MEDIATING EFFECTS OF BUILDING INFORMATION MODELLING ON ABSORPTIVE CAPACITY AND PERFORMANCE OF CONSTRUCTION FIRMS IN ONDO STATE

Abstract

Technological innovation is imperative to the existence and comfortability of human as well as firm performance; it plays a significant role in industrial advancements. Construction firm professionals and firm needs to seek new knowledge daily in other to remain competitive within the industry; the level of knowledge relates and reveals the level of capabilities. Technological innovation trending in construction industry which has prospect to resolve the industry challenges is Building Information Modelling (BIM). BIM is currently taking dominance in its approach to design, scheduling, estimation, construction and maintenance of buildings and others infrastructural projects. Technology moves exceptionally quickly and the contribution of new technology to economic growth can only become utilised when and if the new technology is extensively adopted and put into usage appropriately; which has relationship with the firm’s absorptive capacity (ACAP). The study, thus established an empirical relationship of the mediating effects of BIM adoption on absorptive capacity and performance of construction firms in Ondo State; The study assessed the effect of the factors influencing the absorptive capacity of construction firms as well as, evaluate the effect of building information modelling barriers on the adoption of Building information modelling in construction firms in Ondo State. The study adopted a survey design where 309 questionnaires were administered in the construction firm in Ondo state and 219 were retrieved which represents 70.87% retrieval rate. The data were analysed using descriptive statistic (tables, percentage and frequency, mean rating and standard deviation) using SPSS 25.0 and inferential statistic (PLS-SEM) using SmartPLS3. The study findings revealed the level of ACAP as follows transformation ranked 1 st with a mean rating of 7.2. Knowledge assimilation ranked 2 nd Knowledge Exploitation was ranked 3 rd with a mean rating of 6.9 and acquisition ranked 4 th with a mean value of 6.8. The first hypothesis reveals a positive standard beta value, among the construction firm, sampled, the effect of influencing factors of ACAP on the level of ACAP was positive and significant (β = 0.8910, t = 68.4620, ρ < 0.05), thus negates the null hypothesis Hence, the alternate hypothesis) is accepted, the second objective/hypothesis investigation revealed a positive standard beta value. Among the construction firm sampled, the effect of BIM barrier on BIM adoption was positive and significant (β = 0.155, t = 1.667, ρ < 0.1), thus negates the null hypothesis and the alternative hypothesis was accepted, and lastly the findings provided empirical support for the mediating role of BIM adoption in the model relationship. More specifically, the relationship between ACAP and firm performance is partially mediated by BIM adoption. The study, thus recommended technological innovation such as BIM with the capacity to enhance productivity of the construction firms should be adequate and quickly supported through the provision of enabling environment (government policies and legislations) to guide implementation.