The current era of Industry 4.0, driven by advanced technologies, holds immense potential for revolutionising various industries and fostering substantial economic growth. However, comprehending intricate processes of policy change poses difficulties, impeding necessary adaptations. Public apprehensions are growing about the inertia and efficacy of policy changes, given the influential role of policy environments in shaping development amidst resource constraints. To address these concerns, the study introduces the Kaleidoscope Model of policy change, serving as a roadmap for policymakers to enact effective changes. The study investigates the mediating impact of cultural change within the framework of the Kaleidoscope Model. The study delves into cultural influences by incorporating the Behavior Change Wheel (BCW) Theory. The methodology involves questionnaires survey, analysing using Structural Equation Modelling (SEM). The findings reveal that only the Policy Adoption and Policy Implementation components significantly affect the assessment of the effectiveness of the Construction 4.0 policy. Intriguingly, the final model demonstrates no discernible connection between the Kaleidoscope Model and the cultural influences. This study makes a noteworthy contribution to the realm of political science by furnishing a comprehensive framework and directives for the successful implementation of the Construction 4.0 policy.

Japan’s investment in the domestic construction industry has fallen to less than half its peak in 1992. Given the country’s declining population, Japanese construction companies must go global to remain profitable. To what extent the Japanese government and Japanese companies can contribute to meeting the growing infrastructure needs in the region is unclear as Japanese companies have long been operating primarily in Japan. The Japanese government has in recent years passed a series of new laws that encourage private sector participation in financing, building and operating public infrastructure. Through involvement in such public projects, Japanese companies have developed the skills and technologies to build a variety of infrastructures that are resilient to natural disasters and adaptable to various geographical conditions and social and economic development. But the major challenge for Japanese companies is to transform their business model drastically from one that relies on the domestic market to one that contributes to the social and economic development of third countries.