Indian Journal of Economics and Business

Vol. 20 No. 3 (December, 2021)

Copyright@ Ashwin Anokha Publications & Distributions
http://www.ashwinanokha.com/IJEB.php

Digital Transformation in Supply Chain Management: A

conceptual framework for construction industry

Tisha Meriam Cherian, C. Joe Arun SJ

Faculty, The Department of Management, Loyola Institute of Business Administration, India

*
Corresponding author: tishacherian@gmail.com

Received:07th July 2021

Revised:21st August 2021
Accepted: 03rd September 2021

Abstract: Digital technology is a powerful tool for storing, analyzing, and integrating data. Despite the
construction industry contributes significantly to the economic growth of India, the industry has struggled
to make effective use of tools and technology due to low productivity, lack of data, inefficient payment
systems, and poor regulations. As a result, successful technology adoption leads to digital transformation in
the construction sector. The sector is in an infant stage of technology adoption. Hence, the paper aims to
investigate the use digital technology as an enabler to revolutionize the construction supply chain, and to
identify the advanced technologies that are used in Construction Supply Chain Management (CSCM). The
paper also investigates the factors responsible for adoption of Digital Supply Chain Management (DSCM)
in the construction industry using Technology, Organization and Environment theory. An in-depth
interview is conducted among construction professionals to determine the adoption factors. The identified
factors such as digital transformation enabler, digital infrastructure, digital expertise, Supply Chain (SC)
integration, company size, security, and regulatory problems are modulated as a conceptual framework.
With this study, the construction professionals and suppliers will benefit and able to get more knowledge
on the adoption of digital technology in CSCM. However, to implement DSCM in the construction
business, experts require proper coordination and training.

Keywords: Digital Transformation, Supply Chain Management, Technology-Organization-Environment theory,

Construction Industry

1. Introduction

The construction is a diversified industry with interdisciplinary construction firms and service providers
(Vrijhoef, 2011). It is vital for the development of economies across the world (Bogue, 2018). Because the

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sector is fragmented and projects are distributed across the country, supply chain participants are similarly
dispersed. In most countries, the construction industry has contributed to economic growth (Dakhil, 2013),
and construction accounts for half of a country's investment (Oesterreich and Teuteberg, 2016). Even
though this industry is extremely important economically, it also has certain inefficiencies like low
productivity, lack of data and inefficient payment systems. Information and Communication Technology
(ICT) has recently eased the geographical dispersion of the construction industry, and software such as
“Computer-Aided Design" and "Computer Aided Architectural Design" has become a common tool for
designing construction works (Papadonikolaki, 2020). Similarly, ICT has brought favorable impact on
economic growth (Habibi and Zabardast, 2020) and has touched every aspect of life through substantial
shift in Supply Chain (SC). ICT in SC has enabled businesses to share timely information, execute accurate
plans, and efficiently conduct various SC operations and activities (Niu, 2010). Even though the industry
used ICT, its productivity has barely risen or even deteriorated over previous few decades (‘Construction
Industry Handbook’). The industry has to embrace advanced ICT and digital technologies like automotive
and manufacturing industries for better productivity (Oesterreich and Teuteberg, 2016; Mason, 2017;
Barima, 2017).

The unprecedented change of ICT in the automotive and manufacturing industry has led to digital
disruption (Alshawi et al. 2003). Similarly, traditional business models' physical operations were disrupted
and transformed to digitization. Therefore, the most revolutionary change observed during this
industrialized era was that industries had digitized and shifted to digitalization. Digitization means the
conversion of analogs to digital format (that is, binary language) whereas, digitalization refers to the usage of
digitized information or data to transform a business model for enhanced opportunities and revenue.
Despite the negative implications of the digitalization movement, (Buyukozkan and Gocer, 2018)
organizations are using digital technology to collect and evaluate data provided by machines (Sarvari et al.
2017).
The SC is composed of a series of processes and procedures that flow from source to the consumers,
creating value for goods and services. Traditional SCs were paper and computer based, and have lack of
information, transparency, and inventory. Inefficiency and delays ensue as a result. Whereas, Digital SC, on
the other hand, improves dependability and efficacy by increasing openness, communication, and
cooperation (‘Digital Transformation of”). The digital technology has impacted society, the organization's
business (World Economic Forum, 2016), and supply chain operations (Holmstrom, and Partanen, 2014).
So, using digital applications, Digital Supply Chain Management (DSCM) reduces cost, improves service,
time, agility, and inventory through digital applications, and thus enhances operational efficiency. It also
boosts the business's flexibility by increasing output to produce high-quality goods at less cost (Scuotto et al.
2016; Maskuriy et al. 2019). As a result, it is critical to comprehend the many sophisticated digital
technologies that may be applied to Construction Supply Chain Management (CSCM) and their
requirements. Furthermore, there is a succinct overview of current research on the framework and helps
both practitioners and academics in CSCM use of digital technologies. Therefore, the study has the
following research questions: (1) Will adoption of digital technologies transform the building industry? (2)
What emergent digital technologies are being leveraged as transformation facilitators in CSCM? (3) What
are the factors that have caused the framework for DSCM adoption in the construction sector to be
modulated?

