Project Complexity and Performance in the Construction Sector: The Mediating Role of Knowledge Sharing and the Moderating Role of Trust

Construction projects play a pivotal role in the economic and social development of developing countries by strengthening national infrastructure. However, the inherent complexity of such projects frequently undermines their successful execution and overall performance. Drawing on knowledge-based and relational perspectives, this study examines the impact of project complexity on project performance, incorporating knowledge sharing as a mediating mechanism and trust as a moderating variable. This study adopts a quantitative research design. Data were collected from 252 employees working in construction companies in Pakistan using a convenience sampling technique. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the proposed moderated mediation model. The findings indicate that project complexity significantly influences project performance. Knowledge sharing partially mediates the relationship between project complexity and project performance, suggesting that effective knowledge exchange mechanisms can alleviate some negative consequences of complexity. Furthermore, trust significantly moderates the relationship between project complexity and knowledge sharing, strengthening knowledge-sharing behaviors under conditions of high complexity. However, trust does not significantly moderate the relationship between knowledge sharing and project performance. This study contributes to project management literature by presenting an integrated framework that explains how complexity affects performance through knowledge-sharing processes and relational dynamics. The findings provide practical implications for project managers, emphasizing the need to cultivate trust and institutionalize knowledge-sharing practices to enhance project outcomes in complex construction environments.