Drivers and Barriers to Adopting Smart Construction Technologies by Small and Medium Enterprises

Authors

  • Rynn Shi Ying Ho Department of the Built Environment, College of Design and Engineering, National University of Singapore, 4 Architecture Drive, Singapore 117566
  • Luke Peh School of Science and Technology, Singapore University of Social Sciences, 463 Clementi Road, Singapore 599494
  • Sui Pheng Low Department of the Built Environment, College of Design and Engineering, National University of Singapore, 4 Architecture Drive, Singapore 117566

DOI:

https://doi.org/10.24191/bej.v23i2.6900

Keywords:

smart construction technologies, small and medium enterprises, drivers, barriers

Abstract

The construction industry is undergoing rapid digital and technological transformation, but Small and Medium Enterprises (SMEs) often face distinct operational and financial constraints that limit their uptake of Smart Construction Technologies (SCT). Despite government initiatives and growing industry momentum, many SMEs remain hesitant or only partially engaged with SCT. This study aims to identify the key drivers and barriers to SCT adoption among Singaporean SMEs and to propose strategies to overcome these barriers. This study employed a mixed-methods approach - quantitative data were collected via an online survey of construction professionals (53 valid responses: 34 from SMEs and 19 from larger firms) and qualitative data were obtained through semi-structured interviews with three (3) experienced industry practitioners. The survey data collected was analysed using Jeffreys’s Amazing Statistics Program (JASP) for chi-square tests, Shapiro-Wilk normality tests and Wilcoxon signed-rank tests. Interview transcripts were coded thematically to identify the most salient drivers and barriers. The findings reveal that 94% of responding SMEs have initiated SCT adoption, yet full integration into operations is limited. This study identified 15 significant drivers and 13 barriers. Major drivers include financial incentives, regulatory mandates and demonstrable performance gains. On the other hand, key barriers are high costs, resource and skill shortages and practical implementation challenges. Qualitative data confirmed these trends and highlighted SMEs’ conservative culture and survival-oriented mindset as additional factors. These results indicate that while SMEs recognise the potential of SCT, adoption remains partial due to cost, capability and cultural constraints. Addressing these issues through targeted financial support, accessible training and fostering collaborative digital ecosystems can accelerate adoption. By focusing explicitly on SMEs, this study fills a research gap and provides empirical evidence of SME-specific factors in SCT adoption. The actionable insights will help policymakers, industry leaders and technology providers tailor interventions to support SME digital transformation.

Author Biographies

  • Rynn Shi Ying Ho, Department of the Built Environment, College of Design and Engineering, National University of Singapore, 4 Architecture Drive, Singapore 117566

    Rynn Ho Shi Ying graduated with a Bachelor of Science in Project and Facilities Management in 2025 and is an alumni of the Department of Built Environment, National University of Singapore, 4 Architecture Drive, Singapore 119566. Her final-year project examined Smart Construction Technologies. She works in Township Planning and Management. She can be reached at e0775633@u.nus.edu.sg

  • Luke Peh, School of Science and Technology, Singapore University of Social Sciences, 463 Clementi Road, Singapore 599494

    Luke Peh Lu Chang, PhD is Associate Professor at the Singapore University of Social Sciences (SUSS), 463 Clementi Rd, Singapore 599494. His research focuses on smart and sustainable built environments. He has published in areas including BIM, IDD and digital transformation of built environment companies. He can be reached at lukepehlc@suss.edu.sg

  • Sui Pheng Low, Department of the Built Environment, College of Design and Engineering, National University of Singapore, 4 Architecture Drive, Singapore 117566

    Low Sui Pheng, PhD is Professor in the Department of the Built Environment at the National University of Singapore, 4 Architecture Drive, Singapore 119566. His research interests include construction management, productivity, procurement systems, and project performance. He has authored numerous journal papers and books in construction management and has supervised many graduate students. He also serves on editorial boards and advisory panels in the built environment sector. He can be reached at bdglowsp@nus.edu.sg. 

