Dynamic Capabilities in Digital Transformation: A Systematic Review of Their Role in the Construction Industry

The relationship between digital transformation (DT) and dynamic capabilities (DC) has been extensively studied in various industries; however, their implications in the construction sector are lagging. The study uses the PRISMA framework and NVivo to systematically review 63 peer-reviewed journal articles, examining how DT and related technologies like BIM, AI, and the IoT are integrated into the global construction industry. Findings reveal that while these technologies enhance operational efficiency and innovation, they face barriers such as cultural resistance, high costs, and skill shortages. The analysis highlights the essential role of DC in understanding and facilitating the effective integration of DT into construction. The paper indicates the need for future studies to develop strategic frameworks and regulatory guidelines for successful DT implementation. Further, it identifies the long-term environmental and sustainability impacts of DT as crucial areas for future research, emphasizing the importance of addressing both technological and socio-economic aspects. Additionally, it encourages stakeholders involved in the DT process to acquire the necessary skills required for technology implementation and DT.