An-Najah National University Faculty of Graduate Studies ASSESSING THE IMPACT OF ADOPTING GREEN INNOVATION PRACTICES ON SUSTAINABLE PERFORMANCE IN THE PALESTINIAN CONSTRUCTION INDUSTRY: GREEN ORGANIZATIONAL CULTURE AS A MODERATOR By Maryana Naser Wajih Faour Supervisors Dr. Yahya Salahat Dr. Ramiz Assaf This Thesis is Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Engineering Management, Faculty of Graduate Studies, An-Najah National University, Nablus - Palestine. 2025 II ASSESSING THE IMPACT OF ADOPTING GREEN INNOVATION PRACTICES ON SUSTAINABLE PERFORMANCE IN THE PALESTINIAN CONSTRUCTION INDUSTRY: GREEN ORGANIZATIONAL CULTURE AS A MODERATOR By Maryana Naser Wajih Faour This Thesis was Defended Successfully on 17/06/2025, and approved by: Dr. Yahya Salahat Supervisor Signature Dr. Ramiz Assaf Co-Supervisor Signature Dr. Ashraf Almimi External Examiner Signature Dr. Ahmad Ramahi Internal Examiner Signature III Dedication ( ِ ْلُت َوهَُو َربُّ اْلَعرْ َوَما تَْوفِيقِي إاِلَّ بِاَللَّ (ِش اْلَعِظيمِ َعلَْيِه تََوكَّ To my dearest father, my idol, who taught me tenacity, whose sacrifices paved my way toward success. To my beloved mother, my inspiration, whose prayers, boundless support, and unwavering faith in me always push me forward. To my lovely sisters, my safe place, who have always encouraged me throughout this journey. To everyone who supported me, even with one word. I dedicate this thesis. IV Acknowledgment First and foremost, I thank God Almighty, who gave me the patience, ability, and courage to accomplish this thesis. All my sincere gratitude goes to my supervisors, Dr. Yahya Salahat and Dr. Ramiz Assaf, for their patience, continuous support, constructive guidance, valuable insights, and their faith in my ability to complete this research work and overcome challenges. I would also like to thank the examining committee for their precious time and effort in reviewing this thesis and for their valuable comments. I would like to extend my thanks to my family for their endless love, support, and encouragement throughout this journey. I would thank my friends and all participants in the survey from the Palestinian construction industry. Lastly, I would like to express my deep gratitude to everyone who guided me directly or indirectly during work on this thesis. V Declaration I, the undersigned, declare that I submitted the thesis entitled: ASSESSING THE IMPACT OF ADOPTING GREEN INNOVATION PRACTICES ON SUSTAINABLE PERFORMANCE IN THE PALESTINIAN CONSTRUCTION INDUSTRY: GREEN ORGANIZATIONAL CULTURE AS A MODERATOR I declare that the work provided in this thesis, unless otherwise referenced, is the researcher's own work, and has not been submitted elsewhere for any other degree or qualification. Maryana Naser Wajih Faour Student's Name: Signature: 17/06/2025 Date: VI List of Contents Dedication ....................................................................................................................... III Acknowledgment ............................................................................................................ IV Declaration ....................................................................................................................... V List of Contents ............................................................................................................... VI List of Tables .................................................................................................................. IX List of Figures .................................................................................................................. X List of Appendices .......................................................................................................... XI Abstract .......................................................................................................................... XII Chapter One: Introduction and Literature Review ........................................................... 1 1.1 Chapter Overview ....................................................................................................... 1 1.2 General Background ................................................................................................... 1 1.2.1 Problem Statement and Research Questions ........................................................... 4 1.2.2 The Significance of Research .................................................................................. 5 1.2.3 The Objectives of Research ..................................................................................... 6 1.2.4 The Research Hypotheses ........................................................................................ 6 1.2.5 The Structure of the Thesis ...................................................................................... 7 1.3 Green Innovation Concept .......................................................................................... 7 1.4 Adoption of Green Innovation in the Construction Industry ...................................... 9 1.4.1 Green Innovation Practices .................................................................................... 11 1.4.2 Green Product Innovation ...................................................................................... 12 1.4.3 Green Process Innovation ...................................................................................... 13 1.4.4 Green Organizational Innovation ........................................................................... 14 1.5 Sustainable Performance ........................................................................................... 15 1.6 Green Organizational Culture ................................................................................... 