References

Adami, P., Rodrigues, P. B., Woods, P. J., Becerik-Gerber, B., Soibelman, L., Copur-Gencturk, Y., & Lucas, G. (2022). Impact of VR-based training on human–robot interaction for remote operating construction robots. Journal of Computing in Civil Engineering, 36(3). https://doi.org/10.1061/(ASCE)CP.1943-5487.0001016

Amusan, L., Aigbavboa, C., Nkom, U., & Aniefiok. (2021). Corporate social responsibility, challenges, instigators and SWOT analysis of construction SMEs towards strategic development of sustainable enterprises. Academy of Strategic Management Journal, 20(6S). https://www.abacademies.org/articles/corporate-social-responsibility-challenges-instigators-and-swot-analysis-of-construction-smes-towards-strategic-development-of-sus-13084.html

Autodesk & Deloitte Access Economics. (2024). State of digital adoption in the construction industry 2024. https://www.deloitte.com/au/en/services/economics/analysis/state-digital-adoption-construction-industry.html

Ayodele, T. O., & Kajimo-Shakantu, K. (2021). Challenges and drivers to data sharing among stakeholders in the South African construction industry. Journal of Engineering Design and Technology, 20(6), 1698–1715. https://doi.org/10.1108/jedt-02-2021-0074

Bello, S. A., Oyedele, L. O., Akinade, O. O., Bilal, M., Delgado, J. M. D., Akanbi, L. A., Ajayi, A. O., & Owolabi, H. A. (2021). Cloud computing in construction industry: Use cases, benefits and challenges. Automation in Construction, 122, 103441. https://doi.org/10.1016/j.autcon.2020.103441

Casini, M. (2022). Toward a new building era. In Construction 4.0: Advanced technologies for the built environment (pp. 3–60). Elsevier. https://doi.org/10.1016/B978-0-12-821797-9.00011-8

Chen, X., Chang-Richards, A., Pelosi, A., Jia, Y., Shen, X., Siddiqui, M., & Yang, N. (2021). Implementation of technologies in the construction industry: A systematic review. Engineering, Construction and Architectural Management. https://doi.org/10.1108/ECAM-02-2021-0172

Chen, X., Richards, A. C., Ling, F. Y. Y., Yiu, T. W., Pelosi, A., & Yang, N. (2022). Developing a readiness model and a self-assessment tool for adopting digital technologies in construction organizations. Building Research & Information. https://doi.org/10.1080/09613218.2022.2136130

Delgado, J. M. D., Oyedele, L., Ajayi, A., Akanbi, L., Akinade, O., Bilal, M., & Owolabi, H. (2019). Robotics and automated systems in construction: Understanding industry-specific challenges for adoption. Journal of Building Engineering, 26, 100868. https://doi.org/10.1016/j.jobe.2019.100868

Gamage, S. K. N., Ekanayake, E., Abeyrathne, G., Prasanna, R., Jayasundara, J., & Rajapakshe, P. (2020). A review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs). Economies, 8(4), 79. https://doi.org/10.3390/economies8040079

Hashmicro. (2024). Singapore SMEs: The role of SMEs in Singapore and starting guide. BusinessTech. https://www.hashmicro.com/blog/singapore-smes/

Hasofer, A. M. (2014). Determination of Sample Size in Using Central Limit Theorem for Weibull Distribution. ResearchGate. https://www.researchgate.net/publication/267021000_Determination_of_sample_size_in_using_central_limit_theorem_for_Weibull_distribution

Hwang, B., Ngo, J., & Teo, J. Z. K. (2022). Challenges and strategies for the adoption of smart technologies in the construction industry: The case of Singapore. Journal of Management in Engineering, 38(1). https://doi.org/10.1061/(ASCE)ME.1943-5479.0000986

Law, K. K., Chang, S., & Siu, M. F. (2022). Factors influencing adoption of construction robotics in Hong Kong’s industry: a multistakeholder perspective. Journal of Management in Engineering, 38(2). https://doi.org/10.1061/(asce)me.1943-5479.0001011

Leng, Y., Shi, X., Hiroatsu, F., Kalachev, A., & Wan, D. (2023). Automated construction for human–robot interaction in wooden buildings. Journal of Field Robotics, 40(4), 810–827. https://doi.org/10.1002/rob.22154

Liao, L., & Teo, E. A. L. (2018). Managing critical drivers for building information modelling implementation in the Singapore construction industry: an organisational change perspective. International Journal of Construction Management, 19(3), 240–256. https://doi.org/10.1080/15623599.2017.1423165

Mankins, J. (1995). Technology readiness level: A white paper. http://www.artemisinnovation.com/images/TRL_White_Paper_2004-Edited.pdf

