Financial capability dimensions for digital transformation in construction development firms

Abstract

Digital transformation within construction development firms has accelerated in recent years, yet sustained organizational integration remains inconsistent. This study examines the dimensions of financial capability that support digital transformation in construction development firms. A quantitative survey was conducted among 205 construction professionals representing consultants, contractors and government organizations. Fifteen financial capability attributes were analyzed using descriptive statistics, the Kruskal-Wallis test and exploratory factor analysis. The results indicate strong sector-wide agreement on the importance of structured financial capability for supporting digital transformation. Capital investment, return on investment expectations, risk financing and efficient resource allocation emerged as dominant attributes. Exploratory factor analysis revealed four dimensions of financial capability: performance evaluation and financial stability; core investment and funding capacity; capability development support; and financial governance and structural support. These dimensions collectively explain a substantial proportion of variance and show that construction professionals associate digital transformation with coordinated financial planning, funding continuity and structured governance rather than technology acquisition alone. The study contributes to construction management scholarship by conceptualizing financial capability as a multidimensional organizational construct supporting digital transformation. The findings provide practical guidance for construction managers seeking to embed digital initiatives within long-term financial and project planning frameworks.