Abstract
Abstract 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.
Highlights
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
Tam (2008) and Lilja (2009) maintain that in the construction industry, sustainability is generally interpreted as environment oriented. In view of this consideration, the present study considers the environmental, social and economic sustainability of the construction firms operating in the Niger Delta region of Nigeria
This study demonstrates that the implementation of innovative practices by the construction firms accounts for 26.6 %, 10.3 % and 18.1 % of the annual financial turnover, annual employment growth, and net income, respectively, of the construction firms operating in the Niger Delta region of Nigeria
Summary
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. Having a good knowledge of the dimensionality of firm sustainability enables the construction firms to make better decisions about which indicators to include or leave out, and the potential consequences of these choices. Love and Roper (2015) posited that many corporate organisations introduced innovation into their business operations in order to increase their productivity, competitiveness, market share. Organisations that have greater capacity to implement innovative practices respond to environmental challenges faster and better than the organisations that are not innovative (Rukundo, 2017)
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