Vanita Ahuja Thesis

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IT Enhanced Communication Protocols for

Building Project Management BySmall and Medium Enterprises In

The Indian Construction Industry

By

Vanita Ahuja

Bachelor of Architecture

Masters in Building Science and Construction Management

A thesis submitted in partial fulfillment of the requirements for the degree

ofDoctor of Philosophy

2007

QUEENSLAND UNIVERSITY OF TECHNOLOGY

School of Urban Development

Faculty of Built Environment and Engineering


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ABSTRACT AND KEY WORDS

The Research has developed protocols for effective adoption of Information

Communication Technologies (ICT) for Building Project Management by Small and

Medium Enterprises (SMEs) in the Indian construction industry.

Project Managers are required to facilitate the integration of work of all the agencies and

project team organizations are geographically separated beyond national boundaries or

in context of large countries like India, within the national boundaries. In doing so, there

is a need to make better use of information and knowledge generated in all stages of

development. The key to project information management is the information flow

associated with inter-organizational communication and the effectiveness of the project

manager to communicate with and feedback to the rest of the project team throughout

the project life cycle. Better communication can be achieved by using computer tools for

effective data processing and information management, through Information

Communication Technologies (ICT).As the majority of the construction organizations

are Small and Medium Enterprises (SMEs), the communication management research is

required to address management and communication processes adopted by SMEs. These

issues can be addressed by global research, but also require clear understanding of the

management and communication processes followed by SMEs of each distinct regional

area or country.

The research was conducted through a sequential mixed methods approach focusing on

collecting and analyzing both quantitative and qualitative data in the study in a

sequential manner. To develop a balance check mechanism, the research was divided

into four phases: Interpretive analysis of perceived benefits of use of ICT for building

project management, conducted by Interpretive Structural Modeling analysis;

Questionnaire survey data collection and empirical analysis of data including Structural

Equation Modeling analysis (quantitative method); Semi-structured interview survey

data collection and analysis including Data Envelopment Analysis (quantitative and


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qualitative method) and case studies analysis conducted by SAP-LAP analysis

(qualitative method) leading to synthesis of the results of the four phases. The

purpose of this four-phase, sequential mixed methods study was to start with the

pragmatic assumptions; obtain statistical, quantitative results from a broad sample of

organizations to analyze or study research variables at industry and organization

levels and then follow up with a few organizations and projects to study the research

variables at the level of the organization and people.

Synthesis of the knowledge enhancement from the literature survey, data analysis

results and their interpretation led to the proposed IT Enhanced Communication

Protocols for Building Project Management. The protocols are proposed as aStrategic Model for Enhancing ICT Diffusion in Building Projects. The model is

based on Everett Rogerss Diffusions of innovations theory and is formulated at

three levels of study i.e industry, organization and people. It is discussed as a generic

framework of five stages of Rogers Diffusions of innovations theory i.e

Knowledge, Persuasion, Decision, Implementation and Confirmation.

Keywords: building project management, ICT, Indian construction industry, SMEs


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TABLE OF CONTENTS

Title PageAbstract and Key Words i

Table of Contents iiiList of Figures xList of Tables xiii

List of Abbreviations and Acronyms xviAcknowledgement xviiiPublications xxStatement of Original Authorship xxi

Chapter 1: Introduction

1.1 Research Background 11.1.1 Building Project Management and ICT 11.1.2 ICT Adoption in the Construction Industry and Research

Requirements 21.1.3 IT Enhanced communication protocols 4

1.2 Research Problem, Aim and Objectives 51.2.1 Research Aim 51.2.2 Research Objectives 6

1.3 Research Overview 71.4 Delimitation of Scope 10

1.5 Outline of the Thesis 111.6 Summary 13

Chapter 2: Literature Review2.1 Introduction 152.2 Construction Information and ICT 162.3 ICT and Building Project Management 172.4 ICT Tools and Technologies 192.5 Small and Medium Enterprises (SMEs) and the Indian Construction

Industry 232.5.1 Definition of SMEs 232.5.2 SMEs and the construction Industry 24

2.5.3 Characteristics and Specific Requirements of SMEs 252.5.4 Indian Construction Industry 27

2.6 Characteristics of Global Research and Research in India 292.7 Strategic Adoption of ICT in the Construction Industry 32

2.7.1 Requirement of Strategic Adoption of ICT by the

Construction Industry at the Level of each Organizationand at the Industry Level 33

2.7.2 Benchmarking a Strategic Tool 362.7.2.1 Benchmarking Definition 39

2.8 Factors Affecting ICT Adoption for Building Project Management 43


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2.8.1 Strategic Adoption and Diffusion of ICT 442.8.2 Cultural Factors 462.8.3 Available Technology 48

2.8.4 Training and Education 48

2.8.5 Organization Level Factors 492.8.6 Perception Based Factors 50

2.8.6.1 Perceived Benefits 502.8.6.2 Perceived Barriers 51

2.8.7 Industry Drivers 532.8.8 Summary of Factors 54

2.9 Strength of the Contemporary Research 562.10 Gaps in Contemporary Research and Identification of Research

Areas 57

2.11 Summary 59

Chapter 3: Research Methodology3.1 Introduction 61

3.2 Research Variables 613.2.1 Justification of the Chosen Research Variables 62

3.3 Hypotheses Formulation 643.3.1 Hypotheses Determining Dimensions of Qualitative Factors 643.3.2 Hypotheses of Causal Relationships 64

3.3.3 Supplementary Hypotheses 653.4 Research Design 65

3.4.1 Understanding of the Characteristics of Research Problem 65

3.4.2 Unit of Analysis 67

3.4.3 Data Collection and Analysis Approach 673.5 Research Methods 70

3.5.1 Interpretive Structural Modeling (ISM) 713.5.2 Questionnaire Survey (Industry Level) 72

3.5.2.1 Questionnaire Design 733.5.2.2 Survey Population 74

3.5.2.3 Validation of Questionnaire 753.5.2.4 Pilot Survey 763.5.2.5 Survey Administration 77

3.5.2.6 Data Analysis 783.5.3 Semi-Structured Interview Survey (Organization level) 82

3.5.3.1 Benchmarking Structure Attributes 833.5.3.2 Benchmarking Framework Administration 853.5.3.3 Data Envelopment Analysis (DEA) Technique 88

3.5.4 Case Studies (Organization and Project level) 943.5.4.1 SAP-LAP Analysis 95

3.6 Data Analysis Results Synthesis Methodology and Frameworkfor Results Formulation 99

3.6.1 Categorization of Organizations and People Based on ICT

Adoption 1013.7 Justification of the Methodology 1053.8 Summary 106


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Chapter 4: Interpretive Structural Modeling Analysis4.1 Introduction 1094.2 Interpretive Structural Modeling (ISM) 109

4.3 Analysis 111

4.3.1 Research Variables 1114.3.2 Structural Self-Interaction Matrix (SSIM) 1114.3.3 Reachability Matrix 1134.3.4 Level Partitions 1164.3.5 Developing Conical Matrix 1184.3.6 ISM Based Model 119

4.4 MICMAC Analysis 1234.5 Discussion and Hypotheses Formulation 1244.6 Further Analysis 126

4.7 Summary 126

Chapter 5: Questionnaire Survey Data Analysis5.1 Introduction 127

5.2 Respondents Profile 1275.3 Data Reliability 130

5.4 Hypothesis Testing 1315.4.1 Hypotheses Determining Dimensions of Qualitative Factors 131

5.4.1.1 Hypothesis HD1 131

5.4.1.2 Hypothesis HD2 and HD3 1325.4.1.3 Hypothesis HD4 1335.4.1.4 Hypothesis HD5 134

5.4.1.5 Hypothesis HD6 136

5.4.2 Hypotheses of Causal Relationships Hypothesis HR1 1375.4.3 Supplementary Hypotheses 140

5.4.3.1 Hypothesis HS1 1405.4.3.2 Hypothesis HS2 141

5.4.3.3 Hypothesis HS3 1445.4.3.4 Hypothesis HS4 145

5.5 Status of ICT Adoption in the Indian Construction Industry 1465.6 Perception Based Data Analysis 153

5.6.1 Perceived Barriers 154

5.6.2 Perceived Enablers 1565.6.3 Perceived Benefits 159

5.6.4 Scenario Building for the Industry 1615.7 Cultural Factors 1635.8 Issues Identified from the Open Ended Questions 168

