Driving sustainable construction performance through green-oriented digital transformation and stakeholder-responsive innovation: the mediating role of organisational agility

PurposeThis study aims to assess the essential elements of internal organisational capability that influence the cybersecurity effectiveness of a construction firm. An extended McKinsey 7S model is used to analyse the relationship between a construction firm's cybersecurity effectiveness and nine internal capability elements: shared values, strategy, structure, systems, staff, style, skills, relationships with third parties and regulatory compliance.Design/methodology/approachBased on a quantitative research strategy, this study collected data through a cross-sectional survey of professionals working in the construction sector in the United Kingdom (UK). The collected data was analysed using descriptive and inferential statistical methods.FindingsThe findings underlined systems, regulatory compliance, staff and third-party relationships as the most significant elements of internal organisational capability influencing a construction firm's cybersecurity effectiveness, organised in order of importance.Research limitations/implicationsFuture research possibilities are proposed including the extension of the proposed diagnostic model to consider additional external factors, examining it under varying industrial relationship conditions and developing a dynamic framework that helps improve cybersecurity capability levels while overseeing execution outcomes to ensure success.Practical implicationsThe extended McKinsey 7S model can be used as a diagnostic tool to assess the organisation's internal capabilities and evaluate the effectiveness of implemented changes. This can provide specific ways for construction firms to enhance their cybersecurity effectiveness.Originality/valueThis study contributes to the field of cybersecurity in the construction industry by empirically assessing the effectiveness of cybersecurity in UK construction firms using an extended McKinsey 7S model. The study highlights the importance of two additional elements, third-party relationships and construction firm regulatory compliance, which were overlooked in the original McKinsey 7S model. By utilising this model, the study develops a concise research model of essential elements of internal organisational capability that influence cybersecurity effectiveness in construction firms.

Purpose The main goal of this study is to investigate the impact of total quality management (TQM) on the three pillars (economic, environmental and social) of sustainable performance in the Palestinian construction industry. More specifically, it first assesses the current implementation levels of TQM practices and the socio-economic and environmental sustainable performance metrics in the industry. Then, it specifies the correlational relationship between the implementation of the TQM practices and the sustainable performance in the construction industry in Palestine. Design/methodology/approach To this end, a quantitative research approach via a self-administered questionnaire approach was adopted, where six TQM practices have been obtained from the Malcolm Baldrige National Quality Award (MBNQA), with some adjustments made in accordance with their importance in the literature review. The targeted population is the construction firms in Palestine, where the data have been obtained from a sample of 66 supervisor engineers working in these firms through a quantitative questionnaire. Regarding the analysis of the conceptual framework and testing the proposed hypotheses, the structural equation modeling (SEM) has been adopted through Smart-PLS software. Findings The results indicate a positive and significant relationship between TQM practices and sustainable performance. More specifically, it has been found the levels of implementation of TQM practices and sustainable performance metrics were moderate. Also, it has been revealed that TQM practices positively impact the economic, environmental and social sustainable performance in the Palestinian construction industry. Practical implications Investigating the impact of TQM on sustainable performance in this unique challenging context provides a set of valuable implications that extend existing theories and practical guidelines for practitioners and policy makers in the construction industry. More specifically, the study highlights the TQM theory by proving its applicability and effectiveness in conflict-influenced and resource-limited contexts. It also contributes to the sustainable performance theory by integrating the three pillars of sustainable performance in the construction industry in a developing country. Practically, the study offers different stakeholders in this industry with practical actions and insights to facilitate the implementation of TQM to enhance sustainable performance. Originality/value This research bridges the gap between TQM and the three pillars of sustainable performance, especially in the construction industry in a developing country context with a unique particularity represented by complicated political instability, never-ending conflict and constrained-resources scarcity and access. This research also supports the TQM advocate’s argument that effective TQM deployment can dramatically improve sustainable organizational performance. Additionally, to the best of the authors' knowledge, this is the first study that addresses the impact of TQM and sustainable performance in the Palestinian construction industry and the one that adopted the PLS-SEM approach for analysis.

