An assessment of barriers to digital transformation in circular Construction: An application of stakeholder theory

Abstract

The construction industry faces the rising challenge of circularity, and digital transformation emerges as a pivotal solution. However, limited stakeholder involvement impedes the adoption of digital transformation. The existing literature does not analyze stakeholders' perceptions of digitalization adoption barriers. Therefore, this study investigates the barriers hindering digital transformation in circular construction by examining the varied perceptions of key stakeholders. The study contributes to aligning stakeholders' interests and leads to targeted and effective interventions, enhancing the likelihood of successful adoption. Using the Stakeholder Theory, the study identified contractors, investors, clients, waste managers and government as the most influential stakeholders in circular construction. This study explores skill and knowledge barriers, market barriers, regulatory barriers, organizational and cultural barriers, and financial and resource barriers as key dimensions hindering digital circular practices. The study integrates the fuzzy Delphi method, fuzzy decision-making trial and evaluation laboratory, and analytical network processing to address uncertainties and interrelationships among barriers. The findings indicate that stakeholders hold differing perceptions regarding the most critical barriers; however, there is a consensus that critical aspects are skill and knowledge, organizational and cultural, and regulatory barriers. Practical barriers include lack of government support, resistance to change, lack of feasibility information, lack of training capabilities, and poor digital literacy. The study provides theoretical and practical implications, informing future research and interventions to develop targeted strategies and initiatives.