Strategic Orientation and Firm Performance of Construction Enterprises in Guangdong Province: The Moderating Effect of Digital Technology Adoption

Hongbo Zhou; Ye Zhang; Muneera Binti Esa

doi:10.31181/ijes1512026233

Authors

Hongbo Zhou Department of Project Management, Faculty of School of Housing, Building and Planning, University Sains, Malaysia Author https://orcid.org/0009-0005-9189-2159
Ye Zhang Department of Educational Management, Planning and Policy, Faculty of Education, University Malaya, Malaysia Author https://orcid.org/0009-0001-0651-1202
Muneera Binti Esa Department of Project Management, Faculty of School of Housing, Building and Planning, University Sains, Malaysia Author https://orcid.org/0000-0001-9026-8745

DOI:

https://doi.org/10.31181/ijes1512026233

Keywords:

Strategic orientation, Digital technology adoption, Economic performance, Construction industry, Moderation effect

Abstract

This study examines how digital technology adoption moderates the relationship between strategic orientation and economic performance in construction enterprises. Drawing on the resource-based view and dynamic capabilities theories, we surveyed 193 construction firms in Guangdong Province, China, to investigate the economic effects of market orientation, entrepreneurial orientation, and technology orientation on performance, with digital technology adoption as a boundary condition. Using partial least squares structural equation modeling (PLS-SEM), our findings reveal differential impacts of strategic orientations on performance. Technology orientation emerges as the strongest predictor of economic performance (β = 0.246, p < 0.01), followed by market orientation (β = 0.187, p < 0.05), while entrepreneurial orientation shows no significant direct effect. Critically, digital technology adoption significantly moderates both the market orientation–performance (β = 0.134, p < 0.05) and technology orientation–performance (β = 0.198, p < 0.01) relationships, amplifying their economic value creation under conditions of high digital adoption. The model explains 38.4% of performance variance, with simple slope analysis revealing that strategic orientations generate substantial performance benefits only when supported by adequate digital infrastructure. These findings challenge the universal applicability of entrepreneurial frameworks in traditional industries and suggest that digital transformation fundamentally reconceptualizes which strategic orientations remain economically viable in increasingly digitized business environments.

Downloads

Download data is not yet available.

References

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108 DOI: https://doi.org/10.1177/014920639101700108

Bornay-Barrachina, M., López-Cabrales, Á., & Salas-Vallina, A. (2025). Sensing, seizing, and reconfiguring dynamic capabilities in innovative firms: Why does strategic leadership make a difference? BRQ Business Research Quarterly, 28(2), 399-420. https://doi.org/10.1177/23409444231185790 DOI: https://doi.org/10.1177/23409444231185790

Chang, R.-D., Zuo, J., Zhao, Z.-Y., Zillante, G., & Gan, X.-L. (2018). Sustainability attitude and performance of construction enterprises: A China study. Journal of Cleaner Production, 172, 1440-1451. https://doi.org/10.1016/j.jclepro.2017.10.277 DOI: https://doi.org/10.1016/j.jclepro.2017.10.277

Chen, X., Chang-Richards, A. Y., Pelosi, A., Jia, Y., Shen, X., Siddiqui, M. K., & Yang, N. (2022). Implementation of technologies in the construction industry: a systematic review. Engineering, Construction and Architectural Management, 29(8), 3181-3209. https://doi.org/10.1108/ECAM-02-2021-0172 DOI: https://doi.org/10.1108/ECAM-02-2021-0172

Bindeeba, D. S., Tukamushaba, E. K., & Bakashaba, R. (2025). Digital transformation and its multidimensional impact on sustainable business performance: evidence from a meta-analytic review. Future Business Journal, 11(1), 90. https://doi.org/10.1186/s43093-025-00511-z DOI: https://doi.org/10.1186/s43093-025-00511-z

Cheng, P., Wu, S., & Xiao, J. (2025). Exploring the impact of entrepreneurial orientation and market orientation on entrepreneurial performance in the context of environmental uncertainty. Scientific Reports, 15(1), 1913. https://doi.org/10.1038/s41598-025-86344-w DOI: https://doi.org/10.1038/s41598-025-86344-w

Cristofaro, M., Helfat, C. E., & Teece, D. J. (2025). Adapting, Shaping, Evolving: Refocusing on the Dynamic Capabilities–Environment Nexus. Academy of Management Collections, 4(1), 20-46. https://doi.org/10.5465/amc.2022.0008 DOI: https://doi.org/10.5465/amc.2022.0008

