An Exploratory Approach to the Diffusion of ICT in

a Project Environment

V. Peansupap

Doctor of Philosophy

2004

RMIT University

An Exploratory Approach to the Diffusion of ICT in a Project Environment

A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy

Vachara Peansupap B.Eng (Civil Engineering) M.Eng (Civil Engineering)

School of Property, Construction and Project Management RMIT University

Nov 2004

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DECLARATION

I certify that except where due acknowledgement has been made, the work is that of the

author alone; the work has not been submitted previously, in whole or in part, to qualify for

any other academic award; the content of the thesis is the result of work which has been

carried out since the official commencement date of the approved research program; and, any

editorial work, paid or unpaid, carried out by a third party is acknowledged.

Signed:

Vachara Peansupap

November 2004

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ACKNOWLEDGEMENTS

I would like to thank my senior supervisor, Professor Derek Walker. He provided me with the

inspiration, guidance and encouragement while undertaking the research for this thesis.

Especially, he taught me to be ‘knowledge thinker’ and gave me several opportunities to build

up my academic career. Special thank for CRC research team (Andrew Wilson, Peter

Goldsmith, and Tayyab Maqsood) at RMIT and all project partners who provide the useful

comments and helps me to obtain the research data. I would like to acknowledge the assistant

of Professor Clive Morley of RMIT Business for his kind suggestions and advice on the

statistical analysis and also to Gitachari Srikanthan to read and provide the helpful comments

on various drafts of this thesis. I would like to thank all the rest of academic and support staff

of School of Property, Construction and Project Management and particularly those in the

RMIT Business Portfolio Research Development Unit at RMIT university who provide the

working office facilities and moral support.

I am grateful to all my friends from the Postgraduate Research Student at RMIT, for being

companion during my Ph.D. study at RMIT University. I am especially grateful to Wasaporn,

Jerry, Suthida, Susu, Juliana, Tayyab, Diana, Harvey, Mat, Carlinhos, Hongnee, Jiaying,

Kent, Siddhi, and Paul for helping me get through the difficult times, and for all their support.

I wish to thank my family for providing a loving and support environment for me. I am

grateful to my grandma, parents, aunty who brought me up and taught me many things.

Thanks also for my wife for her patience and love. Especially I am grateful to Ngonvoraraj

family and Scott family for their love, support and encouragement me.

Finally I appreciate the Thai Government for granting me a Royal Thai Government

Scholarship and all staff who provide the useful support documents while I was living in

Australia. Special thanks for my colleagues at Chulalongkorn University for their support on

my studying this Ph.D.

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ABSTRACT

Emerging information and communication technology (ICT) introduces opportunities for

improving communication to improve many construction processes at each project phase as

well as creating new business opportunities. Thus, perceived ICT benefits have motivated

numerous construction organisations to adopt and invest in this technology. However, many

have found that the ICT investment has failed to meet their expectations. One significant

problem is a lack of understanding of how to actually implement ICT into a construction

organisation. This may lead to ICT implementation failure or retardation by all users within a

construction organisation. In addition, a lack of focus on actual ICT implementation may

explain why ICT implementation problems still occur.

This research attempts to fill ICT implementation gaps by focusing on ICT diffusion at the

actual implementation stage. The primary objective is to understand the nature of ICT

diffusion within a construction organisation. The second objective is to explore and explain

the factors influencing ICT diffusion process within an organisation. The third objective is to

examine how ICT has been adopted and diffused into leading construction organisations, and

to explore current ICT diffusion processes practices from both a strategic and actual

implementation viewpoint.

This research adopted both quantitative and qualitative research approaches that were

designed into two phases. Phase 1 focused on gaining quantitative data to investigate the

extent of users' experience of variables influencing ICT diffusion at the actual implementation

stage. A list of 46 essential variables was developed from integration of three main theories:

innovation diffusion, change management, and knowledge management. These variables were

used to develop a questionnaire to identify these key factors. The survey data were obtained

from experienced users of ICT within three leading Australian construction organisations. By

using the factor analysis technique, 46 variables were grouped into eleven factors that

influence ICT diffusion at the actual implementation stage.

In Phase 2, qualitative research focuses on how ICT has been adopted and diffused into three

selected leading Australian construction organisations. Both structured and semi-structured

interview approaches were used to gather case study data from the three large construction

contractors. Interview questions were developed from identified Phase 1 factors. Analysis of

the case studies revealed four main findings. First, cross-case analysis confirmed the eleven

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factors identified through the Phase 1 survey. The three case studies shared similar

experiences with factors that influenced ICT diffusion at the actual implementation stage. The

second finding revealed three types of community of practices (COP): an institutional COP,

an implementer or technical support COP, and a project manger, engineer network and

collegial support COP. These COPs were shown to play a main role in ICT diffusion. The

third finding indicated two types of strategic adoption, proactive and reactive strategic

adoption, that were suited to different ICT diffusion types and purposes. Finally, the findings

highlighted that current ICT diffusion practice within leading construction contractors can be

categorised by phase—initial adoption and actual implementation. Furthermore, the findings

underscored the importance of a collegial and knowledge sharing environment factor to

facilitate effective ICT diffusion.

This research contributed to the body of knowledge in at least four areas. The first

contribution concerns the study of ICT diffusion at the actual implementation stage. It helps to

understand the nature and extent of intra-organisational factors influencing ICT diffusion

within large construction organisations. The second contribution was to knowledge

management practice by illustrating how ICT knowledge has been diffused within

construction organisations through users. It focused on explaining the roles of communities of

practice to support ICT innovation diffusion within construction organisations. The third

contribution is to IT management in construction by explaining the ICT diffusion processes

that occurs at the actual implementation stage. It helps us understand the difference between

planning and implementing initial ICT adoption and actual implementation. The last

contribution is the development of supportive and constraints models that describe factors

influencing ICT diffusion during the actual implementation phase and these help us

understand the drivers and barriers that may occur during actual ICT implementation.

However, this research has some limitations that need to be acknowledged. First, quantitative

data in Phase 1 was collected from experienced ICT users from only three leading

construction organisation. Second, the qualitative data in Phase 2 was gathered from only

three large construction contractors—even though it can be argued that these firms are

representative of sophisticated first tier constriction contractors that are experienced ICT

users. Thus, the study is limited to examples of technology used by these participating

organisations at the time of this study. In addition, the case study was limited to study ICT

diffusion of an electronic document management system.

