Management of Adaptation of Organizational and Economic Mechanisms of Construction to Increasing Impact of Digital Technologies on the National Economy
DOI:
https://doi.org/10.6000/1929-7092.2020.09.15Keywords:
Construction, developing countries, organizational and economic mechanisms, digital technology.Abstract
Motivation: We note significant problems of developing countries, including Ukraine, with the adaptation of organizational and economic mechanisms of the construction industry to increase impact of digital technologies on their economic systems and construction sectors.
Novelty: The scientific novelty is a set of management activities for the adaptation of organizational and economic mechanisms of Ukrainian construction companies to the development of digital technologies.
Methodology and Methods: The research methods used in this study are a quantitative analysis of statistics on the dynamics of world GDP, the global construction industry, the construction industries of developing countries, including Ukraine, the global digital market, digital markets in developing countries, including Ukraine, for ten years using one-dimensional statistical methods (UT) based on random sampling. The paper also uses the correlation and regression analysis, namely the linear regression model, as well as the statistical verification of the obtained model by calculating the pair correlation coefficient, the coefficient of determination and the Chaddock scale in the study of the impact of digital technology development on the Ukrainian construction industry.
Data and Empirical Analysis: To conduct the study, data were collected and an empirical analysis was conducted regarding the dynamics of world GDP, the world construction industry, the construction industries of developing countries, including Ukraine, the global digital market, digital markets in developing countries, including Ukraine, in 2009-2018 according to statistics from Knoema, The World Bank, Deloitte, State Statistics Service of Ukraine, UNCTAD, International Data Corporation, Gartner.
Policy Considerations: The economy of the country and the construction sector requires development and implementation of a set of management activities to adapt organizational and economic mechanisms of construction in Ukraine to development of digital technologies.
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Stetsenko, Sergii, Olga Bielienkova and Oleksandr Lytvynenko. 2017. Influence of seasonal fluctuations on cost parameters of construction production. Management of Development of Complex Systems 32: 179-85.
Strassman, Paul W. and Jill Wells. 1988. The global construction industry. London: Croom Helm.
The World Bank. n./d. GDP (current US$). Retrieved November 22, 2019 (https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?name_desc=true).
Trendov, Nikola M., Samuel Varas and Meng Zeng. 2019. Digital technologies in agriculture and rural areas. Briefing paper. Rome: Food and Agriculture Organization of the United Nations.
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Tytok, V. 2019. Organizational and economic mechanism of interaction of participants of investment-building process. Construction Production (Economic Sciences) 66: 73-9.
UNCTAD. 2019. Digital economy report 2019. New York: United Nations Publications.
UNIDO. 2017. Industrial Development Report 2018. Demand for Manufacturing: Driving Inclusive and Sustainable Industrial Development. Vienna: United Nations Industrial Development Organization.
Wang, T. 2019. Construction industry spending worldwide. Statista. Retrieved November 21, 2019 (https://www.statista.com/ statistics/788128/construction-spending-worldwide).
WEF. 2016. Annual Report 2015-2016. Retrieved November 23, 2019 (http://www3.weforum.org/docs/WEF_Annual_Report_ 2015-2016.pdf).
Baraz, Vladislav R. 2005. Correlation and regression analysis of the relationship between indicators of commercial activity using the Excel program. Ekaterinburg: GOU VPO “USTU – UPI”.
Bibik, Natalya and Natalia Dril. 2017. Trends of Housing Construction Development in Ukraine: Retrospective and Contemporary Situation. Baltic Journal of Real Estate Economics and Construction Management 1(5): 51-61.
https://doi.org/10.1515/bjreecm-2017-0005
Build Up. 2019. Digitalisation in the construction industry. The European Portal For Energy Efficiency In Buildings. Retrieved November 19, 2019 (https://www.buildup.eu/en/ news/overview-digitalisation-construction-industry).
