Linking innovation, empowerment to facilitate project performance: A mediated moderation model

Abstract

Existing literature on construction innovation has not achieved an in-depth understanding of how and under which conditions individuals engage in creative activities to facilitate project task performance. In this study, 286 matched data sets between project members and leaders/supervisors, were collected and examined using a mediated moderation model. Drawing from the conservation of resources theory, individuals’ innovative behaviors and leaders’ empowerment strategies were found to positively affect project performance. Leader-member exchange (LMX) both moderates and augments the relationship between innovative behavior and project performance. Further, LMX mediates the moderation effect of empowering leadership and enhances the innovation process. The results of this study offer guidance on how project practitioners can facilitate project performance by motivating innovation in construction projects through empowering strategies and relationship development. This research extends and enriches the current understanding of the processes linking innovative behavior and project performance by identifying the mediating moderation mechanism of empowering leadership and LMX.