5.9 Findings of Data Analysis and Further Analysis Requirement 1695.9.1 Identified Issues for Actions Required at the Level

of Industry, Organization or People 1695.9.2 Cultural Factors that are required to be Considered 1745.9.3 Issues that require Further Study 175

5.10 Summary 176


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Chapter 6: Structural Equation Modeling Analysis onQuestionnaire Survey Data

6.1 Introduction 177

6.2 Structural Model Derived from the Hypotheses of Causal

Relationships 1776.3 Model Specification 1786.4 Structural Equation Modeling (SEM) 1816.5 Data Collection 1836.6 Analysis 183

6.6.1 Data Validity 184

6.6.2 Statistical Results and Analysis of the Hypothesized Model 1846.6.3 Model Modification Step 1 1876.6.4 Model Modification - Step 2 188

6.6.5 Model Modification Step 3 (Final Model) 1906.7 Discussion and Findings 192

6.7.1 Discussion 1926.7.2 Findings 1956.8 Summary 198

Chapter 7: Benchmarking Framework Development and Case Study Analysis7.1 Introduction 1997.2 Benchmarking Framework Development 199

7.2.1 Objectives of the Required Benchmarking Framework 2007.2.2 Benchmarking Framework Development, Structure and

Measurement System 201

7.2.3 Benchmarking Framework and the Organization Management

Information Systems 2057.2.4 Benchmarking Framework Attributes 207

7.3 Benchmarking Process 2087.4 Benchmarking Framework Administration and Finalization 209

7.4.1 Benchmarked Organizations 2097.4.2 Benchmarking of Organizations and Analysis 212

7.4.3 Benchmarking Framework Validation and Finalization 2257.4.4 BenchMeasurement 2267.4.5 Benchmarking and BenchMeasurement Discussion 230

7.5 Bench Learning - Case Study Analysis 2317.5.1 Actors 234

7.5.2 Processes 2347.5.3 Case Study 1: Real Estate Organization (REO) 234

7.5.3.1 Introduction 234

7.5.3.2 ICT Adoption for Building Project Management Strategic Issues 236

7.5.3.3 Extent of ICT Adoption for Building ProjectManagement 236

7.5.3.4 Perceptions of the Senior Managers and Project

Managers 237

7.5.3.5 Factors Perceived as affecting use of ICT for BuildingProject Management 238

7.5.3.6 Situation 238


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7.5.3.7 Learning 2407.5.4 Case Study 2: Project Management Consultancy

Organization (PMCO) 241

7.5.4.1 Introduction 241

7.5.4.2 ICT Adoption for Building Project Management Strategic Issues 242


7.5.4.4 Perceptions of the Senior Managers and ProjectManagers 244

7.5.4.5 Factors Perceived as affecting use of ICT for BuildingProject Management 244


7.5.4.7 Learning 2467.5.5 Case Study 3 Architectural Organization (AO) 248

7.5.5.1 Introduction 2487.5.5.2 ICT Adoption for Building Project Management Strategic Issues 249


7.5.5.4 Perceptions of the Senior Managers and ProjectManagers 250

7.5.5.5 Factors Perceived as affecting use of ICT for Building

Project Management 251


7.5.5.7 Learning 253

7.5.6 Action and Performance 253

7.5.7 SAP-LAP Synthesis of Case Studies 2577.6 Synthesis of the Case Study Analysis Results and Framework for

BenchAction and BenchMonitoring 2607.7 Discussion 264

7.8 Suggested Benchmarking Framework with Reference toThe Existing Benchmarking Studies 266

7.9 Summary 267

Chapter 8: Interpretation of Data Analysis and Discussions8.1 Introduction 269

8.2 Synthesis of the Study 2698.2.1 Status of ICT Adoption for Building Project Management 2708.2.2 Perceived Barriers, Benefits and Enablers for Effective

ICT Adoption 2728.2.3 Causal Relationships between Factors 275

8.2.4 Cultural Factors 2768.2.5 Benchmarking Framework Analysis 278

8.3 Model of IT Enhanced Communication Protocols for Building

Project Management 2858.3.1 Industry Level Framework for Planning, Designing and

Implementing Strategic Model for Enhancing ICTDiffusion for Building Project Management 286


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8.3.2 Organization Level Framework for Planning, Designing andImplementing Strategic Model for Enhancing ICTDiffusion for Building Project Management 290

8.3.2.1 Step 1: Knowledge, Persuasion and Decision 292

8.3.2.2 Step 2: Finalization and Implementation of the Strategy forICT Adoption for Building Project Management 293

8.3.2.3 Step 3: Planning 2968.3.2.4 Step 4: System Design and preparation of organization

for the new system 2968.3.2.5 Step 5: Familiarizing associating organizations with

the system adopted 2968.3.2.6 Step 6: Pilot Implementation 2978.3.2.7 Step 7: System Implementation 297

8.3.2.8 Step 8: Post Implementation System Monitoring 2978.3.3 Framework at the Level of Construction Professionals or

People 2988.3.4 Discussion 2998.4 Summary 300

Chapter 9: Summary and Conclusions9.1 Introduction 3019.2 Summary of Research Findings 301

9.2.1 Summary of Research Process 3019.2.2 Summary with Respect to Research Objectives 303

9.2.2.1 Research objectives (i,ii) 304

9.2.2.2 Research objective (iii - v) 305

9.2.2.3 Research objective (vi) 3079.2.2.4 Research objective (vii) 307

9.2.2.5 Research objective (viii) 3089.2.3 Summary of Data Analysis 310

9.3 Significant Research Contributions 3139.4 Implications and Relevant Research Audience 315

9.4.1 Implications for National level bodies and AcademicInstitutions 315

9.4.2 Implications for Construction Organizations 316

9.4.3 Implications for People or Project Managers 3169.4.4 Implications at International Level 317

9.5 Limitations of the Research Study 3179.5.1 Limitations with respect to the Questionnaire Survey andData Analysis 317

9.5.2 Limitations with respect to the Benchmarking FrameworkAnalysis 317

9.6 Recommendations for Future Research 3189.7 Summary 319


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References 321

List of Appendices

Appendix A: Questionnaire Survey 345Appendix B: Interpretive Structural Modeling (ISM) Calculations 363Appendix C: Structural Equation Modeling (SEM) Analysis Data 367Appendix D: Benchmarking Framework 373Appendix E: Data Envelopment Analysis (DEA) Data 379


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LIST OF FIGURES

Figure 1.1: Relation between Industry, Organization and People 5Figure 1.2: Research Overview 9

Figure 2.1: Relation of Strategy for ICT Adoption with the otherStrategies of the Organization 33

Figure 2.2: Classification of Types of Benchmarking 41

Figure 2.3: Factors Affecting ICT Adoption for Building ProjectManagement 55

Figure 3.1: Benchmarking Process Model 87Figure 3.2: Graph Explaining the Concept of Efficiency Frontier 90Figure 3.3: Graph Showing Production Function of CRS and IRS 92Figure 3.4: SAP-LAP Paradigm 98Figure 3.5: SAP-LAP Paradigm Synthesizes Analytic as well as Synthetic

Mode of Inquiry 98Figure 3.6: Rogerss Five-Stage Model for Diffusion of Innovation 100Figure 3.7: Rogerss Technology Adoption Curve 102

Figure 3.8: Geofrey Moores Modified Technology Adoption Curve 102Figure 3.9: Relation between Difficulty of Changing Versus Cost of

Change 103Figure 3.10: Research Framework 107Figure 4.1: ISM Based Model 120

Figure 4.2: MICMAC Analysis (Driving Power and DependenceDiagram) 124

Figure 5.1: Distribution of the Respondent Organizations with respect tothe Type of Organization 128

Figure 5.2: Distribution of the Respondent Organizations with Respect to

the Size of Organizations 129Figure 5.3: Mode of Project Execution by the Respondent Organizations