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The theory adopted for the adoption of DSCM in the paper is Technology-Organization-Environment
(TOE). This paper examines variables such as digital enablers, digital infrastructure, digital expertise, SC
integration, firm size, security and legal issues. The study helps the managers and construction professionals
to understand the several factors that influences the adoption of DSCM and develop a plan for
implementing it in other industry. Thus, the study increases the awareness of digital technology use. On the
theoretical side, this study contributes to information system knowledge through the adoption of TOE
theory. The study contributes an existing knowledge in testing and developing a conceptual model for
digital technology adoption in construction industry. The suggested paradigm provides new perspectives on
DSCM for future research and helps decision-makers, practitioners, and experts to obtain a better
understanding of digital technologies in CSCM.

The structure of the paper is organized: Section 2 detailed the literature on the current status of the
construction industry, as well as the theoretical foundations. It also includes the transformation in the
construction industry covering digital technology, Industry 4.0, CSCM and DSCM. Section 3 presents a
framework for the adoption digital technology in Supply Chain Management (SCM) for the construction
industry using TOE factors. A construction company which has been transformed due to digital technology
is explained in section 4. Section 5 details the digital transformation benefits in SCM for the construction
industry. Finally, section 6 presents the conclusion, limitations, and further scope of research.

1.1 Literature review

SCM in the construction sector has changed due to the advancement in ICT (Deraman et al. 2012). In the
construction sector, technologies widely used were building information modeling (BIM), ICT, a Web-
Based Information System (WBIS), and on-site tracking system. Web-based technologies and BIM are
utilized to convey a variety of information to many stakeholders while also reducing waste (Singh et al.
2017). BIM also facilitates in performing works in an innovative way (Wong and Fan, 2013; Oh et al.
2015). Similarly, the usage of an on-site tracking system, reduces waste management on the construction site
(Singh et al. 2017). The mobile technologies such as the portable computer, Radio Frequency Identification
Device (RFID) are employed for efficient information and tracking in Construction Supply Chain (CSC).
Likewise, WLAN, 3G and GPRS are used as wireless access networks and Email for information exchange
(Froese, 2010). The efficient use of technology enhanced CSC's performance by increasing real-time
information and communication with stakeholders (Shi et al., 2016). Also, e-business has resulted in
continual development and productivity (Chen et al. 2013; Cherian and Kumaran, 2016). Also, CAD and
CADD were used for effective designing and collaboration (Papadonikolaki, 2020).

Despite the adoption and implementation of information technology to exchange information and
communication among stakeholders, the industry continues to face challenges such as low performance,
poor teamwork, insufficient information, poor regulation, inadequate compliance, and poor accounting
processes (Li et al. 2019). In addition, for construction operations such as prefabrication and off-site
production, the sector is in high demand for automation and the usage of modern digital technology.
Predictive analytics are also required for optimizing inventory allocation and forecasting demand. In smart
cities, traffic artificial intelligence systems and Intelligent Transport Systems (ITS) assist in identifying traffic
patterns and preventing road congestion (“Dataquest: Digital Revolution”). Furthermore, the adoption of

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digital technology results in better productivity in construction activities (Oesterreich and Teuteberg,
2016; Mason, 2017). Hence for advancement in the construction process, the industry needs
transformation to digital technologies.

