Innovating for performance: the role of lean construction and strategic partnerships in construction firms

This study examines the effects of lean construction and strategic partnerships on firm performance, with business model innovation as a mediating mechanism in the construction industry.A quantitative research design was employed, using data collected from 226 large-scale construction firms registered as national contractors.The data were analysed using PLS-SEM.The results indicate that lean construction has a positive direct effect on firm performance and a stronger indirect effect when mediated by business model innovation.Strategic partnerships do not exert a significant direct influence on firm performance, but they contribute positively when their impact is channelled through business model innovation.In addition, business model innovation shows a strong and positive direct effect on firm performance.These findings suggest that operational efficiency and inter-organisational collaboration yield optimal performance outcomes only when supported by systematic innovation across value creation, value proposition, and value capture.