Exploring the evolution of digital transformation for construction enterprises: An entropy-NK approach

Digital transformation (DT) has become a key driving force in the development of various industries. The construction industry has also begun to explore and practice DT, with the aim of achieving industry development through technological innovation. However, the existing application of digital technology in the construction industry is mainly limited to certain aspects and functions of project production and enterprise management. This fragmented use is insufficient to meet the construction industry’s needs for holistic business process collaboration and systemic transformation. The lack of an effective method to assess the DT status of construction enterprises from a systemic perspective — helping them in identifying key transformation elements and uncovering patterns in DT evolution — has become a major factor limiting the construction industry’s DT. In addressing this gap, this study applies the theory of complex adaptive system to extensively analyse the behavioral data of the entire DT process of construction enterprises. This study develops an entropy-NK analytical method for evaluating the DT capabilities and evolution process for construction enterprises, uncovering the patterns and characteristics of DT in construction enterprises. A total of 112 Chinese list construction companies’ data from 2020 to 2022 are used as a muti-case study to conduct DT capability evaluations and evolutionary analysis, verifying the feasibility of the proposed analytical methods. This study provides a scientific evaluation system for measuring the DT capabilities, revealing the evolution patterns of DT in construction enterprises, offering empirical evidence and a decision-making basis for enterprises to formulate specific DT strategies and for governments to develop the corresponding policy frameworks.