1.1.1 Digital Technologies

Hamelink (1997) in the research addressed that evolution of digital technology occurs in four
phases: (1) Industry 1.0 (phase of mechanical), (2) Industry 2.0 (phase of electrification), (3)
Industry 3.0 (phase of telecommunication and digital computer) and (4) Industry 4.0 (phase of
information and communication). Digital technologies are referred to as an advancement in ICT
that supports capturing, storing, analysing, communicating, visualizing, incorporating, and
collaborating the data (Hamelink, 1997; Whyte and Lobo, 2010). Likewise, Digital technology,
according to Froese (2010), is a paradigm shift in the use of developing technologies such as email,
BIM, CAD, and Web-Based Project Management (WBPM) software.

According to Deloitte construction group, the construction industry is a "case of complex

disruption” as single technology cannot transform the industry to digitalization. Relatively, it is a
combination of technologies that transform the problems of construction companies such as time
management, an acquisition of staff, unproductive sites, project management costs and safety
(Kelley, 2019). For the execution of construction operations, the digital technologies utilized in the
construction sector are web-based (Ibem, and Laryea, 2014). It aids in the procurement of
construction supplies and delivery of construction projects (Ibrahim, 2013). Similarly, technologies
such as the cloud computing, internet, and other technologies reduce barriers and improve data
transmission across geographic boundaries (Underwood and Isikdag, 2011) and provide several
benefits (‘Innvoations 2050’). The application of digital technology in construction propels the
sector to new heights (Alaloul et al. 2020). However, according to research, adoption of digital
technology in the construction industry is still in its infancy (Chen et al. 2013), and digital
technology adoption is low (Kelley, 2019). Figure 1 shows the difference between traditional and
DSCM.

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Figure: 1 Traditional SC vs Digital SC (Source: Duckworth, 2019)

1.1.2 Industry 4.0

The industry’s fourth revolution referred as Industry 4.0 has a set of 'smart technologies' (Hecklau
et al. 2016; Qin et al. 2016) such as Artificial Intelligence (AI), the Internet of Things (IoT), Big
Data Analytics (BDA), Cloud Computing (CC), the Cyber-Physical System (CPS) (Lee, 2015; Qin
et al. 2016; Schumacher et al. 2016) and other technologies were products and machines
interrelate with each other. It aids in decision-making on their own and motivates them to work
independently (Lee, 2015). On the other hand, Industry 4.0 has created a new relationship with
systems, workers and products (Hecklau et al. 2016). The companies that create high technology
product use are likely to develop and implement Industry 4.0 technologies (Yuksel, 2020). Industry
4.0 software is shown in Figure 2.

The lack of technology adoption and implementation in SC has created supply chain problems in
businesses. Hence, a transition from traditional to digital SC is required (Queiroz et al. 2019). The
important technologies used in SC are artificial intelligence (Blanco, et al., 2018); IoT (Kumar et
al. 2016; Bibri, 2018); blockchain technology (Korpela et al. 2018; Li et al. 2018); cloud computing
(Korpela et al. 2018; Vazquez-Martinez et al. 2018); BDA (Kache and Seuring, 2017; Strandhagen
et al. 2017); CPSs (Yu et al. 2015; Zhong et al. 2017); robotics and automation (Barreto et al.
2017; Oyekan et al. 2017; Delgado et al. 2019). These technologies are necessary for digitization in
manufacturing, supply chain management and logistics innovation and deployment (Tu et al.
2018). As a result, these technologies help to improve project performance (Queiroz et al. 2019).

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Figure 2. Industry 4.0 (Source: “The Fourth Industrial Revolution”)

Although the construction sector has been moving toward Industry 4.0 for some time, the level of
digital technology adoption has not been adequate to have a major influence on performance.
Construction experts in Europe are less aware of industry 4.0 technology, according to a survey.
Technologies such as BIM, modularization, and cloud computing have developed significantly.
Even though technology is readily available, industry has yet to adopt digital technologies (Alaloul
et al. 2020). In the construction industry there are limited research related to Industry 4.0. As a
result, additional research in this area is required.

1.1.3 Construction Supply Chain Management (CSCM)

CSCM is an approach for successful collaboration of internal and external suppliers, clients and
other stakeholders. The activities of CSCM are planning, directing and delivering the required
quantity of materials to the site for final assembly. CSCM is tedious and time consuming for
maintaining the SC activities and the use of digital technology aids in collaboration and
integration. According to the report of the “Institute of Civil Engineering” (2017, p 2), DSCM has
brought changes to the industry in architecture, service, management and disposal of materials. It
also facilitates processing and decision-making.