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TABLE OF CONTENTS DECLARATION .......................................................................................................................i ACKNOWLEDGEMENTS .....................................................................................................ii ABSTRACT .............................................................................................................................iii TABLE OF CONTENTS .........................................................................................................v LIST OF TABLES.................................................................................................................viii LIST OF FIGURES.................................................................................................................ix LIST OF PAPERS PUBLISHED..........................................................................................xii Chapter 1 Introduction ............................................................................................................1

1.1 Research background—The relevance of ICT to the construction industry ....................2 1.2 Rationale for the research .................................................................................................4 1.3 Research problem statement.............................................................................................7 1.4 Research questions ...........................................................................................................7 1.5 Research proposition ........................................................................................................8 1.6 Research scope and objectives .........................................................................................8 1.7 Research aims ...................................................................................................................9 1.8 Research methods ...........................................................................................................10 1.9 Theoretical framework ...................................................................................................10 1.10 Limitations of this research ..........................................................................................11 1.11 Structure of the thesis ...................................................................................................12 1.12 Summary of chapter......................................................................................................14

Chapter 2 Literature review..................................................................................................15 2.1 Construction industry and technological innovation ......................................................16

2.1.1 The nature of the construction industry...................................................................16 2.1.2 Driving forces of technological innovation.............................................................17 2.1.3 Innovation and its characteristics ............................................................................19 2.1.4 Classification of innovation in construction............................................................20 2.1.5 History of IT innovation in the construction industry .............................................21

2.2 ICT innovation in construction.......................................................................................24 2.2.1 The benefits of ICT use in construction ..................................................................25 2.2.2 Level of ICT use in construction .............................................................................30 2.2.3 Barriers of ICT use and adoption in construction ...................................................32

2.3 Management of IT implementation within organisations...............................................34 2.3.1 Strategic IT planning ...............................................................................................35 2.3.2 The IT adoption decision process............................................................................37 2.3.3 The IT implementation process ...............................................................................39 2.3.4 Measurement of IT benefit/performance.................................................................40

2.4 Diffusion of innovation (DoI) in IT................................................................................42 2.4.1 Relationships between adoption unit and its behaviour ..........................................42 2.4.2 IT implementation from DoI viewpoint ..................................................................47 2.4.3 Research approach related to IT diffusion...............................................................48 2.4.4 Critique of traditional DoI theory............................................................................53

2.5 Management of change...................................................................................................54 2.5.1 IT implementation problems related to change management..................................54 2.5.2 Change constraints related to IT implementation....................................................55 2.5.3 Concept of change management..............................................................................59 2.5.4 Support roles in IT transformation change..............................................................66 2.5.5 Need for change in IT implementation....................................................................67

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2.6 Learning and knowledge sharing to encourage IT implementation............................... 68 2.7 Summary of chapter ....................................................................................................... 73

Chapter 3 Development of factors influencing ICT diffusion ........................................... 75 3.1 Challenges of current ICT implementation.................................................................... 75

3.1.1 Need for a study of ICT adoption strategies within construction organisations..... 77 3.1.2 Need for a study on actual ICT implementation within construction organisations78

3.2 ICT strategic adoption and actual implementation research.......................................... 82 3.3 Integration concepts of innovation diffusion, change management, and learning and sharing knowledge ............................................................................................................... 94 3.4 Five issues related to actual ICT implementation from intra-organisational diffusion perspective ........................................................................................................................... 97

3.4.1 Self-motivation ....................................................................................................... 98 3.4.2 Training and technical support group ................................................................... 100 3.4.3 Technology characteristics.................................................................................... 102 3.4.4 A supportive environment workplace................................................................... 103 3.4.5 Sharing and learning environment ........................................................................ 105

3.5 Developing research questions based on an integrated model of ICT diffusion ......... 106 3.5.1 Part A: Access to electronic communication technologies................................... 106 3.5.2 Part B: ICT motivation and users perceived characteristics of ICT ..................... 107 3.5.3 Part C: ICT training & technical support .............................................................. 109 3.5.4 Part D: ICT workplace support environment........................................................ 111 3.5.5 Part E - ICT information sharing .......................................................................... 113

3.6 Summary of chapter ..................................................................................................... 115 Chapter 4 Research method and design ............................................................................ 117

4.1 Understanding philosophical research assumptions .................................................... 117 4.2 Research approach ....................................................................................................... 119 4.3 Relationships between research strategy and questions............................................... 120 4.4 Research design............................................................................................................ 121 4.5 Research design Phase 1: survey questionnaire........................................................... 122

4.5.1 Rationale of survey questionnaire......................................................................... 123 4.5.2 Criteria and selection of target respondents.......................................................... 124 4.5.3 Conduct of the survey ........................................................................................... 125 4.5.4 Questionnaire delivery .......................................................................................... 125 4.5.5 Quantitative data analysis in Phase 1.................................................................... 129 4.5.6 Validation and reliability in Phase 1..................................................................... 129

4.6 Research design Phase 2: interview case study ........................................................... 129 4.6.1 Rationale of the interview case study ................................................................... 130 4.6.2 Question development .......................................................................................... 130 4.6.3 Case study criteria................................................................................................. 131 4.6.4 Case study data collection and interview conduct ................................................ 132 4.6.5 Qualitative data analysis in Phase 2...................................................................... 132 4.6.6 Validity and reliability in Phase 2......................................................................... 134

4.7 Summary of the chapter ............................................................................................... 134 Chapter 5 Exploration of factors influencing ICT diffusion within the three leading construction organisations .................................................................................................. 137

5.1 Descriptive analysis of respondents............................................................................. 137 5.1.1 Descriptive analysis of IT applications used ........................................................ 138 5.1.2 Analysis of similarities and differences ................................................................ 141 5.1.3 Analysis of IT applications and their relevance to the job.................................... 142 5.1.4 Analysis of IT applications and their frequency of IT use.................................... 143 5.1.5 Classification of IT applications clusters .............................................................. 144

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5.1.6 Analysis of significant mean differences of using IT applications among the groups........................................................................................................................................147 5.1.7 Analysis of ICT applications within three groups.................................................149

5.2 Justification for the sample combination......................................................................150 5.3 Data analysis of the survey questionnaire ....................................................................151

5.3.1 Description of collected data .................................................................................151 5.3.2 Factor analysis .......................................................................................................151 5.3.3 Steps of data analysis using factor analysis...........................................................152

5.4 Exploration of ICT diffusion factors ............................................................................154 5.5 Discussion of results.....................................................................................................157 5.6 Analysis of ICT knowledge sources.............................................................................162

5.6.1 Overall users perceptions on ICT knowledge sources ..........................................162 5.6.2 Sources/medium of ICT learning within working hours .......................................163 5.6.3 Sources/medium of ICT learning outside working hours......................................164

5.7 Summary of chapter......................................................................................................166 Chapter 6 Descriptive case study - the diffusion of ICT applications within Australian construction contractors ......................................................................................................169

6.1 Overview of the case studies ........................................................................................169 6.2 Case study organisation A (CA)...................................................................................170

6.2.1 Case study background..........................................................................................170 6.2.2 Configurations of ICT system ...............................................................................171 6.2.3 The use of ICT in CA ............................................................................................172 6.2.4 Group of ICT innovation support ..........................................................................174 6.2.5 Diffusion of ICT at the organisational level..........................................................176 6.2.6 Diffusion of ICT at the individual/group Level ....................................................176 6.2.7 Users’ experience of factors influencing ICT diffusion in CA .............................177 6.2.8 Descriptive of ICT diffusion process in CA..........................................................179

6.3 Case study organisation B (CB) ...................................................................................180 6.3.1 Case study background..........................................................................................180 6.3.2 Configuration of ICT systems ...............................................................................181 6.3.3 The use of ICT in CB ............................................................................................183 6.3.4 Groups of ICT innovation support ........................................................................184 6.3.5 Diffusion of ICT at the organisational level..........................................................187 6.3.6 Diffusion of ICT at individual/group level............................................................188 6.3.7 Factors influencing users’ experience in ICT diffusion at CB ..............................188 6.3.8 Summary of ICT diffusion process in CB.............................................................191

6.4 Case study organisation C (CC) ...................................................................................194 6.4.1 Case study background..........................................................................................194 6.4.2 Configurations of ICT system ...............................................................................195 6.4.3 The use of ICT in CC ............................................................................................197 6.4.4 Groups of ICT innovation support ........................................................................198 6.4.5 Diffusion of ICT at the organisational level..........................................................200 6.4.6 Diffusion of ICT at the individual/group level......................................................201 6.4.7 Users’ experience on factors influencing ICT diffusion in CC.............................201 6.4.8 Summary of ICT diffusion process in CC.............................................................203

