Latent Institutional Environment Factors Influencing Construction Digitalization in South Africa

ABSTRACT This paper presents the findings of an assessment of the latent institutional environment factors influencing construction digitalization using South Africa as a point of reference. The study employed a post-positivism philosophical stance which informed the use of a quantitative survey approach. The survey was conducted among construction professionals actively involved in construction projects across the country. Analysis of the data gathered was done using mean item score, exploratory factor analysis (EFA) and structural equation modeling (SEM). EFA revealed two principal external environment factors (legislation and regulation, and pressure from clients and competitors) that can influence construction digitalization. Further to this, SEM revealed that while the pressure from client and competitors will have a more significant influence on digitalization, the pressure from industry regulations and government legislation cannot be overlooked. The findings of the study can be used as a guide toward the digitalization of construction organizations through the consciousness of the influence of external environmental issues, an aspect that has not gained significant recognition in the construction digitalization discourse.