(in last 5 years) 129Figure 5.4: Distribution of the Respondents with Respect to Number of

Years of Experience 130Figure 5.5: Distribution of organizations (in %) for variable ICT adoption

on Building Projects 135

Figure 5.6: Distribution of Respondent Organizations as per the Turnoverin Indian Rupees (INR) 138

Figure 5.7: Percentage of office and site staff with access to computers 146

Figure 5.8: Distribution of Respondent Organizations for Rate of Increaseof IT based Communication in last 5 years 147

Figure 5.9: Distribution of Organization for the Method of ReceivingBids 148

Figure 5.10: Distribution of Organizations for formal Time and Cost

Management Processes Adoption 149Figure 5.11: Mean and Std. Deviation Values of Respondent Organizations

for Scores for Formal Time and Cost Management ProcessesAdoption 150

Figure 5.12: Method of Communicating Electronic Information within

Office and with Project Sites 151


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Figure 5.13: Method of Communicating Electronic Information betweenOffice and other Project Agencies 152

Figure 5.14: Relation between the groups in which the perceptions are

studied 154

Figure 5.15: Matrix with the Distribution of Organizations for DifferentLevels of Perceptions of Barriers and Benefits and Results ofScenario Building 162

Figure 5.16: Identified Issues and Cultural Factors 175

Figure 6.1: Structural Model Derived from the Hypotheses of Causal

Relationships 179Figure 6.2: Hypothesized Model to be tested 181Figure 6.3: Modified Structural Model Step 1 187

Figure 6.4: Modified Structural Model Step 2 188Figure 6.5: Standardized Path Coefficients and Factor Loadings of

Model Modification - Step 3 (Final Model) 192Figure 6.6: Final Structural Model 194Figure 6.7: Aggregate Scores of Respondent Organizations for Tools

used for Identified Project Management Processes 197Figure 6.8: Mean and Std. Deviation of Respondent Organizations for

Scores for Tools used for Project Management Processes 197Figure 7.1: Relationship between Performance/Measurement Indicators 204Figure 7.2: Construction Project Management Organization Structure with

Respect to Decision Making and Information Management 206Figure 7.3: Benchmarking Framework Indicators Spanning all the Levels

of the Organizations 207

Figure 7.4: Comparison of Performance Measures Values of MI1 213

Figure 7.5: Comparison of Performance Measures Values of MI2 214Figure 7.6: Comparison of Performance Measures Values of MI3 215Figure 7.7: Comparison of Performance Measures Values of MI4 216Figure 7.8: Comparison of Performance Measures Values of MI5 217

Figure 7.9: Comparison of Performance Measures Values of MI6 219Figure 7.10: Comparison of Performance Measures Values of MI7 220

Figure 7.11: Comparison of Performance Measures Values of MI8 221Figure 7.12: Comparison of Measurement Indicator Values for Three

Organizations 222

Figure 7.13: Reference Comparison Values of PMCO with respect to REO 228Figure 7.14: Reference Comparison Values of AO with respect to REO 229

Figure 7.15: Reference Contribution Values of PMCO and AO forDetermining Potential Improvement Values of REO 230Figure 7.16: Relation between Rating and Efficiency of Analyzed

Organizations 231Figure 7.17: Relation between all Data Analysis Components 232

Figure 7.18: Suggested Benchmarking Process 263Figure 8.1: Salient Features of the Suggested Benchmarking Framework 279Figure 8.2: Categorization of Building Project Management

Organizations for ICT Adoption as Derived from theBenchmarking Framework 284


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Figure 8.3: Industry Level Framework for Planning, Designing andImplementing Strategic Model for Enhancing ICT Diffusionin Building Projects 287

Figure 8.4: Organization Level Framework for Planning, Designing and

Implementing Strategic Model for Enhancing ICT Diffusionin Building Projects 291

Figure 8.5: Schematic Diagram of Model for Diffusion of ICT in theIndian Construction Industry for Building Project Management 299

Figure 9.1: Categorization of Data Collection and Analysis Techniquesand their Relation 303

Figure 9.2: Input Research Constructs and Output analysis Results atEach Stage of Study 311

Figure 9.3: Proposed Parameters for Measuring ICT Adoption for Building

Project Management by Construction Organizations 312


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LIST OF TABLES

Table 2.1: Research Papers Discussing Research Conducted in India forIT Adoption by the Construction Industry 32

Table 2.2: Research Papers Discussing National Level Research Initiatives 37Table 2.3: Research Papers Discussing International Research in

Formulating Methodologies for Evaluating Information

Systems in the Construction Industry 38Table 2.4: Definitions and Salient Features of Benchmarking 39

Table 2.5: Research Papers Discussing Strategic Adoption of ICT in theConstruction Industry 45

Table 2.6: Research Papers Discussing Synergy between Technology,Process and Cultural Issues 47

Table 2.7: Research Papers Discussing Perceived Benefits and Barriers

of ICT Adoption in the Construction Industry 54Table 2.8: Summarization of Research Conducted, Research Required

and Validation of the Research Objectives 57

Table 3.1: Identification of Micro Variables for the Macro Variablesand Type of Study Required for Each Variable 63

Table 3.2: Categorization of Organizations With Respect to Adoptionof ICT and the Type of Change Required in the Process 104

Table 4.1: Perceived Benefits of ICT Adoption for Building Project

Management 112Table 4.2: Structural Self Interaction Matrix 114

Table 4.3: Initial Reachability Matrix 115Table 4.4: Final Reachability Matrix with Transitivities (1) 115Table 4.5: Iteration I 117

Table 4.6: Levels of Benefits 118Table 4.7: Conical Form of Reachability Matrix 119

Table 5.1: Cronbachs Alpha Values 130Table 5.2: Non Parametric Friedman Test for Ranking Extent of Use of

ICT between Different Groups 132Table 5.3: Wilcoxon Signed Ranks Test for Comparing Internal

and External/collaborative use of ICT for Building

Project Management 132Table 5.4: Descriptive Statistics of Test Variables of Hypotheses HD2

and HD3 133

Table 5.5: t-test results for Hypotheses HD2 and HD3 133Table 5.6: Organizations having Communication Management Strategy

within the Organization 134Table 5.7: Extent of ICT Adoption Varies between Different Projects 134Table 5.8: Wilcoxon Signed Ranks Test for Comparing Reasons for

Differential ICT Adoption on Building Projects 136Table 5.9: Wilcoxon Signed Ranks Test for Comparing scores of Personal

Meetings and Teleconferences 137Table 5.10: Oneway ANOVA Test for Testing Relation between

Turnover of the Organization and Extent of Use of ICT 139

Table 5.11: Descriptive Statistics for Hypothesis HR1 140


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Table 5.12: Descriptive Statistics of test variable 'benefits' 141Table 5.13: t-test Results for Perceived Importance of Benefits of use of

ICT for Building Project Management 141

Table 5.14: Mean and Std. Deviation of the Perceived Industry Drivers 142

Table 5.15: Descriptive Statistics of Test Variable 'drivers' 143Table 5.16: t-test Results for Perceived Industry Drivers for Increased

Use of ICT for Building Project Management 144Table 5.17: Descriptive Statistics for Hypothesis HS3 144Table 5.18: Oneway ANOVA Test for Difference in Use of ICT for

Different Groups of Sample Organizations 145

Table 5.19: Correlation Between Four Groups of Benefits 145Table 5.20: Oneway ANOVA Test for Testing Relation between 'Percentage

of Site Staff with Access to Computers' and 'Extent of ICT

Adoption' 146Table 5.21: Descriptive Statistics of 'Extent of ICT Adoption' for Distribution

of 'Percentage of Site Staff with Access to Computers' 147Table 5.22: Software used for Building Project Management 153Table 5.23: Descriptive Statistics Perceived Barriers 155

Table 5.24: Descriptive Statistics Perceived Enablers 157Table 5.25: Descriptive Statistics Perceived Benefits 160

