Exploring Organizational Innovativeness Factors Influencing Sustainable Construction Adoption J. A. Bamgbade, Faculty of Engineering, Computing and Science, Swinburne University of Technology Sarawak Campus, Jalan Simpang Tiga, 93350 Kuching, Sarawak, Malaysia, jibril1717@yahoo.com A.M. Kamaruddeen, Quantity Surveying Program, School of Built Environment, University College of Technology Sarawak, Malaysia, qamaruddeen@yahoo.com M.N.M. Nawi, School of Technology Management and Logistics, College of Business, Universiti Utara Malaysia, nasrun@uum.edu.my Basharat Ali, Department of Management Sciences, Centre for Advanced Studies in Engineering (CASE), Islamabad. Pakistan. sahibasharatali@gmail.com Abstract- The aim of this paper is to empirically explore the organizational innovativeness dimensions (product and process innovativeness) influencing large contractors’ adoption of sustainable construction. Mailed and personally administered questionnaire survey methods were used to collect data from a stratified sample of Malaysian large contracting firms. Using Partial Least Squares Structural Equation Modeling (PLS SEM) technique, a number of 172 responses were analyzed. An important contribution of this paper is that enhanced organizational innovativeness relates strongly to the adoption of sustainable construction practices. This suggests that the organizational innovativeness dimensions considered in this study are indeed robust to predict the adoption of sustainable construction by the contractors. Although, this study focused on examining the factors influencing contractors’ adoption of a set of sustainability dimensions such as environmental, social and economic sustainability, it did not differentiate between these factors that are influencing each of these dimensions. The framework developed in this study can be used by the construction industry firms and other stakeholders not only to gain competitive advantage within the industry, but also to develop better strategies towards increasing the adoption of sustainable construction delivery in project execution. Keywords: Product innovativeness, process innovativeness, sustainable construction, contractors, PLS-SEM. I. INTRODUCTION Sustainable construction has become an important issue within the construction industry, owing to its distinctive philosophy that emphasizes a new pattern of creating favourable built environment that meets human’s present needs, without jeopardizing the ability of the future generation to meet theirs [1]. The concept is also noted for incorporating the triple bottom line of environmental, social performance, as well as the economic attributes that are exemplified in the sustainable development mantra. This affirms its fundamental role in addressing the complex problems of construction and the environment in order to restore balance between the natural and the built environment, as both realms are highly interconnected [2-5]. In view of the negative environmental consequences of the construction industry, the construction firms are required to develop innovative capabilities and willingness to deal with unsustainable practices leading to environmental degradation. This area has an important role to play on the environmental impacts of the industry that is predicted to exacerbate in the next decades considering the growth in world population. The result of such growth transmits to an increased energy consumption which is the major source of global greenhouse-gas emissions [6]. The construction sector is responsible for high energy consumption and its global demand in the next decades is expected to increase. The World Watch Journal in 1994, observed that human beings are fast becoming super species, with the development of structures that have the capacity to adapt to our varying environmentally-degrading lifestyles globally. However, construction companies’ recent drive and capacities to develop and present innovative construction products and processes to the market has been recognised to generate not only client’s satisfaction, but also strong factors in sustainability delivery [7]. MAYFEB Journal of Business and Management - ISSN 2371-7742 Vol 4 (2017) - Pages 1-912 1