Small and medium‐sized enterprises (SMEs) adopt lean practices (LP) to reduce waste across their organisational value chain, which helps achieve sustainability. Process innovation (PI) has also been applied through cleaner production, environmental management system, ecodesign, and so on to address both customers' needs and legislations by policymakers. Although prior studies reveal the effect of sustainable practices, LP, and PI on sustainable performance separately, less is known on the integrated effect of them on sustainability performance. Moreover, studies on mediating effect of LP and PI on sustainability performance are scant. This is significant as LP and PI are considered to be the enablers for achieving sustainability performance. This research addresses this knowledge gap. The research first theorises a model integrating these four major constructs (sustainability practices, LP, PI, and sustainability performance) through hypotheses development. Subsequently, using structural equation modelling, it is tested whether each of sustainability practices, LP, and PI effect sustainability performances. Additionally, mediating effect of LP and PI between sustainability practices and performances is derived. The study uses data from 119 SMEs within manufacturing industries in the Midlands, United Kingdom. Further, a few case studies have been undertaken to validate the findings from quantitative analysis. The overall results show that although sustainability practices, LP, and PI help achieve sustainability performance of SMEs supply chain through efficiency and responsiveness respectively, the mediating effect LP is more compared with PI. Moreover, SMEs adopt LP when they are economy focused and implement PI when they are pressurised by customers and/or policymakers.

The quest to implement innovative practices that will lead to a high level of sustainability at the firm level within the construction sector cannot be overemphasised. The aim of this study is to establish the empirical relationship between organisational innovativeness and sustainability of construction firms using a structural equation modelling approach. The study has adopted a survey approach and 1179 copies of structured questionnaire have been administered to construction firm representatives. A total of valid 980 copies of questionnaire have been received giving a response rate of 83.2 %. Data collected have been analysed using descriptive statistics and structural equation modelling. The correlation coefficient (β = 0.81) shows that organisational innovativeness positively influences the sustainability of construction firms. The study reveals that 66.1 % of the variability in the overall sustainability of construction firms operating in the Niger Delta region of Nigeria is accounted for by the implementation of innovative practices by the construction firms. It is concluded that 67.1 %, 83.8 % and 45.7 % of the variability in the construction firm’s social, environmental and economic sustainability, respectively, are explained by the implementation level of innovative practices by the top management teams of the firms. In line with the findings, this study concludes that efficient implementation of innovative practices at the firm level has a significant and positive influence on the overall sustainability of construction firms.

This study examines the effect of internal dynamic capabilities i.e., digital leadership, environmental awareness, and organizational learning, on sustainable supply chain performance as studied in the logistics sector. It builds on the Dynamic Capabilities Theory by combining notions of green innovation and sustainability and fills the growing gap in the existing literature. Despite the fact that these domains have been extensively studied independently, there has been limited research examining how internal capabilities contribute to green supply chain innovation (GSCI) that in turn results in sustainability outcomes, especially in the case of emerging markets. Seven hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis of data collected from 312 logistics and supply chain professionals in Jordan. This study shows that each of the three capabilities has a major effect on GSCI and therefore sustainable performance. Linking the most influential predictor of sustainability outcome to sustainable supply chain performance, as indicated by the strongest effect (β = 0.825, p < 0.001) between GSCI and sustainable supply chain performance, and followed by significant coefficients between the sustainable information processing (β = 0.261, p < 0.01), and information capabilities (β = 0.297, p < 0.001), indicates that the theory is more suited to GSCI. In particular, digital leadership had the largest impact on the green innovation (β = 0.481, p < 0.001), indicating that the role of digitally driven leadership is to facilitate eco-innovation. In addition, this intermediate factor, GSCI, serves as a variable that mediates relationships between the capabilities and the sustainability outcomes. As the results here suggest, leveraging internal capabilities is a very tangible channel for green innovation that has important ramifications for practitioners and policymakers facing resource constraints.

