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Resilience and innovation in the face of disruption: An empirical study of Australia's construction sector

Author

Listed:
  • Gupta, Naresh
  • Gunawan, Indra
  • Kamineni, Rajeev

Abstract

The global pandemic and the geopolitical tensions (Russia-Ukraine war, Israel-Palestinian conflict, supply chain disruptions, shifts in trade alliances, and resource reallocations) have significantly disrupted Australia's construction sector, causing delays, material shortages, cost escalations, and supply chain vulnerabilities. These disruptive global events have prompted a rapid shift to digital technologies and resilience strategies. Adapting to these shifts, the sector seeks to balance opportunities like innovation and sustainability with evolving risks and ongoing challenges. This requires a focus on resilient and sustainable investments to achieve economic recovery. This article aims to provide empirical insights into how the sector has been impacted, adapted, and evolved in response to the various opportunities and challenges posed by these global events. In doing so, it seeks to offer valuable guidance for policymakers, industry stakeholders, and researchers while navigating the current landscape. The study employs a mixed research design to thoroughly investigate the impacts, challenges, and opportunities presented by these global events on the Australian construction sector and its supply chains, with quantitative data from 220 professionals and qualitative insights from 19 domain experts. The key findings highlight the initial disruption and subsequent resilience in the construction sector due to the changing landscape, the emergence of opportunities with government support for sustainable construction, and ongoing challenges, including labour shortages and supply chain vulnerabilities. The study offers valuable recommendations for integrating innovation, sustainability, collaboration, and adaptability to ensure a prosperous and resilient future for the construction sector and sustained growth and prosperity for the nation. The findings and observations made within this study have wide-ranging implications for policymakers, industry professionals, researchers, and the broader community. The study offers insights to inform policy development, strategic investments, workforce development, technology adoption, and supply chain resilience in the Australian construction sector.

Suggested Citation

  • Gupta, Naresh & Gunawan, Indra & Kamineni, Rajeev, 2026. "Resilience and innovation in the face of disruption: An empirical study of Australia's construction sector," International Journal of Production Economics, Elsevier, vol. 292(C).
    • Handle: RePEc:eee:proeco:v:292:y:2026:i:c:s0925527325003159
    DOI: 10.1016/j.ijpe.2025.109830
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    References listed on IDEAS

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