Dynamic capabilities for construction organizations in the fourth industrial revolution era

Abstract

Building the right capabilities is an essential strategy that construction organizations need to consider to survive the rapid technological changes present in the fourth industrial revolution (4IR). Therefore, this study assessed the capabilities required by construction organizations in the era of 4IR using the dynamic capability theory. The study adopted a quantitative design using a questionnaire survey. Due to the quantitative nature of the data gathered, statistical methods such as percentage, Mean item score, Mann-Whitney U-Test, and Partial Least Square Structural Equation Modelling were employed. Findings revealed that construction organizations need to possess transformation capabilities relating to technology governance, knowledge management and the creation of new resources and processes to gain a better competitive advantage and transform their service delivery. Adequate attention should also be given to the five sensing, and seven seizing capabilities identified in the study as they can significantly impact the transformation capabilities of construction organizations. Theoretically, the study creates a foundation for a broader discussion on construction organizations' capabilities in future studies.

Keywords:

• 4IR
• dynamic capabilities
• digital technologies
• fourth industrial revolution
• organizational management
• strategic management

Disclosure statement

No potential conflict of interest was reported by the authors.