Wang, D; Huang, R; Li, K and Shrestha, A (2025) Organizational structure and dynamic capabilities on business model innovation in project-driven enterprises: Evidence from the construction industry. Engineering, Construction and Architectural Management, 32(1), pp. 578-600. ISSN 0969-9988
Abstract
Purpose: Flexibility and efficiency are dual attributes of the organizational structure that are crucial for project-driven enterprises to achieve sustainable development in a dynamic environment. However, there is a lack of research on the patterns by which the dual attributes of a project-driven enterprise's organizational structure affect business model innovation. Employing organizational theory, this study aims to assess the mediating mechanisms and dynamic capabilities through which the dual attributes of the organizational structure influence business model innovation in project-driven enterprises. Design/methodology/approach: Data were collected from 242 employees from four project-driven companies across 26 cities (e.g. Beijing, Tianjin, Guangzhou and Shenzhen) in China. Structural equation modeling revealed the relationship between organizational structure's dual attributes and business model innovation. Findings: The findings show that the dual attributes (flexibility and efficiency) of the organizational structure have positive impacts on business model innovation. Moreover, dynamic capabilities mediate the relationship between the dual attributes and business model innovation in project-driven enterprises. Originality/value: This study provides contributions to innovation research in the context of project-driven enterprises by revealing the influence of organizational structure on business model innovation through the firms' dynamic capabilities. Such knowledge can enable managers of project-driven enterprises to develop effective interventions to promote business model innovation.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | business model innovation; dynamic capabilities; organizational efficiency; organizational flexibility; project-driven enterprise |
| Index terms: | construction industry, business model, Beijing, efficiency, China, dynamic capability, methodology, evidence, sustainable development, structural equation modelling, manager, organizational structure, organizational theory |
| Subjects: | health safety and environment, Geography, research methods, practitioner, evaluation and assessment methods, performance management, management, statistical analysis, industry analysis, sociology, business |
| Topics: | Health and Safety, Geographical Context, Quality Management, Business Strategy, Research Practice, Roles and Professions, Organizational Design |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here