6.5 Summary of chapter......................................................................................................205 Chapter 7 Inter-case analysis ..............................................................................................209

7.1 Analysis of factors influencing ICT diffusion..............................................................209 7.1.1 Evaluation criteria for presence of factors influencing ICT diffusion...................210 7.1.2 Cross-case analysis of factors influencing ICT diffusion......................................214 7.1.3 Interpreting the meaning of factors influencing ICT diffusion .............................217

7.2 ICT knowledge diffusion through users .......................................................................227

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7.2.1 Case study A’s communities of practice............................................................... 228 7.2.2 Case study B’s communities of practice ............................................................... 229 7.2.3 Case study C’s communities of practice ............................................................... 231 7.2.4 Discussion on communities of practice ................................................................ 232

7.3 Analysis of the strategic ICT adoption in the case studies .......................................... 239 7.3.1 Characteristics of ICT adoption at an organisation............................................... 240 7.3.2 Interpreting ICT adoption strategies ..................................................................... 244 7.3.3 Possible risks from early adoption........................................................................ 247 7.3.4 Summary of strategic ICT adoption...................................................................... 248

7.4 Analysis of ICT diffusion process at initial adoption .................................................. 249 7.5 Analysis of ICT diffusion process at actual implementation....................................... 251 7.6 Summary of chapter ..................................................................................................... 255

Chapter 8 Developing and improving the understanding of ICT diffusion ................... 259 8.1 Supportive ICT diffusion model .................................................................................. 259

8.1.1 Stage 1: Development of new business practices/processes................................. 261 8.1.2 Stage 2: Organisational adoption decision of ICT................................................ 262 8.1.3 Stage 3: Initial use of ICT application .................................................................. 263 8.1.4 Stage 4: Actual continued use of an ICT application............................................ 265 8.1.5 Stage 5: Clear benefit of use ................................................................................. 267 8.1.6 Stage 6: Positive perception towards ICT and diffusion throughout users........... 269

8.2 Constraint models of ICT diffusion ............................................................................. 270 8.2.1 ICT diffusion constraints at the organisational level ............................................ 271 8.2.2 ICT diffusion constraints at the individual level................................................... 278 8.2.3 ICT diffusion constraints at the group level ......................................................... 284

8.3 Summary of chapter ..................................................................................................... 286 Chapter 9 Conclusions and recommendations.................................................................. 289

9.1 Main research findings................................................................................................. 289 9.1.1 What are the essential factors that influence ICT diffusion at the actual ICT implementation stage within large Australian construction organisations? .................. 290 9.1.2 To what extent have the ICT diffusion factors been experienced by ICT users within large Australian construction organisations?...................................................... 291 9.1.3 How do factors influence the diffusion processes within large Australian construction organisations?............................................................................................ 293 9.1.4 How has ICT knowledge been diffused by users within large Australian construction organisations?............................................................................................ 298 9.1.5 What ICT diffusion processes (adoption strategy and actual implementation process) are currently practiced within large Australian construction organisations? .. 299

9.2 Contribution of the research......................................................................................... 300 9.3 Recommendations........................................................................................................ 302

9.3.1 Management recommendations ............................................................................ 302 9.3.2 Theoretical recommendations ............................................................................... 305

9.4 Recommendation for future research........................................................................... 305 9.5 Summary of chapter ..................................................................................................... 307

References ............................................................................................................................. 309 Appendix A: Development of online survey questionnaire Appendix B: Analysis of survey questionnaire Appendix C: Interview questionnaire Appendix D: Evaluation tables of factors influencing ICT diffusion

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LIST OF TABLES Table 2.1 List of government e-procurement websites ............................................................29 Table 2.2 Business use of information technology (source: ABS 8129.0, 2003) ....................32 Table 2.3 Differences between teams and COPs (adapted from Wenger et al. (2002, p.42 and Bourne (2003, p.14)..................................................................................................................70 Table 3.1 Effects of lack of ICT adoption strategy and implementation .................................81 Table 3.2 Literature review related to ICT adoption and general ICT implementation (from 1996 to 2004)............................................................................................................................83 Table 3.3 List of selected literature supporting five main areas...............................................97 Table 3.4 Motivation and user perceived characteristics literature supporting the empirical research instrument.................................................................................................................107 Table 3.5 ICT training and technical support literature supporting the empirical research instrument ...............................................................................................................................109 Table 3.6 ICT workplace support environment literature supporting the empirical research instrument ...............................................................................................................................112 Table 3.7 ICT knowledge and information sharing literature supporting the empirical research instrument ...............................................................................................................................113 Table 4.1 Relevant situation for different research strategies (source: Yin 1994) .................120 Table 4.2 The detail of web pages in survey online questionnaire.........................................126 Table 5.1 The proportions of respondents using IT applications ...........................................138 Table 5.2 The means of relevant to the job in using IT applications .....................................143 Table 5.3 The mean value responses of level of need to use IT applications (frequency).....144 Table 5.4 Clusters of IT applications classified by means .....................................................145 Table 5.5 Summary clusters of IT applications......................................................................145 Table 5.6 The significant means difference among three user groups ...................................147 Table 5.7 The factor analysis of variables relating to ICT diffusion......................................156 Table 5.8 The mean’s value of eleven factors ........................................................................159 Table 6.1 General information of case studies .......................................................................169 Table 6.2 Users’ experience of factors influencing ICT diffusion in CA ..............................177 Table 6.3 Users’ experience on factors influencing ICT diffusion in CB..............................188 Table 6.4 Users’ experience on factors influencing ICT diffusion in CC..............................202 Table 7.1 Criteria for evaluating the presence of management factors ..................................211 Table 7.2 Criteria for evaluating the presence of individual/personal factors........................212 Table 7.3 Criteria for evaluating the presence of technology factors.....................................213 Table 7.4 Criteria for evaluating the presence of workplace environment factors.................214 Table 7.5 Comparison of cases about group users’ experience on present factors ................215 Table 7.6 Detailed discussion of management factors influencing ICT diffusion .................219 Table 7.7 Detailed discussion of individual/personal factors influencing ICT diffusion.......220 Table 7.8 Detailed discussion of technology factors influencing ICT diffusion....................221 Table 7.9 Detailed discussion of workplace environment factors influencing ICT diffusion222 Table 7.10 Categories of interviewee in the three case studies ..............................................228 Table 7.11 Characteristics of ICT adoption in three construction contractors.......................241