PurposeThe purpose of this study determines how environmental management control system (MCS) packages influence ecological sustainability and sustainable performance through the mediating role of environmental strategies. Furthermore, this applies organizational capabilities as moderating variables between environmental strategies, ecological sustainability and sustainable performance in a sample of 373 construction firms.Design/methodology/approachThe authors apply quantitative questionnaire data from construction firm representatives (from project, sales and construction managers and contract managers, executive directors and engineers) to structural equation modeling and SmartPLS for our analysis.FindingsThe results demonstrate that recourse to environmental MCS packages significantly influence ecological sustainability, sustainable performance and environmental strategies. Additionally, environmental strategies and organizational capabilities significantly influence ecological sustainability and sustainable performance. Moreover, environmental strategies mediate between environmental MCS packages, ecological sustainability and sustainable performance. Organizational capabilities significantly moderate the relationship between ecological sustainability and sustainable performance.Practical implicationsThis research highlights the issue of how the management of construction organizations deploy environmental MCS packages, organizational capabilities and business strategies to measure ecological sustainability and improve their sustainable performance. This study fills a gap in the literature and facilitates the management of construction organizations in strengthening their internal resources in terms of environmental MCS packages, environmental strategies and organizational capabilities able to help improve their ecological sustainability and sustainable performance.Originality/valueThere are few studies building theoretical frameworks for incorporating environmental MCS packages, organizational capabilities, environmental strategies, ecological sustainability and sustainable performance into a single study. Although the influence of various types of intangible resources on ecological sustainability and sustainable performance receive considerable examination in the literature, there is a dearth of attention paid to understanding the role of environmental MCS packages, environmental strategies and organizational capabilities in determining the ecological sustainability and sustainable performance of construction organizations.

Coordination and employee motivation play vital roles in a mega-project’s sustainable performance, particularly in the construction industry. With increasing demands from stakeholders and employees in the construction sector, sustainable performance has emerged as a priority. However, the importance of quality relationships and quality management systems is often overlooked. This research addresses this gap by establishing a predictive model for sustainable performance. Data from 261 respondents in Pakistan’s construction industry were collected, and hypotheses were tested using partial least squares structural equation modeling. The results indicate that coordination and employee motivation exert a positive impact on sustainable performance. Furthermore, quality relationships partially mediate the relationship between coordination and sustainable performance and between employee motivation and sustainable performance. Additionally, quality management systems significantly moderate the relationship between coordination and sustainable performance, whereas the relationship between employee motivation and sustainable performance is insignificant. This study provides valuable insights for project coordinators, project managers, and policymakers on enhancing the stability of construction projects in emerging economies through quality relationships and quality management systems.

Purpose: This study investigates the impact of digital business intensity and transformation on organizational ambidexterity and sustainable performance on insurance companies in Indonesia from a dynamic capabilities’ perspective.Design/methodology/approach: The study uses a quantitative approach, purposive sampling used to select insurance companies with assets over IDR 1 trillion. The primary data was obtained directly from the top-level management unit of 120 data questionnaires, namely, 40 Chief Executive Officer (CEO), 40 chief agency officer (CAO) and 40 Chiefs Technology Officer CTO) of each company. The data of each department in a company is aggregated as a single unit of responses from one company. The Structural Equation Model is used as a method to test and analyze data, using SmartPLS software.Purpose: This study aims to investigate the impact of digital business intensity and digital transformation on organizational ambidexterity and sustainable organizational performance in Indonesian insurance firms from a dynamic capability perspective.Design/methodology/approach: Through quantitative approach, purposive sampling is used to select insurance companies with assets exceeding IDR 1 trillion. Primary data was collected through structured questionnaires distributed to 120 top-level executives, including 40 Chief Executive Officers (CEOs), 40 Chief Agency Officers (CAOs), and 40 Chiefs Technology Officers CTOs). Responses from each company were aggregated to form a unified dataset for analysis. Structural Equation Modeling (SEM) was used to analyze the data using SmartPLS software.Findings: The findings reveal that both digital business transformation and government interventions significantly increase organizational ambidexterity. Furthermore, organizational ambidexterity serves as a mediator for the relationship between digital business intensity and government intervention towards sustainable organizational performance. The mediating role of organizational ambidexterity in the relationship for digital business intensity and sustainable organizational performance is positively moderated by digital business intensity.Research limitations/implications: The study applies dynamic capability as a theoretical basis to understand how insurance companies can attain sustainable performance in the digital age. However, it acknowledges limitations, such as the exclusion of external factors like macroeconomic conditions, regulatory changes, and rapid technological advancements. The focus on the insurance sector may also limit the applicability of the findings to other industries with different dynamics.Practical implications: The study provides actionable insights for insurance firms to refine their digital strategies. By developing and validating new metrics to measure digital business intensity and sustainable performance, firms can better assess the effectiveness of their digital transformation. This framework serves as a guide for practitioners to evaluate the impact of digital initiatives on their organizations.Originality/value: This study enriches the organizational literature by demonstrating how digital business intensity and ambidexterity contribute to enhancing sustainable performance in the insurance industry. It also highlights the significance of government policies as external factors influencing organizational dynamics, offering a new perspective on how these elements interact within the context of dynamic capabilities in the financial sector.