1.1.4 Digital Supply Chain Management (DSCM)

Digital Supply Chain (DSC) is a smart, value-driven, and efficient process of using advanced and
analytical technologies to generate profit, revenue and business value (Alshawi et al. 2003). DSCM
means the application of digital technologies in SCM. The historical data, real time and predictive
information by digital SC for quick delivery, agility and transparency is shown in Figure 3.

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Figure: 3. Digital Supply chain (Source: Duckworth, 2016)

1.1.5 DSCM in Construction Industry

The adoption of digitalization in SCM is slow in the construction industry (Kelley, 2019) and the
degree of technology adoption is mostly limited compared to other industries. A study in the
European construction industry found that the social factor had greater influence on digital
technology adoption than other factors such as technological, environmental, political and
economic (Alaloul et al. 2020). Another study argues that even though the industry is slow in
adopting innovative technology, automation and robotics helps the sector significantly for future
developments (Delgado et al. 2019). BIM has been recently adopted in the industry and operates
as a platform for digitalization and a key technology for DSC (Morgan and Papadonikolak, 2018).
It aids other technologies to connect with each other and helps in maintaining a relationship with
the supplier and customer throughout the supply chain (Morgan and Papadonikolak, 2018;
Queiroz et al. 2019). Certain construction companies that have started adopting AI, sensors,
automation and thermal imaging have changed the workflow with self-driven trucks, 3D Modeling,
digital audits compliance and IoT performance for construction sites (Kelley, 2019). Thus,
traditional SC gradually accept the challenge of adopting DSCs to support customer satisfaction,
their experience, mode of transportation, production models and information exchange (Queiroz
et al. 2019).

Malaysian construction industry reported that IoT adoption in construction industry was in an
underdeveloped stage (Mahmud et al. 2018). Similarly, in UK (Woodhead et al. 2018) and Taiwan
(Chen, et al., 2020) construction industries the situation remains the same. An inadequate
establishment of IoT, lack of standards, awareness, safety and security are the major challenges
identified in Malaysian construction industry (Gamil et al. 2020). The big data technology

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adoption was very less in Australian construction industry (Leviakangas et al. 2017). Similarly, a
study identified that 75% of professionals in “Architecture, Engineering and Construction” (AEC)
were aware of big data technology (Sage, 2014). Another study claimed that big data technology
was very slowly adopted in the construction industry (AbouniaOmran, 2016). Whereas a study
conducted in the European construction industry reported that construction was ahead of the
adoption of Industry 4.0 (Klinc and Turk, 2019). It is apparent from this study that ICT and
Industry 4.0 have a major beneficial influence on the construction industry's development.

In construction projects, 3D printing, drones, AI, SC optimization and robotics were employed in
site, as a collaborative platform. Drones were used for inspection on the site, to locate hazards, to
take pictures and to track progress. Robots aid to perform better than humans, thus saving time.
Similarly, autonomous equipment in construction such as self-driven trucks reduce the workforce
and solve shortages of construction activities using computerized machines. They also use GPS and
sensors in construction sites with 3D models for better precision. Mobile apps and RFID facilitate
collaboration between offices and construction sites as they enable real time communication
(Kelley, 2019). The use of software for recruiting employees, procuring materials and equipment
has improved SCM in the construction sector. By predicting supply and demand, construction
companies optimize SC and increase efficiency, resulting in transparency in competitive bidding.

Construction SC has a complicated network of relationships, goods, logistics, materials,

information, and cash flow. For proper SC administration, CSC synchronization and integration
are required. In SC, disruptions and hazards result in waste, material damage, inefficiencies, and
significant downtime. Traditional pre-digital CSC procedures, which are manual, paper-based,
semi-automated, and conducted over the phone, have major difficulties. Similarly, in the
construction sector, real-time coordination and integration of SC limits the capacity to anticipate
the supplies and equipment required. Hence it is vital for construction companies to take part in
the adoption of digital technology for better visibility and optimization of SC. In this perspective,
all construction professionals and decision makers are challenged to recognize the digital
transformation of SC in construction industry. The construction sector has to identify the areas
that need to be digitally changed to increase efficiency. Regulations, contract changes, on-site
execution, design rethinking and labor retraining are few of the sectors that need to be digitized.
Furthermore, it is necessary to investigate the necessity for digital technology adoption in CSCM.
Consequently, the concept digital SC was neither organized nor discussed in pervious literature for
construction industry. Moreover, there is scant literature in DSCM concept and emerging
technologies adopted in the construction industry. There are only limited studies that enable for
the adoption of DSCM for SC in construction perspective. Hence, the construction practitioners
need to perform more studies on advanced ICT technologies to enhance automation in
construction works (‘Digital Transformation of’) and safety of the workplace (Nnaji et al. 2019).
Also, the factors of DSCM adoption need to be studied.

