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Bim Uptake in Sme
Bim Uptake in Sme
To cite this article: Hooman Sadeh, Claudio Mirarchi, Farzad Shahbodaghlou & Alberto Pavan
(2021): BIM feasibility for small and medium-sized contractors and subcontractors, International
Journal of Construction Management, DOI: 10.1080/15623599.2021.1947446
Article views: 70
ABSTRACT KEYWORDS
BIM adoption for SMEs is an imperative topic. It is assumed that construction contractors and subcontrac- BIM feasibility; BIM
tors play a great part in adopting or neglecting an innovative technology due to different factors. We adoption; BIM for SMEs;
believe this reluctance attribute would be a common factor between these two groups of construction micro construction firms;
digitalization
actors and it would further be an indication of sort of behavior these groups have in common. This study
intends to make a major contribution to the body of knowledge by investigating BIM feasibility for SMEs.
The research method consists of application of a structured online questionnaire distributed Online, out
of which 70 responses from the industry were collected and analyzed. Inferential statistics, and hypothesis
testing were applied to check the associations among categorical variables via Wilcoxon Signed Ranks
Test and Mann-Whitney U Test. The factors between contractors and subcontractors in terms of organiza-
tional, technological, economic, and social attributes were compared. Further, contractors were grouped
in terms of BIM and software usage, firm size, and partnership by Cluster Analysis. The results show the
rankings for contractors were different from the rankings for subcontractors with respect to technological
feasibility and the rankings of contractors were all higher than those of subcontractors when partnership
was introduced as a differentiating variable.
technological innovation toward higher productivity and better rate has been slow (Awwad et al. 2020). This shortfall has had
efficiency with the capability of providing market value. Majority negative impacts on SMEs, which has resulted in inability to
of SMEs, if not all, have low productivity and may not be secure bids in public projects, where BIM counts as one of the
regarded as efficient. Researchers strive to delineate a typological requirements for qualified bidders for those projects, and thus
characteristic for small and medium enterprises to explain their SMEs have shifted their interest toward private projects that
stance toward innovation and digitalization. For instance, have no BIM mandates (Lam et al. 2017; Awwad et al. 2020).
Mirarchi et al. (2019) define SMEs through three components: There are mix and contradictory reports in literature regard-
staff headcount, SMEs turnover, and their balance sheet total ing BIM adoption rate across the globe. Tranchant et al. (2017)
based on European Union’s definition and accordingly they declare that BIM adoption rate for France, Germany, and the
highlight that small and medium-sized construction firms in UK are at 38%, 36%, and 35% respectively, however, Hong et al.
Italy consist of only 9 employees, they have less than 13 employ- (2016) gives the global rate at 95% while Lam et al. (2017) report
ees in the UK, and 98.8% of construction firms in France (all that 39% of the industry was using BIM in 2012 with small firms
sector combined) are SMEs. The definition for SMEs among adopting at 25% in 2009 followed by medium sized firms coming
many authors or countries are similar with different wordings. at 41% in 2012. According to SmartMarket Report, contractors
For instance, the most conspicuous features may include: (1) in the USA and Canada have more knowledge about BIM, i.e.,
staff capacity and capability are limited, (2) time and resources 20% higher engagement comparing to other countries. 74% of
are scarce for any innovation, (3) the owner-managers have the US contractors and 87% of the Canadian contractors have
excessive influence, (4) raising finance and maintaining cash reported a beneficial return on investment for BIM with only
flows are difficult (Lu et al. no dates). The question arises that 50% of the contractors from both countries having used BIM
whether any solution toward these definitions may enable SMEs between three to five years (Lee et al. 2014). Awwad et al. (2020)
to digitalize their business and change their production processes maintain that 89% of large contractors had the capability for
toward adjusting to their temporal necessity and needs. The fact BIM adoption, whereas 54% of the small firms did not.
is that if these firms once were functional and could meet the Regardless of BIM global adoption rate, there is evidence to sup-
clients’ needs, after the new technological developments and port that SMEs are lagging in their implementation, which is
revolution, they are considered somewhat dysfunctional. consistent with low digitalization levels for these companies.
