Drivers and barriers to adopting smart construction technologies by small and medium enterprises

The construction industry is undergoing rapid digital and technological transformation, but Small and Medium Enterprises (SMEs) often face distinct operational and financial constraints that limit their uptake of Smart Construction Technologies (SCT). Despite government initiatives and growing industry momentum, many SMEs remain hesitant or only partially engaged with SCT. This study aims to identify the key drivers and barriers to SCT adoption among Singaporean SMEs and to propose strategies to overcome these barriers. This study employed a mixed-methods approach - quantitative data were collected via an online survey of construction professionals (53 valid responses: 34 from SMEs and 19 from larger firms) and qualitative data were obtained through semi-structured interviews with three (3) experienced industry practitioners. The survey data collected was analysed using Jeffreys’s Amazing Statistics Program (JASP) for chi square tests, Shapiro-Wilk normality tests and Wilcoxon signed-rank tests. Interview transcripts were coded thematically to identify the most salient drivers and barriers. The findings reveal that 94% of responding SMEs have initiated SCT adoption, yet full integration into operations is limited. This study identified 15 significant drivers and 13 barriers. Major drivers include financial incentives, regulatory mandates and demonstrable performance gains. On the other hand, key barriers are high costs, resource and skill shortages and practical implementation challenges. Qualitative data confirmed these trends and highlighted SMEs’ conservative culture and survival-oriented mindset as additional factors. These results indicate that while SMEs recognise the potential of SCT, adoption remains partial due to cost, capability and cultural constraints. Addressing these issues through targeted financial support, accessible training and fostering collaborative digital ecosystems can accelerate adoption. By focusing explicitly on SMEs, this study fills a research gap and provides empirical evidence of SME-specific factors in SCT adoption. The actionable insights will help policymakers, industry leaders and technology providers tailor interventions to support SME digital transformation.