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1.1.6 Objectives
The purpose of the paper is to help researchers and professionals in the construction industry:
1. To recognize the adoption of digital technology as an enabler of transformation.
2. To understand the concept of DSCM and to identify the emerging technologies in the
construction industry.
3. To find the factors responsible for digital technology adoption in the construction
industry, and to modulate a framework.
1.1.7Theoretical Foundations
The existing literature on theories for technology adoption includes Theory of Planned Behavior
(TPB), Technology- Organization- Environment (TOE) theory, Theory of Reasoned Action (TRA),
Diffusion of Innovation Theory (DOI), Technology Acceptance Model (TAM) and Technology
Readiness Index (TRI). A study on the adoption of block chain technology in SC implemented
TPB and TAM theory (Kamble et al. 2019) whereas the adoption of AI in construction industry
used TOE and DOI (Alsheibani et al. 2018). Similarly, e-business technology adoption in the
construction industry has supported TOE theory (Cherian et al. 2019), while IoT adoption in the
Taiwan construction industry has adopted UTAUT theory (Unified Theory of Acceptance and
Use of Technology) (Chen et al. 2020). As a result, the previous research shows that Tornatzky and
Fleischer's TOE paradigm can be used to technology adoption. Therefore, this paper adopts the
theory of TOE to determine the factors responsible for the adoption of DSCM in construction
industry.
The framework of TOE facilitates to understand the factors responsible for technology adoption at
an organizational level for the construction industry. It is a systematic and valuable framework
established by Tornatzky and Fleischer (1990) that explains the factors for technology adoption
and innovation. It analyzes the factors of an organization in terms of technology, organization and
environment. The factors of technology involve all the relevant available technologies for the firm,
organizational factors include resources and business attributes that influence the adoption such as
management’s support, firm size, communication and collaboration. The environment factors
describe the industry’s structure such as competition, external pressure, security and legal issues
(Tornatzky et al. 1990).
The factors identified for the adoption of blockchain in Indian SCM industries were insecurity,
discomfort, attitude, usefulness, and behaviour control (Kamble et al. 2019). Similarly, M-Internet
in CSCM adopted factors like sharing of information and communication, material flow,
integration, coordination, technological support and security (Oh et al. 2015). Likewise, ICT
infrastructure (Bordonaba‐Juste et al. 2012), firm size (Mohamed, 2010; Oh et al. 2015) are few
factors identified in previous studies.
2. Methodology
In order to accomplish the objectives, an interview (qualitative study) was performed to determine
the factors of technology, organization, and environment that influence the digital technology

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adoption in SCM. This research aids in obtaining knowledge of advanced technologies and its
trends in the construction industry (Garcia and Gluesing, 2013). The sort of digital technologies
utilized in construction, the digital expertise required, infrastructural facilities, laws and
regulations, the firm size for technology adoption, and SC integration were all assessed using the
Delphi interview approach. A semi-structured questionnaire was utilized to gather in-depth
information from construction experts, and comments was recorded. Details such as technology
utilization and its advantages, infrastructural facilities, and digital technology training were
examined in the first round. The second set of interviews focused on laws and regulations,
company size, and SC integration. In the third stage, all the factors were consolidated and
discussed. As a result, six variables were finalized for the study.
2.1 Details of construction Professionals
Through a Delphi interview, data was obtained from three construction experts regarding the
usage of digital technology, infrastructure, firm size, SC integration, and regulations in the
construction sector. The major highlights are explained below. From Company A, a senior
construction project manager with 20 years of experience, CEO of the company with 10 years of
experience from company B and project manager of company C (8 years’ experience) are
interviewed virtually.
Based on Company A, a senior construction project manager’s information the company was
using technology for the last 10 years and has adopted drone and other based technologies in
business. The size of the company is large (greater than 250 employees). The employees have to be
given adequate training for future growth and external suppliers and government are willing to
support.

