A Conceptual Framework for Measuring Productivity and Performance in Industry 5.0: A Built Environment Perspective

Abstract

The construction industry in most countries is an early indicator of the nation’s economic health. When things are buoyant and the construction market is booming, it indicates the state of the viability of the country’s economic position. The model used in measuring productivity since WWII (e.g., labour productivity, GDP per capita, multifactor productivity) does not seem suitable for the emerging industry 5.0 (I5.0), considering the prevailing factors within the Built Environment (BE). These metrics are optimised over the years to provide detailed and comprehensive insights into productivity trends and drivers, which lacks necessary attributes to measure productivity and performance in the context of I5.0 and the emerging future world. This paper employs a Scientometric analysis to understand the prevailing factors within the identified body of knowledge of measuring productivity in the BE. This is fed into the Cobb-Douglas function to develop a conceptual framework that redefines productivity measurement for the emerging I5.0 within the BE context. Through these methods, we identify key criteria for measuring productivity holistically, considering the intertwined effects of technological innovation, the UN’s Sustainable Development Goals (SDGs), and circular economic (CE) principles on construction industry performance. Our findings underscore the limitations of conventional metrics when applied to I5.0, highlighting the need for new units of analysis to facilitate meaningful improvements. This research proposes an extended productivity measure matrix that aligns with sustainable development, human-centric systems, and resilience-building initiatives, offering a pathway for more effective monitoring and enhancing productivity in the built environment.