16 1.7 Adoption of GI practices and Sustainable Performance ........................................... 19 1.8 Green Organizational Culture as a Moderator .......................................................... 20 1.9 Construction Industry in Palestine ............................................................................ 23 1.10 Conceptualization of the Proposed Model .............................................................. 24 Chapter Two: Methodology ............................................................................................ 25 2.1 Chapter Overview ..................................................................................................... 25 2.2 Research Type ........................................................................................................... 25 VII 2.3 Research Approach ................................................................................................... 26 2.4 Research Methodology ............................................................................................. 26 2.5 Sampling Plan ........................................................................................................... 28 2.6 Questionnaire Design and Measurement Development ............................................ 30 2.7 Data Analysis Techniques ........................................................................................ 31 Chapter Three: Data Analysis and Results ..................................................................... 33 3.1 Chapter Overview ..................................................................................................... 33 3.2 Analysis of Survey Responses .................................................................................. 33 3.2.1 Response Rate ........................................................................................................ 33 3.2.2 Demographic Information ...................................................................................... 33 3.2.3 Descriptive Analysis .............................................................................................. 35 3.2.4 Non-Response Bias ................................................................................................ 36 3.3 Analysis of Questionnaires ....................................................................................... 37 3.4 Reflective Measurement Model Assessment ............................................................ 39 3.4.1 Indicator Reliability ............................................................................................... 39 3.4.2 Internal Consistency Reliability ............................................................................. 39 3.4.3 Convergent Validity ............................................................................................... 40 3.4.4 Discriminant Validity ............................................................................................ 40 3.5 Structural Model Assessment ................................................................................... 42 3.5.1 Constructs Collinearity Assessment ...................................................................... 42 3.5.2 Coefficient of Determination (R2) ......................................................................... 42 3.5.3 Effect Size (f2) ....................................................................................................... 43 3.5.4 Predictive Relevance (Q2) ...................................................................................... 43 3.5.5 Model Fit Measures ............................................................................................... 44 3.5.6 Significance of the Path Coefficients ..................................................................... 44 3.6 Moderation Analysis ................................................................................................. 45 Chapter Four: Discussion, Conclusion, and Recommendations ..................................... 49 4.1 Chapter Overview ..................................................................................................... 49 4.2 Discussion of Results ................................................................................................ 49 4.2.1 Discussion of the Adoption Level of GI Practices in Palestine ............................. 49 4.2.2 Discussion of the level of Green Organizational Culture in Palestine .................. 51 4.2.3 Discussion of the level of Sustainable Performance in Palestine .......................... 53 VIII 4.2.4 Discussion of Hypotheses Testing ......................................................................... 55 4.3 Theoretical and Practical Implications ..................................................................... 56 4.4 Conclusion ................................................................................................................ 57 4.5 Recommendations ..................................................................................................... 59 4.6 Limitations and Future Research Directions ............................................................ 60 List of Abbreviations ...................................................................................................... 62 References ....................................................................................................................... 63 Appendices ...................................................................................................................... 74 ب ............................................................................................................................... الملخص IX List of Tables Table 1: Sampling Frame Distribution ........................................................................... 