In the rapidly evolving world of construction, digitalization is more than just a buzzword; it’s a necessity for staying competitive and sustainable. Yet, the path to digital transformation is fraught with challenges, particularly when it comes to fostering genuine cooperation among multiple stakeholders. A groundbreaking study published in the journal Buildings, led by Rongye Yuan of Osaka Metropolitan University’s Department of Global Business, sheds light on how governments, contractors, and service providers can navigate these complexities to achieve a stable, cooperative digital ecosystem.
Yuan’s research introduces an evolutionary game model that simulates the interactions between these key players under conditions of incomplete information. The model reveals that traditional approaches often lead to a “low-level equilibrium,” where cooperation is superficial or nonexistent. “Insufficient subsidies and weak penalties typically result in a situation where contractors and service providers are reluctant to fully commit to digitalization,” Yuan explains. This reluctance can stall progress and prevent the construction industry from realizing the full potential of technologies like Building Information Modeling (BIM), the Internet of Things (IoT), and cloud computing.
The study’s findings suggest that a combined subsidies-and-penalties mechanism can trigger a threshold effect, significantly boosting contractors’ and service providers’ willingness to participate. By strengthening government subsidies and imposing more stringent penalties, stakeholders can achieve a stable cooperative equilibrium. This shift is crucial for the energy sector, where digitalization can lead to more efficient building management, reduced energy consumption, and enhanced sustainability.
Service providers, in particular, play a pivotal role in this dynamic. Their cost-benefit structures can either bolster or undermine contractors’ confidence in adopting digital solutions. “Service providers influence the success or failure of digitalization efforts through their cost–benefit structures,” Yuan notes. This insight underscores the importance of aligning incentives and ensuring that all stakeholders benefit from the transition to digital technologies.
The research extends evolutionary game theory to a three-party construction digitalization context, providing practical guidance for balanced subsidy-penalty strategies and incentive-compatible mechanisms. By understanding these dynamics, governments can design policies that overcome moral hazard and foster sustainable digital transformation. For the energy sector, this means more efficient, sustainable buildings that can adapt to changing energy demands and contribute to a greener future.
As the construction industry continues to embrace digitalization, Yuan’s work offers a roadmap for achieving genuine cooperation and overcoming the challenges of information asymmetry. By aligning incentives and fostering a cooperative ecosystem, stakeholders can unlock the full potential of digital technologies and drive sustainable growth in the energy sector. The insights from this study, published in the journal Buildings (translated from Japanese as “Buildings”), are set to shape future developments in construction digitalization, paving the way for a more efficient and sustainable industry.