratory factor analysis. The last stage involved determining the best fit digitalisation
capability maturity model for construction organisations in South Africa using Structural
Equation Modelling (SEM). SmartPLS 3.2 was adopted for the SEM conducted and different
statistical fit analysis were conducted to ascertain the goodness of fit of the developed
digitalisation capability model.
1.6.4 Delimitation of the Study
The study was limited to the assessment of the main dimensions and sub-attributes needed for
the digitalisation of construction organisations in South Africa. Through this assessment, the
development of a digitalisation capability maturity model was achieved based on information
gathered from construction professionals in South Africa. Specific focus was placed on the
influence of technology, people, process, strategy, digital partnering, and environment
pressure, on specific digitalisation outcomes. The causal relationship that exists between the
main dimensions (also referred to as constructs or latent variables), their respective variables,
and the expected outcome was measured using partial least square SEM derived from
SmartPLS 3.2.

1.7 ETHICAL STATEMENT

In conducting this research, ethical considerations were thoroughly considered with voluntary
participation made a crucial point in soliciting information from participants. The interests of
the participants were protected through properly informing them of the purpose of the study
and the basis for their selection. Through this, participants were able to participate in the study
and provide needed information on their own volition without being pressured or coaxed into
doing the same. The research ensured confidentiality by ensuring that all participants were
anonymous throughout the study. Also, in terms of use of other people’s work (related
literature), proper recognition was given through citations of all documents assessed during
review and report writing.

1.8 STRUCTURE OF THE THESIS

The structure of the entire thesis follows the order stated below:

Chapter One – Introduction

This chapter shows the background of the research and the problem which the research set
out to solve. The research questions pertinent to achieving the aim of the research as well
as the objectives set were discussed. The motivation for carrying out the research and the
significance of the study to the different participants in the study were also highlighted in
this chapter.
Chapter Two - Theoretical Perspectives of Digitalisation in Construction

The purpose of this chapter is to gain more insight into the theoretical background and
conceptual perspective of digitalisation. This chapter helps in guiding the formulation of the
questions of the research and served as the first point of call in seeking answers to the
questions raised. A survey of related book chapters, journals articles, conference papers, and
related internet articles are presented in this chapter.

Chapter Three – Conceptual Perspective of Digitalisation Capability Maturity Model in

Construction

The chapter discussed the conceptual perspective of the digitalisation maturity model for the
construction industry. The chapter shed light on what a maturity model entails as well as the
review of existing maturity models (within and outside the construction industry) in a bid to
understanding the key features needed for the proposed maturity model to be developed.

Chapter Four - Gaps in Digital Capability Literature

This chapter discussed the observed gap in digital maturity model holistically. The gaps
identified are digital partnering and environment pressure which were not included in previous
digital maturity model found in the business, education, manufacturing, telecommunication
industries. These constructs were deemed crucial considering the domain (construction
industry) wherein the developed digitalisation capability maturity model is to be used.

Chapter Five - Digitalisation in the South African Construction Industry

The chapter entails an overview of happenings within the South African construction industry
with a view towards ascertaining the industries readiness towards digitalisation uptake. The
chapter shed light on the challenges facing the South African Construction Industry which
might deter the industry from attaining digital transformation.

Chapter Six - Research Methodology

This chapter gives a vivid view of the steps taken to achieve the set objectives needed for the
development of a digitalisation maturity capability model for the South African construction
industry. The chapter provides details on the research design, the choice of research methods,
the selection of participants, the method of gathering data from the participants and the mode
of analysing these data gathered.

Chapter Seven - Result from Delphi Study

This chapter gives a vivid view of the findings from the Delphi conducted. The Delphi process
was initiated based on the need to explicitly define the main and sub-attributes of
digitalisation capability maturity of construction organisations in South Africa. This became
necessary due to the absence of a digitalisation capability maturity model designed
specifically for the construction industry. The results gathered from experts in the Delphi was
reported in this chapter.

Chapter Eight – Digitalisation Capability Maturity Conceptual Model

This chapter gives a clear insight into the four main dimensions selected from the review of
existing models discussed in chapter three. The gaps identified in existing models which form
the last two main dimensions of the model have already been discussed in chapter four as well
as the theory guiding them. The different sub-attributes needed for the attainment of maturity
in these six different capability areas as well as the outcome variables were also discussed in
this chapter. The definition of the five maturity levels for digitalisation maturity to be attained
was also defined.

Chapter Nine – Presentation of Results from Field Survey

This chapter presents the result of the analysis conducted on the quantitative data gathered
from construction professionals. The chapter reveals the result from the 5-level of data
analysis conducted. The result from the data analysis conducted was presented with the aim of
giving a clear picture of the constructs and measurement variables needed for the
digitalisation capability maturity model for construction organisations in South Africa.

Chapter Ten – Discussion of Results

This chapter discusses, in relation to past studies, the results derived from both the descriptive
and inferential statistics conducted and reported in the previous chapter. The agreement or
disagreement of the result of the analyses of the conceptualised digitalisation capability
maturity model was examined and reported. This chapter also revealed the developed
digitalisation capability maturity model instrument designed from the digitalisation capability
model derived from the use of SEM.

Chapter Eleven - Conclusion and Recommendations

In this chapter, conclusions were made based on the findings from different analyses
conducted. The chapter also contains recommendations made based on the conclusion drawn
from the findings of the study. The contribution of the research to the body of knowledge was
given and recommendations for future researches were made based on the limitations of this
current study.

1.9 CONCLUSION

Conclusively, chapter one gives a broad overview of what the research is all about. It gives an
insight into what was set out to be done, why it was imperative to do it, how it was done, and
what was discovered. It also gives an overview of what to expect in the subsequent chapters of
the thesis. The next chapter deals with the theoretical perspective of digitalisation in
construction.