Table 5.26: Mean and Std. Deviation for Test Variable emailpho 163Table 5.27: t-test Results for Communication in which e-mail is followed

by Phone Call 163

Table 5.28: Mode of Information Storage 164Table 5.29: Response of Organizations for Methodology Most Often Used

for Communicating Information for General Administration

Processes (80%-100% times) 165

Table 5.30: Response of Organizations for Methodology Most Often Usedfor Communicating Information for Building Project ManagementProcesses (80%-100% times) 166

Table 5.31: Descriptive Statistics for the Perceived Factors 167

Table 5.32: Identified Issues that are required to be Addressed 169Table 6.1: Model Specification 180

Table 6.2: Regression Weights/Path Coefficients and Factor Loadings 185Table 6.3: Covariance between Exogenous Variables 186Table 6.4: Estimates 189

Table 6.5: Model Fit Indices 190Table 6.6: Squared Multiple Correlations 191

Table 7.1: Identified Gaps in Practice and Trends 223Table 7.2: Categorization of Identified Trends 225Table 7.3: Inputs and Outputs for DEA Analysis 226

Table 7.4: Data Values for Three Analyzed Organizations 227Table 7.5: Efficiency Scores for Analyzed Organizations 227

Table 7.6: Potential Improvement Required in REO 229Table 7.7: Gaps in Practice and the Identified Reasons (REO) 241Table 7.8: Gaps in Practice and the Identified Reasons (PMCO) 247

Table 7.9: Gaps in Practice and the Identified Reasons (AO) 254Table 7.10: Actions Required to Increase ICT Adoption for Building Project

Management in the Studied Organizations and ExpectedPerformance Changes 255


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Table 7.11: Relation between Identified Trends and Collective Actions 257Table 7.12: Relation between Identified Trends, Gaps in Practice and

Suggested Actions 262

Table 8.1: Relation between the Suggested Scenario Building framework

and the Benchmarking Framework 275Table 8.2: Required Strategic Industry Level Implementation Actions 288


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LIST OF ABBREVIATIONS AND ACRONYMS

3D 3 Dimensional4D 4 Dimensional

AEC Architecture Engineering ConstructionAMC Annual Maintenance ContractAMOS Analysis of Moment Structures

ANOVA Analysis of VarianceAO Architectural Organization

ASEAN Association of South East Asian NationsB2B Business to BusinessCD Compact DiscCDT Corporacin de Desarrollo TecnolgicoCEO Chief Executive Officer

EDM Electronic Document ManagementCFI Comparative fit indexCIC Computer Integrated Construction

CII Construction Industry InstituteCORENET Construction and Real Estate NETwork

CRC CI Cooperative Research Center for Construction InnovationCRS Constant Returns to ScaleCSCW Computer Supported Collaborative Work

DEA Data Envelopment AnalysisDISR Department of Industry, Science and Resources

DMU Decision Making UnitDRS Decreasing Returns to ScaleDTI Department of Trade and Industry

ERP Enterprise Resource PlanningFM Facilities Management

GDP Gross Domestic ProductGFI Goodness of Fit indexGIS Geographical Information SystemGPS Global Positioning SystemHR Human Resource

HVAC Heating Ventilating and Air ConditioningI-O Input-OutputICPM Integrated Construction Project Management

ICT Information Communication TechnologiesIFC Industry Foundation Classes

IM Interactive ManagementINR Indian RupeesIRS Increasing Returns to Scale

IS Information SystemsISM Interpretive Structural Modeling

ISO International Standardization OrganizationIT Information TechnologyKPI Key Performance Indicators

LAN Local Area Network


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M&E Material and EquipmentMI Measurement IndicatorMIS Management Information Systems

MS Microsoft

NFI Normed fit indexORCM Online Remote Construction ManagementPM Project ManagementPMBOK Project Management Book of KnowledgePMCO Project Management Consultancy OrganizationPMI Project Management Institute

R&D Research and DevelopmentREO Real Estate OrganizationRFI Request for Information

RFID Radio Frequency Identification DeviceRMSEA Root Mean Square Error of Approximation

SAP-LAP Situation Actor Process Learning Action PerformanceSEM Structural Equation ModelingSME Small and Medium Enterprise

SPSS Statistical Package for Social SciencesSSIM Structural Self- Interaction Matrix

STD. StandardSTEP Standard for the Exchange of Product dataTPC Technology-process-culture

UK United KingdomUS United StatesUSA United States of America

USB Universal Serial Bus

VRS Variable Returns to ScaleWAN Wide Area Network


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ACKNOWLEDGEMENT

The journey of my research study has been challenging, exciting, apprehensive and a

novel experience for me. Research was primarily conducted in India, but I never felt

alien to the administrative and education system of QUT.

I would like to express my sincere gratitude and thanks to my principal supervisor,

Associate Professor Jay Yang for having faith in me and giving me an opportunity to

conduct research under his supervision, as an external student. His insightful advice

and constant support was always a great help.

I would like to thank my external supervisor, Assistant Professor Ravi Shankar for

his invaluable and enriching comments, for spending lot of his valuable time in

supervising me and for providing structure to my research. The rigorous analysis in

this research has been possible due to the infrastructure support that I received from

his institute, IIT Delhi.

I am grateful to my associate supervisor, Professor Martin Skitmore for his

invaluable suggestions in the early stages of the research, as they provided a

direction to the research.

I would like to thank administrative staff of BEE research office as well as of other

departments of QUT with whom I have communicated during these three years. They

helped me in having a smooth research journey and I never felt that I was so much

geographically away from QUT.

I am grateful to all the respondents of questionnaire survey for taking out time from

their busy routine to answer the questionnaire and to Dr. Tulsi Adhikari for providing

necessary help.

My husband Punit and my parents have always been there for me as a rock support.

Last but not the least I want to thank my children Satvik and Bhumika who at their


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tender age understood the importance of this research for me. In the beginning it was

difficult for them to comprehend it, but by the end of the research period they were

keeping a check on my timeline and helping me in every possible way that they

could. This research would not have been possible without their support. I dedicate

this thesis to them.


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PUBLICATIONS

Papers Published

Yang, J., Ahuja, V. and Shankar, R., 2007. Managing Building Projects through

Enhanced Communication An ICT Based Strategy for Small and Medium

Enterprises, Proceedings of the CIB World Building Congress 2007, Cape

Town, South Africa, May, 2007.

Ahuja, V., Yang, J. and Shankar, R., 2006. Strategic Use of ICT for Construction

Organisations - Requirements and Implementation Issues, Proceedings of

INCITE / ITCSED 2006 Conference, Organized by Construction Industry

Development Council India and Glasgow Caledonian University, November

2006, New Delhi, India, 1, pp.235-250.

Ahuja. V., Yang, J. and Shankar, R., 2006. Web Based Communication for

Construction Projec t Management, Proceedings of the World Conference on

Accelerating Excellence in the Built Environment, Birmingham, UK, October,

2006.

Yang, J. and Ahuja, V., 2006. Communication Protocol for Building Project

Management - ICT Enhanced Approaches for the Indian Building Practice,

Proceedings of the CIB W089 Conference: BEAR 2006, Hong Kong, China,

April, 2006.

Ahuja. V. and Yang, J., 2005. Towards IT Enabled Supply Chain Communication

in Construction Project Management,In Ribeiro, F.L., Love, P.E.D., Davidson,

C.H., Egbu, C.O. and Dimitrijevic, B. Ed. Proceedings of CIB Conference on

Information and Knowledge Management in Global Economy, Lisbon,

Portugal, 1, pp.289-302.


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Page 1


CHAPTER 1

INTRODUCTION

1.1 Research Background

1.1.1 Building Project Management and ICT

Building construction projects involve many stakeholders or agencies at all the stages

of the projects from design to construction and for each project the supply chain is

different. Projects are managed by designated Project Managers, Architects,

Contractors on behalf of the Client or by the Clients themselves depending upon the

contract and the project type. Project Managers are required to facilitate the

integration of work of all the agencies and project team organizations are

geographically separated beyond national boundaries or in the context of large

countries like India, within the national boundaries. Also, there is increased demand

to complete the projects within estimated time, cost and as per the specified quality.