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LIST OF FIGURES

Figure 1.1 The original theoretical framework in this research............................................... 11 Figure 2.1 The links between background Chapter 2 supporting ICT diffusion within an organisation at implementation stage....................................................................................... 16 Figure 2.2 Fifth wave of technological change (adapted from the Economist, 29 February, 1999, p.8) ................................................................................................................................. 23 Figure 2.3 Australian business using information technology................................................. 30 Figure 2.4 The use of ICT in Australian construction industry ............................................... 31 Figure 2.5 Framework of behaviour on innovation diffusion adapted from Fichman (1992) . 43 Figure 2.6 Framework of intra-organisational diffusion adapted from Agarwal, Tanniru & Wilemon (1997) ....................................................................................................................... 47 Figure 2.7 Framework of innovation transfer (Scheirer 1983) ................................................ 50 Figure 2.8 The levels of implementation process of innovation diffusion, adapted from Carlopio (1998) ........................................................................................................................ 51 Figure 2.9 Stage model of technology diffusion adapted from Rogers (1995) A, Carlopio (1998) A and Cooper and Zmud (1990) B ................................................................................. 53 Figure 2.10 Organisational change from Leavitt’s model (1965: p.1145)............................... 59 Figure 2.11 Lewin’s force field model (adapted from Lewin, 1958) ...................................... 60 Figure 2.12 The MIT's strategic change (adapted from Scott Morton1991, p.20) .................. 60 Figure 2.13 Traditional path of strategic fit (adapted from Yetton, Johnston & Craig 1994, p.62) ......................................................................................................................................... 61 Figure 2.14 The path of strategic fit (adapted from Yetton, Johnston & Craig 1994, p.63).... 62 Figure 2.15 The Galbraith 'Star' model of change management (adapted from Galbraith 2002, p.10) ......................................................................................................................................... 63 Figure 2.16 The model of BIF (Barriers identification framework) adapted from Kirveennummi, Hirvo & Eriksson (1998) ............................................................................... 63 Figure 2.17 Drivers and barriers to change (Adapted from Senge, Kleiner et al. 1999, p54) . 64 Figure 2.18 Formal/informal organisation structure for teams and COPs............................... 71 Figure 3.1 Diagram of strategic ICT adoption and actual ICT implementation ...................... 76 Figure 3.2 Integration of factors related to ICT diffusion from innovation diffusion, change management and learning and sharing concepts...................................................................... 96 Figure 4.1 Framework of research design.............................................................................. 121 Figure 4.2 The operation of online survey questionnaire ...................................................... 127 Figure 4.3 The diagram of online survey questionnaire ........................................................ 128 Figure 5.1 The relevance to their job of IT applications among three user groups (R)......... 139 Figure 5.2 The level of IT applications needs to use among three user groups (N) .............. 140 Figure 5.3 The relevance to their job of ICT applications among three user groups............. 149 Figure 5.4 The level of ICT applications needs to use among three user groups (frequency)150 Figure 5.5 The graph between eigenvalues and the number of component factors............... 153 Figure 5.6 Preliminary conceptual model of ICT innovation diffusion................................. 157 Figure 5.7 The primary conceptual model of ICT diffusion.................................................. 158 Figure 5.8 Comparing access of ICT knowledge sources within- and outside working hours................................................................................................................................................ 162 Figure 5.9 Users’ perception towards ICT knowledge sources during working hours.......... 163 Figure 5.10 Users’ perception towards ICT knowledge sources outside working hours ...... 165 Figure 6.1 Infrastructure of ICT system in CA...................................................................... 172 Figure 6.2 Group of ICT innovation support in CA .............................................................. 175 Figure 6.3 Infrastructure of ICT system in CB ...................................................................... 183 Figure 6.4 Groups of ICT innovation support in CB ............................................................. 186 Figure 6.5 Infrastructure of ICT system’s CC ....................................................................... 197

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Figure 6.6 Groups of ICT innovation support in CC..............................................................199 Figure 7.1 The diagram of intra- and inter-organisational factors .........................................218 Figure 7.2 Case study A's communities of practice ...............................................................229 Figure 7.3 Case study B’s communities of practice ...............................................................230 Figure 7.4 Case study C’s community of practice .................................................................231 Figure 7.5 Three types of COP within an organisation ..........................................................236 Figure 7.6 Relationships of COP between organisations .......................................................238 Figure 7.7 The time frame of ICT adoption in three cases.....................................................239 Figure 7.8 Relationship between strategic adoption and ICT characteristics ........................245 Figure 8.1 The supportive model of ICT innovation diffusion within an organisation..........260 Figure 8.2 Constraints of ICT diffusion within a construction organisation (organisational loop, C1a, C1b, C1c) ..............................................................................................................272 Figure 8.3 Constraints of ICT diffusion within a construction organisation (individual loop, C2a, C2b, C2c) .......................................................................................................................279 Figure 8.4 Constraints of ICT diffusion within a construction organisation (network loop, C3a) ........................................................................................................................................284

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LIST OF PAPERS PUBLISHED • Peansupap. V. (2003) ‘The influence of factors on ICT diffusion: a case study of large

Australian construction contractors’ Proceedings of the Postgraduate Construction Research Conference, Melbourne, Australia, 8 July.

• Peansupap, V, Walker, D.H.T., Goldsmith, P.W. & Wilson, A. 2003 ‘Factors influencing information communication technology diffusion: an Australian study’, Proceedings of the Joint International Symposium of CIB Working Commissions W55, W65 and W107 Knowledge Construction, Singapore, 22-24 October.

• Walker D. H. T. and V. Peansupap. (2003). ‘Innovation diffusion through strategy and

a COP approach – an Australian construction case study’, Proceedings of the 17th ANZAM Conference, 2-5 December, Perth WA.

• Peansupap, V, Walker, D.H.T., Goldsmith, P.W. & Wilson, A. 2003 ‘Developing

within-company information and communication technologies (ICT) innovation diffusion networks: a study of three Australian major contractors’, Proceedings of the 19th ARCOM Conference, Brighton, UK., 3-5 September.

• Peansupap, V. and Walker, D.H.T. (2004) ‘Understanding the ICT innovation

diffusion process of large Australian construction contractors’, Proceedings of the First SCRI International Research Symposium, Salford, UK, 30-31 March.

• Peansupap, V. and Walker, D.H.T. (2004) ‘Strategic adoption of information and

communication technology (ICT): case studies of construction contractors’, Proceedings of the 20th ARCOM Conference, Sept 1-3, Edinburgh, Scotland.

• Peansupap, V. and Walker, D.H.T. (2004) ‘Constraints on the ICT diffusion within large Australian construction firms’. Proceedings of the CIB-W107 the Globalization and Construction Symposium, AIT, Bangkok, Thailand, 17-19 November.

• Peansupap, V. and Walker, D.H.T. 2005 ‘Diffusion of Information and

communication technology: A community of practice perspective’. Knowledge Management in the Construction Industry: A Socio-Technical Perspective. Kazi A.S. Hesinki, Finland, Idea Group Publishing.

• Peansupap.V and Walker D.H.T., (2005), ‘Factors affecting ICT Diffusion: a case

Study of Three Large Australian Construction Contractors’, Engineering Construction and Architectural Management, Vol. 12, No. 1, pp. 21-37.

