Abstract

In the 21^st century, information technology (IT) is seen as a tool that assists companies to perform more efficiently and effectively. However, many studies have posed the question whether the benefits outweigh the investments. The issue is more serious in the construction industry where there are factors that limit performance such as inadequate training, ineffective use of IT infrastructures, maintenance inadequacies and less than positive staff perceptions concerning IT implementations by management. Malaysia is a rapidly developing country and IT integration has to be efficient to help accelerate development. This study aims to analyze IT effectiveness in construction companies focusing on small and medium contracting enterprises (SMCE). The study reviewed literature related to IT implementation and its services in the construction industry with the objective of highlighting the appropriate conceptual IT effective model in the context of the Malaysian construction industry. The review was also performed to identify important factors attributed to performance and hindrances of performance of Malaysian construction companies. The paper concludes with tentative implications for IT implementation with the necessity to comprehend operational and process-level changes as well as impact isolation of specific IT application types concerning firm’s dynamic capabilities, which mediate IT impacts on firm performance.

Key words: Information technology, construction industry, Malaysia, performance, information technology effectiveness, information technology implementation.