AI, Agility, and Environmental Performance: A New Framework for Construction Project Managers

Abstract

Artificial intelligence (AI) increasingly is being used by businesses to improve capabilities and performance. Guided by the dynamic capabilities framework, this study investigated how AI assimilation affects environmental performance, with organizational agility serving as a mediating factor in construction organizations. A moderated mediation analysis was employed in this study to investigate the contingent effect of strategic flexibility in altering the connection between agility and environmental performance. Data were gathered from 308 project managers. The findings of structural equation modeling validated the arguments that AI assimilation increases organizational agility and that this translates to increased environmental performance. Furthermore, strategic flexibility moderates the direct relationship between agility and environmental performance, as well as the indirect relationship between AI assimilation and environmental performance via organizational agility, emphasizing the significance of aligning agile responses with the strategic objectives of the business. The relevance of this research to the field of construction engineering management is that it leads to the integration of AI, improving the environmental performance of the firm through organizational agility. This study shows the moderating function of strategic flexibility in the interrelation between agility and environmental performance. These consequences are aimed primarily at the construction project management sector and policymakers because they emphasize the importance of agile methods of progress of projects to serve the strategic objectives the success of which is vital for environmental sustainability.