29 Table 2: Average Response Level .................................................................................. 35 Table 3: Level of Adopting GI Practices, GOC, and Sustainable Performance ............. 36 Table 4: Non-Response Bias Test ................................................................................... 37 Table 5: Cronbach's Alpha, Composite Reliability, and AVE of Constructs ................. 41 Table 6: Values of Variance Inflation Factor ................................................................. 42 Table 7: Values of R2 and f2 ........................................................................................... 43 Table 8: Results of Path Coefficients and Hypotheses Testing ..................................... 45 Table 9: Bootstrapping Analysis Results of Moderating Effect .................................... 46 Table 10: Strength of Moderating Effect ....................................................................... 48 X List of Figures Figure 1: Research Conceptual Model ............................................................................ 24 Figure 2: Research Methodology Flowchart .................................................................. 27 Figure 3: Measurement Model (Outer Model) ............................................................... 40 Figure 4: Slope Analysis ................................................................................................. 47 Figure 5: Bootstrapping Analysis Results of the Structural Model ............................... 48 file:///C:/Users/hp/Desktop/Thesis/Master%20Thesis.docx%23_Toc195606242 XI List of Appendices Appendix A: Questionnaire ............................................................................................ 74 Appendix B: 80 ........................................................................................................ االستبانة Appendix C: Tables ........................................................................................................ 85 Table C.1: Names of Questionnaire Reviewers ....................................................... 85 Table C.2: Operationalization of Model Constructs ................................................ 85 Table C.3: Respondents Profile Summary ............................................................... 88 Table C.4: Descriptive Analysis of All Questionnaire Items .................................. 90 Table C.5: Results of Cross Loadings ..................................................................... 92 Table C.6: Results of Fornell-Larcker Criterion ...................................................... 94 Table C.7: Results of Heterotrait-Monotrait Ratio (HTMT) Criterion .................... 94 Table C.8: Predictive Relevance (Q2) Values ......................................................... 94 XII ASSESSING THE IMPACT OF ADOPTING GREEN INNOVATION PRACTICES ON SUSTAINABLE PERFORMANCE IN THE PALESTINIAN CONSTRUCTION INDUSTRY: GREEN ORGANIZATIONAL CULTURE AS A MODERATOR By Maryana Naser Wajih Faour Supervisors Dr. Yahya Salahat Dr. Ramiz Assaf Abstract The construction industry is considered one of the largest contributors to environmental degradation; therefore, most scholars are recently seeking to integrate green practices within this industry to achieve a sustainable future. Accordingly, this study aims to investigate the impact of adopting green innovation (GI) practices on sustainable performance in its three pillars (i.e., environmental, social, and economic) in the Palestinian construction industry, in addition to exploring the moderating effect of green organizational culture (GOC) on this relationship. For this purpose, a quantitative research approach using a self-administered questionnaire was adopted. The target population consists of key practitioners in the Palestinian construction industry, i.e., contracting, consulting, and engineering firms, in which specific classifications were identified for these firms to be included in the sampling frame. Thus, 143 valid responses were obtained, one response from each firm, and the SmartPLS software was used to analyze the study model and test the proposed hypotheses. The findings show that the level of adopting GI practices and sustainable performance in Palestinian construction firms is high, whereas GOC is being implemented at a moderate level. Besides, the findings indicate a positive and significant relationship between the adoption of GI practices and sustainable performance. Further, GOC positively impacts both adopting GI practices and sustainable performance and also positively moderates the relationship between them. Undoubtedly, highlighting green concepts in a challenging context like Palestine, which suffers from political instability, ongoing conflict, and limited resources, has significant implications. In detail, the study contributes to GI theory by emphasizing the importance and effectiveness of adopting GI practices in conflict-affected and resource-constrained contexts, as well as to the GOC theory by confirming its ability to facilitate the adoption of GI practices and achieve sustainable performance. The study XIII encourages policymakers and stakeholders to transform conventional construction activities into greener ones and contributes to bridging the gap regarding the misconception of GI and its impact on sustainable performance in the construction industry. Based on the available literature, this is the first study to explore the moderating role of GOC between the adoption of GI practices and sustainable performance in the Palestinian construction industry. Keywords: Green innovation, sustainable performance, green organizational culture, construction industry. 