THE IMPACT OF DIGITAL TRANSFORMATION ON SUSTAINABLE PERFORMANCE IN THE CONSTRUCTION SECTOR: THE MEDIATING ROLES OF SUPPLY CHAIN RESILIENCE AND CIRCULAR ECONOMY

Abstract

This thesis aims to explore the impact of digital transformation on sustainable performance through the environmental, economic, and social pillars in the construction sector in the West Bank. It examines the mediating role of the circular economy and supply chain resilience. This research utilized a mixed-methods approach involving 15 semi-structured interviews and a survey of 154 valid responses. Quantitative data were analyzed using structural equation modelling. The results showed that digital transformation does not affect sustainable performance directly; however, there is positive indirect effect through the circular economy and supply chain resilience. The circular economy fully mediated the relationship between digital transformation and sustainable performance, whereas supply chain resilience mediated only the relationship between digital transformation and social performance. The findings imply that construction companies should integrate digital transformation initiatives and circular economy practices in order to enhance sustainability. Some of the limitations of this research include its cross-sectional design and the use of a relatively context-specific sample, which may limit the generalizability of the findings, and only construction companies have been targeted. This thesis provides managerial insight by integrating digital transformation, the circular economy, supply chain resilience, and sustainable performance within a single framework and by demonstrating the full mediating role of the circular economy and partial mediating role of supply chain resilience in a developing country context. The findings indicate that transforming digital capabilities into circular and resilient operational practices enhances sustainability performance.