One of the building industrys answers to increased demands is to make better use ofinformation and knowledge that is generated in all stages of development because

communication or data handling often takes about 75% to 90% of a project

managers time in the construction industry (Fisher and Yin 1992; Alshawi and

Ingirige 2002). Also, two-thirds of the construction problems are caused by

inadequate communication and exchange of information and data, where 85% of

commonly associated problems are process related and not product related (Smit et

al. 2005). The key to project information management consists of the information

flows associated with inter-organizational communication (Stewart et al. 2005) and

the effectiveness of the project manager to communicate, evaluate and feedback to

the rest of the project team during each stage of the project life-cycle determines how

efficiently the projects goals will be achieved (Alshawi and Ingirige 2002). Thus,

there is a requirement of a system that provides; shared project information, analysis

tools to analyze the information, a collaborative infrastructure to handle the flow of

information, a multi device access to the pertaining information and a system that


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ensures the persistence of the underlying information among the participants (Pena-

Mora and Dwivedi 2002).

Collection, analysis and real time communication of information is essential for the

quick detection of time, cost, scope and quality deviations from planned performance

and timely decision making for responding to problems, disputes and deviations

detected from the planned performance. At present, the communication problem

between the team members is often a cause for project delay, expensive reworking

and building defects (Huang et al. 2002) and with traditional tools of communication,

the project managers often lose the ability of timely change management. Required

communication can be achieved by using IT for effective data management andinformation communication or by using Information Communication Technologies

(ICT).

ICT provides opportunities for real time access of information to all and improves

coordination and collaboration between project team members. Benefits of ICT

adoption include an increase in the quality of documents and speed of work; better

financial control and communications, and simpler and faster access to common data

as well as a decrease in documentation errors (Nitithamyong and Skibniewski 2006).

ICT is required not only to free up project managers for more decision making tasks

but also to deliver the required levels of consistency and reliability of information

in the construction supply chains because use of incorrect data can compromise the

scheduled completion of a project and lead to wastage of resources (Sturges and

Bates 2001).

1.1.2 ICT Adoption in the Construction Industry and Research Requirements

The construction industry has been slow in embracing IT tools and techniques and

compared to other sectors, available and often easily accessible technology is not

being utilized to the full. This is reflected both, in the literature and in practice (Opfer

1997; Egbu et al. 2001; Love et al. 2004). This is due to a number of historical,

industrial and market forces that perpetuate the industrys culture, thus affecting the

extent of ICT adoption in day-to-day business processes (Baldwin et al. 1999).

Effective adoption or diffusion of ICT through organizations is required to be


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effectively managed to better prepare for future ICT applications adoption

(Peansupap and Walker 2005) and issues for slow adoption of ICT are required to be

studied. The issues can be categorized as technical, managerial, cultural and

socio/political due to differing perceptions of project team members. The

requirement is to match technological innovation with the perceived needs and

preparedness for change on the part of the industry (Weippert and Kajewski 2004).

ICT adoption research is a component of research dealing with IT adoption in the

construction industry. A review of the literature review indicates that IT research in

construction until now has predominantly had a technical rather than a managerial

focus such as investment justification, strategy and strategic information systemsplanning (Love et al. 2004). Little consideration has been given to the human

factors associated with IT exploitation, like issues of team working, culture and

motivation of the workforce to embrace IT for team working through different

approaches, including training and education (Egbu et al. 2002). But, in a technology

driven change of any kind, the technology itself is only one of the several inter-

related components that potentially ensure improved performance (Cabrera et al.

2001 cited in Weippert and Kajewski 2004). With respect to ICT, its implementation

will inevitably be unsuccessful if the organizations culture is not properly aligned

with, and supportive of an overall business strategy (Schneider 2000 cited in

Weippert and Kajewski 2004). So, research should also consider strategic as well as

managerial issues (Back and Moreau 2000). It should become a business objective of

the construction industry and should give equal prominence to technology, people

and processes involved in construction projects. Only in such a scenario will it be

adopted by the industry as a whole.

(SMEs) as 97% of the organizations employ less than 20 persons, and can be

classified as Small and Medium enterprises (SMEs) (Katranuschkov et al. 2001). So,

the communication management research is required to address management and

communication processes adopted by SMEs. These issues can be addressed by global

research, but also require clear understanding of the management and communication

processes followed by SMEs of each distinct regional area or country.


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1.1.3 IT Enhanced communication protocols

Protocol is defined as an accepted behavior in a situation. IT enhanced

communication is a component of a computerized information system which

includes generating, coding, processing, storing and communicating information

(Chitkara 2001, p.529-550). Thus, IT enhanced communication protocols are

required to define accepted methods of conducting these processes. In a construction

project, all the supply chain members are brought together to achieve one main

objective i.e to develop and build a particular project (Villagarcia and Cardoso 1999)

to meet desirable goals and standards. At all stages of the project, information is

generated, stored and communicated by all the supply chain members. So, to have

effective communication, all the supply chain members should follow the accepted

methods or the communication protocols. Also, at any time, each construction

organization is involved in more than one project and is a part of more than one

supply chain (Dainty et al. 2001). This unique nature of the construction industry

necessitates that the communication protocols are adopted by the industry as a whole

and do not remain project specific. With the advent of ICT, communication protocols

that support the effective adoption of ICT by the whole industry are required to be

developed. As per McDonagh(1995)the potential of the new technologies includingIT would be fully realized and optimized only if frameworks or principles are

developed and adopted for comprehensive, integrated information systems which

permit consistency and ease of exchange of information between different users of

the same information in different combinations for different purposes and across the

whole range of projects and programs.

People, who are a part of different project team organizations, manage projects and

the project team organizations are a part of the construction industry (Fig. 1.1). In an

organization, adoption of ICT is primarily initiated by top management, but effective

adoption of ICT is still dependent on project managers who have the main

responsibility for managing the construction projects (Peansupap and Walker 2005).

So, the protocols have to address technical, managerial, social and cultural issues and

be implemented at the level of industry, organization and project or people.


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1.2 Research Problem, Aim and Objectives

Based on the discussed research background, the research problem is defined as

below:

Building project management requires collaboration and coordination between all the

project team organizations, which can be achieved by effective communication

management. When project team organizations are geographically separated, such

effective communication can be achieved by IT enabled communication or by ICT.Construction industry has been slow in adopting ICT and research is required to

study the factors affecting ICT adoption for building project management and to

develop communication protocols to be adopted by the construction industry. But,

majority of the organizations in the construction industry are SMEs and research is

required to address the specific requirements and management and communication

processes followed by SMEs of each distinct regional area or country.

1.2.1 Research Aim

The Research Aim is to develop protocols for effective adoption of Information

Communication Technologies (ICT) for Building Project Management by Small and

Medium Enterprises (SMEs) in the Indian construction industry.

The Oxford dictionary defines the word effective as producing the intended

result. In the context of this research, effectiveness of ICT adoption can be assessed

INDUSTRY

ORGANIZATION

PEOPLE

Fig. 1.1 Relation between Industry, Organization and People


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by the extent to which ICT tools and technologies replace manual methods in the

information system supporting building project management processes. Research

would identify the critical success factors that can help SMEs overcome the

technical, managerial, social and cultural barriers for effective ICT adoption for

building project management i.e getting the intended results or maximum benefits of

ICT adoption in the industry. The research is in the context of the Indian construction

industry. As shown by the preliminary literature study conducted, the requirement is

to develop technical and managerial protocols to be adopted at industry, organization

and people/project levels so that in the industry, ICT becomes an integral part of the

building project management process. Such research requires an understanding of the

basic project management processes executed by SMEs in Indian ConstructionIndustry; method of communication adopted; perceived drivers, barriers and enablers

affecting ICT adoption and perceived benefits of ICT.

1.2.2 Research Objectives

Research Objectives in support of the Research Aim are discussed below:

i. To identify generic project management processes adopted by SMEs in India

for building project management.

ii. To identify the extent of Information communication technologies (ICT)

adopted by SMEs for building project management.

iii. To identify perceived barriers and associated enablers for IT enhanced

communication management by SMEs and to develop model for establishing

structural relationships amongst them.

iv. To assess perceived industry requirements driving adoption of ICT by SMEs.

v. To identify perceived benefits of ICT adoption.

vi. To identify factors other than perceived enablers, barriers, benefits and industry

drivers affecting adoption of ICT.

vii. To study the causal relationships between all the identified factors.

viii. To provide a framework for increasing effective ICT adoption for Building

Project Management and suggest method of validation of the framework.