As per information from CEO of the construction company (company B), they have adopted
technology for last 5 years for faster construction works. It is a medium sized company (50 to 250
employees). They are using RFID for tracking materials and blockchain technology in logistics and
SCM. Government support and training is required for further business. Due to digitalization,
response time and production time were able to meet.

From company C, project manager information, they are using e-business technologies and web
technologies for SC tracking and communication respectively for last 3 years. The company falls
under small size (10 to 49 employees). As a result, the company has not implemented advanced
technologies. The size of the firm plays a major role in technology adoption hence difficult to get
government support in terms of monetary. Better infrastructure facility is needed to support
technology.

Based on the interview, the factors responsible for adoption of technology identified are the firm
size, skilled and trained professionals, SC integration, technology enabler, security and legal issues
are the factors identified.

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3 Conceptual Framework
From the existing literatures, objectives of study and factors obtained from the interview, a
conceptual framework is proposed for the adoption of DSCM in construction industry. Figure 4
represents the proposed framework. The factors are described below:

3.1 Digital transformation enablers

Digital transformation enablers are technology enablers that are novel technological solutions and
business processes that offer outstanding value and sustainable competitive advantages (Maditinos
et al. 2014). Digital transformation enabler has to be enabled in the organization to support the
organization’s strategy within the timescale for productivity (Ibem and Laryea, 2014). The digital
enablers for construction industry include theArtificial Intelligence (AI), Internet of Things (IoT),
Blockchain Technology (BT), and Big Data Analytics (BDA).

Digital transformation
enabler

Digital Infrastructure

Digital expertise DSCM

Adoption
SC Integration

Firm size

Security and Regulatory

issues

Figure 4: The proposed conceptual framework [Source: Author]

3.2 Digital Infrastructure

Digital Infrastructure refers to information, communication, technology, infrastructure, and

systems such as both hardware and software for configuring, monitoring and maintaining network
equipment and devices. In the modern business world, digital infrastructure is undeniably
important in SCM, business to business, and rapid fund transfer. Thus, it plays a significant role
in the industry’s economic growth (Leekha, 2018). The ICT system facilitated the shift of paper-
based communication to electronic communication (Pradhan et al. 2018). On the other side,
research on Industry 4.0 and DSCM have shown that the ICT system was still not equipped to
support digital SCM (Queiroz et al. 2019). While the cost and quality of infrastructure are found
to be the major factors contributing to performance of construction industry in Nigeria (Varma,

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2017). Another study found that the adoption of AI has a positive correlation between IT
infrastructure and AI adoption (Alsheibani et al. 2018). Therefore, digital infrastructure is very
essential in DSCM adoption.

3.3 Digital expertise

The major driver for adoption of technology in supply chain activities is digital knowledge
(Ikediashi and Ogwueleka, 2016). Technology and humans go hand in hand and the dependency
of humans on technology was increasing day by day. New entrants of construction professionals
are aware of technology, but lags in technical skills on the execution of construction activities. Lack
of digital expertise has become a serious competitive issue for the future of companies (Yuksel,
2020) especially, construction companies (Daugherty, 2015). Digital expertise facilitates
transforming the construction industry.
3.4 Supply Chain Integration

Integration is important among the suppliers for proper sharing of information and coordination.
The two stages of SC integration are information sharing and coordination in decision making
(Sahin and Robinson, 2002; Berger, 2016). Whereas Lee (2015) summarized that there are three
stages: information and sharing, resource sharing and coordination. An integrated SC improve the
coordination and collaboration among the stakeholders and partners (Alshawi et al. 2003). M-
internet technologies like wireless sensor, RFID, web based, and agent base technology improve
the integration and collaboration of CSCM (Oh et al. 2015). The SC integration includes
information sharing, coordination and collaboration relationships.

3.5 Firm Size

The size of the firm is one of the significant roles in the adoption of DSCM as construction
projects are distributed in different places. Construction industries include small, medium, and
large enterprises. Small firms have limited resources to digitalize compared to large firms (Ahuja et
al. 2009).

3.6 Security and regulatory issues

The factor, security and regulatory issues are the environmental factors for adoption of DSCM.
Regulatory issues are the assistance for the adoption of digital technology in SCM by the
government authority at organization level (Alsheibani et al. 2018). Government rules are
regulations that play a majorpart in the firm. The issues faced in the construction industry are
system and data security (Oh et al. 2015). The industry should take precautionary steps for the
security of software and hardware. Table 1 shows the factors identified for each factor.

