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Journal of Civil Engineering and Management

ISSN 1392-3730 / eISSN 1822-3605


2023 Volume 29 Issue 6: 487–500
https://doi.org/10.3846/jcem.2023.19533

MANAGERIAL OPPORTUNITIES IN APPLICATION OF BUSINESS


INTELLIGENCE IN CONSTRUCTION COMPANIES

Mahboobeh GOLESTANIZADEH 1, Hadi SARVARI 2, 3*, Daniel W. M. CHAN 3,


Nerija BANAITIENĖ 4, Audrius BANAITIS 4#
1Department of Management, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
2Department of Civil Engineering, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
3Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon,

Hong Kong, China


4Department of Construction Management and Real Estate, Vilnius Gediminas Technical University,

Vilnius, Lithuania

Received 12 March 2023; accepted 23 May 2023

Abstract. In construction projects, managers make multiple decisions every day. Most of these decisions are relatively
unimportant; some of them are critical and could lead to the success or failure of a construction project. To ensure con-
struction companies make effective managerial decisions, decision making requires performing an initial technical and
economic analysis, comparing different decision-making solutions, using a planning system, and ensuring project imple-
mentation based on the provided plans. Therefore, the use of powerful systems such as business intelligence (BI), which
play a central role in management and decision-making, is essential in project-based companies. The current study aims to
determine and evaluate the main managerial opportunities in the application of BI in project-based construction compa-
nies using a descriptive survey approach. An empirical research questionnaire consisting of 60 factors and 7 categories was
adopted. The questionnaire, after confirming its validity and reliability, was distributed to 100 experts engaged in 5 active
project-based construction companies who were familiar with BI topics. To analyse the data, a one-sample t-test and the
Friedman test were performed using the SPSS software. The findings indicated that the importance of the identified op-
portunities for the use of BI in project-based construction companies is above average and that, in the case of using BI in
such companies, these opportunities can be used to improve project performance. The results of the current study can help
managers and other stakeholders as an effective decision-making tool to better implement BI in project-based companies.
Keywords: business intelligence, construction companies, construction project, project-based companies.

Introduction
Construction projects, especially large and complex pro- Analysis of current construction projects shows that an
jects, have a profound impact on society, the environment, increase in the duration of projects with the loss of poten-
and the development and growth of local and national tial opportunities, which, based on variations and changes
economies. During construction, essential structures such in current conditions, including economic, political, and
as public and private infrastructure and buildings are de- other types of crises, can result in significantly higher ad-
veloped. To complete the construction project, significant ditional costs in these projects (Fadhil & Burhan, 2021;
financial, human, and physical resources are required. The Musarat et al., 2021). To improve the current situation, it
extent of investment in construction projects indicates the is necessary to strengthen the traditional management of
need for new frameworks and an environment for proper construction projects and create tools that increase the ef-
implementation (Hajiani et al., 2018). The development ficiency and flexibility of the process while also including
and deployment of new management approaches and new preventive actions. This tool is business intelligence (BI),
technologies is required for the proper implementation of which refers to novel strategies and technologies used to
construction projects (Sindhwani et al., 2022; World Eco- transform data into meaningful and actionable insights for
nomic Forum, 2016). executives and managers.

*Corresponding author. E-mail: h.sarvari@khuisf.ac.ir


#Corresponding author. E-mail: audrius.banaitis@vilniustech.lt

Copyright © 2023 The Author(s). Published by Vilnius Gediminas Technical University


This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits
unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
488 M. Golestanizadeh et al. Managerial opportunities in application of business intelligence in construction companies