Chupryna, Yu. A., P. M. Kulikov, and H. M. Ryzhakova. 2018. Investment-innovative development of business activity in Ukraine. Monograph. Kyiv: KNUBA.
Correa, Nelson and Foteini Kanatsoul. 2018. Industrial development in least developed countries. Working paper 26. Department of policy, research and statistics. Vienna: United Nations Industrial Development Organization.
Dan, Headrick. 2017. The Construction Industry Goes Digital. Research-Technology Management. Retrieved November 19, 2019 (https://www.questia.com/read/1G1-509015100/the-construction-industry-goes-digital).
Deloitte. 2017. Global Powers of Construction. Retrieved November 19, 2019 (https://www2.deloitte.com/content/dam/Deloitte/at/ Documents/real-estate/2017-global-powers-of-construction.pdf).
Furneaux, Craig W., Keith D. Hampson, Peter Scuderi and Stephen L. Kajewski. 2010. Australian construction industry KPIs. Pp 1-12 in CIB World Congress Proceedings – Building a Better World, edited by P. Barrett, D. Amaratunga, R. Haigh, K. Keraminlyage and C. Pathirage. Salford: CIB World Building Congress.
https://doi.org/10.1108/ijdrbe.2010.43501aab.002
Gartner. 2019. Gartner Special Reports. Retrieved November 19, 2019 (retrieved from https://www.gartner.com/en/products/ special-reports).
Guo, B. H. W., E. Scheepbouwer, T. W.Yiu and V. A. González. 2017. Overview and analysis of digital technologies for construction safety management. Retrieved November 23, 2019 (https://ir.canterbury.ac.nz/bitstream/handle/10092/ 14583/OVERVIEW%20AND%20ANALYSIS%20OF%20DIGITAL%20TECHNOLOGIES%20DESIGNED%20FOR%20CONSTRUCTION%20SAFETY%20MANAGEMENT.pdf?sequence=2&isAllowed=y)
HM Government. 2013. Construction 2025. Industrial Strategy: government and industry in partnership. Retrieved November 21, 2019 (https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/attachment_data/file/210099/bis-13-955-construction-2025-industrial-strategy.pdf).
Ibrahim, Hassan N. 2011. The role of integrated digital technologies in major design and construction projects: A systematic literature review of the evidence. Working Paper 3. Design Innovation Research Centre, University of Reading, UK.
ICI. 2019. Annual Report to Members. Retrieved November 21, 2019 (https://www.idc.org/pdf/19_ici_annual.pdf).
Izmailova, Kateryna, Olga Bielienkova and Anton Mogolivets. 2019. The essence of economic cycles and their impact on the financial sustainability of construction. Scientific works of the Scientific Research Institute 2: 138-50.
https://doi.org/10.33763/npndfi2019.02.139
Jackson, Tom. 2016. Clicks and bricks: How building is going digital. Retrieved November 23, 2019 (https://www.bbc.com/ news/business-37541598).
Kane, Chris. 2012. Productivity roadmap. Wellington: Building and Construction Sector Productivity Partnership.
Kapogiannis, Georgios and Attwell Mlilo. 2019. Digital Construction Strategies and BIM in Railway Tunnelling Engineering. Retrieved November 23, 2019.
https://doi.org/10.5772/intechopen.87942
Klakegg, Ole Jonny, Kari Hovin Kjølle, Cecilie G. Mehaug, Nils O. E. Olsson, Asmamaw T. Shiferaw and Ruth Woods. 2013. Introduction, context and summary. Pp. 4-8 in 7th Nordic Conference on Construction Economics and Organisation. Trondheim, Norway.
Kniivilä, Matleena. 2007. Industrial development and economic growth: Implications for poverty reduction and income inequality. Industrial development for the 21st century: Sustainable development perspectives 3(1): 295-332.
Knoema. 2019. World Data Atlas: Country profiles. Retrieved November 23, 2019 (https://knoema.com/atlas).
