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Innovating for performance: the role of lean construction and strategic partnerships in construction firms

Author

Listed:
  • Johan Arifin
  • Harjanto Prabowo
  • Mohammad Hamsal
  • Elidjen Elidjen

Abstract

This study examines the effects of lean construction and strategic partnerships on firm performance, with business model innovation as a mediating mechanism in the construction industry. A quantitative research design was employed, using data collected from 226 largescale construction firms registered as national contractors. The data were analysed using PLS-SEM. The results indicate that lean construction has a positive direct effect on firm performance and a stronger indirect effect when mediated by business model innovation. Strategic partnerships do not exert a significant direct influence on firm performance, but they contribute positively when their impact is channelled through business model innovation. In addition, business model innovation shows a strong and positive direct effect on firm performance. These findings suggest that operational efficiency and interorganisational collaboration yield optimal performance outcomes only when supported by systematic innovation across value creation, value proposition, and value capture.

Suggested Citation

  • Johan Arifin & Harjanto Prabowo & Mohammad Hamsal & Elidjen Elidjen, 2026. "Innovating for performance: the role of lean construction and strategic partnerships in construction firms," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 39(6), pages 1-25.
    • Handle: RePEc:ids:ijbire:v:39:y:2026:i:6:p:1-25
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