Business intelligence is a broad term that combines ar- cal tools exploit the available data to create information
chitectures, tools, databases, analytical tools, applications, and knowledge (Sabherwal & Becerra-Fernandez, 2011).
and methodologies that allow interactive access to real- The application and knowledge of the features of BI sys-
time data, enable data manipulation, and provide valuable tems can help experts and managers in construction pro-
insights for managers to make better and more informed jects not only during planning and decision making, but
decisions (Turban, 2015). Furthermore, BI also includes also to have a deeper understanding of possible oppor-
a set of theories, methods, processes, and technologies to tunities and challenges, offer more applicable and better
convert raw data to useful and meaningful information, solutions for the management of construction project. In
then into decisions, and finally to actions (Rud, 2009). general, BI can be used both during project planning and
BI systems merge internal and external data with differ- implementation of projects and helps project managers se-
ent formats and from various sources and gather them lect options that are more likely to result in project success
in data warehouses to support management decisions during crises and critical decisions.
(Rausch & Stumpf, 2013). Managers use various tools to Construction project managers can measure, monitor,
analyse past and present data to obtain new insights and manage processes, and project performance using BI. The
improve decision making (Cataldo et al., 2022; Gudfinns- use of BI allows project managers to continuously control
son et al., 2015). BI software makes analysis and report their operational activities and face less time loss, inte-
making much faster and more reliable (Djerdjouri, 2019; grated data, and finally high performance indicators and
Gad-Elrab, 2021). BI systems give unlimited help to gain, improved project quality (Işik et al., 2021). Furthermore,
analyse, and interpret the data to further decision mak- by applying BI, construction project managers can achieve
ing to develop business processes and procedures (Bal- a precise understanding of the complex conditions of the
achandran & Prasad, 2017). Hence, experts and project project and simplify decision-making processes on finan-
managers using BI can make effective decisions that im- cial and economic issues. In this way, they can provide
prove overall project performance and gain competitive up-to-date analyses and provide a forecast of the financial
advantage. BI use within management processes enables and economic operations of the project (Uçaktürk et al.,
companies to drive revenue or reduce costs and con- 2015). They can also get the right information to the right
sequently increase profit (Azma & Mostafapour, 2012; people at the right time (Wieder & Ossimitz, 2015), make
S. Williams & N. Williams, 2007). In general, BI is an ef- more accurate decisions (Turban et al., 2011). With the
fective tool for a targeted analysis of projects and competi- right decisions, construction project managers can not
tion to make the strategic decisions and changes required only perform an increase in the project, but also make
to achieve the project objective. Rationality and intuition their company more agile and gain a competitive advan-
are important dimensions of the strategic decision pro- tage over other construction companies by discovering
cess (Thanos, 2023). Although intuitive methods based on and identifying management opportunities (Bose, 2009;
experience and professional knowledge enhance project Petrini & Pozzebon, 2009).
success and performance (Abubakar et al., 2019), BI ena- Due to the increasing volume of construction projects
bles a project manager to use all available capabilities and conducted by project-based construction companies, con-
convert them into a vast set of information and knowledge struction project managers need various tools of business
and gain a competitive advantage in the industry (Djatna intelligence to determine important metrics and analyse
& Munichputranto, 2015). Furthermore, intuition has a various aspects of construction projects; assess the op-
positive effect on decision outcomes in unstable decision portunities and challenges faced in construction projects;
environments and a negative effect in stable decision en- and analyse long-term plans and decisions to increase the
vironments (Kowalczyk & Buxmann, 2015). success rate and return of construction projects. However,
In large and complex projects, both in the private and despite the importance of BI as a basis for development
public sectors, decision making is a continuous process and competitive advantage in the management of con-
(Golestanizadeh et al., 2023). These decisions can have dif- struction projects and companies, most managers, inves-
ferent levels of importance and different short- and long- tors, and stakeholders in these projects pay little attention
term effects and involve various individuals and roles at to the use of BI, which can result in failure, delays, or low
different levels of the project (Brichni et al., 2017). In fact, return on construction projects. Increasing the application
the decision-making process in construction projects is of BI in management can help overcome many problems,
too dynamic and complex for the use of intuitive methods, especially in construction projects. On the other hand, de-
resulting in the use of analytical methods and mathemati- spite the importance of BI in construction projects, very
cal models. Possible future events and decision-making for few studies have investigated its use. Most studies have
their management in construction projects are of utmost focused on the analysis of core BI capabilities for busi-
importance, and the lack of attention to time factors and ness performance (Chen & Lin, 2021), BI in risk man-
changes in technology and environmental and social con- agement (Wu et al., 2014), BI implementation to improve
ditions can result in significant damage and problems in firm internationalization speed and agility (Cheng et al.,
these projects (Ndekugri et al., 2008). To support complex 2020), BI application on cost reduction in construction
decision-making processes, BI mathematical and analyti- project management (Mandičák et al., 2016), and BI as a
Journal of Civil Engineering and Management, 2023, 29(6): 487–500 489