Kosenkov, Kirill. 2018. World GDP Structure and Trends. Retrieved November 23, 2019 (https://knoema.com/infographics/ fguhnid/world-gdp-structure-and-trends).
Kozina, G. and K. L. Frolina. 2018. State regulation of investment activity in construction sector of Ukraine. Economic Innovation 67: 37-47.
https://doi.org/10.31520/ei.2018.20.2(67).37-47
Kraatz, Judy, Keith D. Hampson and Adriana Sanchez. 2014. The global construction industry and R&D. R&D Investment in the global construction industry 2: 4-23.
Merschbrock, Christoph, Tor Tollnesa and Christian Nordahl-Rolfsen. 2015. Solution selection in digital construction design a lazy user theory perspective. Procedia Engineering 123: 316-24.
https://doi.org/10.1016/j.proeng.2015.10.097
Ofori, G. 2016. Construction in Developing Countries: Current imperatives and potential. Proceedings of the CIB World Building Congress 1, 39-52.
Research and Markets. 2017. Growth Opportunities in the Global Construction Industry. Retrieved November 23, 2019 (https://www.researchandmarkets.com/research/sb5fmj/growth?w=5).
Robinson, Graham. 2019. Global construction market to grow $8 trillion by 2030: driven by China, US and India. Retrieved November 23, 2019 (https://www.ice.org.uk/ICEDevelopment WebPortal/media/Documents/News/ICE%20News/Global-Construction-press-release.pdf).
Shibeika, Amna and Chris Harty. 2015. Diffusion of digital innovation in construction: a case study of a UK engineering firm. Construction Management and Economics 33(5-6): 453-66.
https://doi.org/10.1080/01446193.2015.1077982
State Statistics Service of Ukraine. 2019. Statistical information. Retrieved November 23, 2019 (http://www.ukrstat.gov.ua).
Stetsenko, Sergii, Olga Bielienkova and Oleksandr Lytvynenko. 2017. Influence of seasonal fluctuations on cost parameters of construction production. Management of Development of Complex Systems 32: 179-85.
Strassman, Paul W. and Jill Wells. 1988. The global construction industry. London: Croom Helm.
The World Bank. n./d. GDP (current US$). Retrieved November 22, 2019 (https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?name_desc=true).
Trendov, Nikola M., Samuel Varas and Meng Zeng. 2019. Digital technologies in agriculture and rural areas. Briefing paper. Rome: Food and Agriculture Organization of the United Nations.
Turner & Townsend. 2018. International construction market survey 2018. Retrieved November 20, 2019 (https://www.turnerandtownsend.com/media/3352/international-construction-market-survey-2018.pdf).
Tytok, V. 2019. Organizational and economic mechanism of interaction of participants of investment-building process. Construction Production (Economic Sciences) 66: 73-9.
UNCTAD. 2019. Digital economy report 2019. New York: United Nations Publications.
UNIDO. 2017. Industrial Development Report 2018. Demand for Manufacturing: Driving Inclusive and Sustainable Industrial Development. Vienna: United Nations Industrial Development Organization.
Wang, T. 2019. Construction industry spending worldwide. Statista. Retrieved November 21, 2019 (https://www.statista.com/ statistics/788128/construction-spending-worldwide).
WEF. 2016. Annual Report 2015-2016. Retrieved November 23, 2019 (http://www3.weforum.org/docs/WEF_Annual_Report_ 2015-2016.pdf).
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Published
2020-02-25
How to Cite
Stetsenko, S. P., Tytok, V. V., Emelianova, O. M., Bielienkova, O. Y., & Tsyfra, T. Y. (2020). Management of Adaptation of Organizational and Economic Mechanisms of Construction to Increasing Impact of Digital Technologies on the National Economy. Journal of Reviews on Global Economics, 9, 149–164. https://doi.org/10.6000/1929-7092.2020.09.15
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