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The Effect of Innovation on The Sustainable Performance: Evidence from Ethiopian Construction Sector in the Post-Pandemic Era

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  • Mahlet Gashaw Tadesse

    (School of Management, Jiangsu University, 301 Xuefu Rd, Zhenjiang, Jiangsu, 212013 P.R. China)

  • Li Zhen

    (School of Management, Jiangsu University, 301 Xuefu Rd, Zhenjiang, Jiangsu, 212013 P.R. China)

Abstract

The Covid-19 pandemic has imposed challenges on several industries, including construction firms in Ethiopia. This industry has encountered the issue of enhancing its services to ensure the long-term sustainability of its activities. Thus, the purpose of this study is to investigate the impact of service innovation on the sustainable performance of Ethiopian construction firms. while considering information systems and employee productivity as mediating variables and innovation capability as moderators. Therefore, this study includes several managerial aspects and explores knowledge across various disciplines. 160 valid questionnaires were received and processed, and a linear structural equation model (LISREL) was used for investigation. It is found that employee productivity and information systems have mediating effects on the positive relationship between service innovation and sustainable performance. In conclusion, service innovation driven by information systems can enable construction companies in enhancing their sustainable performance by optimizing processes, minimizing waste, and maximizing resource efficiency. By leveraging information technology and employee productivity, construction companies can lower their environmental footprint and increase their profitability. According to the results of the study, service innovation to improve performance in construction firms needs to enforce the use of information systems and rely on its employees. In addition, the conclusions of this study can also provide a reference for other companies in other industries on innovation and operational decision-making in developing countries.

Suggested Citation

  • Mahlet Gashaw Tadesse & Li Zhen, 2023. "The Effect of Innovation on The Sustainable Performance: Evidence from Ethiopian Construction Sector in the Post-Pandemic Era," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 9(3), pages 27-40, March.
    • Handle: RePEc:mgs:ijmsba:v:9:y:2023:i:3:p:27-40
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.93.1003
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    More about this item

    Keywords

    Service innovation; Information system; Employee productivity; Sustainable performance;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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