knowledge management tool to make better base business analysis. In general, the design of dynamic, organic, agile,
decisions (Abusweilem & Abualous, 2019). The current and flexible structures in the shortest possible time in or-
study aims to identify the most important management der to understand and respond appropriately to environ-
opportunities in the use of BI in project-based construc- mental changes is among the main advantages of BI.
tion companies to encourage managers in these compa- According to Hosseinzadeh et al. (2022), the applica-
nies to use BI to make project management decisions. tion of innovative business management systems can posi-
These companies can then use BI to create opportunities tively impact the marketing, management, internal opera-
for investment in new construction projects, as well as tions, logistics, and performance of companies. Business
risk management, reduce construction costs, and mini- innovation is accompanied by an improvement in profit
mize project implementation time to satisfy contractors, growth (Mai et al., 2019), and the evaluation of profit and
employer consultants, and other project stakeholders. Ad- revenue is also part of a project evaluation (Cova et al.,
ditionally, by using this approach, construction managers 2021). Furthermore, Paradza and Daramola (2021) con-
can focus on essential project objectives without wasting cluded that through the use of BI, a company can improve
time, money, or energy. In fact, the current study seeks to organisational process, executive management decision-
answer the following questions: (1) What are the manage- making, knowledge management, and risk management.
ment opportunities created in project-based construction Additionally, by managing risks, businesses can handle
companies due to the use of business intelligence? and (2) potential problems and ensure the success of their projects
What is the importance of identified opportunities due to (Akcay, 2021; Luo et al., 2022), and BI tools can improve
the use of business intelligence by project-based construc- risk management, providing a 360-degree risk overview
tion companies? that allows the organisation to identify and mitigate these
risks effectively (Amini et al., 2021). Decision making is a
1. Business intelligence and key to business and project success in any sector, especial-
construction companies ly in construction that requires the handling and manage-
ment of various information and knowledge, and various
Management of the factors that affect the performance of systems and methods for decision support are emerging
construction projects is essential to ensure the success of (Zhu et al., 2021). To stay competitive and improve its
the project. Decision making is often an integral part of own performance, a company must make decisions, often
project management and is seen in all duties of project promptly, based on accurate and timely information, and
managers, including the determination of project policies BI as a technology-driven process helps to make these de-
and goals, the selection of implementation methods, the cisions faster and more accurate (Djerdjouri, 2019). Simi-
evaluation of the project, and other management activi- larly, Niwash et al. (2022) found that BI has a positive ef-
ties. In general, decision making is one of the essential fect on competitive advantage and business performance.
elements of project management. The selection of the BI tools can track, analyse, and display key performance
best option available during the decision-making process indicators (KPI) metrics to monitor the health of a busi-
is complex and includes some uncertainty. This can result ness (Pande et al., 2022). Recent innovative technologies,
in great challenges and complexity for project managers. such as artificial intelligence (AI), can support businesses
Hence, construction project managers must have a more through disruption (Naz et al., 2022).
appropriate approach to deal with various issues that af- Construction project managers are always faced with
fect the project. Successful managers use scientific bases many profound challenges during project execution,
throughout the project process and are familiar with novel and this means that they must deal with multiple issues
technologies for better project management and decision- (Huynh et al., 2021). According to Lopes and Boscarioli
making. One of the tools that can help managers deal (2020), the application of BI and analytics tools can im-
with uncertain and ambiguous issues is BI. Using BI can prove the performance of the management and decision-
result in significant development in the management of making process in the construction sector. In addition,
construction projects, as the most important advantage of professionals seek cost-effective solutions that result in
BI during the decision-making process is to provide an rapid and accurate results and can shorten and simplify
effective tool to support and facilitating these decisions the process. In general, undefined goals, unrealistic sched-
through analysis systems. Since effective decisions in con- ules, insufficient software, poor communication, and other
struction projects require the gathering and use of applied factors can cause problems in the project management
knowledge, some data are more valuable than others. The process. BI systems can be used to improve the project
selection and refinement to identify, gather, select, and use implementation process and automatise project processes,
information in construction projects can be optimized us- predict various occurrences, reduce financial challenges
ing BI, which improves the efficiency of the implementa- and risks of the project; and finally, correctly analyse the
tion systems in construction projects and plans. However, relevant project data to gain more reliable information and
BI can provide relevant, up-to-date, and credible project finally improve project performance. Girsang et al. (2018)
information and provides the ability to analyse and un- investigated the use of BI as a tool to validate construction
derstand the concepts of a project through discovery and company reports and concluded that construction compa-
490 M. Golestanizadeh et al. Managerial opportunities in application of business intelligence in construction companies

nies in Indonesia have to develop and improve resources the expert selected for a survey was asked to provide in-
and construction technologies to provide accurate reports formation about others who might also be suitable for in-
to governments and investors, identify market needs, terviews. This process was continued until the selection of
project schedule, project costs, and the required level of 10 experts by previous participants.
experience in the company. It can be concluded that BI Using this list, a questionnaire that included 60 man-
can facilitate rapid data storage, analysis, processing, and agement opportunities using BI in project-based construc-
visualisation. tion companies in 7 categories (information management,
According to Xie et al. (2022), due to the high cost financial management, process management, performance
of construction projects, project managers have to use BI management and evaluation, risk management, imple-
to improve forecasting and cost management decisions. mentation management and stakeholders’ management)
On the other hand, BI systems can improve project agil- was prepared. In the questionnaire, the respondents were
ity, help managers make quick and accurate decisions, asked to give their opinions on how much each of the
improve project performance, and control project costs. identified indicators can be considered as management
J. Pondel and M. Pondel (2016) concluded that the use of opportunities in the application of business intelligence in
BI can integrate business processes and provides a novel companies and construction projects. should be presented
data gathering and processing method for projects. These based on a 5-point Likert scale of measurement (i.e., very
data can be used for decision making during projects, es- high, high, moderate, low, very low).
pecially in critical situations. Additionally, BI can facilitate The validity of the questionnaire was limited to con-
the suitable planning and sharing of knowledge during a tent validity, face validity, and structural validity. Face va-
project and improve the performance of the project. BI lidity indicates the suitability of the questionnaire items to
tools and big data can also provide project managers, the topics they aim to assess (Taherdoost, 2016). To ensure
shareholders, and members with valuable information face validity, the questionnaire was given to the experts
and knowledge. for review. In the current study, the content validity was
calculated using the content validity ratio (CVR) using
the Lawshe equation. To determine whether the identi-
2. Research methodology
fied factors presented in the questionnaire can measure
The current study was conducted to evaluate the most im- factors that affect the use of BI in project-based construc-
portant management opportunities using BI in project- tion companies, 10 experts who participated in the previ-
based construction companies using a descriptive and ous step were asked to rate each item using a three-point
survey method with applied goals. In this vein, manage- Likert scale (required, useful but not necessary, not neces-
ment opportunities were first identified through a litera- sary). After gathering the opinions of experts, the frequen-
ture review and the list of opportunities was strengthened cy was calculated and the Lawshe equation (1) was used to
through interviews with 10 experts in the field. The partic- calculate the CVR. The validity of each item was compared
ipants in the interview were managers and senior experts with Table 1, which shows the minimum acceptable value
who have worked in the field of construction projects and based on the number of experts. Since the validity of the
were familiar with the topics of information technology content was above the minimum acceptable value of 0.62,
including business intelligence. They had sufficient knowl- all management opportunities and categories presented
edge and experience regarding the opportunities that us- in Table 2 can measure BI opportunities for construction
ing this technology can bring for managers. Having an companies. The total content validity of the questionnaire
experience of more than 10 years for managers and work was calculated as 0.93, which confirms the content validity
experience of more than 15 years for senior experts and of the questionnaire:
relevant university educators have been the main criteria  N
for selecting these people. These experts were selected by  ne − 2 
snowball sampling among experts and activities in the CVR =  , (1)
field of construction in the public and private sectors. N
Snowball sampling is a non-probability sampling method 2
which is used when the sample is not conveniently avail- where CVR – content validity ratio; ne – number of experts
able. In this method, the study participants select the next specify whether an item is necessary for the questionnaire;
participants (Rubin & Babbie, 2017). Using this method, N – total number of experts evaluating the questionnaire.