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1.3 Research Overview

Research Aim and Objectives conceptualized the focus of this study, projecting

factors and issues that underpin effective ICT adoption by SMEs for building project

management. This section provides an overview of the research process. Research

methodology is described in detail in Chapter 3, which presents a description of the

research methods that addressed the issues related to this study.

The research endeavor was not to automate the current communication process, but

rather to align it for adoption of the unique capabilities of computers over those of

humans. As ICT adoption is to be based on the principle that technology adoptionshould be business driven, ICT facilitated communication protocols should play a

part in and be integral with construction development phases and business processes.

Research Framework

A research framework helps to structure the research process into logical steps and

appropriate stages. The establishment of an action plan helps to guide and direct the

research so that there is a clear connection between all the stages, i.e formulation of

research aim and objectives, literature review, data collection and analysis and the

findings and conclusions identified in the course of the analysis. Fig. 1.2 provides an

overview of the research framework that encompasses the research processes, which

were applied and were suitable for this research.

The research process was supported at all stages by a detailed literature review and

study of conceptual as well as empirical literature. The literature was reviewed at

four separate stages in the research process. The first stage review was a preliminary

exploration of the communication system adopted for building project management,

structure of the construction industry and related issues that required consideration

and further study. Thus, it involved a review of the conceptual literature concerning

the concepts and theories and the empirical literature consisting of earlier studies,

which are similar to the one proposed. This material is presented mainly in Chapter 1

as an introduction to the research and led to the formulation of research problem and

objectives. The second stage of the review was conducted to study the research


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background in context of research objectives. This helped in identification of

research variables and research areas. It validated the research objectives. This part

of the literature review is presented in Chapter 2. The third stage of the literature

review was related to the study of research methodologies. It was an important stage

of literature study as only by using appropriate methodologies and methods of

research, applied with rigor, can the body of knowledge for construction be

established and advanced with confidence (Fellows and Liu 2003). This study led to

the formulation of research design and finalization of research methodology. This

part of the literature review is presented in Chapter 3 and subsequently discussed in

detail in related chapters. The fourth stage of the literature review or advanced

literature review was conducted after the questionnaire survey. It helped in theformulation of research construct for the semi-structured interview survey and case

studies analysis and was drawn upon for discussion and formulation of results. It is

presented intermittently from Chapter 7. The whole process of literature review

facilitates continuous knowledge building that is required for the research process.

The research design is concerned with making the research problem researchable by

setting up the study in a way that will produce specific answers to specific questions

(Oppenheim 1992). The Research Methodology was designed to achieve the research

objectives by way of including effective data collection, analysis and their validation

methodologies. The study required an understanding of the present status of ICT

adoption for building project management by SMEs, measure of identified factors

affecting ICT adoption and causal relationships between these factors. Some of the

factors could be measured quantitatively, but some factors like human or cultural

factors required qualitative assessment. Thus, the research methodology divided the

research into quantitative and qualitative research. Data for quantitative analysis was

collected through a questionnaire survey. The organizations that were included in the

survey sample, were either managing building projects after being appointed as

Project Managers or had the authority to manage their projects if a Project Manager

had not been appointed formally. Therefore three groups of organizations were

included in the sample: builders including contractors who construct and manage

their own projects; project management consultancy organizations which are

formally appointed as project managers on building projects and architectural

organizations which manage small to medium size building projects since for


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majority of such projects, project managers are not formally appointed. Interpretive

structural modeling was used to assess the importance of perceived benefits and their

driving power and dependence on other benefits. Quantitative analysis was

conducted through empirical analysis of data using Structural Equation Modeling

and other parametric and non-parametric statistical analysis tools. A semi-structured

interview survey was conducted at the organization level leading to quantitative

analysis of data including Data Envelopment Analysis and knowledge enhancement

through qualitative analysis. Case studies were conducted at organization and project

levels and analyzed through SAP-LAP analysis forming the qualitative component of

research.

StructuralEquation

ModelingAnalysis

Parametricand

No

n-parametric

StatisticalAnalysis

Literature Review

(Stage 3)

Fig. 1.2 Research Overview

Research Aim

Research Objectives

Literature Review

(Stage 1)

Research Hypotheses

Questionnaire for the

Survey

Questionnaire

Survey

(industry

level)

Interpretive StructuralModeling Analysis

Literature Review

(Stage 2)

Research

Methodology

Literature Review

(Stage 4)

Semi-structured

Interview

Survey

(organization

level

Discussion

and ResultsFormulation

Benchmarking

FrameworkDevelopment

and Analysis

incl. Data

Envelopment

Anal sis

Case Studies

(organization

and project

levels)

SAP-LAP

Analysis


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1.4 Delimitation of Scope

This section helps to identify a planned, justified scope of the study beyond which

generalization of the results was not intended. The identified delimitations are

additional to the limitations and key assumptions. Delimitations are within the

control of the researcher and limitations are not. Limitationscaused by the methods

used are identified and explained in Chapter 9 as summary of all the limitations that

became evident throughout the course of the study. Key assumptions are described in

relevant sections.

The identified delimitations are discussed below: The research is conducted for building project management and data is

collected from organizations responsible for the management of building

projects. The results could be generalized for heavy civil construction, but

after due consideration of the characteristics of supply chain issues, the size

of participating organizations, management procedures and contract

conditions relevant for heavy civil construction.

The research is conducted from the perspective of Small and Medium

Enterprises (SMEs). The results can be generalized for larger organizations,

but some of the identified factors affecting ICT adoption for building project

management might not be relevant for large organizations.

Research data was collected from the Indian construction industry and the

results are applicable for India. However, these results can be generalized for

other countries after studying the extent and characteristics of similarities

between the construction industries of these countries.

Suggested communication protocols are arrived at after studying technical,

managerial and social/cultural factors affecting ICT adoption for building

project management. But, the technical issues are studied in terms of the

applicability, usage and standardization of features and not with respect to

development of technical features.


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1.5 Outline of the Thesis

The chapters in this thesis are so structured that each chapter can be read and

understood autonomously. They are presented sequentially as an integral part of the

whole thesis with relevant referencing and linking information to the preceding and

succeeding chapters. Each chapter encapsulates elements of the design process that

satisfy the aim and objectives of this research and demonstrates an understanding and

appreciation of research processes, methodologies, analysis, writing up, discussion

and summarization of results based on analysis and acquired knowledge. Each

chapter starts with an introduction and ends with the summary of research discussed

in the chapter. In each chapter intermediate results or issues that are studied insubsequent chapter are shown in a highlighted box.

Chapter 1 introduces the research background related to the importance of effective

communication for building project management and ICT adoption to achieve this.

Based on this research background, the research problem, aim and objectives are

formulated. This chapter also presents a brief overview of the research framework

and research scope.

Chapter 2 presents a review of the literature related to ICT adoption for building

project management, characteristics and specific requirements of SMEs and the

characteristics of the Indian Construction Industry. Factors affecting ICT adoption

have been identified at the level of industry, organization and people. The study of

global research conducte d in this area helped in the identification of the gap in

literature and research areas.

Chapter 3 provides discussions on the processes by which the research objectives

are achieved. It examines in detail the issues pertaining to the research design and

methodology, data collection and analysis methods, key research activities and

validation methods. Research hypotheses are formulated and after discussion about

research methodology, the framework for synthesis of the research components and

results formulation is discussed.


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Chapter 4 presents Interpretive Structural Modeling (ISM) analysis of the

relationship between the perceived benefits of adopting ICT for building project

management. Analysis results identify the dependence and driving power of each

benefit with respect to other benefits. A developed ISM model is then presented and

additional hypotheses are formulated.

Chapter 5 presents empirical analysis of data collected through the questionnaire

survey. Analysis is conducted through parametric and non-parametric statistical

techniques. Hypotheses are tested, discussion on perception based data is presented

and the analysis is summarized.

