Evaluation for digital transformation capability of construction enterprises: a case study in China

Purpose With the development of a new generation of digital technologies, digital transformation (DT) has become an inevitable trend for enterprises to achieve development in various industries. Nevertheless, the contradiction between the “fragmented” use of digital technologies and the “systematic” transformation of the industry leads to the underperformance of DT in the construction industry. Whilst previous studies have examined why DT is needed and how separate digital technologies can be used in construction projects, they failed to specify effective tools that can help enterprises identify key resources that facilitate DT from the organisational perspective. Design/methodology/approach This study established an objective assessment framework for evaluating the digital transformation capability (DTC) of construction enterprises in identifying limitations in their transformation efforts. This study also established a management entropy quantitative model and a comprehensive capability evaluation model of DT to analyse the DT performance of construction enterprises from the internal and external perspectives. Data were collected from 95 listed enterprises in China’s construction industry in 2020 as a case study. Findings This study concluded that enterprise profitability provides a strong endogenous driving force for DT. Research and development capabilities and DT proficiency of enterprises are the most critical factors in facilitating DT. In addition, China’s construction enterprises' DT was characterised by uneven development and low orderliness. The lack of a unified digital integration platform is key to cracking the dilemma. Originality/value This paper systematically identified key DTC in construction enterprises and proposed an objective framework for measuring DTC to enhance the DT performance of these enterprises.