Pre-investigation on adaptation of construction 4.0 multi criteria business model by SME contractors in Malaysia

Abstract

Malaysia's Construction Industry has adopted Industry Revolution 4.0 namely Construction 4.0. The program is for the adaptation of new technologies, talented skills, diversified workforce, and to sustain economic growth for the future through smart digital construction transformation. As one of the main economic sectors, the construction industry in Malaysia comprises more than 60 percent of Small and Medium Enterprise (SME) companies. Do the SME contractors agree on the changes of business model in facing Construction 4.0 and stay relevant? Analysis of the pilot-investigation on the adaptation of Construction 4.0 for the SME Contractors' Multi-Criteria Business Model in Malaysia is discussed in this paper. Factors of challenges for SMEs adopting Construction 4.0 were analyzed through a pilot questionnaires survey data collection. Descriptive analysis was used to portray the level of agreement among managing directors of SME contractors. There were 15 respondents involved in the pilot survey who representing the SME contractors from Grade G1 to G5. Management, finance, resources, technology, personnel, and legal matters are six key factors that affect significantly the SMEs' multi criteria business models. Significantly, this study approached the scholars and industry players to understand how the Construction 4.0 transformation affects the SMEs' business models and the construction industry in Malaysia.

Keywords

• Industry revolution 4.0
• Construction 4.0
• SME business model
• Malaysia construction industry