Interaction Effects of Information Technologies and Best Practices on Construction Project Performance

AbstractBuilding from considerable empirical research in the general business literature, this paper quantitatively explores the view that the benefits of information technologies manifest themselves through improvement in work processes. In turn, better work processes lead to increased project performance. Using an overall sample of 133 projects (missing data make specific correlation sample sizes smaller) from the Construction Industry Institute Benchmarking and Metrics database, this paper analyzes correlations between technology use and integration, best practices, and project performance measured with cost, schedule, and rework metrics. Data are also used to assess the complementary interaction between technology use, work processes as measured by best practices, and performance. The findings show that there are limited significant beneficial correlations between information technology use and performance, slightly more significant beneficial correlations between best practice use and performance, an...

[1]  Charles H. Kriebel,et al.  Information Technologies and Business Value: An Analytic and Empirical Investigation , 1995, Inf. Syst. Res..

[2]  Ryan Thomas George.  Information Flow to Support Front End Planning , 2007 .

[3]  Alain Pinsonneault,et al.  A Model of Organizational Integration, Implementation Effort, and Performance , 2005, Organ. Sci..

[4]  William J. O'Brien.  IMPLEMENTATION ISSUES IN PROJECT WEB SITES: A PRACTIONER'S VIEWPOINT , 2000 .

[5]  Theophanis C. Stratopoulos,et al.  Does successful investment in information technology solve the productivity paradox? , 2000, Inf. Manag..

[6]  Rajiv Kohli,et al.  Measuring Information Technology Payoff: A Meta - Analysis of Structural Variables in Firm - Level Empirical Research , 2003, Inf. Syst. Res..

[7]  Erik Brynjolfsson,et al.  The productivity paradox of information technology , 1993, CACM.

[8]  Wonseok Oh,et al.  On the Assessment of the Strategic Value of Information Technologies: Conceptual and Analytical Approaches , 2007, MIS Q..

[9]  Carrie Sturts Dossick,et al.  Implementing Web-Based Project Management Systems in the United States and Japan , 2008 .

[10]  P. Strassmann.  The business value of computers , 1990 .

[11]  Sinan Aral,et al.  I.T. Assets, Organizational Capabilities and Firm Performance: Do Resource Allocations and Organizational Differences Explain Performance Variation? , 2007 .

[12]  Lorin M. Hitt,et al.  New Evidence on the returns of information systems , 1993 .

[13]  Omer Tatari,et al.  Current state of construction enterprise information systems: survey research , 2007 .

[14]  Mohan Tanniru,et al.  Activity-based justification of IT investments , 2005, Inf. Manag..

[15]  Bonsang Koo,et al.  Feasibility study of 4D CAD in commercial construction , 2002 .

[16]  Gd Wood,et al.  Risk management practices of leading UK cost consultants , 2003 .

[17]  Burcu Akinci,et al.  Automating the task of tracking the delivery and receipt of fabricated pipe spools in industrial projects , 2006 .

[18]  Paul A. Pavlou,et al.  From IT Leveraging Competence to Competitive Advantage in Turbulent Environments: The Case of New Product Development , 2006, Inf. Syst. Res..

[19]  John A. Gambatese,et al.  Constructability State of Practice Report , 2006 .

[20]  M. Lynne Markus,et al.  Paradigm Shifts - E-Business and Business/Systems Integration , 2000, Commun. Assoc. Inf. Syst..

[21]  E. Brynjolfsson,et al.  Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending , 1996 .

[22]  James T. O'Connor,et al.  Achieving integration on capital projects with enterprise resource planning systems , 2000 .

[23]  Anandhi S. Bharadwaj,et al.  A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation , 2000, MIS Q..

[24]  Kenneth L. Kraemer,et al.  Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value , 2004, MIS Q..

[25]  Charles M. Eastman,et al.  BIM Handbook: A Guide to Building Information Modeling for Owners, Managers, Designers, Engineers and Contractors , 2008 .

[26]  R. Rimal.  Perceived Risk and Self-Efficacy as Motivators: Understanding Individuals' Long-Term Use of Health Information. , 2001 .

[27]  E. Brynjolfsson,et al.  Beyond Computation: Information Technology, Organizational Transformation and Business Performance , 2000 .

[28]  James Sommerville,et al.  Implementing IT in Construction , 2006 .

[29]  Andrew Baldwin,et al.  A Framework for Measuring IT Innovation Benefits , 2000, J. Inf. Technol. Constr..

[30]  Erik Brynjolfsson,et al.  The Productivity Paradox of Information Technology: Review and Assessment , 2014 .

[31]  James T. O'Connor,et al.  Project Performance versus Use of Technologies at Project and Phase Levels , 2004 .

[32]  Robert E. Chapman,et al.  Impact of Information Technologies on Performance: Cross Study Comparison , 2008 .

[33]  T. C. Powell,et al.  Information technology as competitive advantage: the role of human , 1997 .

[34]  Pollaphat Nitithamyong,et al.  Web-based construction project management systems: how to make them successful? , 2004 .

[35]  Veda C. Storey,et al.  A framework for acquiring domain semantics and knowledge for database integration , 2000 .

[36]  Maryellen R. Kelley,et al.  Productivity and Information Technology: The Elusive Connection , 1994 .

[37]  A. K. W. Jayawardane,et al.  Construction Productivity Management , 1998 .

[38]  T Chamberlain.  THE CONSTRUCTION INDUSTRY INSTITUTE , 1990 .

[39]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[40]  Richard L. Tucker,et al.  Impacts of Design/Information Technology on Project Outcomes , 2004 .

[41]  John E. Taylor,et al.  Antecedents of Successful Three-Dimensional Computer-Aided Design Implementation in Design and Construction Networks , 2007 .

[42]  R. Edward Minchin,et al.  Firm Performance and Information Technology Utilization in the Construction Industry , 2006 .

[43]  Martin Fischer,et al.  Benefits and lessons learned of implementing building virtual design and construction (VDC) technologies for coordination of mechanical, electrical, and plumbing (MEP) systems on a large healthcare project , 2008, J. Inf. Technol. Constr..

[44]  Martin Fischer,et al.  Benefits of 3d and 4d Models for Facility Managers and Aec Service Providers , 2003 .

[45]  Martin Fischer,et al.  Characteristics of Design-Relevant Constructability Knowledge , 1997 .

[46]  Roozbeh Kangari.  Risk Management Perceptions and Trends of U.S. Construction , 1995 .

[47]  James T. O'Connor.  IMPACTS OF CONSTRUCTABILITY IMPROVEMENT. , 1985 .

[48]  Bo-Christer Björk,et al.  Electronic document management in construction - research issues and results , 2003, J. Inf. Technol. Constr..

[49]  John D. Borcherding,et al.  Work Force Motivation and Productivity on Large Jobs , 1981 .

[50]  Laurie J. Kirsch,et al.  The Impact of Data Integration on the Costs and Benefits of Information Systems , 1992, MIS Q..

[51]  Richard N. Palmer,et al.  Automation of Civil Engineers:Some Observations , 1989 .

[52]  Toshi Hayashi,et al.  Understanding process plant schedule slippage and startup costs , 1986 .

[53]  Ioannis Brilakis,et al.  Visual Pattern Recognition Models for Remote Sensing of Civil Infrastructure , 2011 .

[54]  Hans C. Bjornsson,et al.  Information Technology and Purchasing Strategy : Two Necessary Enablers of More Efficient Construction Processes , 2004 .

[55]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .