Modelling the Enablers of Effective Digital Technology Implementation for Competitiveness Enhancement Among Subcontracting Organisations in New Zealand’s Residential Construction Industry

Abstract

Purpose: To evaluate the key factors that enable the effective implementation of digital technologies to improve competitiveness among subcontracting organisations in New Zealand’s residential construction industry.

Design/methodology/approach: A quantitative survey of 142 subcontracting organisations was analysed using principal component analysis to derive core competitiveness dimensions and automatic linear modelling (ALM) to identify predictive digital-adoption factors.

Findings: ALM revealed five significant predictors of competitiveness variance: investment in digital technologies, ethical compliance, knowledge sharing, employee training and supportive digital mindsets.

Research limitations/implications: The study used a cross-sectional survey design, which limits causal interpretation between digital adoption factors and competitiveness outcomes. The analysis focused solely on subcontracting organisations within New Zealand’s residential construction sector; therefore, generalisability to other construction contexts or countries should be approached cautiously. Future research could adopt longitudinal or mixed method approaches to validate the predictive relationships identified through PCA and ALM and to explore qualitative dimensions such as leadership behaviour and organisational culture in digital transformation processes.

Practical implications: The findings suggest that competitiveness among subcontracting organisations depends on technological investment, ethical compliance, organisational learning and workforce capability. They highlight that digital transformation should be viewed as a socio-technical process, requiring not only technology adoption but also supportive mindsets, effective knowledge-sharing mechanisms and sustained capability development. These insights can guide policymakers and managers in promoting digital readiness, fostering ethical governance and strengthening organisational learning to enhance long-term competitiveness in the construction sector.

Originality/value: This paper is the first to apply data-driven ALM to model the digital-competitiveness nexus within New Zealand’s subcontracting organisations, providing a statistically grounded recommendation for targeted digital-transformation strategies.