1 Chapter One Introduction and Literature Review 1.1 Chapter Overview This chapter represents the basic foundation for the research, as it offers a broad summary of the research subject, including a general background, research problem statement, significance, objectives, hypotheses, and the study's overall structure. In addition, this chapter focuses on conducting a comprehensive literature review to determine what previous studies have found in the context of the topic under study. Accordingly, the chapter reviews theoretical studies relevant to the study topic and the concepts addressed, including green innovation practices, green organizational culture, and sustainable performance. Moreover, the nature of the relationships between these variables within the construction industry was clarified, leading to the development of research hypotheses in line with the literature review. The chapter seeks to provide the Palestinian construction industry and other stakeholders with a deeper grasp of the expected relationship between adopting green innovation practices and sustainable performance, with green organizational culture acting as a moderator. 1.2 General Background The construction industry contributes significantly to economic growth, employment generation, and enhancing quality of life through providing shelter and infrastructure development, as well as meeting the needs for commercial activities, educational services, and manufacturing operations (Bohari et al., 2016). Indeed, Mavi et al. (2021) asserted that around 13% of the total global gross domestic product (GDP) is derived from the worldwide construction industry, whereas based on the Palestinian Central Bureau of Statistics [PCBS] (2024), the Palestinian construction industry contributes nearly 3.1% to the country's GDP. Although the construction industry has beneficial contributions, it substantially affects the environment. In more detail, Khan et al. (2024) confirmed that the construction industry is considered one of the key generators of environmental pollution (including air, water, noise, and waste pollution) and emissions of hazardous gases, in addition to consuming substantial amounts of natural resources and energy. In this regard, Yusof et al. (2015) and Duong et al. (2021) reported that the construction sector consumes 40% of 2 global energy and utilizes more than 50% of extracted raw materials. Accordingly, these detrimental ecological effects of construction activities have raised awareness regarding the ability of the sustainability concept to address environmental challenges. Consequently, Aghimien et al. (2018) defined sustainability as the balanced use of natural resources to preserve the ability of next generations to fulfill their demands. Regarding the construction industry, the concept of sustainability has emerged as one of the key performance-related issues in this industry and is referred to as sustainable construction (Pero et al., 2017). Therefore, Bohari et al. (2016) pointed out that sustainable construction relates to the attainment of sustainable development within the built environment and is responsible for reducing the ecological footprint of the building throughout its lifespan while ensuring a comfortable and safe life for its inhabitants. In sum, construction firms nowadays seek to take sustainability into account in order to enhance their performance and move from traditional performance to sustainable performance. In this regard, Aghimien et al. (2018) mentioned that sustainable performance includes three pillars: social performance, environmental performance, and economic performance. Generally, improving sustainable performance requires construction firms to investigate and explore green initiatives that can be embedded within their activities and processes. Accordingly, Shamsuzzoha et al. (2022) mentioned that green innovation (GI) is among the most significant green initiatives to achieve sustainable performance, and they defined GI as an environmental strategic tool that involves applying eco-friendly practices within the firm's operations to reduce pollution and use resources efficiently. Undoubtedly, the adoption of GI practices has remarkable results on the firm's sustainability. In the context of supporting this notion, Xie et al. (2019) found in a study conducted on 209 Chinese manufacturing firms that green process innovation positively impacts the firm's sustainable performance. Similarly, Alsharif and Tong (2019) revealed that green product innovation in the construction sector focuses mainly on waste minimization, energy saving, and pollution control, which leads to improved environmental performance. Accordingly, insights from existing literature suggest that there is a clear correlation between GI and sustainable performance. In the construction industry context, Duong et al. (2021) affirmed that while the adoption of GI has the potential to improve product differentiation and draw in new clients, construction firms are still reluctant to adopt GI 3 practices because of funding constraints. Therefore, the study investigated the effect of adopting GI practices on sustainable performance within the Palestinian construction industry. On the other hand, previous studies proposed another emerging green strategy that has gained much attention recently, called green organizational culture (GOC), which is described by Roscoe et al. (2019) as the principles and values that guide various practices in the firm toward environmental preservation. In this regard, several studies have been carried out to explore the correlation between GOC and GI. For instance, Imran et al. (2021) stated that the successful application of GI practices is ensured by the