Nguyen, M V (2026) Exploring the impacts of risk perception and risk management planning on innovation orientation: A PLS-SEM approach. Engineering, Construction and Architectural Management, 33(1), pp. 509-531. ISSN 0969-9988
Abstract
Purpose – Although risk and innovation are often linked, current studies exploring the correlation between these terms are scarce. This study empirically examines the relationship between construction firms' risk perception, risk management planning and innovation orientation. Design/methodology/approach – A conceptual framework was formed through the literature and validated by the partial least squares structural equation modeling (PLS-SEM) technique, employing the data collected from 182 practitioners working in the Vietnamese construction sector. Findings – This study highlighted that innovation orientation can be categorized as creation and adoption. The findings indicated that while risk perception can hinder innovation creation, effective risk management planning can mitigate the adverse effects. The findings also highlighted that the focus on innovation adoption will negatively affect innovation creation. Additionally, the findings showed that risk management planning has a positive relationship with innovation creation. Originality/value – This study fills the research gap by explaining why innovation creation is often prioritized by innovation adoption, as risk perception acts as a deterrent. The results imply that construction firms should balance adopting innovations and fostering an environment conducive to innovation creation. It is recommended that these firms invest organizational resources in forming effective risk management plans to create a more secure environment for innovation creation.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | innovation adoption; innovation creation; innovation orientation; PLS-SEM; risk management planning; risk perception |
| Index terms: | innovation adoption, risk management, innovation creation, construction firm, risk perception, structural equation modelling, practitioner, methodology, innovation orientation, partial least square, construction sector, conceptual framework |
| Subjects: | innovation studies, practitioner, organization, environmental hazards, research methods, theoretical framing, business, risk assessment, statistical analysis, industry analysis |
| Topics: | Sustainability, Risk Management, Roles and Professions, Research Practice, Business Strategy |
| 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