Further, European Union defines medium-sized firms as hav- According to Hong et al. (2016), half of the SMEs in the
ing less than 250 staff headcounts with less than 50 million euros Australian construction industry still use conventional technol-
in turnover and less than 43 million euros in balance sheet total ogy. Dainty et al. (2017) states that 73% of the SMEs have never
(European Union 2003). As another example, ‘99.7% of all firms used BIM while 57% say that it would benefit their business,
in the UK Construction industry employ less than 114 people’ however, only 2.7% had knowledge of BIM levels and mandates
(Dainty et al. 2017, P.7). The World Bank characterizes the and only 10% plan to invest in training.
micro small and medium construction firms by a range of 10 to
300 workers with $15 million annual income and $15 million in
resources (Tsado et al. 2020). Moreover, the World Bank charac- BIM feasibility
terizes CMSMEs as those undertakings with a limit of 300 work- BIM as means of digitalization is beneficial for construction con-
ers or $15 million in yearly income and $15 million in resources. tractors and subcontractors, however, its utilization especially for
The Inter-American Development Bank, in the interim, portrays small contractors has been challenging for many reasons.
CMSMEs as having a limit of 100 workers with under $3 million Okakpu et al. (2020) acknowledged that technical, financial,
in income (Benzazoua Bouazza et al. 2015). The question is socio-cultural, contractual, and skill sets are among the major
whether these criteria are causes for the SMEs’ failure and incap- risk factors impacting BIM adoption and concluded that devel-
ability and if they impact their ability toward digitalization opment an assessment plan, acquiring information sharing tools,
over time. and changing the cultural attitude towards BIM could be useful
Moreover, SMEs have played a big economical role in almost to mitigate this problem. Wang et al. (2020) found the resistance
every country in the world and have been considered the back- towards digitalization and BIM adoption is due to organizational
bone of the construction sector. For example, in Australia, 97.8% nature, project characteristics, and the age of the individual
of the construction firms were small firms contributing to 44.6% employees. It is also common knowledge that many small con-
of the market value (Hong et al. 2016). In France, they made up tactors are not ‘business savvy’ and have not invested in business
95% of the construction sector with less than 10 employees planning and innovation. Management and leadership are key
(Tranchant et al. 2017), and further, 48% of the private work- components for a successful transition towards digitalization by
force in Canada were employed by SMEs in 2010, which were adapting organizational change framework and related processes
responsible for 85% of the new job creation during 2002–2010. (Liao and Teo 2019). Hong et al. (2019) compared the SMEs
Additionally, 80% of the production cost in the UK was gener- with larger contractors and discovered that operational risks are
ated by the SMEs and according to department of Business important factors for the former and implementation challenges
Innovations and Skills, 99.9% of the British firms in 2014 were for the latter, and that technological issues are equally important
small and medium-sized (Lam et al. 2017). It is interesting to see for all contractors regardless of size and project type. In an
how digitalization and BIM usage could change the financial exploratory study in Canada, Le et al. (2019) described lack of
contribution of the SMEs towards GDPs and their roles in over- strategic business planning in terms of integration and supply
all economy. Despite this, there has been limited research on chain drivers as main causes of low BIM adoptability.
BIM adoption and implementation for small and medium size Further, Ahuja et al. (2020) named technological, organiza-
enterprises (SMEs), and there is no fundamental structure in tional, and environmental factors as barriers to BIM implementa-
place to help these companies take advantage of BIM as means tion for Indian architectural firms. Mostafa et al. (2020) stated
towards digitalization. SMEs have not found the true prospective that business practices, cost factors, legal issues, and collabor-
in BIM in terms of values and benefits. Therefore, their adoption ation among team members are key preventive measures towards
INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT 3
digitalization and Noruwa et al. (2020) called for continuous and social aspects in small to medium-sized construction firms.
investing and staff training as major components for a successful The questionnaire was distributed online, and 317 respondents
BIM transition. According to Bosch-Sijtsema and Gluch (2019), including architects, consultants, contractors, engineers, and owners
BIM actors play a significant role in helping with organizational returned the questionnaire. Some completed, some were half-com-
change and traditional practices. However, the notion that BIM pleted and some mostly incomplete. In total, 70 received responses
actors could help institutions move towards digitalization and were considered usable and complete from the following groups:
change their business practices is somewhat not completely expli- 21 Brazilian, 30 Columbian, 16 Italian and 3 from other countries.
cit and is inconsistent with the fact that small contractors do not There were 23 respondents from micro firms with 1 to 9 employ-
utilize BIM and have no active BIM team members on their ees, 26 from small-sized firms with 10 to 50 employees, 10 from
projects. To mitigate the challenges of BIM implementation, a medium-sized firms having between 51 to 100 employees, 9 from
lot of contractors rely on outsourcing the services to a BIM con- larger firms with over 100 employees, and 2 as no response.
tractor. According to a study by Fountain and Langar (2018), The selected questions were closed-ended questions and
62% of the respondents had outsourced BIM processes to IT mainly consisted of Likert scale and multiple choice. The
companies and 45% had outsourced BIM to some level. respondents were asked to rank the feasibility of BIM in terms
Additionally, another challenge for BIM adoption is the lack of organizational, technological, economic, and social aspects.