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GLOSSARY OF TERMS

2D = Two Dimension

3D = Three Dimension

4D = Four Dimension

ABS = Australian Bureau of Statistics

ACIF = Australian Communications Industry Forum

ADSL =Asymmetric Digital Subscriber Line

AHP = Analytic Hierarchy Process

ANOVA = Analysis of Variance

ASP = Active Server Page

BSC = Balance Scorecard

BUs = Business Units

CAD = Computer Aided Design

CIB = International Council for Research and Innovation in Building Research

CIC = Computer Integrated Construction

CGI = Common Gateway Interface

CM = Change Management

COP = Communities of Practice

CPM = Critical Path Method

CSIRO = Commonwealth Science & Industrial Research Organisation

DoI = Diffusion of Innovation

EDI = Electronic Data Interchange

EDMS = Electronic Document Management System

ERP = Enterprise Research Planning

FA = Factor Analysis

FTP = File Transfer Protocol

HTTP= Hypertext Transfer Protocol

ICT = Information and Communication Technology

ID = Innovation Diffusion

IFCs = Industrial Foundation Class

ISDN = Internet service digital network

ISP = Internet Service Provider

IT = Information Technology

Kbps = Kilo byte per second

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KM = Knowledge Management

KMO = Kaiser-Meyer-Olkin

LAN = Local Area Network

MAUT = Multi-Attribute Utility Theory

NIST = National Institute of Standards and Technology

ORCM = Online Remote Construction Management

OHS = Occupational Health and Safety

PC = Personal Computer

PDA = Personal Digital Assistant

PERT = Program Evaluation and Review Technique

PHP = Hypertext Preprocessor Programming

PM = Project Management

PMS = Project Management System

RFI = Requests for Information

SISP = Strategic Information System Planning

SMEs = Small and Medium Enterprises

STEP = Standard for the Exchange of Product Model Data

TAM = Technology Acceptance Model

TQM = Total Quality Management

VR = Virtual Reality

VRML = Virtual Reality Modelling Language

WAN = Wide area network

WWW = World Wide Web

XML = eXtensible Markup Language

1

Chapter 1

Introduction This research is exploratory and descriptive in nature. It studies the nature of information and

communication technology (ICT) diffusion within Australian construction organisations. It

investigates ICT diffusion from the perspective of the ICT adoption strategy and its actual

implementation within an organisation. The main research objective is to understand the

nature of ICT diffusion at the intra-organisational level by identifying key factors influencing

diffusion at the actual implementation phase. To this end it explores key ICT diffusion

processes within leading Australian construction organisations. It uses both quantitative and

qualitative research approaches. It begins with a quantitative investigation of the influence of

users' experience of management, individual and/or personal, technology, and workplace

environment on ICT diffusion. This part of the research generates an understanding of what

key factors affect the surveyed group’s perception of key factors that influences ICT

diffusion. The qualitative research contribution to this work focuses on how ICT has been

adopted and diffused into selected leading Australian construction organisations. It helps to

develop the understanding of main essential processes that facilitate ICT diffusion during

actual implementation.

The aim of the research is to assist construction senior managers to better understand, plan

and monitor ICT diffusion issues during actual ICT implementation. The outcome of the

research is a framework that helps to improve our understanding of ICT diffusion during

actual implementation and to develop improved models of how ICT knowledge is transferred

and ICT initiatives are implemented. As the results are based on case studies of large

Australian construction organisations, they may require some modification before being

applied to other construction organisations.

This chapter provides an overview and outlines the scope of the thesis. It starts with a

discussion of how the researcher conducted the investigation of the research topic. It explains

the research background, the rationale for the research, the research problem statement,

research questions, research propositions, research scope, objectives and aims, research

methods, theoretical framework and limitations of the current research.

2

1.1 Research background—The relevance of ICT to the construction industry

Information technology (IT) and information and communication technology (ICT) has

recently been identified as an essential tool for improving communication in construction

processes and for creating new construction business opportunities. Walker and Betts (1997)

argue that ICT technologies such as the Internet and the World Wide Web (WWW) could

open up opportunities for construction businesses to operate globally. At the same time, other

studies illustrate numerous advantages and benefits of using ICT in construction (Doherty

1997b, Duyshart 1997, Skibniewski & Abduh 2000).

First, ICT can support information integration and this in turn can help to reduce the volume

of information processed and reduce data re-entry by transferring information through

Internet/Intranet protocols. This can provide benefits throughout project phases such as

design, construction, and operation (Anumba & Duke 1997, Aouad et al. 1999, Björk 1999,

Deng et al. 2001, Mitev, Wilson & Wood-Harper 1996, Sriprasert & Dawood 2002b, 2002c).

Second, ICT use can enhance collaboration by supporting communication among project

members and sharing information and documents, especially when team members are located

in different geographical areas (Abudayyeh et al. 2001, Ahmad, Azhar & Ahmed 2002,

Duyshart 1997, Skibniewski & Abduh 2000, Sriprasert & Dawood 2002a). Third, ICT use can

support ‘e-commerce’ and create opportunities to extend business or provide improved

customer service (Alshawi & Ingirige 2002, Anumba & Ruikar 2002, Kong, Li & Love 2001,

Kong, Li & Shen 2001, Skibniewski & Nitithamyong 2004).

Another aspect of ICT benefits focuses on applications that support improving construction

processes. Tam (1999) for example developed a prototype ICT system to help construction

organisations improve communication and reduces costs. Other researchers have investigated

the application of ICT in improving construction processes during design and construction

(Veeramani, Tserng & Russell 1998), construction cost control (Abudayyeh et al. 2001), and

project management (Skibniewski & Abduh 2000) see Chapter 2 sections 2.2.1 for further

details on these applications. Other examples of IT/ICT product or system prototype

development include development of web-based ICT systems to support e-commerce in

construction such as providing product catalogues and facilitating material procurement

(Kong et al. 2004, Kong, Li & Love 2001, Kong, Li & Shen 2001) .

3

Benefits of ICT use by construction organisations have motivated several construction

organisations to adopt and invest in this technology and many recent survey results indicate

an increasing trend of firms using ICT in the construction industry (Futcher & Rowlinson

1999, O’Brien & Al-Biqami 1999, Rivard 2000). However, the magnitude of ICT adoption in

construction practices remains low compared to other industries (ABS 1999, 2001, 2002,

ACIF 2002). The above literature explain this slow uptake of ICT by:

1. The complex nature of the construction industry;

2. Immaturity ICT levels;

3. Financial constraints;

4. Poor availability of tools for evaluating benefits of using ICT; and

5. A lack of understanding of the ICT implementation process.

A recent study of the International Council for Research and Innovation in Building Research

(CIB) W78 conference papers claimed that management of information technology, especially

adoption and implementation, has been identified as one of the three main conference themes

(Amor et al. 2002). Similarly, the technology innovation implementation stage has also been

judged as the most critical phase to concentrate upon to ensure successful technological

innovation (Attaran 2000, Goodman & Griffith 1991, Leonard-Barton 1988, Tornatzky &

Fleisher 1990). While the development of IT innovation is controlled by a relatively

predictable environment (such as in a laboratory within a research and development (R&D)

unit or IT department) actual implementation of IT is far more difficult to control because it

involves the complex interaction of people in their workplace dealing with the technology.

Also as an innovation is introduced, users are required to learn how to use an innovation as

well as changing the way they usually work. People tend to resist change due to their habits

acquired over time. This is a constraint on ICT diffusion. Such problems are compounded if

the innovation concerned is unsuited to their conventional work practices (Goodhue &

Thompson 1995, Mathieson & Keil 1998). For example, a project manager or an engineer

may be more familiar with communicating with sub-contractors (and vice versa) via phone

and fax instead of using email.

From a research perspective, most research previously undertaken in this area has focused on

the primary adoption phase of ICT innovation. For example, several studies have been

conducted at an industrial level to explore barriers to ICT adoption and use in construction

organisations. These results tend to agree that the most common barrier of primary adoption is

the high cost of investment (Love et al. 2001, Marsh & Finch 1998, Marsh & Flanagan 2000,

4

Songer, Young & Davis 2001, Stephenson & Blaza 2001). In addition, several research

studies indicate that ICT investment benefits are difficult to measure and this creates

difficulties in making an adoption decision. Other studies argue that diffusion barriers are not

limited to just the organisation’s ICT adoption decision but extends to the actual

implementation approach (Griffith, Zammuto & Aiman-Smith 1999, Regan & O'Connor

2000). For example, most of IT project outcomes do not meet management expectations due

to management’s lack of understanding of a method to best implement the ICT innovation

and/or how to best measure and evaluate results and benefits derived from ICT use.

However, in the literature there is evidence of recent interest that begins to focus on the ICT

adoption and implementation phase of ICT diffusion. Recently, for example, an ICT strategic

implementation framework was developed to help plan ICT implementation in construction

organisations (Jung & Gibson 1999, Peña-Mora & Tanaka 2002, Peña-Mora et al. 1999,

Stewart, Mohamed & Daet 2002). Several studies have focused on what triggers an

innovation adoption decision from a strategic planning and decision-making perspective

(Mitropoulos & Tatum 1999, 2000). Few studies however, have been focused on the nature of

ICT diffusion and its actual implementation. To fill this gap, this research project attempts to

extend our understanding of ICT implementation by applying innovation diffusion, change

management, and knowledge sharing concepts to explain intra-organisational ICT diffusion

during actual ICT implementation in selected construction organisations. The integration of

these three concepts can help to explain how people learn and exchange knowledge necessary

for innovation diffusion and how people cope with the necessary changes in work and

management practices that result from fully adopting an innovation.

1.2 Rationale for the research

Many practitioners and academics are beginning to realise the importance of implementing IT

and ICT throughout construction organisations. Recently, interesting frameworks for strategic

IT implementation were developed to provide a strategic view of IT success in construction

(Jung & Gibson 1999, Peña-Mora & Tanaka 2002, Peña-Mora et al. 1999, Stewart, Mohamed

& Daet 2002). In addition, many studies seek to identify key drivers and barriers of IT

implementation during initial adoption rather than during implementation (Laage-Hellman &

Gadde 1996, Marosszeky et al. 2000, Songer, Young & Davis 2001). These research studies

have adopted slightly differing approaches. Some explore barriers to IT use and adoption at

the construction industry level (Love et al. 2001, Stewart & Mohamed 2002, Tucker,

5

Mohamed & Ambrose 1999). These studies agree that common barriers include low levels of

IT skills and lack of IT investment. Some studies identify the various factors influencing the

success of strategic IT implementation in organisations (Stewart, Mohamed & Daet 2002).

However, few of these empirical studies focus on factors and processes influencing ICT

diffusion during the actual ICT implementation phase.

Based on the above, the current research aims to identify factors and processes that influence

ICT diffusion at the actual implementation stage. It looks at three different aspects in

comparison to previous research. First, the work focuses on ICT diffusion during the actual

implementation phase and makes the assumption that ICT innovation may be different from

standalone IT innovation. One reason for this is that an ICT innovation needs a number of

users to commit and use it, whereas many IT innovations are for stand-alone application or

involve small specialised groups of users (Markus 1987). With ICT however, the greater the

number of users that adopt and implement the technology the more benefits that the ICT

innovation will likely deliver. This is because benefits are best realised by universal rather

than small group adoption and implementation. Thus, the organisation that expects to obtain

real benefits from its investment needs to ensure that as many (if not all) users have adopted

and used it. Second, ICT adoption and implementation factors are developed from three

concepts: innovation diffusion, change management, and knowledge sharing and learning.

The integration of these three concepts may help to explain both the static and the dynamic

factors that impact on the initial motivation to adopt ICT and its continuous use during its

implementation throughout organisations. Third, the aim of the research is to identify

processes that occur during actual ICT implementation phases from an innovation diffusion

perspective. This could help us understand how different factors influence the ICT diffusion

process during the implementation period. This aspect is still largely unclear from the existing

literature.

Actual ICT implementation is a complex task involving both technical and social issues.

Many practitioners tend to believe that ICT implementation failures occur due to technical

issues rather than social issues (Griffith, Zammuto & Aiman-Smith 1999). However, recent

studies by Björk (2002) and O'Brien (2000) argue that technical problems may have a limited

impact on individual adoption of ICT. More recent innovation research is leading us to the

conclusion that innovation implementation failure is not so much a function of the

characteristics of the innovation itself but may depend more on the way that innovation

implementation occurs. It was found, for example, that ICT implementation needs to be

6

managed and structured because ICT is a critical facilitator of success of other IT innovation

diffusion initiatives (Green & Hevner 2000). Thus, overlooking principles of ICT

implementation (such as knowledge transfer through technology and by people) may cause

failure of general IT innovations because of the similarity of barriers to both IT and ICT

diffusion.

It is essential, therefore, to answer the question why the integration of variables from

innovation diffusion, change management, and knowledge sharing and learning helps to

explain the ICT diffusion during actual implementation. First, the innovation diffusion

concept identifies variables that impact on the initial adoption. These variables are

technological characteristics, communication channels, and social issues that may be

considered to be generally stable, static or slow to change (Rogers 1983, Tornatzky &

Fleisher 1990). These variables influence ICT users’ adoption decisions. However, during a

continuous ICT implementation exercise more dynamic variables come into play. Change

management and knowledge sharing and learning influences provide a dynamic change

phenomenon that can strengthen or weaken the innovation diffusion process. A number of

factors or variables that may impact on ICT diffusion can be derived from the literature on

these theories. Change management variables that may affect IT and ICT diffusion can be

grouped into motivation, training and technical support, supervisor support and open

discussion categories (Galbraith 2002, Senge et al. 1999). In addition, variables from

knowledge sharing and learning literature (Nonaka & Takeuchi 1995b) also provides a basis

for the development of skill among ICT users (Attewell 1992, Davenport & Prusak 1998) and

also skill and knowledge transfer through communities of practice (Gallivan 2000, Wenger &

Snyder 2000). As a result, the integration of these three theoretical bodies of knowledge can

assist us to better understanding both the nature of static and dynamic variables that influence

ICT diffusion at the actual implementation stage.

Thus, to more fully understand ICT diffusion, we need to search beyond the ICT adoption

decision-making phase to more fully study what actually happens when ICT innovation is

implemented. This requires us to consider not just the innovation diffusion literature but

change management as well as knowledge-sharing and learning. This is the identified gap in

the existing research that considers ICT diffusion from this perspective that need to be

addressed. Identification of this gap justifies this research’s rationale.

7

1.3 Research problem statement

There is an increasing trend in the number of ICT adoption and implementation studies being

undertaken in construction management research. These studies offer several dimensions of

understanding IT management such as the level of ICT use, measurement of ICT benefits, and

development of strategic ICT planning. Other research studies also look at the implementation

of ICT innovation in construction and highlight the problems of ICT implementation.

Although earlier studies related to ICT adoption and implementation provide a preliminary

view of ICT use, they still lack an emphasis on how to actually implement ICT into a

construction organisation. This lack of clarity of understanding actual ICT implementation

may lead to a failure and/or an ICT diffusion slowdown by all users within a construction

organisation. Furthermore, the lack of focus on actual ICT implementation may explain why

ICT implementation problems still occur. Therefore, the current research problem is based on

the following premise:

Current construction IT management literature does not adequately explain actual ICT

implementation from an intra-organisational perspective and this may contribute to failure

and/or slow diffusion of technology within construction organisations.

