Value of IT: Indirect impact of IT on construction project performance via Best Practices

• This paper presents the indirect impact of IT on construction performance.
• Direct impact of IT on construction performance was not statistically significant.
• Indirect impact of IT use via Best Practices was statistically significant.

This paper investigates the indirect impact of IT use via work processes on construction project performance in the industrial sector. Specifically, using the project-level data in the Construction Industry Institute Benchmarking and Metrics database, the overall impact of 3D CAD use, including the direct impact of the use to project cost growth and its indirect impact via CII designated Best Practice(s), is tested by path analysis. The analysis results show that the direct impact of 3D CAD use on project cost growth is not statistically significant. On the other hand, the indirect impact of 3D CAD use via Best Practice(s) is statistically significant. Interpreting the path values reveal that the use of 3D CAD contributes to more use of Best Practice(s), which in turn leads to cost performance improvement. This finding highlights the importance of processes or practices when designing and implementing information technology.