Maskuriy, N., Selamat, A., Maresova, P., Krejcar, O., & Olalekan, O. (2019). Industry 4.0 for the construction industry: Review of management perspective. Economies, 7(3), 68. https://doi.org/10.3390/economies7030068

Ministry of National Development. (2024). Creating future-ready industries: Construction. https://www.mnd.gov.sg

Nnaji, C., & Karakhan, A. A. (2020). Technologies for safety and health management in construction: Current use, implementation benefits, limitations and adoption barriers. Journal of Building Engineering, 29, 101212. https://doi.org/10.1016/j.jobe.2020.101212

Oesterreich, T. D., & Teuteberg, F. (2016). Understanding the implications of digitisation and automation in Industry 4.0. Computers in Industry, 83, 121–139. https://doi.org/10.1016/j.compind.2016.09.006

Ofori, G., Zhang, Z., & Ling, F. Y. Y. (2020). Key barriers to increase construction productivity: The Singapore case. International Journal of Construction Management, 22(14), 2635-2646. https://doi-org.libproxy1.nus.edu.sg/10.1080/15623599.2020.1819521

Osunsanmi, T. O., Aigbavboa, C. O., Oke, A. E., & Liphadzi, M. (2020). Appraisal of stakeholders’ willingness to adopt construction 4.0 technologies for construction projects. Built Environment Project and Asset Management, 10(4), 547–565. https://doi.org/10.1108/bepam-12-2018-0159

Parasuraman, A. (2000). Technology readiness index (TRI): A multiple-item scale to measure readiness to embrace new technologies. Journal of Service Research. https://doi.org/10.1177/109467050024001

Prabhakar, V. V., Xavier, C. B., & Abubeker, K. (2023). A review on challenges and solutions in the implementation of AI, IoT and blockchain in construction industry. Materials Today Proceedings. https://doi.org/10.1016/j.matpr.2023.03.535

Prasanna, R., Jayasundara, J., Gamage, S. K. N., Ekanayake, E., Rajapakshe, P., & Abeyrathne, G. (2019). Sustainability of SMEs in the competition. Journal of Open Innovation: Technology, Market, and Complexity, 5(4), 100. https://doi.org/10.3390/joitmc5040100

Reichenbach, S., & Kromoser, B. (2021). State of practice of automation in precast concrete production. Journal of Building Engineering, 43, 102527. https://doi.org/10.1016/j.jobe.2021.102527

Scott, W.R. (2014), Institutions and Organizations: Ideas, Interests and Identities, 4th ed., Sage, Thousand Oaks, California, CA. https://books.google.com.sg/books?hl=en&lr=&id=NbQgAQAAQBAJ&oi=fnd&pg=PP1&dq=Scott,+W.R.+(2014),+Institutions+and+Organizations:+Ideas,+Interests+and+Identities,+4th+ed.,+Sage,+Thousand+Oaks,+California,+CA&ots=hHV7fGijUz&sig=LqSYaI9z9aGuH8YPSX2lZ7ZXgeM&redir_esc=y#v=onepage&q&f=false

Seyman-Guray, T., & Kismet, B. (2023). Drivers and barriers on implementing XR technologies in the construction industry in Turkey. International Journal of Construction Management, 24(9), 959–974. https://doi.org/10.1080/15623599.2023.2239498

The Business Research Company. (2025). Construction global market report 2025. https://www.thebusinessresearchcompany.com/report/construction-global-market-report

Van der Heijden, J. (2023). Construction 4.0 in a narrow and broad sense. Building and Environment, 244, 110788. https://doi.org/10.1016/j.buildenv.2023.110788

Yelland, P. M. (2012). Cramer's V. ResearchGate. https://www.researchgate.net/publication/307963787_Cramer's_V

Zhang, J., Yang, X., Wang, W., Guan, J., Ding, L., & Lee, V. C. S. (2023). Automated guided vehicles and autonomous mobile robots for recognition and tracking in civil engineering. Automation in Construction. https://doi.org/10.1016/j.autcon.2022.104699

Downloads

Published

03-07-2026

How to Cite

Drivers and Barriers to Adopting Smart Construction Technologies by Small and Medium Enterprises. (2026). Built Environment Journal, 23(2). https://doi.org/10.24191/bej.v23i2.6900

Similar Articles

11-20 of 103

You may also start an advanced similarity search for this article.