of universal use in the construction sector (Enshassi et al. 2016) The scale of 1 through 5 was utilized (lowest to highest feasibil-
and existence of different standards in different countries along ity). The multiple-choice questions included questions about
with regional economic and cultural variations (Jin et al. 2017). firm size, software, strategic partnership, and BIM usage when
Furthermore, Lee and Yu (2016) explained these regional differ- selecting subcontractors. Statistical techniques were u using SPSS
ences by comparing the BIM adoption rate between South Korea 27 and Microsoft Excel for groups’ rankings to understand the
and the USA. They concluded that cultural and organizational feasibility and effects of BIM for SMEs.
differences were main contributing attributes to this difference The relative importance index (RII) was applied to rank the
between the two countries. four factors in feasibility of BIM implementation by calculating
It can be observed that all SMEs in construction may be the weighted average of all as previously conducted by academic
regarded as entities embedded in a vast socioeconomic structure scholars in pertinent industry. (Eadie et al. 2013; Muneeswaran
impacted by existing social relations and interactions. Over time, et al. 2018).
certain social units or components including technology, as a P
social institution within the structure as such, have been shifted w
RII ¼ (1)
and it requires other units, as a task, to adjust themselves in A N
terms of new developments. According to this technological con- Where w is the weighted average of the Likert score (1 to 5)
version, many structural components could catch up to fit in by the respondents, A is the highest weight (5), and N is total
this social circumstance and many are on the way of alteration, number of survey participants or sample size.
and some are still lagging in that aspect. The point is that in To assess the internal consistency of the survey, Cronbach’s
society all social components are in proper associations with one alpha was conducted to show how closely a set of variables are as
another and impact one another to balance society. According to a group, which is the most used reliability coefficient to test reli-
new technological variation, some institutions could regulate ability and validation of data (Kenley 2014; Okoro et al. 2020).
themselves to keep up social balance and stability; however, they To compare rankings of contractors and subcontractors,
cannot have the same impact, according to new circumstances, Wilcoxon Signed Ranks Test was used, which is a nonparametric
as they did in the past on other social units including the con- statistical test to determine if two sets of pairs are statistically
struction industry anymore. Their impact as an environmental different form each other. In hypothesis testing, it can be used to
entity works as a ‘PUSH’ power to digitalize while the construc- compare two related samples to assess whether their population
tion industry reacts as a ‘PULL’ force to resist the change. As a mean ranks differ. Additionally, Mann-Whitney U Test was con-
result, the construction industry’s failure is not only a matter of ducted to compare differences between two groups of contractors
industry internal causes as certain researchers maintain, but it and subcontractors. In comparing two small sets of observations
could also be a matter of total social structure as well in which and testing, the question is whether there is a difference in the
everything from social needs, expectations, demands, and rela- dependent variable through comparing differences between two
tions have been reformed to adjust to that technological change. independent groups. Lastly, Two-Step Cluster Analysis was uti-
The construction industry status quo would be viewed as an lized to assign observations to groups through which the obser-
extant social imbalance that required to harmonize itself with vations have similarities based on attributes. In other words, the
other social entities to keep social balance fixed. objects in one cluster in certain senses are different from objects
in other groups or clusters. The purpose was to analyze and dif-
Methods and materials ferentiate micro, small, and medium-sized firms in terms of their
technological attributes.
A survey design was developed based upon a structured online
questionnaire for a cross-cultural study consisting of respondents
from mainly three countries, namely, Italy, Columbia, and Brazil. Data analysis and findings
The questionnaire was exceptionally long with many questions Relative importance index analysis
regarding all aspects of products and processes in construction
regarding BIM implementation. Therefore, for purpose of this Tables 1 and 2 show the relative importance index (RII) for con-
paper, some portions of the data were extracted from the original tractors and subcontractors, respectively. According to the
questionnaire as secondary data. The research goal for this study results, organizational attributes are the most feasible for both
was to determine the feasibility implementation of BIM in associ- contractors and subcontractors and social attributes with the
ation with four variables of organizational, technological, economic, lowest ranking scores has the least feasibility, whereas
4 H. SADEH ET AL.
technological and economical attributes lie in the middle for compared to the overall rank mean. In this test, the rank mean
both. This implies that for both parties, alignment to the organ- of subcontractors is compared to the total mean as follows:
izational circumstances, which was having clear roles and liabil- As it is seen in the Table 4, Wilcoxon signed rank test, the
ities was much practical than settling with social conditions, sum of ranks for subcontractor is 450, that is: R ¼ 450.
