Abstract
Abstract The need to carry out construction activities in a sustainable manner in the Niger Delta region of Nigeria has become very imperative. The aim of the study was to establish the relationship between the adoption of sustainable construction practices and performance of construction firms using a structural equation modelling approach. In tandem with the survey approach adopted for the study, 1179 copies of structured questionnaire were administered while 980 valid responses were received giving a response rate of 83.2 %. Data were analysed using descriptive statistics and structural equation modelling. This study revealed that the extent of implementation of sustainable construction practices accounted for 36 %, 37.8 %, 43.5 %, 51.6 %, 65.8 %, and 32.9 % of the variability in annual employment growth, annual financial turnover, remuneration and benefits, general employee satisfaction, social performance and net income growth of the construction firms, respectively. The study concluded that there was a positive relationship between the extent of implementation of sustainable construction practices and firm performance. It was also concluded that the adoption level of sustainable construction practices accounted for 85 % of the variability in the overall firm performance. Hence, proper implementation of sustainability practices at the firm level leads to improvement in the firm performance. It was recommended that construction firms should not use only financial performance indicators to evaluate their performance level but rather use multi-dimensional approaches. This will enable firms to have holistic knowledge of the level of their performance. The construction firms should adopt the structural equation model developed in the study to carry out integrated performance measurement.
Highlights
There is a growing pressure to develop the environment in a sustainable manner
The study showed that 51.6 % of the variability in general employee satisfaction was explained by the adoption level of sustainable building practices and 65.8 % of the variability in the social performance was explained by the adoption level of sustainable building practices
The study developed the structural equation model that predicted the performance of construction firm from the adoption level of sustainable construction practices
Summary
There is a growing pressure to develop the environment in a sustainable manner. This includes environmental, social and economic sustainability. The building industry is responsible for infrastructural development of the society but it consumes a lot of resources and energy. Corporate-level sustainability is the ability to achieve social and environmental needs, as well as company profitability (Porter, 2008). Sustainable construction is explained as the implementation of the principles of sustainable development in the built environment
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