Table 1. Minimum values of content validity ratio (Lawshe, 1975)

Number of experts 5 6 7 8 9 10 11 12
Minimum value 0.99 0.99 0.99 0.85 0.78 0.62 0.59 0.56
Number of experts 13 14 15 20 25 30 35 40
Minimum value 0.54 0.51 0.49 0.42 0.37 0.33 0.31 0.29
Journal of Civil Engineering and Management, 2023, 29(6): 487–500 491

Table 2. Content validity ratio (Lawshe, 1975) of opportunities for the use of business intelligence
in project-based construction companies

Useful
Neces- Unneces-
No. Category Opportunities but not CVR
sary sary
necessary
Q1 Information support for using other projects’ data 9 1 0 0.8
Q2 Sending and receiving data from other systems 10 0 0 1
Q3 Evaluating the amount of use of external data in project 10 0 0 1
Q4 Up-to-date nature of project information 10 0 0 1
Q5 Increasing information security level of the project 10 0 0 1
Information management

Access to an automated warehousing system for the gathering and


Q6 10 0 0 1
storage of data and information during project lifecycle
Q7 Using suitable inputs for various project processes 9 0 1 0.8
Reliability of the output of business intelligence systems for decision-
Q8 9 0 1 0.8
making
Q9 Availability of high-quality information 10 0 0 1
Q10 Decreasing the volume of redundant data in project 10 0 0 1
Q11 Facilitating access to data and information in all project parts 9 1 0 0.8
Preparing backups and documentation of project information at various
Q12 10 0 0 1
points in its lifecycle
Integration of information during the project lifecycle from feasibility
Q13 10 0 0 1
study to implementation and completion stages
Q14 Integration of managers’ information needs 9 1 0 0.8
Q15 Having a proper investment and economy outlook 10 0 0 1
Q16 Predicting the profitability/loss of a project 10 0 0 1
Financial management

Decision-making for investment in new projects is based on the


Q17 10 0 0 1
analysis of data from pervious projects
Q18 Reducing decision-making costs 10 0 0 1
Q19 Evaluating and controlling the budget used for project-related activities 9 1 0 0.8
Q20 Timely allocation of resources based on project schedule 10 0 0 1
Identification of opportunities to decrease costs and optimal use of
Q21 10 0 0 1
resources
Increasing productivity in project internal processes and transparency
Q22 10 0 0 1
of key processes
Q23 Compatibility of the business intelligence system with project processes 9 1 0 0.8
Process management

Simplicity of adding new processes to the project and new topics to


Q24 9 1 0 0.8
data warehouse
Modification and implementation of management decision-making
Q25 processes, creating accurate knowledge based on comprehensive and 10 0 0 1
accurate real project data
Q26 Ability to online analyses of project processes 10 0 0 1
Speed and precision in reporting, analysis, and planning related to
Q27 10 0 0 1
project processes
Constant analysis of various data and attention to the performance of
Q28 10 0 0 1
various project parts
Performance management and

Q29 Constant analysis and evaluation of competitors’ activities 10 0 0 1


Monitoring project status, analysis of deviations from ideal conditions,
Q30 10 0 0 1
productivity analysis, and prediction of trends in the project
evaluation

Access to modelling and prediction tools and visual aids such as


Q31 10 0 0 1
dashboards and score cards for evaluating project performance
Q32 Accurate setting of goals and the ability to evaluate their results 10 0 0 1
Analysis of replacement methods in project planning and
Q33 10 0 0 1
implementation and suggesting corrective and preventive actions
Q34 Coordinating investment conditions based on organizational goals 10 0 0 1
492 M. Golestanizadeh et al. Managerial opportunities in application of business intelligence in construction companies

