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Construction 4.0 implementation for performance improvement: an innovation management perspective

Danny Murguia (Laing O’Rourke Centre for Construction Engineering and Technology, Department of Engineering, University of Cambridge, Cambridge, UK)
Robby Soetanto (School of Architecture, Building and Civil Engineering, Loughborough University, Loughborough, UK)
Michael Szczygiel (System Loco Ltd., Lancaster, UK)
Chris Ian Goodier (School of Architecture, Building and Civil Engineering, Loughborough University, Loughborough, UK)
Anil Kavuri (Loughborough Business School, Loughborough University, Loughborough, UK)

Construction Innovation

ISSN: 1471-4175

Article publication date: 8 October 2024

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Abstract

Purpose

The emergence of Construction 4.0 technologies provides an impetus for radical change and rejuvenates the interest of stakeholders in addressing long-standing performance issues in the construction sector. However, construction firms struggle to implement Construction 4.0 technologies for performance measurement and improvement. Therefore, the purpose of this research is to develop a conceptual model of innovation management for implementing Construction 4.0 that guides and facilitates the strategic transformation of construction firms.

Design/methodology/approach

A conceptual model of innovation management is presented, and the findings are synthesised based on a literature review, 20 semi-structured interviews, two focus group discussions, three workshops, expert consultation and observations on three digitally-enabled projects. Data were inductively analysed using thematic analysis.

Findings

The analysis of empirical data revealed: (i) Four scenarios that could lead the industry to different futures, based on the extent of research and development, and the extent of integration/collaboration; (ii) Construction 4.0 capability stages for a sustained implementation route; (iii) Possible business model configurations derived from servitisation strategies; and (iv) Skills management challenges for organisations.

Research limitations/implications

First, the empirical data was only collected in the UK with its unique industry context, which may limit the applicability of the results. Second, most of the research data comes from the private sector, without the views of public sector organisations. Third, the model needs to be further validated with specific data-driven use cases to address productivity and sustainability issues.

Practical implications

Successful Construction 4.0 transformation requires a concerted effort of stakeholders, including those in the supply chain, technology companies, innovation networks and government. Although a stakeholder’s action would depend on others’ actions, each stakeholder should undertake action that can influence the factors within their control (such as the extent of collaboration and investment) and the outcomes.

Originality/value

The conceptual model brings together and establishes the relationships between the scenarios, Construction 4.0 capability stages, business models and skills management. It provides the first step that guides the fuzzy front-end of Construction 4.0 implementation, underpins the transformation to the desired future and builds long-term innovation capabilities.

Keywords

Acknowledgements

Digital Enablers for CONstruction Transformation (DECONT) project was funded via the Transforming Construction Network Plus. The Transforming Construction Network Plus is funded by UK Research and Innovation (UKRI), an investment supported by the Industrial Strategy Challenge Fund (ISCF). The authors wish to thank for this funding, support provided by N+ team, support at the early research stage of the project provided by Rinicom Ltd., System Loco Ltd., Innovare Systems Ltd., Innovative Manufacturing and Construction Solutions, and to all participants of the workshops, focus groups discussion and interviews.

Citation

Murguia, D., Soetanto, R., Szczygiel, M., Goodier, C.I. and Kavuri, A. (2024), "Construction 4.0 implementation for performance improvement: an innovation management perspective", Construction Innovation, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CI-08-2023-0184

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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