Firm Performance and Information Technology Utilization in the Construction Industry

This paper, which is written to both researchers and practitioners, examines the impact of information technology (IT) on construction firm performance. Based on data collected from 74 construction firms, regression analysis is used to test the relationship between performance and IT. Analysis provides empirical evidence that IT is positively associated with firm performance, schedule performance, and cost performance. Firm performance is a composite score of several metrics of performance: schedule performance, cost performance, customer satisfaction, safety performance, and profit. The regression analysis shows that for every 1unit increase in IT utilization, there is an increase of about 2, 5, and 3% in firm performance, schedule performance, and cost performance, respectively. No relationship is found between IT use and customer satisfaction, safety performance, and profitability.