which contains having openness to sharing information. n1ðn1 þ n2 þ 1Þ 24ð24 þ 12 þ 1Þ
lR ¼ ¼ ¼ 444 (2)
2 2
Reliability analysis OR ¼ (3)
n1n2ðn1 þ n2 þ 1Þ
Based on the results obtained from SPSS, the coefficient of ¼
Cronbach’s a ¼ 0.915, shows a strong reliability for the 8 attrib- 12
utes pertaining to feasibility of BIM for contractors and subcon- 24x12ð24 þ 12 þ 1Þ
¼ 29:8
tractors. Olawale et al. (2020) and Toriola-Coker et al. (2020) 12
state that as a rule of thumb any value for above 0.9 indicates a R lR 450 444
Z ¼ ¼ ¼ 0:20 (4)
strong consistency with 0.8 showing a good reliability and 0.7 OR 29:8
being the lowest acceptable. Therefore, at a ¼ 0.915, it is con- Based on the above calculations, for example, the Z-score is
cluded that the questionnaire is exceptionally reliable. Table 3, 0.20, and the Wilcoxon test would test whether the difference
‘Item-Total Statistics’, shows how much each item correlates to between two observations (contractors and subcontractors) has a
the overall questionnaire and as it is seen, there are no items mean signed rank of 0. Therefore, a positive value of Z would
with correlations less than r ¼ 0.30. There are no items that indicate that higher ranks may be found disproportionately in
would improve the score of a ¼ 0.915; therefore, no questions the first group, which is the contractors. As it can be seen in the
were removed from the survey. Table 4, all negative ranks (lower ranks) belong to the group of
subcontractors for all four variables.
In Table 5, a small negative value of z-score would show and
Wilcoxon signed ranks test prove that the first group (contractors) has a disproportionate
Ho: There is no difference between ranks of contractors and sub- share of lower ranks regarding the four variables compared to
contractors, that is, Ho ¼ 0. subcontractors and all p-values for these four variables in a two-
tailed test are larger than 0.05 and as a result, not statistically
H1 : H1 6¼ 0:
significant.
To determine the test statistic of the z-score, the rank mean For a significant interval of a ¼ 0.05, in a two-tailed test, with
of one group (either contractors or subcontractors) may be the critical z-values of þ1.96 and 1.96, which is one standard
INTERNATIONAL JOURNAL OF CONSTRUCTION MANAGEMENT 5
deviation to the right and one standard deviation to the left of different technologically. Since we reject the null hypothesis
the mean, any test statistic between the range of þ1.96 and which claims both actors have the same ranks, due to the proper
1.96 as the significance interval is considered significant. The software collaboration and must accept the alternative hypothesis
test statistics of the four variables can be compared as follows: that both parties have different technological ranks or status.
The obtained test statistic of z ¼ 1.933 for both organiza- This implies that respondents come from samples with different
tional contractors and organizational subcontractors is between distributions.
the range of þ 1.96 and 1.96 critical values and is statistically
significant, which implies that organizationally, there is not a
Mann-Whitney U test
clear difference between the ranks of these two actors in terms
of roles and responsibilities. (Table 5), and test statistic of z ¼ The general null hypotheses may be formed as:
2.749 for technological attribute in contractors and subcontrac- Ho: The ranks of four variables (organizational, technological,
tors is beyond the critical value of 1.96 and not statistically economical, and social) for both contractors and subcontractors
significant which implies technologically, there is an explicit dif- have the same distribution under influence of strategic partner-
ference between the ranks of the two actors in terms of proper ship, namely, both have 50% to 50% ranks equally.
application of software, thus, null hypothesis will be rejected. We may form specific null hypothesis for each variable. As
Also, the test statistic of z ¼ 1.856 for economic attribute in a sample:
contractors and subcontractors as well as test statistic of z ¼ Ho: The organizational ranks of contractors and subcontrac-
1.887 for social attribute regarding contractors and subcontrac- tors are distributed similarly when influenced by strategic
tors are both smaller than critical value of 1.96. Based on this partnership.
comparison, the odd observation is that the test statistics for all The minimum rating is 1 and maximum rating is 5, rates
variables are located within critical values except the techno- below 3 are considered negatively and above 3 positively.
logical rank, whose test statistic is equal to 2.749 and conse- Strategic Partnership is the independent variable with respect
to (organizational, technological, social, and economical) as
quently, falls behind the critical region. According to the null
dependent variables for both contractor and subcontractor.
hypotheses, the ranks for both contractors and subcontractors
When introducing strategic partnership, the ratings of
are the same organizationally, socially, and economically and
respondents regarding the four variables show that the mean
ranks for contractors are higher than counterpart mean ranks for
Table 4. Wilcoxon Ranks Test Summary. subcontractors. In other words, the respondents rated higher
Ranks ranks for contractors than for subcontractors when considering
N Mean Rank Sum of Ranks strategic partnership.