Ding, X., Feng, L., Huang, Y., & Li, W. (2023). The interactive effects of communication network structure and organizational size on task performance in project-based organizations: The mediating role of bootleg innovation behavior. Buildings, 14(1), 98. https://doi.org/10.3390/buildings14010098 DOI: https://doi.org/10.3390/buildings14010098

Ellström, D., Holtström, J., Berg, E., & Josefsson, C. (2021). Dynamic capabilities for digital transformation. Journal of Strategy and Management, 15(2), 272-286. https://doi.org/10.1108/JSMA-12-2020-0356 DOI: https://doi.org/10.1108/JSMA-04-2021-0089

Gao, H., Xue, X., Zhu, H., & Huang, Q. (2025). Exploring the digitalization paradox: the impact of digital technology convergence on manufacturing firm performance. Journal of Manufacturing Technology Management, 36(2), 277-306. https://doi.org/10.1108/JMTM-04-2024-0178 DOI: https://doi.org/10.1108/JMTM-04-2024-0178

Han, W., Zhou, Y., & Lu, R. (2022). Strategic orientation, business model innovation and corporate performance—Evidence from construction industry. Frontiers in Psychology, 13, 971654. https://doi.org/10.3389/fpsyg.2022.971654 DOI: https://doi.org/10.3389/fpsyg.2022.971654

Melesse, H. S., & Knatko, D. M. (2024). The contingent effects of strategic orientations and strategic capabilities on competitive performance: Evidence from Ethiopian manufacturing enterprises. Heliyon, 10(15). https://doi.org/10.1016/j.heliyon.2024.e35497 DOI: https://doi.org/10.1016/j.heliyon.2024.e35497

Jian, Z., Javaid, M., & Liao, S. (2024). Strategic orientation, strategic flexibility and firm performance: the important role of strategic human resource management. Chinese Management Studies. https://doi.org/10.1108/CMS-02-2024-0112 DOI: https://doi.org/10.2139/ssrn.4671297

Khan, R. U., Salamzadeh, Y., Abbasi, M. A., Amin, A., & Sahar, N. E. (2022). Strategic orientation and sustainable competitive performance of family firms: Evidence of an emerging economy. Journal of Small Business Strategy, 32(2), 67-82. https://doi.org/10.53703/001c.32406 DOI: https://doi.org/10.53703/001c.32406

Li, K., Yang, Q., Shrestha, A., & Wang, D. (2023). Impact of technology recombination on construction firm performance: Evidence from Chinese construction sector. Journal of Management in Engineering, 39(3), 04023014. https://doi.org/10.1061/JMENEA.MEENG-5162 DOI: https://doi.org/10.1061/JMENEA.MEENG-5162

Vararean-Cochisa, D., & Crisan, E. L. (2025). The digital transformation of the construction industry: a review. IIM Ranchi Journal of Management Studies, 4(1), 3-16. https://doi.org/10.1108/IRJMS-04-2024-0035 DOI: https://doi.org/10.1108/IRJMS-04-2024-0035

Li, Y., Sun, H., Li, D., Song, J., & Ding, R. (2022). Effects of digital technology adoption on sustainability performance in construction projects: The mediating role of stakeholder collaboration. Journal of Management in Engineering, 38(3), 04022016. https://doi.org/10.1061/(asce)me.1943-5479.0001040 DOI: https://doi.org/10.1061/(ASCE)ME.1943-5479.0001040

Egala, S. B., Amoah, J., Bashiru Jibril, A., Opoku, R., & Bruce, E. (2024). Digital transformation in an emerging economy: exploring organizational drivers. Cogent Social Sciences, 10(1), 2302217. https://doi.org/10.1080/23311886.2024.2302217 DOI: https://doi.org/10.1080/23311886.2024.2302217

Alam, Z., Khan, K. U., Khan, A., & Atlas, F. (2025). Navigating the Digital Road: Unveiling and Prioritizing Barriers to Digital Transformation in Pakistani Courier Supply Chains. Spectrum of Decision Making and Applications, 2(1), 298-314. https://doi.org/10.31181/sdmap21202521 DOI: https://doi.org/10.31181/sdmap21202521

Ding, Y. M., Yan, Y. T., Liu, F., & Chen, Z. S. (2025). Enhancing digital transformation in construction: strategic leadership, collaboration, and machine learning insights. Enterprise Information Systems, 2560342. https://doi.org/10.1080/17517575.2025.2560342 DOI: https://doi.org/10.1080/17517575.2025.2560342