existence of GOC, as it affects both the firm and its employees. In addition, Imran and Jingzu (2022) supported the relationship between GOC and GI and mentioned that firms should disseminate their green beliefs and ideas in advance among all their members if they want to adopt GI within their operations. Drawing on the previous discussion, it is clear that GOC facilitates the adoption of GI practices. Furthermore, other researchers have taken interest in the effect of GOC on sustainable performance. In this regard, Küçükoğlu and Pınar (2018) pointed out that GOC creates an environment that promotes valuable sustainable outcomes within the firm; hence, GOC has a positive impact on sustainable performance. Additionally, Xiaoyi et al. (2023) found that GOC is positively correlated with business sustainability and showed that GI mediates the relationship between GOC and business sustainability in the Chinese manufacturing industry. Thus, GOC is one of the key drivers in enhancing a firm's sustainable performance. Regarding the role of GOC between GI and sustainable performance, Li et al. (2023) mentioned that employees' green behavior enhances the implementation of green product innovation practices, which subsequently leads to achieving sustainable performance for firms. Another study by Sangkala et al. (2023) revealed that green culture strengthens and improves the relationship between GI behavior and green environmental effects. In light of the above discussion, it is clear that the green culture is responsible for building GI practices within the firm; thus, GI is driven by GOC. On the other hand, GOC is a key factor in attaining the firm's sustainable performance. Since GOC associates with both GI and sustainable performance, it is logical to argue that GOC moderates the relationship 4 between GI and sustainable performance. In short, GOC enhances the firm's sustainable performance through the synergy of adopting GI practices. Drawing on relevant literature, many studies have been conducted about GI, GOC, and sustainability in several sectors, but there is a lack of studies on these variables in the construction sector. In addition, no study has examined the moderator role of GOC in the relationship between GI and sustainable performance in the construction industry. Therefore, this study contributes to bridging the aforementioned gaps by investigating the relationship between GI adoption and sustainable performance, as well as the moderating effect of GOC on this relationship within the Palestinian construction industry. 1.2.1 Problem Statement and Research Questions Despite the importance of all sectors, Aigbavboa et al. (2017) asserted that the attainment of sustainability is mostly driven by the construction industry due to its significant effect on the surrounding environment. Indeed, the construction industry is responsible for many ecological issues, such as resource depletion, global warming, the production of massive amounts of waste, and air and water pollution (Mavi et al., 2021). In Palestine, the amount of waste resulting from the construction process, specifically buildings, is estimated at 17 to 81 kg per square meter of building floor (Hammad et al., 2021). Hence, these adverse ecological effects of such an industry can be rectified through the adoption of green strategic methods such as GI, resulting in enhanced sustainable performance. In Palestine, the situation of the construction industry is even more complicated due to the Israeli government's control over a large percentage of natural resources, including water and energy (Sadeh, 2025). This reality may reduce interest in the green approach and increase the operating cost of buildings. Thus, the stakeholders and policymakers within the construction industry should make concerted efforts toward fostering green behaviors and adopting GI practices, leading to reducing unnecessary costs and enhancing the economic performance. In this regard, Tajuddin et al. (2015) confirmed the presence of knowledge gaps related to the innovation topic in the construction sector. Besides that, the Palestinian construction sector suffers from a lack of studies related to the mechanism of adopting GI practices as well as its impact on sustainable performance. Therefore, there is an urgent need to investigate the relationship between the adoption of GI practices and sustainable 5 performance in such a dominant sector, in addition to studying the impact of other variables in strengthening this relationship. Generally, GOC has the potential to create new solutions and approaches for handling performance issues. In supporting this notion, several studies have stated that GOC is a pre-requisite for the adoption of GI and achieving sustainable performance (Imran et al., 2021; Judi et al., 2022). Notably, no study in the Palestinian construction industry addressed the GOC as a moderator variable in the correlation between the adoption of GI practices and sustainable performance. Accordingly, the research was designed to address the following questions:  RQ1: What is the level of adopting GI practices and GOC in the Palestinian construction industry?  RQ2: What is the impact of GI adoption on sustainable performance in the Palestinian construction industry?  RQ3: What is the impact of GOC on GI adoption in the Palestinian construction industry?  RQ4: What is the impact of GOC on sustainable performance in the Palestinian construction industry?  RQ5: Does GOC moderate the relationship between GI adoption and sustainable performance in the Palestinian construction industry? 