Intellectual capital and sustainability performance: the mediating role of digitalization

Abstract

PurposeAs a highly knowledge-intensive activity, digitalization is changing the construction industry landscape and is encouraging construction firms to explore the transformation. This study establishes a new theoretical model aimed at examining the impact of three types of intellectual capital (IC) on digitalization through the lens of knowledge-based view and explores how IC and digitalization influence sustainability performance from the triple bottom line principles.Design/methodology/approachA questionnaire survey was conducted to collect data from Chinese construction firms using convenience sampling. A total of 181 valid responses were obtained. Then, a partial least squares structural equation modelling (PLS-SEM) technique was executed through Smart PLS 3.0 software. The measurement model was assessed to ensure reliability and validity, and the structural model was analysed to test the proposed hypotheses.FindingsThe empirical results confirm the positive impact of IC on digitalization and digitalization on sustainability performance. Moreover, digitalization plays a significant mediating role in the relationship between IC and sustainability performance.Originality/valueThe results provide empirical evidence supporting the different roles of IC and digitalization in improving sustainability. The findings contribute to enhancing the understanding of digitalization practices from the perspective of IC and provide theoretical and managerial implications for sustainability issues in the context of the construction industry.