This research aims to examine the factors that determine the sustainable performance of the hospitality sector of Pakistan. Particularly, it measures the effect of three green HRM practises on hotels' social, economic, and environmentally sustainable performance. The research model incorporates a serially mediated role of green intellectual capital and green behaviour to connect green training, green benefits and compensation, and green hiring with sustainable performance. The study uses the Social Cognitive Theory and resource-based view theory and analyses data using simple random sampling, confirmatory factor analysis, and structural equation modelling. Data is collected from the staff of hotels through a dyad approach by employing the self-administered 5-Likert scale questionnaire. The response rate is 99%, and findings show that green intellectual capital and green behaviour serially mediate amongst green performance, green training, sustainable social performance, sustainable economic performance, and environmentally sustainable performance. However, green hiring does not regress directly or partially with the components of sustainable performance. The study's originality develops green HRM practises based on sustainable performance in the hospitality sector in developing nations. The study's findings are important for achieving sustainable development goals, improving the hospitality sector performance, and employees' role in sustainable performance. The study is sector-specific, and future studies may choose the moderated role of factors to determine sustainable performance.

PurposeSocial media marketing (SMMT) is explored in the light of value creation (VC) and firms' sustainability performance. This research deals with the influence of both value co-creation (VCCR) and value co-destruction (VCDE) on SMMT and firm sustainability.Design/methodology/approachA quantitative approach is employed in this research. By means of structural equation modeling (SEM), specifically, PLS (partial least squares)-SEM, consumers' responses are analyzed.FindingsThe result confirms that SMMT influences firms' sustainability performance. Additionally, the study established a relationship between SMMT and VCCR and SMMT and VCDE. The study further showed that VCCR contributes to sustainability. Concerning the indirect relationships, the study indicates that VCDE influenced SMMT and sustainability performance.Research limitations/implicationsA theoretical basis for studying both VCCR and VCDE is provided. The current study especially encourages further study into VCDE.Practical implicationsThis work informs businesses about using SMMT to enhance sustainability performance. This work also warns about the reality of VCDE when using SMMT.Originality/valueThis research empirically explores SMMT and firm sustainability performance (SPFM) and also has a model that includes both VCCR and VCDE.

The purpose of this study is to examines: (1) positive relation between service innovation and structural autonomy, (2) positive relation between structural autonomy and financial performance measurement system, (3) positive relation between structural autonomy and nonfinancial performance measurement system, (4) indirect relation between sevice innovation and performance measurement system via structural autonomy, and (5) indirect relation between service innovation and organizational outcomes via strutural autonomy and performance measurement system. The responses of 100 top level managers and middle level managers, drawn from 14 hospitals of Daerah Istimewa Yogyakarta, to a questionnaire survey were analizysed by using a structural equation model. The findings from this study suggest that there’s a positive relation between service innovation and structural autonomy. If the hospital made a decision to running the new program, structural autonomy had to agree with the necessity of the implementation of that program. There’s a positive relation between structural autonomy and the both types of performance measurement system.. These measures will be influenced by the degree of autonomy delegated to the lower level of management.There’s an indirect relation between structural autonomy and performance measurement system through structural autonomy. Structural autonomy has an important role as mediator between service innovation and performance measurement system. There’s and indirect relation between service innovation and organizational outcomes through structural autonomy and performance measurement system.. The new program needs the right structural autonomy and design of performance measurement system, so that maximal outcomes can be achieved. Keywords: service innovation, structural autonomy, performance measurement system, organizational outcomes.

This study investigates the drivers of green innovation and their impact on sustainable business performance in small and medium-sized enterprises (SMEs) in Pakistan, with a focus on the moderating role of green technology capability. Drawing upon the Natural Resource-Based View (NRBV), the research conceptualizes green absorptive capacity, sustainable human capital, and organizational support as key antecedents of green innovation while positing that green technology capability enhances these relationships. The study explores the influence of green innovation on the environmental, economic, and social dimensions of sustainable business performance. Using a quantitative research design, data were collected through a structured survey from 321 managers across various SME sectors in Pakistan. Structural Equation Modeling (SEM) was employed to test the hypothesized relationships. Contrary to expectations, the results reveal that green absorptive capacity, sustainable human capital, and organization support do not significantly predict green innovation, and green technology capability does not moderate these relationships. These findings suggest that internal capabilities, while theoretically relevant, may not translate into innovative environmental practices in resource-constrained SME environments without strategic alignment and operational integration. However, green innovation was found to have a significant and positive impact on all three dimensions of sustainable performance, environmental, economic, and social, affirming its role as a critical mechanism for achieving sustainability. The study offers important theoretical contributions by challenging the generalizability of conventional green innovation models in developing economies and emphasizing the need to examine contextual and institutional dynamics. Practically, it highlights the necessity for SME leaders to go beyond capability development and focus on implementation processes, technology integration, and innovation culture to realize sustainability goals.

