Unveiling Digital Transformation: Analyzing Building Facility Management’s Preparedness for Transformation Using Structural Equation Modeling

Digital transformation (DT) is revolutionizing building facility management (FM) by streamlining operations, maximizing resources, and increasing performance. FM firms prioritize DT to stay competitive as speed and efficiency become more crucial in the corporate context. Traditional FM methods like manual record-keeping and reactive maintenance cannot meet recent corporate needs. Modern technologies such as IoT, AI, digital twins, and data analytics enable real-time building asset monitoring and optimization. This paper evaluates the digital transformation readiness level index of building facility management (DTRLIBFM), which includes critical success factors for DT development, using structural equation modeling (SEM). DTRLIBFM model determines the importance of key factors that contribute to the success of digital transformation initiatives, specifically focusing on the DT readiness level index of building facility management. Expert interviews and an intensive literature review were employed to identify the critical success factors for the DTRLIFMB. The Delphi technique was employed to validate these factors with 13 highly experienced professionals, and they were subsequently appraised for significance through an online questionnaire that was circulated to industry experts. To quantitatively evaluate the interconnectedness of different elements of DTRLIFMB and establish the impact of each construct on the overall digital transformation, data from 220 participants from around the world were analyzed using (SEM). The evaluation included reliability, validity, hypothesis testing, multivariate normality, and goodness-of-fit indexes. The DTRLIBFM model, with 20 indicators in three constructs, explains how DT readiness affects a building’s digitalization importance level. The research provides governments, organizations, contractors, consultants, suppliers, subcontractors, and facility managers with a current DT index and DT roadmap for building facility management.