End of Table 2
Useful
Neces- Unneces-
No. Category Opportunities but not CVR
sary sary
necessary
Q35 Control and management of risk in projects 10 0 0 1
Decreasing uncertainty in various decision-makings related to the
Q36 9 1 0 0.8
project
Q37 The ability to better support project risk management 10 0 0 1
Risk management

Identification of various threats and their removal in order to advance


Q38 9 1 0 0.8
the project
Q39 Early identification of threats and opportunities in the project 9 1 0 0.8
Q40 Finding places or conditions resulting in error in the project 9 1 0 0.8
Q41 Once easing, confidence regarding strategic decisions 10 0 0 1
Using business intelligence by managers to determine their strategies,
Q42 encourage partners and stakeholders for continued cooperation or 10 0 0 1
remove competition
Q43 Evaluating future project requirements 9 0 1 0.8
Q44 Preventing deviation from initial project aims 9 1 0 0.8
Accurate identification of the needs of various active users in the
Q45 10 0 0 1
project
Q46 Using repeatable patterns and methods in project design 10 0 0 1
Better preparedness for flexibly and rapid response to changes in
Q47 10 0 0 1
project environment
Better support for decision-making requirements of project
Implementation management

Q48 10 0 0 1
management
Q49 Identifying strategic project goals and planning to achieve these goals 9 1 0 0.8
Prioritization of project implementation steps based on the value of
Q50 9 1 0 0.8
each step
Creating suitable communication channels between the project team
Q51 10 0 0 1
and senior management
Implementation of the project based on the project schedule or earlier
Q52 9 0 1 0.8
with no delays
Flexibility and modular nature and the ability to change and reuse all or
Q53 part of the project based on the current conditions and environments of 10 0 0 1
various units
Q54 Rapid response to key project problems 10 0 0 1
Attention to various employee needs and concerns during the planning
Q55 9 1 0 0.8
and implementation of project
Controlling resources and proper equipment allocation for better
Q56 10 0 0 1
project implementation
Identification of potential stakeholders for marketing activities related
Q57 9 0 1 0.8
to the project
management
Stakeholder

Creating knowledge on stakeholders’ requirements and needs and


Q58 10 0 0 1
factors affecting them
Categorizing stakeholders and creating varied methods for dealing with
Q59 10 0 0 1
each group
Q60 Improving relationships with project stakeholders 9 1 0 0.8

Furthermore, in order to investigate the structural va- equate. However, in order to evaluate the convergence or
lidity of the questionnaire, confirmatory factor analysis divergence of the model in SmartPLS software, the con-
was used applying the SmartPLS software. Factor loading vergent validity, divergent, validity and model fitting were
coefficient between 0.4 and 0.6 is acceptable, and if it is examined using the Fornell and Larcker criterion, and the
greater than 0.6, it is very desirable (Fenstad et al., 2016; results are reported in Tables 3 and 4. The data was also
Pantouvakis et al., 2008). As can be seen in Figure 1, the analysed using the one-sample t-test and the Friedman
factor load for all items in the questionnaire is greater than test in SPSS software.
0.4; therefore, it can be concluded that the model is ad-
Journal of Civil Engineering and Management, 2023, 29(6): 487–500 493

Figure 1. Loading factors of management opportunities for the use of business intelligence in construction companies

Table 3. Convergent validity, reliability and fitting factors

Cronbach’s Combined Convergent


Variable Communality R2 Q2 f2 GoF
alpha values validity validity, AVE
Financial management 0.911 0.929 0.654 0.427 0.588 0.355 1.429
Implementation management 0.948 0.954 0.599 0.358 0.869 0.482 6.627
Information management 0.911 0.924 0.500 0.250 0.644 0.280 1.981
Performance management and evaluation 0.891 0.915 0.607 0.368 0.756 0.423 3.101 0.516
Process management 0.807 0.861 0.510 0.260 0.731 0.341 2.723
Risk management 0.881 0.906 0.548 0.300 0.845 0.429 5.470
Stakeholders’ management 0.895 0.927 0.761 0.579 0.692 0.491 2.250
494 M. Golestanizadeh et al. Managerial opportunities in application of business intelligence in construction companies

Table 4. Divergent validity of the model using Fornell and Larcker criterion

No. Category 1 2 3 4 5 6 7
1 Financial management 0.808
2 Implementation management 0.612 0.774
3 Information management 0.657 0.632 0.707
4 Performance management and evaluation 0.599 0.761 0.630 0.779
5 Process management 0.713 0.712 0.695 0.677 0.714
6 Risk management 0.586 0.693 0.658 0.710 0.716 0.740
7 Stakeholders’ management 0.516 0.835 0.598 0.628 0.610 0.824 0.872

