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Business Process Improvement for Sustainable Technologies Investments in Construction: A Configurational Approach

Author

Listed:
  • Lincoln C. Wood

    (Department of Management, University of Otago, Dunedin 9054, New Zealand
    School of Management, Curtin University, Perth, WA 6102, Australia)

  • Linh N. K. Duong

    (Faculty of Business and Law, University of the West of England, Bristol BS16 1QY, UK)

  • Jason X. Wang

    (Department of Logistics, Marketing, Hospitality and Analytics, University of Huddersfield, Huddersfield HD1 3DH, UK)

Abstract

Given the importance of investments in business process improvements for sustainable technologies, many industry sectors are forced to examine and balance new investments with long-term economic viability. There are disputes with regard to the value of investments, particularly within the construction sector, which is characterized by poor capitalization, over-leveraged firms, and high risks, often coupled with business cycles or boom and bust periods. Understanding when construction firms should engage in business process improvements with sustainable technologies is not clear due to the risks and investment costs. To address this problem, the study takes a configurational approach to examine the factors of leverage and use of capital to examine their impact on firm performance with qualitative comparative analysis (QCA). We show distinct configurational outcomes that are associated with superior success, giving construction firms viable pathways to evaluate potential investments in sustainable technologies. Specifically, one configuration, focusing on incremental innovations, consistently produces positive firm performance. Two configurations that lead to the absence of performance are associated with radical innovations in firms that struggle to manage their working capital.

Suggested Citation

  • Lincoln C. Wood & Linh N. K. Duong & Jason X. Wang, 2022. "Business Process Improvement for Sustainable Technologies Investments in Construction: A Configurational Approach," Sustainability, MDPI, vol. 14(9), pages 1-14, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5697-:d:811208
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    References listed on IDEAS

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    1. Lincoln C. Wood & Jason X. Wang, 2018. "The Event Study Method in Logistics Research: Overview and a Critical Analysis," International Journal of Applied Logistics (IJAL), IGI Global, vol. 8(1), pages 57-79, January.
    2. Tran, Phuong Nguyen Thu & Gorton, Matthew & Lemke, Fred, 2021. "When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes," Journal of Business Research, Elsevier, vol. 127(C), pages 277-289.
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    7. Linh N. K. Duong & Jason X. Wang & Lincoln C. Wood & Torsten Reiners & Mona Koushan, 2021. "The value of incremental environmental sustainability innovation in the construction industry: an event study," Construction Management and Economics, Taylor & Francis Journals, vol. 39(5), pages 398-418, May.
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    Cited by:

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