Impact of Construction IT Technology Convergence Innovation on Business Performance

Abstract

As the era of the fourth Industrial revolution begins, there is high demand for new information technology (IT) innovation to address the challenges of a dramatically changing industrial landscape. The construction industry, which is one the most important traditional industries in Korea, has adopted new IT innovation in their products to meet customer demand, regulation from government, energy efficiency, security, and so on. The aim of our study is to empirically clarify the impact of technology innovation on the business performance for Korean domestic construction conglomerates. The study performs an empirical analysis with time series analysis on business performance from the perspective of client satisfaction with the services the target companies provide and the production process improvement, as well as from a financial perspective. As analysis data, statistical data from the Ministry of Science, ICT, and Future Planning; Brand Stock; Bank of Korea; and each company are utilized, and the target companies for our study are limited to 19 construction companies with an apartment brand. Multiple regression analysis is used as a fundamental analysis methodology of our study. For Time Series Analysis, the Box Jenkins Model, namely, ARIMA is utilized. According to our results, it is found that any improvement of IT convergence innovation competence such as business efficiency IT index, collaboration IT index, and strategy management IT index has a positive impact on the production process, financial performance, and customer satisfaction with the services the companies provide.