1 AIT Asian Institute of Technology

The impact of dynamic capabilities on digitalization and performance of construction projects : a case study in Nepal

AuthorPandey, Prastuti
Call NumberAIT Thesis no.CM-25-06
Subject(s)Strategic planning--Nepal
Construction industry--Technological innovations--Nepal
NoteA thesis submitted in partial fulfillment of the requirements for the Degree of Master of Engineering in Construction, Engineering and Infrastructure Management
PublisherAsian Institute of Technology
AbstractAs the foundation of Nepal’s economic structure, the construction industry generates major employment opportunities and boosts the fundamental infrastructure development. The rapid technological progress makes digital transformation important because it brings stronger project collaboration with higher transparency and productivity. The study focuses on project performance enhancement through digitalization and dynamic capabilities in the specific context of Nepal. Qualitative case studies of six medium to large-scale projects were done for this research. Research demonstrates that large-scale projects achieve better dynamic capabilities as well as digitalization outcomes because they benefit from superior financial resources and international relationships as well as established IT platforms. Despite medium-scale projects having lower dynamic capabilities and digitalization, some firms with innovative organizational culture succeed in achieving higher levels of digital adoption due to the strategic planning and digital mindset of upper management and staff.Studies show that firms who have higher dynamic capabilities have stronger digitalization in their projects. Although the project operational efficiency is increased due to the use of digital tools, there is low impact on the overall project performance metrics since they heavily rely on uncontrollable external factors such as weather conditions, resource availability and construction complexities instead of digital solutions. Internal factors such as innovative organizational culture and sufficient resource availability as well as external factors such as regulatory environment and market competition help to foster dynamic capabilities and digitalization in projects. Joint Venture partnerships allowed local firms to obtain advanced tools as well as learn global best practices. In addition, COVID-19 pandemic also propelled digital transformation in projects. Hence, dynamic capabilities positively impact digitalization in projects and improve project efficiency but are unable to make major improvements in the project performance metrics.
Year2025
TypeThesis
SchoolSchool of Engineering and Technology
DepartmentDepartment of Civil and Infrastucture Engineering (DCIE)
Academic Program/FoSConstruction Engineering and Infrastructure Management (CM)
Chairperson(s)Santoso, Djoen San
Examination Committee(s)Chao, Kuo-Chieh;Badir, Yuosre F.M.
Scholarship Donor(s)AIT Scholarship
DegreeThesis (M. Eng.) - Asian Institute of Technology, 2025


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