Li, Y., Das, P., Kuzmanovska, I., Lara-Hamilton, E., Maxwell, D. W., & Moehler, R. (2024). Business model innovation in the construction industry: Emerging business model archetypes from bathpod modularization. Journal of Management in Engineering, 40(2), 04023066. https://doi.org/10.1061/JMENEA.MEENG-5651 DOI: https://doi.org/10.1061/JMENEA.MEENG-5651

Zheng, X., & Bu, Q. (2024). Enterprise ESG Performance, Digital Transformation, and Firm Performance: Evidence from China. SAGE Open, 14(4), 21582440241291680. https://doi.org/10.1177/21582440241291680 DOI: https://doi.org/10.1177/21582440241291680

Goswami, S. S., Sarkar, S., Gupta, K. K., & Mondal, S. (2023). The role of cyber security in advancing sustainable digitalization: Opportunities and challenges. Journal of decision analytics and intelligent computing, 3(1), 270-285. https://doi.org/10.31181/jdaic10018122023g DOI: https://doi.org/10.31181/jdaic10018122023g

Papić-Blagojević, N., & Račić, Ž. (2026). Digitization in the Teaching Process: The Significance of Digital Tools Integration. Spectrum of Decision Making and Applications, 3(1), 269-277. https://doi.org/10.31181/sdmap31202648 DOI: https://doi.org/10.31181/sdmap31202648

Lo, J. T., & Kam, C. (2022). Innovation of organizations in the construction industry: Progress and performance attributes. Journal of Management in Engineering, 38(6), 04022064. https://doi.org/10.1061/(ASCE)ME.1943-5479.0001093 DOI: https://doi.org/10.1061/(ASCE)ME.1943-5479.0001093

de la Cruz Jara, M. F., Spanjol, J., & Doppstadt, T. (2024). Strategic Social Value Orientation and Sustainability Performance: A commensuration perspective. Organization Studies, 46(5), 635-666. https://doi.org/10.1177/01708406241242900 DOI: https://doi.org/10.1177/01708406241242900

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172. https://doi.org/10.5465/amr.1996.9602161568 DOI: https://doi.org/10.5465/amr.1996.9602161568

Magno, F., Cassia, F., & Ringle, C. M. (2024). A brief review of partial least squares structural equation modeling (PLS-SEM) use in quality management studies. The TQM Journal, 36(5), 1242-1251. https://doi.org/10.1108/TQM-06-2022-0197 DOI: https://doi.org/10.1108/TQM-06-2022-0197

Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-35. https://doi.org/10.1177/002224299005400403 DOI: https://doi.org/10.1177/002224299005400403

Nugroho, A., Prijadi, R., & Kusumastuti, R. D. (2022). Strategic orientations and firm performance: the role of information technology adoption capability. Journal of Strategy and Management, 15(4), 691-717. https://doi.org/10.1108/JSMA-06-2021-0133 DOI: https://doi.org/10.1108/JSMA-06-2021-0133

Petti, C., Compagnucci, L., & Tang, Y. (2024). Institutions, innovation and performance in Guangdong firms: The role of entrepreneurial orientation and environmental turbulence. International Entrepreneurship and Management Journal, 20(1), 393-419. https://doi.org/10.1007/s11365-023-00878-x DOI: https://doi.org/10.1007/s11365-023-00878-x

de la Torre, A., & De la Vega, I. (2025). Dynamic capabilities and digital innovation: pathways to competitive advantage through responsible innovation. Journal of Responsible Innovation, 12(1), 2500154. https://doi.org/10.1080/23299460.2025.2500154 DOI: https://doi.org/10.1080/23299460.2025.2500154

Sarya, I. N., Arief, M. T. S., Saroso, H. A. R. D. I. J. A. N. T. O., & Bandur, A. G. U. S. T. I. N. U. S. (2023). The effect of information technology adoption, entrepreneurial orientation on dynamic capabilities and company performance. Journal of Theoretical and Applied Information Technology, 101(1), 161-171.

Siddiqui, F. H., Thaheem, M. J., & Abdekhodaee, A. (2023). A review of the digital skills needed in the construction industry: towards a taxonomy of skills. Buildings, 13(11), 2711. https://doi.org/10.3390/buildings13112711 DOI: https://doi.org/10.3390/buildings13112711

Teece, D. J. (2023). Evolutionary economics, routines, and dynamic capabilities. In B. S. Jones & R. Z. Smith (Eds.), Routledge Handbook of Evolutionary Economics (pp. 197-214). Routledge. https://doi.org/10.4324/9780429398971-17 DOI: https://doi.org/10.4324/9780429398971-17