Chapter 6 presents a structural model of causal relationships between quantifiable

factors affecting ICT adoption for building project management, derived from

Hypotheses of causal relationships. This structural model is tested through

Structural Equation Modeling (SEM) technique and the final model is presented.

Chapter 7 presents a framework for benchmarking ICT adoption for building project

management. It further discusses finalization and validation of the framework

through semi-structured interviews conducted at the organization level in three

organizations which had also responded for the questionnaire survey. It includes

measurement of efficiency of organizations in implementing their strategies for ICT

adoption. It is conducted through Data Envelopment Analysis (DEA) technique. This

chapter also discusses case studies of these three organizations conducted at

organization and project levels. Case studies are analyzed through SAP-LAP analysis

and social, cultural and behavioral factors affecting ICT adoption are studied.

Chapter 8 synthesizes the results of research studies conducted for achieving the

research aim and objectives. The results or the IT enhanced communication protocols

are discussed as a generic framework of a Strategic Model for Enhancing ICT

Diffusion in Building Projects.

Chapter 9 summarizes the research study. It presents a summary of findings,

significant research contributions, implications of research at the level of industry,


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organization and people and also discusses the limitations of the research study. It

also identifies future research scope emanating from the research study conducted.

1.6 Summary

This chapter discussed the basic premise for the research and the thesis. It first

introduced the research background, which helped in the identification of the

research problem. The research aim and objectives were established. An overview of

the research process was briefly discussed and the research scope was identified. An

outline of the thesis structure was also presented. This chapter leads to the detaileddiscussion of the research process, with the next chapter presenting the literature

review.


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Chapter 2: Literature Review

CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

The construction industry is a data based and information dependent industry. The

amount of information generated and exchanged during all the stages of a project can

be substantial (McIntosh and Sloan 2001) and in various formats: drawings, contract

documents, analysis results, planning schedules, photographs, reports. Further, the

project participants are changed with every project and the information generated by

many sources, at many levels of abstraction and detail, and retained by the creator of

that information contributes to fragmentation of the industry (Smit et al. 2005).

Construction projects involve large capital investments, multi-disciplines, widely

dispersed project participants, tighter schedules, and stringent quality standards and

these factors coupled with high-speed developments in Information and

Communication Technology (ICT) have influenced the project management

practices to take a new turn (Alshawi and Ingirige 2002). But, the literature surveyand the study of the construction industry reflect that the available technology is not

being utilized to its full potential (Egbu et al. 2001). This can be achieved by giving

careful consideration to the human touch (Weippert and Kajewski 2004) i.e. cultural

issues and strategic adoption of ICT in the industry.

In construction industry, majority of the construction organizations can be

categorized as Small and Medium enterprises (SMEs) and the communication

management research is required to address management and communication

processes adopted by SMEs. Also, by virtue of the number of organizations, greatest

strategic scope exists at this level (ed. Betts 1999, p. 58). Thus, strategic adoption of

ICT by the construction industry is defined by the strategic and operational

requirements of SMEs. These issues can be addressed by global research, but also

require clear understanding of the management and communication processes

followed by the SMEs of each distinct regional area or country.


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2.2 Construction Information and ICT

Information in a construction organization can be grouped under three categories:

Information required for managing internal operations of the organization.

Information required for assessing the construction industry, organizations

position in the industry and the policy decisions required for future direction.

Information required for managing construction projects.

For the first category of information, ICT is required to integrate the communication

between all departments or engineering groups, branch offices or organizational sub-

units and levels within the organizations.

For the second category of information, ICT is required to bring agility into the

information system. A constant flow of information from internal and external

sources allows informed decision making and improves the environmental scanning

and the co-ordination of a response (Retik and Langford 2001).

The third category of information is generated due to the communication between the

organizations and the multiple agencies which are a part of the project team. Project

information is usually considered as the processed and presented data in a given

situation, and is the data that enables effective action (Marsh and Flanagan 2000

cited in Smit et al. 2005).

The significance of the scale of project information management and the requirement

to adopt ICT in projects can be understood by the following information reported in

an Australian Government report: A $10 million project with monthly cash-flows of

$500,000 might have as many as 50 contracts, 5 different consultants, 200 tenders,

600 final drawings, 3,000 amended drawings, 150 contract variations, 600 site

instructions, and 6 meetings per week (Fujitsu Center Report 1998 cited in Weippert

et al. 2002).


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2.3 ICT and Building Project Management

In a building project, various stakeholders are involved at all the stages and project

managers are required to integrate efforts of all the stakeholders.

The Egan report stresses the requirement for project managers to integrate the

projects phases (from conception to final delivery) leading to performance

improvement (Alshawi and Ingirige 2002). Intense integration of alliance partners

requires excellence in communication at all levels, i.e. at Application level, System

level and Business level or Industry level (Fischer and Froese 1996; Alshawi and

Ingirige 2002; Walker et al. 2002). As per Walker et al. (2002) this generally requiresa quantum leap in the adoption of shared IT systems and information processing

integration. Thus, individual information systems developed by individual functional

managers or construction managers are required to be integrated for a project.

Integration strategies on the construction projects include managerial and technical

strategies. Technical integration focuses on workplace technology to improve

integration, particularly computer-integrated construction (CIC), which strives to

share the information among computer applications (Fischer and Froese 1996). For

managerial integration, Internet and Intranet related Computer Supported

Collaborative Work (CSCW) applications and especially Web-related applications

are one of the major concerns of CSCW research (Zhu et al. 2001). Study of the

literature identifies that there is research being conducted with respect to

information/communication management to enhance collaborative project

management on construction projects (Rezgui et al. 1998; Construct IT for Business

Report 2000b; OBrien, 2000; Pena-Mora and Dwivedi 2002).

The collaboration among the diverse participants in a project is essentially measured

by how effectively the communication channels were managed. The effectiveness of

the project manager to communicate, evaluate and feedback to the rest of the project

team during each stage of the life cycle determines how efficiently the projects goals

will be achieved (Alshawi and Ingirige 2002). A Project Manager managing multiple

projects typically shares resources with team members working on many projects

over a shorter time. In such a situation, the key management issues could be resolved


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by good communication management (Haugan, 2002, p.12-18). Also, in this scenario

it is essential not only to support the communication processes within a project, but

also to consider the multi-project work and the individual requirements of the players

as well (Katranuschkov et al. 2001). The communication system should be:

Sufficiently flexible so that it can be modified to suit the unique requirements of the

individual project managers; Adaptable to many different projects; and Adaptable to

differing customer information requirements.

Research has highlighted the importance of effective communication for the success

of a project (Thomas et al. 1998; Tam 1999). It was concluded in a study that the top

thirty potential problems contributing to poor project performance could be classifiedunder five categories, out of which communication problems were listed as the third

category and all the five categories involve communications to some extent (Thomas

et al. 1998).

The time delays and increased cost of construction projects can be traced back to

poor coordination caused by inadequate information, insufficient, inappropriate,

inaccurate, inconsistent, or late information or a combination of them all (Tam 1999).

Communication has also been linked to team effectiveness, the integration of work

units across organizational levels, characteristics of effective supervision, job

satisfaction, and overall organizational effectiveness (Green 2001).

The extensive physical distance between project participants, extending over national

boundaries is one of the main causes leading to delays in decision-making (Deng et

al. 2001 cited in Alshawi and Ingirige 2002). In such a scenario, communication

problems, ranging from delays to distortion of messages, impose strains on project

management in construction (Alshawi and Ingirige 2002).

In the construction industry, supply chains are typically formed by all the project

team organizations. SMEs occupy a critical role in these supply chains and given the

number of specialist firms operating within the construction industry, there are

considerable challenges in terms of improving project performance through better

supplier integration and ensuring process conformity and alignment (Dainty et al.

2001). Alshawi and Ingirige (2002) identified that communication often takes about


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75% to 90% of a project managers time in the construction industry and computer

based systems are required not only to free up the managers for more decision-

making tasks but also to deliver the required levels of consistency and reliability of

information in the supply chains.

The specific characteristics of Supply Chain communication management for

building projects can be summarized as under (Ahuja and Yang 2005):

The total information structure is required to be integrated in terms of

generation and flow of information and associated decision-making.