To examine the concept of managing an actual ICT implementation, factors and processes

need to be identified. The current research will investigate the factors and processes of actual

ICT implementation within large construction organisations. These factors are developed

from the integration of three concepts—innovation diffusion, change management, and

knowledge sharing and learning. This study aims to identify key factors that influence ICT

diffusion amongst experienced ICT users who currently adopt and use ICT within large

construction organisations. The study of processes is adapted from a standard innovation

diffusion model and explains the main processes that are currently adopted and implemented

within large construction organisations.

1.4 Research questions

To increase the understanding of ICT diffusion at actual ICT implementation stage, this

research will address the following questions:

8

1) What are the essential factors that influence ICT diffusion at the actual ICT

implementation stage within large Australian construction organisations?

2) To what extent have the ICT diffusion factors been experienced by ICT users within

large Australian construction organisations?

3) How do ICT diffusion factors influence the diffusion processes within large Australian

construction organisations?

4) How has ICT knowledge been diffused by users within large Australian construction

organisations?

5) What current ICT diffusion processes (adoption strategy and actual implementation

process) are practiced within large Australian construction organisations?

1.5 Research proposition Based upon the research questions, four research propositions are developed and tested in this

study, as follows:

1) There are a small number of key factors that influence ICT diffusion within a

construction organisation at the actual implementation phase.

2) Each factor has a specific and individual role to facilitate ICT diffusion

3) Effective ICT diffusion can be understood as a series of sequential processes

4) These process need to overcome a number of identified barriers to ICT diffusion

1.6 Research scope and objectives

The current research will explore the present practice of ICT diffusion within a representative

sample of large Australian construction organisations that already use ICT applications. In

addition, the research will identify key factors and processes that influence potential adopters

during actual ICT implementation.

The primary objective is to identify the nature and extent of intra-organisational variables

influencing ICT diffusion within three large Australian construction organisations. It focuses

on professional levels of ICT users within these organisations who are familiar with and

currently use ICT applications. This survey not only helps to identify common issues that

these ICT users have experienced, but also allows researchers to understand the nature and

extent of the supportive environment within these organisations that could facilitate ICT use.

9

In addition, this survey identifies ICT knowledge sources and the way that knowledge is

shared within each organisation.

The second objective is to explore the factors influencing ICT diffusion within an

organisation. These factors represent clusters of interrelated variables identified by a rigorous

review of the literature. Once identified, these factors can then be used as the basis for

conducting interviews with individual ICT users in the second phase of the current research

study to gain a richer appreciation and understanding of the nature of the workplace

environment that drives and/or inhibits ICT diffusion within those ICT literate organisations.

The focus of attention throughout this study is directed towards individuals who are computer

literate and working in construction organisations that have a substantial history of using ICT

in their work processes. These types of individuals can best illustrate how ICT diffusion

operates in practice.

The third objective is to obtain in-depth information about how users experience the factors

influencing ICT diffusion, and to explore the current practices of the ICT diffusion process

from both a strategic and an implementation viewpoint. In addition, it aims to identify how

ICT knowledge has been diffused by users within a construction organisation.

The summary of research objectives is:

1) To identify factors that influence ICT diffusion at the actual ICT implementation stage

within large Australian construction organisations

2) To explore the current ICT diffusion factors and processes that have been experienced

by ICT users within large Australian construction organisations

3) To investigate how ICT diffusion factors influence the diffusion processes within large

Australian construction organisations

4) To identify how ICT knowledge has been diffused by users within Australian

construction organisations

1.7 Research aims

This research aims to apply existing theories of innovation diffusion, change management and

knowledge-sharing and learning to the management of actual ICT implementation within

large construction organisations.

10

The expected outcomes from this research are:

1) A better understanding of the nature of ICT diffusion within large construction

organisations

2) A better theory of practice for management of actual ICT implementation

3) Conceptual models for actual ICT implementation that help explain the ICT diffusion

within large construction organisations

1.8 Research methods

The selection of a research strategy is dependent on: the types research questions asked,

control of the behaviour environment, and contemporary events. Based on research questions

on ‘what’ and ‘how’, the current research is categorised as an exploratory and descriptive

approach. The strategy for part of this research is based on a series of case studies that help to

build an understanding of ICT diffusion within leading construction organisations.

However, this study uses both quantitative and qualitative data. For the quantitative data study

(Phase 1), a questionnaire is selected as a tool to gather data about ICT users’ experience of

variables influencing ICT diffusion during actual implementation. The target respondents are

experienced IT users within three leading Australian construction organisations. Findings can

help identify the main drivers that influence ICT diffusion before conducting an interview

case study.

Structured and semi structured interviews (Phase 2) were selected as tools to explore the

current ICT diffusion processes within three leading construction contractors to explain what

factors influence ICT diffusion processes. However, results from Phase 1 provided the basis

for prompting clarification and further questions as well as for analysing data gathered in the

qualitative data study. Structured and semi structured interviews can yield rich data by

allowing respondents to elaborate on issues that they perceive to be important without

interference or influence by the interviewer. In addition, the study also explores how users

within each of the three cases have diffused ICT knowledge.

1.9 Theoretical framework

The research background section of this chapter concluded that there is a current lack of

knowledge to explain ICT diffusion within construction organisations during the

11

implementation phase. Therefore, the current research attempts to fill this gap by providing a

conceptual guide. As described earlier, three main concepts of innovation diffusion, change

management, and knowledge-sharing and learning are adopted and modified to establish the

variables that may influence ICT diffusion during actual implementation. The exploration of

processes during actual implementation is adapted stage model of technological innovation

diffusion (Carlopio 1998, Cooper & Zmud 1990, Rogers 1995). It aims to identify the current

practice of ICT diffusion within leading construction contractors. Figure 1.1 illustrates the

theoretical framework in this research that is explained in depth in Chapter 2 section 2.2.3.

Strategic ICT planning

Adoption decision-making

Use of ICTPerformance and benefits measurement

BLACK BOX

ICT actual implementation

ICT management

Change management

Knowledge sharing and

learning

Innovation diffusion

Figure 1.1 The original theoretical framework in this research

1.10 Limitations of this research

This research has some limitations that need to be acknowledged. First, data gathered for the

quantitative (Phase 1) part of the study was collected only from experienced ICT users from

three leading Australian construction organisations during March to May 2002. The

organisations were chosen because they could source respondents that were already familiar

with IT and ICT applications and so could provide valuable experience of ICT diffusion

implementation initiatives in their organisation. Thus there was a deliberate policy of

excluding novice ICT users and this naturally limits this research work as applying to

experienced ICT users. Further, the sample of organisations chosen was drawn from available

representative organisations with a strong history of ICT use. Thus, the results are only

applicable to construction industry organisations experienced with ICT. Therefore one

important limitation to this study is that it sought to investigate only experienced ICT users.

12

Qualitative data for Phase 2 of this study were gathered from October 2002 to May 2003.

Thus, the study is limited to examples of ICT technologies readily available and used by

participating organisations at that time. ICT advances at a great rate and so as a new wave of

ICT initiatives enters the organisations to be diffused, new technical problems and issues may

emerge. While the underlying results of the study may be valid and useful for the foreseeable

future, we cannot be certain that radical ICT applications may not radically change this

assumption.

Further, the location of the study (Australia) also may influence what is considered as

contemporary ICT applications worthy of study. Australia, however, is a sophisticated

technological society and so results from this study could be considered as reasonably

representing a developed economy in which the Australian construction industry, and the

major organisations chosen for this study, is representative of this classification of national-

industrial ICT maturity level.