Cronbach’s Alpha values higher than 0.7 are often ac- categories is determined using divergent validity. Fornell
ceptable. However, Moss et al. (2008) suggested a thresh- and Larcker (1981) state that divergent validity is accept-
old of 0.6 for Cronbach’s alpha value for a small number able when AVE for each category is higher than the shared
of items. In structural models, composite reliability is a variance between the category and other categories in the
better criterion compared to Cronbach’s alpha value. The model (square of correlation coefficient between catego-
composite reliability value higher than 0.7 for each con- ries). As shown in Table 4, the model has acceptable di-
struct indicates acceptable internal reliability of the meas- vergent validity.
urement models, and values lower than 0.6 show a lack of Finally, and after evaluating the validity and reliabil-
reliability in the model (Werts et al., 1974). According to ity of the questionnaire, among the companies active in
Fornell and Larcker (1981), convergent validity can be as- the field of construction projects implementation, 5 com-
sessed by the average variance extracted (AVE), and AVE panies were selected which were larger in terms of the
higher than 0.5 indicates acceptable validity. R2 is a criteri- number of employees and executive specialists than other
on that depends on the changes of each of the model vari- companies and were also known as leading construction
ables and is determined based on independent variables. companies. Then, among the managers and senior experts
According to Chin (1998), and Hock and Ringle (2010), of the projects, people who were experts in the field of
values close to 0.67 are suitable, values near 0.33 are nor- business intelligence and the opportunities that this tech-
mal, and values near 0.19 are weak fitting. The predictive nology can bring for managers, experts were selected as
quality criterion, Q2, shows the predictive power of the the sample size. In fact, 100 experts who had gained more
model. According to Henseler et al. (2009), the positive than 10 years of work experience and actively participated
Q2 values indicate good model fitting and that the model in at least 3 construction projects were selected based on
has good predictive power. The f2 criterion indicates the stratified sampling.
strength of interactions between model constructs and,
according to Cohen (1988), values of 0.02, 0.15, and 0.35 3. Results of the survey
indicate small, medium, and large effects of a construct on
3.1. Identification of the management opportunities
other constructs. The GoF factor is used to evaluate the
created by applying business intelligence
credibility or quality of the model. This factor is calculated
using Eqn (2). Wetzels et al. (2009) state that 0.1, 0.25, and To analyse the data, inferential statistics including the one-
0.36 indicate weak, medium, and strong value thresholds sample t-test and the Friedman test were carried out in
for GoF, respectively: SPSS software. According to Table 5, the mean score for
the entire questionnaire was 4.055 according to the partic-
GoF ( )
average ( Communality ) × average R2 . (2) ipants and the mean scores for different categories of the
questionnaire were 4.036 for financial management, 3.908
The results presented in Table 3 indicate that Cron- for implementation management, 4.118 for information
bach’s alpha value and composite reliability for all catego- management, 4.147 for performance management and
ries are higher than 0.7. Therefore, the model has good evaluation, 4.100 for process management, 4.070 for risk
reliability. Furthermore, the convergent validity for all management and 3.987 for stakeholders’ management. On
groups is higher than 0.5, which indicates acceptable con- the other hand, the P-value is less than 0.05.
vergent validity. The values of R2 indicate a good fitting of As shown in Table 5, the management opportunities
the structural model. Furthermore, based on Q2 values, identified during the use of BI in project-based construc-
it can be concluded that the model has good predictive tion companies in different categories (information man-
power and can predict values. The f2 values also indicate agement, financial management, process management,
that the effect size is acceptable, and the GoF value 0.516 performance management and evaluation, risk manage-
indicates good fitting of the model. ment, implementation management, and stakeholders’
The relation between each category and its factors management) have significant differences with a mean
compared to the relation between that category and other score of 3. Furthermore, based on the upper and lower
Journal of Civil Engineering and Management, 2023, 29(6): 487–500 495

Table 5. Results of the one-sample t-test for management opportunities for the use of business intelligence
in construction companies

Test value = 3 Lower Upper


Category Frequency Mean SD
t df P-value limit limit
Financial management 100 4.036 0.618 16.771 99 1.159 0.913 1.159
Implementation management 100 3.908 0.728 12.466 99 1.053 0.763 1.053
Information management 100 4.118 0.628 17.789 99 1.243 0.993 1.243
Performance management and evaluation 100 4.147 0.693 16.535 99 1.284 1.009 1.284
Process management 100 4.100 0.685 16.050 99 1.236 0.964 1.236
Risk management 100 4.070 0.736 14.521 99 1.216 0.923 1.216
Stakeholders’ management 100 3.987 0.841 11.740 99 1.154 0.820 1.154
Overall questionnaire values 100 4.055 0.593 17.777 99 0.000 0.937 1.173

Table 6. Significant results for management opportunities and identified categories using the Friedman test

