Structural Equation Modelling for Establishing Empirical Relationship Between Organisational Innovativeness and Sustainability of Construction Firms in Nigeria

Abstract

The quest to implement innovative practices that will lead to a high level of sustainability at the firm level within the construction sector cannot be overemphasised. The aim of this study is to establish the empirical relationship between organisational innovativeness and sustainability of construction firms using a structural equation modelling approach. The study has adopted a survey approach and 1179 copies of structured questionnaire have been administered to construction firm representatives. A total of valid 980 copies of questionnaire have been received giving a response rate of 83.2 %. Data collected have been analysed using descriptive statistics and structural equation modelling. The correlation coefficient (β = 0.81) shows that organisational innovativeness positively influences the sustainability of construction firms. The study reveals that 66.1 % of the variability in the overall sustainability of construction firms operating in the Niger Delta region of Nigeria is accounted for by the implementation of innovative practices by the construction firms. It is concluded that 67.1 %, 83.8 % and 45.7 % of the variability in the construction firm’s social, environmental and economic sustainability, respectively, are explained by the implementation level of innovative practices by the top management teams of the firms. In line with the findings, this study concludes that efficient implementation of innovative practices at the firm level has a significant and positive influence on the overall sustainability of construction firms.