ABSTRACT

This study examined the level of technology adoption in the Nigerian construction industry. A comprehensive questionnaire was developed and administered to professionals in the construction industry to obtain data for analysis. A total of 63 respondents participated in the questionnaire survey, with the majority representing construction companies, thereby providing empirical information for the study. The preliminary findings revealed that the Nigerian construction industry has not fully recognized the value of technology and its influence on productivity and value chain management. The slow pace of technology adoption in the industry has continued to restrict improvements in construction quality, cost efficiency, and the competitiveness of indigenous construction firms. Nevertheless, the findings suggest that construction companies in Nigeria are gradually recognizing the substantial financial benefits that may result from implementing technological innovations and demonstrate a degree of flexibility in adapting to new technologies. The questionnaire survey had certain limitations, particularly regarding comparisons with international industry best practices, owing to differences in the application of construction techniques and methodologies across countries. In addition, the survey sample was relatively small compared with the target population of more than 2,000 industry participants, mainly because of inadequate research funding. Despite these limitations, the study provides a baseline for future investigations into technology adoption within the construction sector and further documents the technological competitiveness of the Nigerian construction industry.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The digital world is undergoing a major transformation in the volume of data and information being collected, processed, and documented across different fields of human activity (Omran, 2016). This growing shift towards digitalization and automation has also extended to the construction industry. Contemporary technological developments have introduced innovative methods that utilize the vast quantities of data generated and collected at different stages of the construction process. In particular, data analytics has emerged as a transformative tool across numerous areas of human endeavour. The introduction of new technologies creates opportunities for businesses and industrial processes to achieve competitive advantages (Bilal & Oyedele, 2020).

As different sectors of human activity increasingly embrace technological advancements supported by big data capabilities, knowledge of emerging technologies, including big data analytics, is expected to create opportunities for improved growth, productivity, and operational efficiency within the construction industry.

Technology has significantly changed the ways people live, learn, work, and engage in recreational activities (Capron, 2000). However, many companies operating in the construction industry do not appear to have fully recognized the positive changes and advantages that technological innovations have brought to organizations in other sectors of the economy. Construction projects require the continuous exchange of substantial amounts of data and information among project participants on a daily basis (Masqsood et al., 2014). Consequently, the construction industry is highly information-intensive and depends on effective coordination among numerous specialized but interdependent organizations and individuals to achieve project objectives relating to cost, time, quality, and sustainability (Ugwu et al., 2015).

Technology has been identified as an important instrument for helping the construction industry manage the increasing complexity of its products and services, as well as the growing expectations of clients and regulatory authorities (Betts, 2019). It also contributes to improvements in construction productivity (Liston et al., 2000). In an effort to examine the influence of technology on construction activities, surveys investigating technological utilization within the construction industries of various countries across different regions of the world have been conducted in recent years.

The adoption of technology in construction can generate several benefits in both the short and long term. Kodama (2012) and Kocarev (2012) observed that construction firms that make strategic investments in technology can reduce costs and shorten the time required to complete capital works projects. Technology can also help construction firms respond more effectively to clients' needs and improve the quality and efficiency of service delivery.

Although several surveys on technology adoption in the construction industry have been conducted in highly developed European countries and Asian economies, the study by Arif and Karam (2011), which examined South Africa, represents an investigation within an emerging African economy. Oladapo (2017) also conducted research into technology utilization in the Nigerian construction industry. However, his investigation was restricted to the South-Western region of Nigeria and concentrated mainly on the computer literacy levels of construction professionals and how they acquired their technological skills and knowledge.

Similarly, Oyediran (2015) examined awareness and adoption of technology among educators in the Architecture, Engineering, and Construction (AEC) industry in Nigeria. Adejimi and Iyagba (2017) compared electronic construction technology for integrating building processes in Nigeria, Canada, and the Nordic countries. Their findings indicated that the digital divide between Nigeria and developed countries was gradually narrowing as access to computer facilities continued to increase. Nevertheless, they also observed that modern and advanced information technology facilities, including internet services, intranets and extranets, virtual reality tools, teleconferencing and videoconferencing facilities, and construction robots, remained substantially inadequate.

Against this background, the present study seeks to determine the level of technology adoption within the Nigerian construction industry. It also aims to examine the prospects for technological adoption by considering its potential benefits, associated costs, risks, and research and development requirements.

1.2 PROBLEM STATEMENT

Despite the numerous benefits that technological implementation can offer construction firms, several constraints and barriers continue to hinder its effective adoption within organizations. These challenges include inadequate investment in technology, limited organizational commitment to technological adoption, and the failure to achieve the expected business outcomes from technological investments in the construction industry (Lenny, 2019). According to Rogers (2013), various socioeconomic factors, including the characteristics of an industry, prevailing market conditions, managerial considerations, and psychological factors, may impede the diffusion of innovation within firms. Although Rogers did not focus specifically on the construction sector, these factors can also be applied to the challenges confronting technology adoption in the construction industry.

Previous research suggests that technological adoption within an organization involves a diffusion process through which innovations are introduced and spread across the organization. Samad et al. (2016) noted that organizational culture and management practices could facilitate the successful diffusion of technology within an organization. Conversely, cultural, organizational, and institutional factors may create significant barriers to technological adoption. Such barriers include clients who place insufficient value on innovation and may discourage its implementation, the dynamic and unpredictable nature of construction environments, widespread resistance to change within the industry, and an organizational culture that may not sufficiently encourage intellectual inquiry and innovation (Slaughter, 2000).

