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Organisational and leadership impact on digital capabilities within the construction industry

Author

Listed:
  • Johari Muhd Shafiq

    (Department of Quantity Surveying, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor Bahru, Malaysia)

  • Mahmud Syamsul Hendra

    (Department of Quantity Surveying, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Skudai, Malaysia)

  • Musa Suria

    (School of Technology Management & Logistics, Collage of Business, Universiti Utara Malaysia, Sintok, Malaysia)

  • Mohammad Hairuddin

    (Department of Civil Engineering, Universiti Tun Hussein Onn Malaysia, Parit Raja, Malaysia)

  • Mahdzir Mazura

    (Department of Quantity Surveying, University of Malaya, Kuala Lumpur, Malaysia)

  • Uti Mat Nizam

    (Collage of Built Environment, Universiti Teknologi Mara Perak Branch, Seri Iskandar Campus, Seri Iskandar, Malaysia)

  • Jairin Syarif Abdul Asaad

    (Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor Bahru, Malaysia)

Abstract

This study investigates the interactions among leadership capability (LCAP), organisation capability (OCAP), emphasising the mediating role of digital mindset (DIND) and the moderating effect of digital technology capability (DCAP) in the Malaysian construction industry. Data from 341 managerial leaders, analysed through confirmatory composite analysis and the bootstrap method, indicate that a strong LCAP significantly enhances the leadership styles. The DIND mediates the relationship between LCAP and OCAP, confirming that enhanced digital leadership capability (DLCAP) is crucial for transforming OCAP towards effective organisational innovation. Furthermore, DCAP negatively moderates the relationship between leadership and organisational capability. The current lack of automation demands more effective management of organizational challenges, highlighting a key area for future technological advancement. These findings extend the discourse on digital literacy by offering practical insights for construction stakeholders striving to incorporate the Construction Industry Competency Standard (CICS) through advancements in digital capabilities. Moreover, provides an understanding of DLCAP on the synergy between digital technology, leadership styles and organisational innovation, offering valuable perspectives for policymakers and construction leaders aiming to foster continuous digital transformation within the construction industry.

Suggested Citation

  • Johari Muhd Shafiq & Mahmud Syamsul Hendra & Musa Suria & Mohammad Hairuddin & Mahdzir Mazura & Uti Mat Nizam & Jairin Syarif Abdul Asaad, 2026. "Organisational and leadership impact on digital capabilities within the construction industry," Organization, Technology and Management in Construction, Sciendo, vol. 18(1), pages 1-15.
  • Handle: RePEc:vrs:otamic:v:18:y:2026:i:1:p:1-15:n:1002
    DOI: 10.2478/otmcj-2026-0002
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