Finally, naturally it was not feasible to interview all employees of the selected companies and

so the choice of respondents depended upon availability and willingness to participate in the

study. Every effort was made to ensure that representative groups and individuals were

chosen.

1.11 Structure of the thesis

This thesis comprises ten chapters. Chapter 1 introduces an overall view of this research. It

addresses the research background, the rationale of research, the research problem statement,

research questions, research propositions, research scope, objectives and aims, research

methods, theoretical framework, limitations of this research, and thesis framework.

Chapter 2 reviews the literature related to implementation and diffusion of IT innovation

within an organisation. It addresses issues related to technological innovation in the

construction industry. This review explains the history, benefits and level of ICT use in

construction industry. Next, the review highlights processes related to IT management. These

include; strategic IT planning, IT adoption decision, management of IT implementation, and

measurement of IT investment. This helps to establish the central argument of the need to

study IT diffusion at the actual implementation stage. The last three sections focus on the

13

literature related to innovation diffusion, change management, and knowledge sharing and

learning—these three concepts help explain ICT diffusion at the actual implementation stage.

Chapter 3 describes the need to study ICT diffusion at the actual implementation stage from

an intra-organisational perspective. To understand ICT diffusion at the actual implementation

stage, Chapter 3 reviews and integrates the main variables from the main three concepts of

innovation diffusion, change management, and knowledge- sharing and learning. The chapter

concludes with a list of questions that identify main variables that influence ICT diffusion at

the actual implementation stage.

Chapter 4 presents the research approach. This presents: the philosophical assumptions

underpinning this research; the research study approach; research strategy; and the research

design. The chapter then describes two main research methods: survey questionnaire and

interview case study.

Chapter 5 presents the analysis and discussion of factors influencing ICT diffusion. It

contains: a descriptive analysis of survey respondents; justification of the sample approach;

justification of analysis data of survey questionnaires; exploration of ICT diffusion factors;

and analysis of ICT knowledge sources.

Chapter 6 describes the findings of three case studies of ICT diffusion within three large

Australian construction contractors. Each case describes: the case study background; the

configurations of ICT systems; the use of ICT systems; ICT support groups; ICT diffusion at

the organisational level; ICT diffusion at the individual and group level; users’ experience of

factors influencing ICT diffusion; and description of ICT diffusion process.

Chapter 7 analyses and discusses the three ICT diffusion case studies findings within the three

large Australian construction contractors. The chapter presents: analysis of factors influencing

ICT diffusion; ICT knowledge diffusion through users; analysis of strategic ICT adoption;

and analysis of the ICT diffusion process at both the initial adoption and actual

implementation stages.

Chapter 8 develops conceptual models that help us understand ICT diffusion within large

Australian construction organisations. The conceptual models consist of supportive ICT

diffusion models and three constraints on ICT diffusion models.

14

Chapter 9 summarises research findings that related to the research questions. The chapter

then discusses the research contribution made by this work and presents recommendation for

further research and practice. It concludes with suggestions of future research some that needs

to be explored.

1.12 Summary of chapter

This chapter provides an introduction to this research study. The main argument for this

research is that current construction IT management literature does not adequately explain

actual ICT implementation from an intra-organisation perspective. The chapter begins by

arguing that many construction organisations are facing an ICT benefits paradox, that is that

ICT investment fails to meet their expectations and that users consequently resist ICT

adoption and use.

The main cause of this paradox is management’s lack of understanding of methods to best

implement ICT innovation. The chapter then argues that many studies seek to identify key

drivers and barriers of IT implementation at the initial adoption stage rather than at the actual

implementation stage. These provide a rationale for this research to identify factors and

processes that influence ICT diffusion at the actual ICT implementation stage. Next, the

chapter identifies a series of research questions and highlights the scope of this research that

focuses on experienced ICT users within the selected large Australian construction

organisations that had implemented ICT. The chapter then describes the quantitative and

qualitative research approaches that will be used in this research. The chapter then details the

original theoretical framework that was developed for this thesis. Finally an outline of the

thesis structure is given.

15

Chapter 2 Literature review

The purpose of this chapter is to review the previous relevant research studies regarding

implementation and diffusion of IT innovation within an organisation. Specifically, it aims to

provide basic knowledge on how innovation diffusion theory could assist to explain ICT

innovation implementation at an intra-organisational level. To achieve this purpose, the

structure of the chapter is organised into five sections. First, the review begins with issues

related to construction industry technological innovation. Second, it reviews construction ICT

innovation benefits, level of ICT use, barriers of ICT use, and ICT adoption. These two

sections provide a broad view of construction technological innovation and ICT innovation.

The following sections provide focus on within-organisation IT implementation theories. The

third section focuses on issues related to the management of IT in construction organisations.

It highlights key processes relating to IT management consisting of strategic IT planning, IT

adoption decisions, management of IT implementation, and measurement of IT investment

benefits. The last three sections will focus on three concepts related to IT implementation

from an intra-organisational perspective. These concepts are innovation diffusion, change

management, and knowledge-sharing and learning. The review of these concepts provides

background knowledge that helps to fill construction research knowledge gaps relating to ICT

implementation within construction organisations.

The literature review presented in this chapter leads to and links with Chapter 3. Figure 2.1

illustrates the general areas of literature to be explored. Innovation diffusion, knowledge

management (more specifically learning and sharing knowledge), and change management

concepts are reviewed. Through analysis of what the intersection of these bodies of

knowledge provides, gaps in current knowledge about ICT diffusion in the construction

industry can be identified. In Chapter 3 a theoretical integrated model of ICT diffusion at the

implementation phase is developed and presented. This model informs the research questions

and research propositions.

16

INNOVATION DIFFUSION

CHANGE MANAGEMENT

INTEGRATION MODEL OF ICT DIFFUSION WITHIN AN ORGANISATION AT THE

IMPLEMENTATION STAGE

LEARNING AND SHARING

KNOWLEDGE

Chapter 2

Chapter 3

Figure 2.1 The links between background Chapter 2 supporting ICT diffusion within an organisation

at implementation stage

2.1 Construction industry and technological innovation

The construction industry has unique and distinct characteristics compared to many other

industries. It is therefore necessary to provide background knowledge on the nature of the

construction industry and its specific need for technological innovation. In particular, this

section will deal with the nature of the Australian construction industry. The discussion will

centre on the primary forces and characteristics that influence technological innovation

transfer within that industry. The aim of this study is to first identify basic construction

innovation categories. Next, the focus will shift to IT innovations in the construction industry

and then to review the history and impact of IT construction innovations on that industry.

2.1.1 The nature of the construction industry

The construction industry makes a significant business contribution to many national

economies. For example, the Australian Bureau of Statistics, ABS1 (2002) reports that the

construction industry sector contributed 5.5% of Australia’s GDP for 1999-2000 and

employed 709,300 people in 2000. The Bureau of Economic Analysis (BEA) in the U.S.

stated that the construction industry contributed approximately $US 425-490 billion or 4.7-

1 ABS Cat. 8731.0 accessed, Sept. 2003

17

4.8% of GDP, and the U.S. Bureau of Labour Statistics (BLA)2 estimated that the

construction industry employed around 6.7 million wages and salaried employees in 2002.

Similarly, a Canadian construction industry3 (2003) report indicates that its revenues were

around $US 54.9 billion, which accounts for about 5.4 % of Canada's GDP and that it

employed more than 820,000 people.

Due to the significance of the construction industry’s economic contribution, ma