Evaluating BIM’s Role in Transforming Cash Flow Forecasting Among Construction SMEs: A Saudi Arabian Narrative

Azal Mahboob, Akila Rathnasinghe (), Anushika Ekanayake () and Piyumi Tennakoon
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Azal Mahboob: Trojan General Contracting LLC, Abu Dhabi P.O. Box 111059, United Arab Emirates
Akila Rathnasinghe: Faculty of Engineering and Environment, Northumbria University, Newcastle-upon-Tyne NE1 8ST, UK
Anushika Ekanayake: School of Engineering and Built Environment, Birmingham City University, Birmingham B4 7AP, UK
Piyumi Tennakoon: Department of Building Economics, University of Moratuwa, Moratuwa 10400, Sri Lanka

Sustainability, 2024, vol. 16, issue 23, 1-23

Abstract: This scholarly investigation examines the efficacy of Building Information Modelling (BIM) in enhancing cash flow forecasting (CFF) among construction Small and Medium-sized Enterprises (SMEs) in Saudi Arabia, with a specific focus on fostering innovation for sustainable economic advancement. In so doing, it seeks to strengthen the long-term viability of SMEs within the rapidly growing Saudi construction sector, thereby contributing meaningfully to broader economic goals. A quantitative research methodology was employed, with empirical data gathered through a questionnaire survey administered to one hundred construction stakeholders within Saudi Arabian SMEs. Quantitative data analysis techniques were applied to elucidate key themes and pressing issues in current CFF practices. The findings highlight critical challenges faced by Saudi Arabian SMEs in cash flow management, notably a scarcity of financial resources, a lack of advanced CFF expertise, and resistance to technological adoption. Integrating BIM into CFF processes emerges as an effective solution, addressing these challenges by providing accurate, timely financial data, improving project planning and execution, and enabling more informed decision-making, thereby fostering sustainable business operations. The proposed BIM integration strategy offers a practical roadmap for SMEs to adopt BIM for enhanced CFF, aligning with and advancing the sustainable economic objectives outlined in Saudi Arabia’s Vision 2030. By focusing on the unique context of Saudi Arabian construction SMEs and their specific cash flow management challenges, this study enriches the existing literature with substantive insights. It critically illustrates how BIM adoption can transform traditional financial management practices, presenting a robust framework for promoting sustainable economic development through innovation in CFF. Furthermore, these findings have significant implications for other developing economies seeking to leverage technological advancements as drivers of long-term growth.

Keywords: Building Information Modelling (BIM); cash flow forecasting (CFF); construction industry; construction SME; Saudi Arabia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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