Purpose The accelerating digitalization of business environments presents significant opportunities and complex ethical challenges, particularly in emerging economies confronting heightened cybersecurity risks and evolving regulatory frameworks. This study aims to address how dynamic managerial capabilities influence corporate digital responsibility (CDR) and sustainable competitive performance in Vietnamese enterprises. Crucially, the research model positions stakeholder engagement as a moderating variable, examining its role in strengthening the relationship between managerial capabilities and CDR adoption. Design/methodology/approach A quantitative research design was used, utilizing survey data collected from 428 Vietnamese firms. Structural equation modeling was used to test the hypothesized relationships among dynamic managerial capabilities, stakeholder engagement, CDR and sustainable performance. Findings The analysis reveals that all three dimensions of dynamic managerial capabilities significantly foster CDR engagement. While stakeholder engagement directly enhances CDR, it also negatively moderates the relationship between managerial capabilities and CDR, suggesting that higher stakeholder involvement may attenuate the direct influence of managerial capabilities. Furthermore, CDR is shown to mediate the effect of managerial capabilities on sustainable competitive performance, highlighting its pivotal role in achieving organizational outcomes. Originality/value By conceptualizing CDR as a strategic leadership outcome shaped by both internal managerial capabilities and external stakeholder engagement, this research advances theoretical understanding and provides actionable insights for embedding ethical digital practices into organizational strategy, particularly in the context of emerging markets.

ABSTRACTThis research investigates the complex relationships between digital orientation, entrepreneurial competency, and strategic change, and their impact on sustainable business performance. It also explores how sustainable competitive advantage and flexible resources moderate the link between strategic change and sustainable performance outcomes in dynamic business environments. The authors collected survey data from 349 small and medium‐sized enterprises (SMEs) to test the proposed model. They then used partial least squares structural equation modelling (PLS‐SEM) with SmartPLS 4 software to analyze the relationships between the variables. The findings reveal that digital orientation strongly drives strategic change, which in turn strongly enhances sustainable business performance. Digital orientation also directly leads to sustainable performance. Strategic change mediates the relationship between digital orientation and sustainable performance, while entrepreneurial competency partially mediates the effects of digital orientation. Competitive advantage and flexible resources moderately strengthen the link between strategic change and sustainable performance. This study provides novel insights into the complex interplay between digital orientation, entrepreneurial competency, and strategic change, and how these factors jointly contribute to sustainable business performance. The findings also uncover the moderating roles of competitive advantage and flexible resources, offering practical guidance for managers seeking to enhance long‐term organizational success in dynamic environments.

This study investigates how Green Technology Innovation (GTI) enhances Sustainable Business Performance (SBP) through the mediating role of Circular Economy (CE) practices, offering an integrative framework that addresses firm-level sustainability strategy. A quantitative, cross-sectional survey was conducted among 250 manufacturing firms. Using validated instruments, data were collected on GTI activities, CE implementation, and SBP outcomes. Structural Equation Modeling–Partial Least Squares (SEM-PLS) was employed to test direct and indirect relationships, with bootstrapping applied to assess mediation effects.Findings reveal that GTI positively influences both CE adoption (β = 0.64, p < 0.001) and SBP (β = 0.32, p < 0.01). CE also directly enhances SBP (β = 0.58, p < 0.001) and partially mediates the GTI–SBP relationship (indirect β = 0.37, p < 0.001). Sectoral and geographic variations in adoption were noted, with larger and high-tech firms demonstrating higher engagement. The results validate the Natural Resource–Based View (NRBV), indicating that firms with integrated GTI–CE strategies gain competitive and environmental advantages. CE was found to serve as both a performance enabler and a resilience mechanism. GTI and CE are complementary strategies for achieving SBP. Firms should embed CE into their innovation strategies to maximize outcomes. Policymakers are encouraged to promote supportive regulatory and fiscal environments. Future studies should explore longitudinal effects and sector-specific dynamics.