Digital Innovation and Intra-Organisational Change: A Challenge for the Construction Industry

Abstract

Studies have examined the benefits of broader use of digitalisation on the construction industry. However, there has been limited empirical explorations of the challenges of intra-organisational change due to digitalisation. A review of general change management literature shows that studies on organisation change have broadly focused on the reasons and the impact of the organisational change. This study is based on a qualitative methodology using semi-structured interviews with industry leaders and uses the McKinsey 7S model as a theoretical lens to examine digitalisation-led intra-organisational change. Qualitative data from seven participants has been analysed both thematically and deductively, leading to the identification of the recurring patterns that align with the adopted theoretical framework. Findings include key challenges in achieving a common meaning of relative values, organisational structuring, leaders’ strategies and style, and the readiness of employees to change. The study provides further insights into the challenges associated with digitalisation at an organisational level, offering coherence on these challenges and enabling more informed decisions that are vital for an effective transformation.