1.2.2 The Significance of Research The variables addressed in this research give the study a distinctive position in the heart of the existing literature, as they are among the popular topics that have received the attention of most researchers recently. This study has significant contributions in both theoretical and practical aspects. Regarding the theoretical aspect, this study developed a conceptual framework that encompasses three variables: adoption of GI practices, sustainable performance, and GOC. In more detail, the study examines the impact of GI adoption on overall sustainable performance, including all its dimensions: social, environmental, and economic, since, based on insights from relevant literature, it is anticipated that the adoption of GI is the driving force for improving sustainable performance. In addition, the study is distinguished from other studies by adding GOC as a moderator between GI adoption and sustainable performance, since, to our knowledge, this relationship has not been studied previously in this manner in the Palestinian construction industry. Moreover, the results of the study revealed the level of adopting 6 GI practices and GOC in the Palestinian construction industry. Based on prior discussion, this study theoretically contributes to bridging the gap related to the topics of GI and GOC in the construction sector. From a practical aspect, the study findings serve as an incentive for construction firms to integrate GI practices within their operations, as relevant literature has confirmed that construction firms have a misunderstanding regarding GI adoption, leading to high resistance to green change. Furthermore, it provides a roadmap for construction firms and facilitates the decision-making process about converting traditional construction practices into green ones through the adoption of innovative green technologies. Consequently, adopting GI practices opens the door to better green investments. 1.2.3 The Objectives of Research This research primarily aims to fill the significant knowledge gap in the relevant literature regarding the moderating role of GOC in the relationship between the adoption of GI practices and sustainable performance in the Palestinian construction industry. Accordingly, the research objectives can be summarized as follows:  To examine the level of adopting GI practices and GOC in the Palestinian construction industry.  To assess the relationship between GI adoption and sustainable performance in the Palestinian construction industry.  To determine the relationship between GOC and GI adoption in the Palestinian construction industry.  To determine the relationship between GOC and sustainable performance in the Palestinian construction industry.  To investigate if the GOC moderates the relationship between GI adoption and sustainable performance in the Palestinian construction industry. 1.2.4 The Research Hypotheses The following hypotheses are derived from the proposed study model and were explained in depth in the subsequent sections: H1: The adoption of GI practices has a positive impact on sustainable performance in the Palestinian construction industry. 7 H2: The GOC has a positive impact on the adoption of GI practices in the Palestinian construction industry. H3: The GOC has a positive impact on sustainable performance in the Palestinian construction industry. H4: The GOC moderates the relationship between the adoption of GI practices and sustainable performance in the Palestinian construction industry. 1.2.5 The Structure of the Thesis This thesis consists of four chapters: Chapter One offers a general background about the research, including the research problem statement, research questions, significance, objectives, and hypotheses. Moreover, this chapter presents a comprehensive literature review of the variables addressed and the expected relationships between them; in addition, it concludes by displaying the adopted conceptual model, including the proposed hypotheses. Chapter Two describes the methodology followed, including the research approach, sampling plan, measurement development, questionnaire design, and data analysis techniques. Chapter Three displays the descriptive statistics of the questionnaire responses and the analysis results of the gathered data in addition to testing the proposed hypotheses. Finally, Chapter Four discusses the results along with their implications, in addition to providing conclusions, recommendations, study limitations, and anticipated future research directions. 1.3 Green Innovation Concept Generally, innovation is considered an essential component for firms to successfully compete in an unstable environment and gain a competitive advantage (Shamsuzzoha et al., 2022). According to Duong et al. (2021), innovation is related to change and can be described as developing a new or enhanced process or product that is significantly different from the prior one. In this regard, it is imperative to differentiate between two primary types of innovation based on the degree of novelty: incremental and radical innovation. The first means improving an existing process or product through minor changes, whereas the latter refers to generating an entirely new concept (Xue et al., 2014). Additionally, Alkahtani and Nordin (2020) mentioned that one of the basic concepts associated with the innovation process is innovativeness, which is considered an organizational competence responsible for enhancing a firm's innovation performance. Thereby, innovation is the outcome of organizational innovativeness. 