Unveiling the impact of innovation on competitiveness among construction projects: Moderating and mediating role of environmental regulation and sustainability

Innovation and sustainability are two important determinants to promote the competitiveness of construction projects. In order to improve the production efficiency, environmental regulation is an indispensable element. Nevertheless, few studies have discussed the complex relationships between innovation, sustainability, environmental regulation and competitiveness at the project level. Motivated by this, the paper aims to explore the interaction between innovation and sustainability, and the impacts on competitiveness, while incorporating the mediating role of sustainability and moderating role of environmental regulation. Based on structural equation modeling method, a novel conceptual model was established. By processing and analyzing 184 valid questionnaires, the findings indicate that innovation has a positive effect on sustainability and competitiveness. Sustainability is also significantly associated with competitiveness. Moreover, the relationship between innovation and competitiveness is partially mediated by sustainability. When construction projects carry out innovation activities or implement sustainability practices, the greater the degree of environmental regulation, the higher the competitiveness. These findings provide theoretical contributions to the existing studies, revealing the intertwined relationships between innovation sustainability environmental regulation and competitiveness at the project level. In practice, project managers can improve project sustainability and competitiveness by adopting sustainability-rooted practice and innovation-based activities.