Abstract—Currently, the Malaysian construction industry is focusing on transforming construction processes from conventional building methods to the Industrialized Building System (IBS). Still, research on the decision making of IBS technology adoption with the influence of contextual factors is scarce. The purpose of this paper is to explore how contextual factors influence the IBS decision making in building projects which is perceived by those involved in construction industry namely construction stakeholders and IBS supply chain members. Theoretical background, theoretical frameworks and literatures which identify possible contextual factors that influence decision making towards IBS technology adoption are presented. This paper also discusses the importance of contextual factors in IBS decision making, highlighting some possible crossover benefits and making some suggestions as to how these can be utilized. Conclusions are drawn and recommendations are made with respect to the perception of socio-economic, IBS policy and IBS technology associated with building projects. Keywords—decision making, technology adoptions, contextual factors, Industrialized Building Systems I. INTRODUCTION NVIROMENTAL factor can be regarded as a perceptual- cognitive phenomenon as seen by decision makers because it influences decision making that is linked with a degree of uncertainty [1]. Thus, in deciding on Industrialized Building System (IBS) technology adoption, it is also important to understand contextual factors in construction environment. IBS is a construction technique in which components are manufactured in a controlled environment, on or off site, transported, positioned, and assembled into a structure with minimal additional site work [2]. IBS is also known as an off- site manufacturing in construction industry. IBS technology is the mass factory-produced building components off-site, then they are properly assembled, and joined on-site to form the final units [3]. Contextual factors are defined as dynamic forces constituted in the user groups’ social, cultural, economic, political, technological, and institutional environment [4]. S. A. S. Zakaria is a phd candidate at the School of Architecture and Built Environment, Faculty of Engineering and Built Environment, University of Newcastle, Callaghan NSW 2308, Australia (e-mail: sharifahakmam.syedzakaria@uon.edu.au). G. Brewer is with the School of Architecture and Built Environment, Faculty of Engineering and Built Environment, University of Newcastle, Callaghan NSW 2308, Australia (e-mail: Graham.Brewer@newcastle.edu.au). T. Gajendran is with the School of Architecture and Built Environment, Faculty of Engineering and Built Environment, University of Newcastle, Callaghan NSW 2308, Australia (e-mail: Thayaparan.Gajendran@newcastle.edu.au). The focus of this study was on the decision making of IBS technology adoption in construction industry which should be considered as part of the broader topic of technology management. In this study, IBS technology decision is considered as human responses to the direct and indirect effects of new building technology and unpredictability for the purpose of lessening negative consequences or enhancing beneficial consequences and it presents a series of unique challenges for decision makers in construction industry. In decision science, technology adoption decision involves inter-firm coordination, interplay reaction across individuals in different stakeholders group and interventions based on contemporary research problem and multidisciplinary work with the consideration of technology outcomes, environmental factors, feelings, reactions, and personality characteristics [5]. However, the perception of decision makers pertaining environmental factors on the decision making of IBS technology adoption is uncertain in the literature, thus represents the research disparity that is being explored in this study. In order to direct this investigation, the foundation of this study is driven by a number of models and frameworks that have been developed. Malaysian construction industry lacks a theory of how individuals or firms come to adopt IBS technology in construction activities [6]. Moreover, it is vital to understand the actions and conduct of decision makers in the context of social and economic phenomena due to the adoption of Industrialized Building Systems (IBS) technology that has been relatively slow in Malaysia [7]. This view persisted when the Malaysian construction industry has been implementing the adoption of IBS technology in building construction. The purpose of this study was to clarify the nature of contextual aspects in the decision making of IBS technology adoption, besides to outline contextual factors and reasoning associated with this type of decision. This paper is also based on an attempt to establish a conceptual framework for IBS decision making in construction industry and to determine the influence of contextual factors on IBS decision making. A broadly stated proposition was defined to guide this study to focus this paper and help in guiding the discussion: IBS decision making is associated with drivers and barriers related predominantly to external environment such as a) political factors like government policy, b) economic conditions like financial matters, c) social factors like skilled workers, and d) technology factors like research, development, and innovation. S. A. S. Zakaria, G. Brewer, T. Gajendran Contextual Factors in the Decision Making of Industrialized Building System Technology E World Academy of Science, Engineering and Technology International Journal of Civil and Environmental Engineering Vol:6, No:7, 2012 439 International Scholarly and Scientific Research & Innovation 6(7) 2012 ISNI:0000000091950263 Open Science Index, Civil and Environmental Engineering Vol:6, No:7, 2012 publications.waset.org/2021/pdf