Digital Innovation & Knowledge Integration as Drivers of Sustainable Operational Performance: The Mediating Role of Green Process Innovation in Pakistan’s Construction Sector

Abstract

This study examines how digital innovation capability and knowledge integration influence sustainable operational performance in Pakistan’s construction sector, with a focus on the mediating role of green process innovation. The objective is to understand how technological advancement and organizational knowledge practices jointly enhance sustainability outcomes in construction projects, which are critical for environmental compliance and resource efficiency. A quantitative, cross-sectional research design was adopted. Data were collected from project managers, site engineers, and operations supervisors working in large and medium-scale construction firms across Lahore, Karachi, and Islamabad. The findings indicate that both digital innovation capability and knowledge integration have a significant positive impact on sustainable operational performance. Green process innovation partially mediated these relationships, demonstrating that construction firms leveraging digital tools and integrated knowledge systems adopt greener processes, reduce environmental impact, and enhance overall sustainability. It contributes empirical evidence from a developing economy by highlighting how construction firms in Pakistan can achieve sustainable operational performance through coordinated technological and knowledge-driven strategies.