Chi-square value Degree of freedom Significance level Test result


Categories 9.979 6 0.026 H0 rejected
Opportunities 190.187 59 0.000 H0 rejected

limits of the positive confidence interval, it can be con- 4. Analysis of the results
cluded that the importance of identified opportunities
during the use of BI in project-based construction com- As stated previously, BI can be effective in various man-
panies is above average, meaning that by using BI, these agement categories including information management,
companies can use the identified opportunities. financial management, process management, performance
management and evaluation, risk management, imple-
mentation management, and stakeholders’ management.
3.2. Assessment of the management opportunities
The results of the current study were similar to the results
created by applying business intelligence
reported by Hosseinzadeh et al. (2022), Paradza and Dara-
The results presented in Table 6 show that the level of mola (2021), Lopes and Boscarioli (2020), Girsang et al.
significance is less than the 0.05 threshold (P < 0.05); (2018), Xie et al. (2022), J. Pondel and M. Pondel (2016).
therefore, it can be concluded that there is a significant According to the results of the current study, the perfor-
difference between different categories and opportunities mance management had the first importance ranking in
identified during the use of BI in project-based construc- the t-test and Friedman test. These findings indicate that
tion companies. by using BI, construction project managers can remove
According to the results of the Friedman test presented barriers and problems that result in project deviation,
in Table 7, the category of performance management and evaluate progress toward predefined goals, measure pro-
evaluation was the first regarding importance with a mean ject productivity, and use constant data analysis to focus
score of 4.40, process management was the second with a on different aspects of the project and other factors that
mean score of 4.21, risk management was the third with affect it, leading to better project performance manage-
a mean score of 4.14, information management was the ment. Hence, it can be concluded that the use of BI is
fourth with a mean score of 3.97, fifth was implementa- queried during the management of construction projects
tion management with a mean score of 3.89, sixth was to improve performance management and evaluation.
stakeholders’ management with a mean score of 3.81, and The process management category had the second
financial management was in the seventh place with a importance ranking in the t-test and Friedman test. In-
mean score of 3.60. Furthermore, opportunity Q45 (Accu- terpreting these results shows that experts and managers
rate identification of the needs of various active users in the in a construction project can use BI to predict, organize,
project) was in the first place with a mean score of 36.70, and identify current inefficiencies in project processes;
opportunity Q7 (Using suitable inputs for various project facilitate the decision-making process, and can also use
processes) was in the second place with a mean score of BI to provide a faster and simpler analysis of project pro-
36.06, opportunity Q27 (Speed and precision in reporting, cesses. This helps construction project managers use BI to
analysis, and planning related to project processes) was increase the transparency and facilitate the management
third with a mean score of 35.64, and opportunity Q15 of project processes.
(Having a proper investment and economy outlook) was the The risk management category had the third impor-
last with a mean score of 25.53 in the ranking of manage- tance ranking in the t-test and Friedman test. Regarding
ment opportunities using Friedman test. the risk management category, the aim is to minimize un-
496 M. Golestanizadeh et al. Managerial opportunities in application of business intelligence in construction companies

certainty in the project, identify opportunities and threats The information management category had the fourth
in the project, and control and manage project risks using importance ranking in the t-test and Friedman test. These
various tools. In this regard, the role of BI is not limited results indicate that, using BI and its analysis tools, pro-
to gathering and integration of data and creating a risk ject managers and experts can facilitate the extraction of
warehouse for risk management; instead, experts and pro- qualitative information from available data and create the
ject managers can use BI tools such as artificial intelli- required knowledge for better project management and
gence and data mining to make predictions, define various achieving project objectives. Achieving high-quality infor-
scenarios, conduct crisis tests, prepare risk management mation and reducing data redundancy, online updating
strategies, and create internal evaluation of project risks. of project data, and other factors presented in the current
Hence, using BI and its novel technological tools can help study can also be used to make correct decisions in pro-
make intelligent risk management decisions to mitigate jects. This, therefore, strengthens the need and role of BI
risks in the project. This indicates that the use of BI is in construction projects.
necessary to achieve better project risk management.

Table 7. Mean ranking scores for opportunities and management categories for the use of business intelligence in project-based
construction companies determined using Friedman test

Category
Category rank Opportunities Mean rank score Rank within the group Overall rank
(Mean rank score)
Q1 30.84 6 24
Q2 25.91 14 58
Q3 31.18 4 20
Q4 28.97 11 44
Q5 26.58 12 55
Q6 30.08 8 30
Information Q7 36.06 1 2
management 4
(3.97) Q8 29.02 10 43
Q9 34.01 3 6
Q10 34.96 2 4
Q11 30.97 5 23
Q12 30.60 7 25
Q13 29.87 9 33
Q14 26.16 13 56
Q15 25.53 7 59
Q16 29.06 1 42
Financial Q17 27.58 6 53
management 7 Q18 28.52 2 48
(3.60) Q19 27.73 5 51
Q20 28.17 3 49
Q21 28.08 4 50
Q22 33.38 2 10
Q23 28.65 6 47
Process Q24 29.73 5 36
management 2
(4.21) Q25 30.00 4 31
Q26 32.37 3 16
Q27 35.64 1 3
Q28 31.74 5 18
Q29 33.76 1 7
Performance Q30 29.48 7 38
management
1 Q31 33.49 2 8
and evaluation
(4.40) Q32 30.51 6 26
Q33 32.59 4 14
Q34 32.70 3 13
Journal of Civil Engineering and Management, 2023, 29(6): 487–500 497

