A Composite Index Framework for Data-Driven Decision-Making in the Construction Industry

Decision-making in the construction industry involves a high level of uncertainty stemming from numerous external factors, which are outside of the control of decision makers but cause the industry's complex and dynamic behavior. As such, informed decision-making requires the identification of various external factors and continuous monitoring and analysis of abundant information derived from them. However, the existing data-driven approaches focus on limited aspects of external factors to understand the industry, which is insufficient for long-term policymaking since more diverse external factors are associated with the long-term prospect of the industry. To address this gap, this study proposes a composite index framework to allow decision-makers to monitor and analyze factors across various aspects of the construction industry. The composite index framework creates a comprehensive hierarchy of all influencing factors, allowing decision-makers to synthesize the data and monitor the dynamic behavior of the industry.