Additional barriers include inadequate training and skills development, as well as established traditional and professional trade practices that may be threatened by the introduction of new technologies (Brandon & Lu, 2018). Construction firms may also demonstrate insufficient commitment to investment in research and development activities, thereby limiting the generation and implementation of innovative solutions (Sexton & Barrett, 2013).

Furthermore, the advancement and adoption of technology in construction may be hindered by the lack of consistency among decision-makers, the increasing complexity of construction projects, and the wide range of specialized and differentiated activities involved in project execution (Lenny, 2019). These challenges can make it difficult for construction firms to coordinate technological implementation and integrate new systems into their existing operational processes.

Consequently, there is a need to examine the extent to which construction companies in Nigeria have adopted technology, the areas in which technological tools are being applied, and the benefits that firms can obtain from their use. It is equally important to investigate the costs and risks associated with technological adoption to establish whether the expected benefits justify the investments required. An assessment of these issues can provide useful information for improving technological utilization and strengthening the performance and competitiveness of the Nigerian construction industry.

1.3 AIM AND OBJECTIVES

The primary aim of this study is to assess the level of technology adoption in the Nigerian construction industry.

To achieve this aim, the study will pursue the following objectives:

1. To assess the areas of impact and the extent to which construction companies in Nigeria utilize technology.

2. To evaluate the strategic, tactical, and operational benefits associated with adopting technology in construction.

3. To examine the cost implications of adopting technology in the construction industry.

4. To assess the risk factors associated with technology adoption in the construction industry.

1.4 JUSTIFICATION OF THE STUDY

The construction sector makes a significant contribution to the gross domestic product (GDP) of a country. In developed countries such as Japan and South Korea, construction has been reported to contribute approximately 12 to 14 per cent of GDP (Gann, 2000). In developing countries, investments in construction projects may account for as much as 50 to 60 per cent of national budgets, according to Dharwadker (1979).

Over the past two decades, information and communication technology (ICT) has undergone considerable transformation and development. Approximately two decades earlier, communication technology was largely associated with PTT, meaning post, telephone, and telegraph services. At that time, ICT services were predominantly controlled by governments and public institutions. Today, however, the ICT sector encompasses hardware, software, internet services, telecommunications, digital content, applications, and technical support services. These services are now provided by a broad range of organizations and individuals, including large corporations, small and medium-sized enterprises (SMEs), entrepreneurs, independent developers, and open-source communities (Avgerou, Hayes, & La Rovere, 2016).

The expansion of ICT infrastructure has also been associated with growth in broadband internet and mobile subscriptions. The source cited in the original study reports changes in these subscriptions over the period stated as 2015 to 2013 (Blessing, 2012, p. 188). The dates and supporting reference require verification because the stated period appears to be chronologically inconsistent. Nevertheless, the development of reliable internet and mobile infrastructure is important for establishing effective and efficient communication among stakeholders operating in different fields.

At present, numerous sectors, including healthcare, education, public administration, government-funded institutions, and non-governmental organizations (NGOs), use ICT to strengthen communication and improve the exchange of information. These developments demonstrate the growing importance of digital technologies in supporting organizational activities and improving service delivery.

Similarly, business organizations are increasingly adopting Enterprise Resource Planning (ERP) systems to improve management processes, coordinate organizational functions, and participate more effectively in global supply chains. However, the benefits that an organization can derive from ICT depend partly on its ability to adjust its operational procedures and working practices to accommodate technological changes (Kling, 1980).

The importance of technology in other sectors highlights the need to examine its adoption within the Nigerian construction industry. Since construction projects involve complex activities, numerous stakeholders, and substantial requirements for information exchange and coordination, the effective application of technology may contribute to improved project management, cost control, communication, productivity, and service delivery.

This study is therefore justified by the need to establish the extent to which construction companies in Nigeria have embraced technological innovations and to identify the potential benefits and challenges associated with their adoption. By examining the areas of technological application, the costs involved, and the risks encountered, the study can provide information that may assist construction firms in making informed investment decisions. The findings may also provide a foundation for further research into technological development and competitiveness within the Nigerian construction sector.

1.5 SCOPE OF THE STUDY

This study focuses on reviewing the adoption and application of technology among selected construction companies operating in Nigeria. The companies covered include foreign-owned or internationally affiliated construction firms, such as Julius Berger, Costain, RCC, CCECC, Bulletin, Hitech, PW, and Setraco, as well as indigenous companies, including Ferotex, Master Holdings, Maloon, Amec, Jukok, Amumco Global, Horoda Ltd, Richgold, and Tetratech, as identified in the original study.

The research examines technological adoption and utilization among these companies, with particular attention to the extent of technology use and its implications for construction operations. Relevant quantitative techniques are employed to analyze the data collected from respondents and address the objectives of the study.

1.6 HYPOTHESIS STATEMENT

The study is guided by the following null and alternative hypotheses:

Null Hypothesis (H₀): The benefits derived from adopting technology do not justify the investment required.

Alternative Hypothesis (H₁): The benefits derived from adopting technology justify the investment required.