Throughout the project lifecycle, team organizations are required to obtain

real time information, as they are required to coordinate and collaborate forproject execution. Availability of real time information also helps in change

management, which is an intrinsic part of construction projects.

To achieve integrated information processing, there should be an automated

flow of information between all the software used by project team

organizations. Appropriate categorization of information and the streamlining

of reporting requirements is necessary.

At various points in the supply chain, information is collected from various

team organizations and then collated and processed for shared use.

Standardization of data handling processes as well as project information is

required to ensure maximum efficiency.

Adoption of IT enhanced communication or Information Communication

Technologies (ICT) can help in achieving required communication in building

projects. Jaafari and Manivong (1998) summarize the research in this area by stating

that effective implementation of ICT within projects, as well as the entire industry,

would improve the communication processes by an order of magnitude, and would

thus benefit the delivery of all the phases and functions on projects.

2.4 ICT Tools and Technologies

ICT is being adopted for building project management. Internet is the worldwide

system for exchanging and distributing free-format information and is regarded as an


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ideal platform for building up Information Systems (Smit et al. 2005). It has evolved

from being a scientific network only, to a platform that is enabling a new generation

of business (Li et al. 2003a) or e-business that includes electronic project information

exchange, e-commerce and e-tendering (Construct IT for Business Report 2000b) .

Internet and its object-oriented client/server applications can be explored in various

formats for the communication purposes. Internet is also increasingly being adopted

for project management within the construction industry and has shown to help in

timely, well-integrated and effective project delivery (Construct IT for Business

Report 2000b).

Internet as the communication platform facilitates speedy transmission ofinformation and also saves money in communication with overseas construction sites

through the computer network. The system offers many benefits such as improved

efficiency, better management and decision-making and enhanced performance of

construction organizations (Tam 1999). Common Internet services or shared use of

common databases can be utilized for information sharing (Construct IT for Business

Report 2000a). Thus, Internet helps to communicate information more effectively

during the construction process.

Web-based applications greatly help in solving the problems caused by geographic

fragmentation. As cited by Zhu et al. (2001), in reality, the Internet and Web-related

technologies penetrated into the daily operation of project construction in the early

and mid 1990s (Wright 1993; Setzer 1994; Angelo 1995; Shearer 1995 cited in Zhu

et al. 2001). Using a web-based database as a centralized repository of project

information has several distinct advantages including: Reduced manual distribution

costs; Integration of project information; Simple management of access rights;

Document storage & archiving; Continuous access to project information; and

Minimal software requirement (Construct IT for Business Report 2000b). Integrating

organization database and world wide web (www) functions, supports the decision-

makers in conducting long-distance evaluations at various project sites and upgrades

the effect and efficiency of the decision-making process (Hsueh et al. 2007).

The project web sites hold the promise of promoting truly collaborative work

approaches, and offering an open and non-hierarchical approach to managing project


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information (OBrien 2000). Combining 4D visualization with web-based

information management facilitates dispersed project team partners to make

collaborative decisions for construction planning and scheduling (Kang et al. 2007).

Researchers have identified twelve critical factors affecting performance of web

based project management systems as: project type, project duration, Internet access

availability, type of Internet connection, level of internal support, ability of project

managers, usage frequency of advanced features, level of support provided by a

service provider, functionality and reliability of the web based system, data security

and reliability, external integration ability of the system and the unique

characteristics of the organization using the system (Nitithamyong and Skibniewski

2007). Supply chain software are also evolving towards Internet applications thatcommunicate with the Enterprise Resource Planning systems (Green 2001). Internet

has also provided a rich environment for deve loping e-commerce applications in

construction and among the different types of e-commerce, business-to-business

(B2B) is the most widely used (Li et al. 2003a). For e-commerce, Internet can host a

domain specific search tool specialised in retrieving product-related online

information (Lin and Soibelman 2007). Researchers have also discussed web based

GIS systems for e-commerce (Li et al. 2003b).

Videoconferencing combines a simple way to hold meetings and share documents

live over the Internet, with the ability to view and annotate documents, drawings and

models and to share applications. Videoconferencing dramatically improves the

efficiency, productivity and accountability within a construction organization (Sahai

2004). Tools providing services of groupware, remote access, file sharing and

whiteboard discussions can be used individually or together, to provide customized

solutions for design coordination and site-to-office communication.

Intranets aid internal organizational collaboration. The role of Intranets has changed

significantly from a passive role of providing organization information to its

employees to a more dynamic role to share and capture knowledge and some

organizations leverage them as tools for achieving sustainable competitive advantage

(Ingirige and Sexton 2007). Extranets promote project collaboration, team working

and e-commerce. They also enable users to red line drawings and control work

through auditable paper trails (Tayeh and Gil 2007). Both help in standardization of


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the communication processes and improve data flows (Construct IT for Business

Report 2000a). Timeliness, accuracy and multi-locational availability of information

and formal flexibility are the defining elements of improved information quality

enabled by EDM technologies (Back and Bell 1995).

Using a 3D model for more than a visual study allows the development team to gain

strategic insights, minimize cost and schedule risk, improve supply chain

management and improve constructability. The visual presentation of complex

information coming from various disciplines permits more time at project meetings

to be spent on solving problems and making decisions (Henderson 2002). Virtual

Reality is an enhanced communication tool, which conveys design ideas and designproblems to all the members of the team more effectively (Koh et al. 2002). It allows

planners to intuitively interact with the virtual environment and objects as if they

were real by immersing them in a 3D computer-generated simulation and facilitates

the evaluation of different scenarios with limited expense and effort (Li et al. 2003c).

nD modelling approach is also being utilised. It refers to information about building

projects that includes 3 dimensional geometry (3D), plus the additional dimensions

of time, cost, organizations etc. (an additional nD). nD modelling tools are a series

of multi-disciplinary ICT based design and analysis applications that access an nD

model through an interoperable standard (Construct IT Initiative Report 2003).

Materials tracking system called Radio Frequency Identification Device (RFID)

couples radio frequency identification technology with highly miniaturized chips that

enable materials to be identified and tracked at any point along the supply chain. Li

et al. (2005) have studied application of an integrated Global Positioning System

(GPS) and Geographical Information System (GIS) technology to the reduction of

construction waste. The study is developed from automatic data capture system such

as the barcoding system for construction material and equipment (M&E)

management onsite, whilst the integrated GPS and GIS technology is combined to

the M&E system based on the Wide Area Network (WAN).


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2.5 Small and Medium Enterprises (SMEs) and the Indian Construction

Industry

The construction industry predominantly consists of SMEs. It is a heterogeneous

sector encompassing small, unorganized enterprises as well as modern and more

organized ones.

2.5.1 Definition of SMEs

The small and medium enterprises, both in size and shape, are not uniform across the

globe. There is no generally agreed definition of SMEs (ASEAN Report 1997;University of Strathclyde Library Services Report 2005). The best description of the

key characteristics of a small firm remains that describe d by the Bolton Committee in

its 1971 Report on the Small Firms. This stated that a small firm is an independent

business, managed by its owner or part-owners and having a small market share. It

recognised that size is relevant to sector i.e. a firm of a given size could be small in

relation to one sector where the market is large and there are many competitors;

whereas a firm of similar proportions could be considered large in another sector

with fewer players and/or generally smaller firms within it. Similarly, it recognised

that it may be more appropriate to define size by the number of employees in some

sectors but more appropriate to use turnover in others (DTI Report 2005). Similar

concept is utilised in USA and as per their classification, small orga nizations of most

general and heavy construction industries have annual receipts of $28.5 million or

less each (University of Strathclyde Library Services Report 2005).

For statistical purposes, the Department of Trade and Industry of UK usually uses the

following definitions: small firm: 0 - 49 employees; medium firm: 50 - 249

employees; large firm: 250 employees or more (DTI Report 2005).

In the ASEAN region few informal definitions are observed. In Thailand for

example, various administrative organizations classify SMEs based on the measure

of fixed assets, registered capital, sales or number of employees (ASEAN Report

1997). The guidelines of Infocomm Development authority of Singapore define

SMEs as entities with: fixed assets less than S$15 million; and, number of full time


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