Digital Transformation Framework for Construction SMEs : Lesson Learned from Manufacturing Industry

Abstract

The construction industry in Kelantan, Malaysia, is undergoing a critical transformation amidst national calls for digital adoption aligned with Industry 4.0. However, Construction SMEs in the region face fragmented technological environments, policy misalignment, and limited digital readiness. This study proposes a contextualized digital transformation (DT) framework for IoT Construction SMEs, drawing insights from the more mature manufacturing sector. Using a qualitative  case study approach supported by interviews,the findings of this study indicated that the level of DTs adoption in Kelantan is still low. The major challenges identified in IoT adopt included difficulties managing change towards new technology and human resource . Furthermore, the study highlights that benefits significantly impact future trends. Therefore, it is highly recommended that managers in the construction industry, Kelantan in Malaysia embrace the adoption of IoT to improve benefits and leverage the wide range of benefits they offer.