Evaluating barriers to adoption of digital cost management in Nigerian public construction procurement using exploratory factor analysis and PLS-SEM

Abstract

Purpose This study aims to analyze how construction procurement professionals in Southeastern Nigeria perceive barriers to the implementation of digital transformation in managing the costs of public construction projects. Design/methodology/approach A quantitative methodology was adopted for conducting this study, which used a purposive sampling strategy. The data were collected from 203 participants with a structured questionnaire. Partial Least Squares Structural Equation Modelling was applied to test hypotheses concerning relations between barriers and digitalisation outcomes, and exploratory factor analysis was used to reveal the empirical factor structure of barrier variables. Findings The findings showed that organisational barriers have a substantial positive impact (β = 0.502, t = 6.316, p < 0.001). Therefore, such barriers as organisational procedures, managerial support and organisational readiness play a key role in fostering the process of digitalisation. As for the negative barriers, it should be stated that Institutional Barriers are significantly influential (β = −0.399, t = 9.209, p < 0.001). Thus, institutional barriers, inefficiency of the policy framework and regulation have a detrimental impact on digitalisation. Social implications The study provides an opportunity to develop further studies into the issue of digital transformation in public procurement, which has scarce scholarly attention. While there are a number of studies on the use of digital technology in construction projects in general, this paper focuses on public procurement, which is especially important for the consideration of institutional barriers and regulations. Originality/value The findings provide practical value for policy reforms that enable digital procurement practices and support the integration of digital cost management systems within procurement oversight frameworks.