Table 1: Factors for adoption of DSCM

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Constructs Variables Description References

Digital ((Ibem and Laryea,
Technological Transformation Less usage of technology 2014; Cherian et
factors enablers al. 2019)
Digital infrastructure Lack of infrastructure (Pradhan et al.
2018)

Digital Expertise Lack of skilled (Yuksel, 2020)

professionals
Organizational Firm size More number of small firms (Cherian et al.
factors 2019)
SC Integration (Oh et al. 2015).
Improper coordination and
collaboration
Environmental Security and legal Regulatory issues by the (Alsheibani et al.
factors issues government 2018).

Source: Author

The next section shows an example of an off-site construction company that had been successful by
the usage of digital technologies in construction SCM.

Katerra: Technology transformation

Katerra is a Japanese-funded off-site construction firm and a building service provider powered by
American technology. In 2015, the firm began as an architectural company, an off-site
manufacturer, and contractor. By integrating with technology and SCM into building processes, it
interacts directly with contractors, clients and owners. The company employs sophisticated
technologies like SAP, mobile apps, IoT, BDA and machine learning for optimization,
communication between site and office, resource tracking and construction designs. The use of
technology has resulted in significant changes in building procedures, like inventory tracking of
raw materials, which has assisted the firm in determining the time and number of supplies to be
ordered. This allowed the firm to save material costs by reducing waste, as well as order huge
quantities of items from suppliers, boosting the company's environmental impact. Katerra is using
other technologies like cloud computing to run applications of SC and to store data; IoT devices
to track the materials, supplies and equipment; Mobile apps to get universal information. Katerra's
investment has increased by more than $200 million owing to the usage of digital technologies in
SCM.

Benefits of Digital SCM in construction industry

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The following are the benefits of digital transformation in SCM for the construction industry:

1. Reduces inventory because of just-in-time procurement (Hardie, 2010).

2. Better decision making as a result of transparency (Cherian et al. 2019).

3. Inventory visibility due to integration of the entire value chain (Hardie, 2010).

4. Delivery times have been shortened because of more dispersed warehouses and a reduction
in the number of selling chain steps (Hardie, 2010)

5. Availability of more alternatives in the decision-making process (Hardie, 2010).

6. Better SC flexibility and risk reduction (Hardie, 2010).

7. Enhanced relationship with stakeholders, high profit and revenue (Agrawal and Narain,
2018).

8. Cost reduction (Cherian et al. 2019).

9. Demand sensing and real-time data of sales aids to grasp the customer's requirements
(Hardie, 2010).

10. Enhanced quality of workmanship and improved competitive advantage (Meier, 2016;
Agrawal and Narain, 2018).

4. Conclusion

According to the extant research, sophisticated technology adoption in CSCM is in infancy state
in both developing and developed countries. The construction sector will be transformed as a
result of adoption of DSCM. Digital technologies in SCM help in better integration,
collaboration, and communication with the stakeholders. Also, DSCM helps in global transactions
and partnership. The study addresses the factors influencing the adoption of DSCM for
construction industry. The TOE framework provides an understanding of digital technology
adoption in CSCM. This framework is like a capability maturity model for an organization. Factors
such as digital transformation enabler, digital infrastructure, digital expertise, SC integration, firm
size, security, and regulatory issues are essential for DSCM adoption in the construction sector.
The current literature specifies that construction professionals require more training and
understanding about the technology and the methods to implement it. As a result, it boosts
productivity by decreasing time, expenses, and profit. The government's technology adoption
strategy has opened the ground for the development of smart construction sectors. In the current
scenario, technological environment is significant for all activities in the industry, but it has not
been implemented in construction industries.

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This study helps the managers and construction professionals to recognize the various factors that
influences the adoption of DSCM and develop a plan for implementing it in other industry. The
study increases the awareness of digital technology use. On the theoretical side, this study
contributes to information system knowledge through the adoption of TOE theory. The study
contributes an existing knowledge in testing and developing a conceptual model for the adoption
of digital technology in the construction industry. The research also provides a detailed literature
review on digital technology adoption in construction industry as there is lack of study in India.

It is purely a conceptual study and only a few construction professionals are interviewed due to
COVID-19 restrictions are the study constraints. Only 3 construction professionals were taken for
the study. In future research, the present study could be tested empirically by studying a set of
construction companies.

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