SUSTAINABLE CONSTRUCTION PROJECT MANAGEMENT IN THE NET-ZERO ERA: INTEGRATING GREEN INNOVATION, ENVIRONMENTAL LAW, AND ECONOMIC COMPETITIVENESS

Abstract

Rising net-zero commitments have made the construction industry, a major contributor to global greenhouse gas emissions, central to climate action, yet limited research examines how green innovation and environmental law jointly shape sustainable project outcomes and firm competitiveness. This study examines how green innovation adoption and environmental law compliance influence sustainable project management outcomes and economic competitiveness in construction firms during the net-zero transition. Grounded in the Resource-Based View, Dynamic Capabilities Theory, and Stakeholder Theory, the study adopts a positivist, deductive, quantitative design. Data were collected via a structured Likert-scale questionnaire from 306 construction professionals in Lahore, Punjab, comprising project managers, site/civil engineers, environmental/compliance officers, and quantity surveyors, selected through stratified random sampling from a population of 1,500. Partial Least Squares Structural Equation Modelling (PLS-SEM) in SmartPLS 4 was used for measurement and structural model analysis. Findings confirmed all five hypothesized paths as significant (p < .001), showing green innovation adoption strongly predicts sustainable project success, while environmental law compliance significantly enhances economic competitiveness, with both constructs mutually reinforcing. Results support integrating innovation and compliance as complementary strategic priorities for net-zero construction management.