Organizational Sub – Negative Ranks 24a 18.75 450.00 Also, based on the data in Table 6, 50 percent of respondents
Organizational Con Positive Ranks 12b 18.00 216.00 (from 25th the first percentile to 75th the third percentile) having
Ties 34c medians higher than their mean ranks for contractors and lower
Total 70 medians than their corresponding mean ranks for subcontrac-
Technological Sub – Negative Ranks 24d 15.88 381.00
Technological Con Positive Ranks 7e 16.43 115.00 tors. This is another reason through which the respondents rated
Ties 39f subcontractors related four variables lower than four variables
Total 70 for contractors when considering strategic partnership.
Economical Sub – Negative Ranks 22g 15.18 334.00 Consequently, the contractors’ medians are above their corre-
Economical Con Positive Ranks 9h 18.00 162.00
Ties 39i
sponding mean ranks and subcontractors’ medians below their
Total 70 corresponding mean ranks when locating these two measures of
Social Sub – Negative Ranks 17j 16.62 282.50 central tendency.
Social Con Positive Ranks 11k 11.23 123.50 The information in Table 7 has been utilized to calculate the
Ties 42l z-test statistic for all four variables regarding the contractors as
Total 70
mentioned above.
a
Organizational Sub < Organizational Con
b
Organizational Sub > Organizational Con
Restating previous information, the sample size included 70
c
Organizational Sub ¼ Organizational Con respondents, at a ¼ 0.05 and a two-tailed test with critical z val-
d
Technological Sub < Technological Con ues of 1.96 and 1.96.
e
Technological Sub > Technological Con According to asymptotic significance or p-values, there is a
f
Technological Sub ¼ Technological Con statistical significance for subcontractors’ organizational ranks
g
Economical Sub < Economical Con
h
Economical Sub > Economical Con whose p-value is less than 0.05, namely, 0.008 < 0.05 and as a
i
Economical Sub ¼ Economical Con result, null hypothesis is rejected. It implies that the two parties’
j
Social Sub < Social Con organizational ranks are not equally distributed. However, this is
k
Social Sub > Social Con not the case for other variables. Since the p-values for other vari-
l
Social Sub ¼ Social Con
ables are higher than 0.05, that is, .073, .306, .748,.058, .388 and
prediction because of small number of combined cases as well as important principles in sampling are sample size, which must be
small frequencies of each individual cluster. The greater number large enough for any generalization, secondly, the selected sam-
of cases, the more powerful clusters in analyzing similarity and ple must be representing the target population and thirdly,
distance among observations. The higher the similarity level, the respondents must be selected randomly. However, our findings
more correlated are the variables in every cluster. Usually, clus- support notions spread on construction literature partially.
ters with a relatively high similarity level are particularly good Therefore, the part that is supported is based on construction lit-
predictors especially when their distances are at low level. In erature and the other part would be considered as new claims.
Figure 1, the percentages inside parentheses are similarity levels According to Wilcoxon Signed Rank Test, we learned that
of each cluster. Cluster 4 has a similarity level of 52.4% for firm contractors and subcontractors are different in ranks based on
sizes between 10 to 50. This percentage for cluster 3 is 42.1% for technology application and collaboration in software usage. Also,
firm sizes between 1 to 9, for cluster 1 is at 43.8% for firm sizes regarding organizational, social, economic attributes, similarities
between 10 to 50, and for cluster 2, which is a good fit for larger on roles and responsibilities, information sharing, risk allocation
firms, is at 42.9% for firm sizes between 51 to 100. As it can be and resources are high. They think the same and act the same
seen, there is an abrupt change in similarity from cluster 4 to on those circumstances.
In Mann-Whitney U test, we assume by introducing another
cluster 3, which is about 10% going from 52.4% to 42.10.
variable (strategic partnership), both contractors and subcontrac-
Further, clusters 1, 2, and 4 are more similar regarding their
tors’ notions are equally distributed regarding organizational,
similarity levels which are almost close to one another.
social, economic, and technological attributes. That was the case
for organizational factor, but not for other variables, i.e., they
Results and discussion agree upon organizational roles and responsibilities, but on
social, technological, and economic factors.
Since the sample size is both small and cross-culturally distrib- According to our findings based on cluster analysis (Figure 1),
uted, all results should be considered cautiously. The most we may name cluster 4 as medium-sized firms, which consists of
8 H. SADEH ET AL.
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