The Digital Subcontractor : Leveraging Digital Technology by Strategic Adoption

Sammanfattning: Many industries are today facing the possibilities and challenges arising with an increasingly digitalised world. One such is the scantily studied industry of earth-moving contractors that today stands in front of an increasing amount of digital technologies, which may have the possibility to assist firms in their earthwork operations. However, there are indications that many firms tend to experience difficulties to beneficially adopt or see the potential of utilising these digital technologies. Hence, many firms tend to undertake an adoption approach that is associated with high client dependency and a less beneficial unsustainable subordinated position within the industry’s value chain. The purpose of this study has thus been to explore how the technological, organisational and external elements affect earth-moving contractors’ opportunity to adopt and utilise digital technologies in their operations. Moreover, the study has aimed to contribute with the understanding and knowledge of how the adoption of digital technology can be used to strengthen Swedish contractors’ position in the earth-moving industry’s value chain and in the end, aid the country’s sociotechnical development. The findings of the study are based on an explorative multiple case study approach and extensive review of literature. The results suggest that the extent to which adoption and utilisation of digital technologies differs among different earth-moving firms. Three of the five studied companies are considered as digital forerunners which have been able to leverage digital technologies to increase efficiency in their operations. In the case of two of these firms, the adoption of digital technology has enabled them to transform their whole businesses and partake in an increased and more beneficial role within the value chain. Further, the analysis of the findings indicates that the difference in adoption is affected by several factors related to a continuous interaction between (1) the internal aspects of the organisations, (2) the external context of the firms and (3) if the technical features of the digital technologies are perceived as compatible and beneficial for, the current business process and strategy. The thesis contributes to academia with explorative findings within a scarcely studied industry in general and, regarding digital technology adoption in particular. Additionally, the study provides examples of the previously unrecognised industry-dynamic phenomena of value chain integration by earth-moving contractors. These findings could have implications for the whole construction sector in Sweden. Lastly, the study exemplifies opportunities and barriers crucial for the adoption and implementation of digital technologies within smaller project-based organisations.