Tian, H., Iqbal, S., Anwar, F., Akhtar, S., Khan, M. A. S., & Wang, W. (2021). Network embeddedness and innovation performance: a mediation moderation analysis using PLS-SEM. Business Process Management Journal, 27(5), 1590-1609. https://doi.org/10.1108/BPMJ-08-2020-0377 DOI: https://doi.org/10.1108/BPMJ-08-2020-0377

Wang, Q. E., Guo, Z., Hu, X., Jing, H., & Yang, F. (2025). The impacts of collaborative innovation networks on green performance of construction enterprises: evidence from China. Engineering, Construction and Architectural Management. https://doi.org/10.1108/ECAM-12-2024-1732 DOI: https://doi.org/10.1108/ECAM-12-2024-1732

Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207 DOI: https://doi.org/10.1002/smj.4250050207

Wuni, I. Y. (2023). Drivers of circular economy adoption in the construction industry: A systematic review and conceptual model. Building Research & Information, 51(7), 816-833. https://doi.org/10.1080/09613218.2023.2211689 DOI: https://doi.org/10.1080/09613218.2023.2211689

Zhang, G., Wang, T., Wang, Y., Zhang, S., Lin, W., Dou, Z., & Du, H. (2023). Study on the influencing factors of digital transformation of construction enterprises from the perspective of dual effects—A hybrid approach based on PLS-SEM and fsQCA. Sustainability, 15(7), 6317. https://doi.org/10.3390/su15076317 DOI: https://doi.org/10.3390/su15076317

Zhang, W., Lee, C. J., Wei, H. H., & Hsu, S. C. (2024). Impact of CEO duality and overconfidence on construction technology innovation: evidence from China. Journal of Management in Engineering, 40(5), 04024033. https://doi.org/10.1061/JMENEA.MEENG-6019 DOI: https://doi.org/10.1061/JMENEA.MEENG-6019

Zhang, X. E., Wang, W., Teng, X., & Yang, L. (2025). Navigating competitive intensity: the role of digital orientation in SMEs’ green innovations. Journal of the Knowledge Economy, 16(1), 2880-2908. https://doi.org/10.1007/s13132-024-02110-9 DOI: https://doi.org/10.1007/s13132-024-02110-9

Zhang, Y., Li, H., & Yao, Z. (2025). Intellectual capital, digital transformation and firm performance: evidence based on listed companies in the Chinese construction industry. Engineering, Construction and Architectural Management, 32(4), 2128-2159. https://doi.org/10.1108/ECAM-06-2023-0623 DOI: https://doi.org/10.1108/ECAM-06-2023-0623

Zheng, X., Deng, J., Song, X., Ye, M., & Luo, L. (2024). Examining the nonlinear relationships of corporate social responsibility, innovation and construction firm performance: the moderating role of construction firms' competitive position. Engineering, Construction and Architectural Management, 31(4), 1517–1538. https://doi.org/10.1108/ECAM-03-2022-0286 DOI: https://doi.org/10.1108/ECAM-03-2022-0286

Zhou, H., Zhang, Y., & Esa, M. B. (2025). Digital Technology in Strategic Orientation and Performance of Construction Trade in Guangdong Under WTO Framework: A Literature Review. China and WTO Review, 11(1), 96-112. https://doi.org/10.52152/cwr.2025.11.1.08 DOI: https://doi.org/10.52152/cwr.2025.11.1.08

Zhou, Y., Yang, C., Liu, Z., & Gong, L. (2024). Digital technology adoption and innovation performance: a moderated mediation model. Technology Analysis & Strategic Management, 36(11), 3341-3356. https://doi.org/10.1080/09537325.2023.2209203 DOI: https://doi.org/10.1080/09537325.2023.2209203

Abbu, H. R., & Gopalakrishna, P. (2021). Synergistic effects of market orientation implementation and internalization on firm performance: Direct marketing service provider industry. Journal of Business Research, 125, 851-863. https://doi.org/10.1016/j.jbusres.2019.06.004 DOI: https://doi.org/10.1016/j.jbusres.2019.06.004

Becker, J. M., Cheah, J. H., Gholamzade, R., Ringle, C. M., & Sarstedt, M. (2022). PLS-SEM’s most wanted guidance. International Journal of Contemporary Hospitality Management, 35(1), 321-346. https://doi.org/10.1108/IJCHM-04-2022-0474 DOI: https://doi.org/10.1108/IJCHM-04-2022-0474

Batra, S. (2025). Exploring the application of PLS-SEM in construction management research: a bibliometric and meta-analysis approach. Engineering, Construction and Architectural Management, 32(4), 2697-2727. https://doi.org/10.1108/ECAM-04-2023-0316 DOI: https://doi.org/10.1108/ECAM-04-2023-0316