End of Table 7
Category
Category rank Opportunities Mean rank score Rank within the group Overall rank
(Mean rank score)
Q35 30.48 6 27
Q36 27.12 8 54
Q37 30.84 5 24
Risk Q38 33.21 2 11
management 3
(4.14) Q39 33.43 1 9
Q40 33.06 3 12
Q41 32.56 4 15
Q42 30.19 7 29
Q43 29.79 9 35
Q44 31.35 4 19
Q45 36.70 1 1
Q46 34.47 2 5
Q47 32.04 3 17
Q48 30.47 6 28
Implementation Q49 29.83 8 34
management 5
(3.89) Q50 29.46 11 39
Q51 28.75 13 46
Q52 29.89 7 32
Q53 31.10 5 22
Q54 28.79 12 45
Q55 27.66 14 52
Q56 29.50 10 37
Q57 29.11 3 41
Stakeholder Q58 29.19 2 40
management 6
(3.81) Q59 26.13 4 57
Q60 31.12 1 21

The implementation management category had the criteria. Therefore, these results point to the need to use
fifth importance ranking in the t-test and Friedman test. BI in a construction project and to emphasize the stake-
The results indicate that the use of BI can help identify holders in these projects.
the needs and requirements of project stakeholders and Finally, the financial management category had the
facilitate information gathering, induction and analysis seventh importance ranking in the t-test and Friedman
of various methods for decision making during complex test. These results show that using BI, it is possible to
problems. Due to the effect of BI on accuracy, data pro- improve the financial management of projects, including
cessing, management, and duty analysis, it can have a sig- cost estimation, budgeting, cost control, supervision, and
nificant effect in improving implementation management reporting, and to systematically predict, control, and man-
in construction projects. age cash flow networks and project costs during imple-
The stakeholders’ management category had the sixth mentation. Consequently, construction project managers
importance ranking in the t-test and Friedman test. These can use BI to better manage financial affairs in construc-
results indicate that project managers must analyse infor- tion projects.
mation about stakeholders in order to find an appropriate
balance between the different requirements of stakehold-
Conclusions
ers and market conditions and achieve effective commu-
nication with customers. Moreover, managing interactions The current study was carried out to identify the most im-
with customers using novel technologies, including busi- portant management opportunities during the use of busi-
ness intelligence, can help to achieve more accurate, faster, ness intelligence (BI) in project-based construction com-
and more rapid interactions with stakeholders. Further- panies. Furthermore, management opportunities gained
more, by gathering information regarding stakeholders through the use of BI were extracted from a literature
in a database, project managers will be able to categorize review and refined through one round of interviews with
these stakeholders according to different strategies and 10 experts, resulting in the identification of 60 manage-
498 M. Golestanizadeh et al. Managerial opportunities in application of business intelligence in construction companies

ment opportunities. The researcher-made questionnaire tion industry, especially in developing countries, is an is-
was then prepared based on 60 management opportunities sue that can be considered as a main limitation for this re-
under 7 categories including information management, fi- search. This limitation is highlighted by the participation
nancial management, process management, performance of experts in the interview from only one country. Future
management and evaluation, risk management, imple- studies can increase the number of construction experts
mentation management and stakeholders’ management participating in a similar study to improve the generaliz-
based on the 5-point Likert scale. The face validity, con- ability of the results. Furthermore, as suggested by Sarvari
tent validity, and structural validity of the questionnaire et al. (2020), comparing the opportunities created through
was evaluated and confirmed as well as its reliability was the application of business intelligence in projects based
evaluated and confirmed. The questionnaire was distrib- on the development level of countries (developed vs. de-
uted among 100 experts active in 5 active project-based veloping countries) in order to determine any similarities
construction companies familiar with BI who were se- and differences can also lead to valuable project results.
lected using stratified sampling. After gathering the ques- Moreover, since the aim of this research was to recognize
tionnaires, the SPSS software was used for data analysis. the management opportunities resulting from business
The results indicated that the importance of management intelligence in the construction industry, only the mean
opportunities obtained through the use of BI in project- ranking score using the Friedman’s test was used to rank
based construction companies is higher than average, the identified opportunities. To cover this limitation and
and all identified management opportunities can be con- obtain a more accurate list of high-importance opportuni-
sidered as somewhat strong key opportunities obtained ties, it is suggested that future studies may use multi-in-
through the use of BI in project-based construction com- dicator decision-making methods or their fuzzy versions.
panies. Furthermore, in the ranking of different categories, Finally, the results of the current study can help stakehold-
performance management and evaluation, process man- ers better decision-making regarding the use of business
agement, risk management, information management, intelligence in project-based companies.
implementation management, stakeholders’ management
and financial management achieved ranks from 1 to 7, re- Author contributions
spectively. Finally, the ranking of identified management
opportunities in all categories – ‘Accurate identification of The paper is the joint efforts of the authors, their contri-
the needs of various active users in the project’ (Q45), ‘Us- butions vary on conceptualisation, methodology, analysis,
ing suitable inputs for various project processes’ (Q7) and investigation, resources and writing.
‘Speed and precision in reporting, analysis, and planning
related to project processes’ (Q27) – were identified as the Disclosure statement
3 most important management opportunities obtained
through the use of BI in project-based companies. The authors declare that they have no competing financial,
Project managers engaged in construction companies professional and personal interests from other parties.
struggle with a large volume of data in various fields, in-
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