8 According to Judi et al. (2022), globalization and social media's development have raised public awareness of firms' environmental responsibilities. As a result, firms are now seeking to alter their behavior toward a greener approach. In this regard, the "green approach" has captured the attention of the majority of scholars, and most topics have been linked to this approach to tackling environmental issues (Marcelline et al., 2022). Indeed, one of the most famous green topics is GI, as most firms seek to adopt it in response to increasing pressures regarding environmental protection from stakeholders, customers, regulations, and environmentalists (H. Wang et al., 2021). In the literature, GI is described using different terms, including environmental innovation and eco-innovation (Tang et al., 2018). According to Sezen and Çankaya (2013), GI is "the production, assimilation, or exploitation of a product, production process, services, management or business method that is novel to the organization (developing or adopting it) and which results, throughout its life-cycle lead, in a reduction of environmental risk, pollution and other negative impacts of resources use (including energy) as compared to relevant alternatives” (p. 156). Moreover, Marcelline et al. (2022) asserted that GI refers to carrying out conventional activities using new methods that minimize detrimental effects on the environment and humans. Another study by Halicioglu (2020) defined eco-innovation as a type of innovation that aims to attain remarkable progress toward sustainable development by utilizing natural resources in an effective manner. In the same context, Marcelline et al. (2022) mentioned that GI may be proactive or responsive, where proactive GI is a tool for achieving organizational goals, including long-term profitability and cost-efficiency, through developing green technology to engage in eco-friendly activities. In contrast, responsive GI is a new feature added to a product or process to address a specific environmental issue. According to Tang et al. (2018), GI is mainly divided into two categories: green product innovation and green process innovation, whereas other researchers divided GI into four categories: green process innovation, green product innovation, green marketing innovation, and green organizational innovation (García-Granero et al., 2020). In this regard, Hashim (2018) summarized the overall components of GI into seven key categories: product, resources, operation, technology, equipment, waste, and pollution. 9 The majority of innovation studies highlighted the significant impacts of adopting GI. For instance, H. Wang et al. (2021) confirmed that GI is a strategic tool to help businesses achieve sustainable performance as it relies on recycling, effective use of resources, and pollution prevention. Additionally, Burki and Dahlstrom (2017) mentioned that GI enables firms to raise their market share, enhance their competitive position, and eliminate imitation opportunities. Consequently, GI emerged to safeguard future communities and generations from the harmful effects of our daily practices. Based on GI literature, it was observed that most studies have given a higher priority and attention to material-based industries, while very few studies have focused on the construction industry (Hazarika & Zhang, 2019). Therefore, this lack of studies may result in the failure of construction firms to embrace GI practices due to their misunderstanding of the GI concept (Isa et al., 2019). Thus, this study focuses on explaining the adoption of GI practices in the construction industry alone, in addition to interpreting the term GI in depth within the construction context. 1.4 Adoption of Green Innovation in the Construction Industry The construction industry is facing huge pressure from all stakeholders to become green; thereby, GI is considered an optimal paradigm to move from resource-intensive traditional construction practices to green practices (Hashim, 2018). In fact, GI in the construction industry has distinctive features since, unlike other industries, it can be developed at the firm level, which refers to building eco-friendly organizational policies and procedures, in addition to the project level, which refers to using innovative green products and methods during the construction process (Xue et al., 2014). Undoubtedly, if the innovation is not adopted within the firm, it cannot be leveraged at the project level, i.e., GI starts first at the firm level. According to Hazarika and Zhang (2019), GI in the construction industry refers to finding new or improved methods to attain greater functionality using fewer resources, new technology designs, and systematic adjustments in the construction processes and management. Another study by Miozzo and Dewick (2004) described GI in the construction industry as changes related to decreasing the energy needs of buildings, or, in other words, minimizing the ecological effect of structures and buildings. Additionally, Bohari et al. (2016) mentioned some green strategies used to minimize adverse effects on the environment during the construction process, such as improving process efficiency, 10 saving natural resources, and reducing the quantity of waste and emissions generated. Thus, if the construction firm uses nontoxic and recyclable materials as well as renewable energy resources, it is likely that there won't be any ecological effects from the construction process. Obviously, the construction industry is among the main contributors to ecological impacts; hence, the adoption of GI in this industry is considered a pivotal matter. In this regard, Shamsuzzoha et al. (2022) defined the adoption of GI as the full use of new or enhanced green practices and technologies as the best available course of action to contribute to sustainability. Moreover, Hazarika and Zhang (2019) asserted that the adoption of GI depends mainly on the characteristics of both the firm and the environment where it operates, in addition to the characteristics of the innovation itself. It's worth mentioning that the adoption of GI in the construction industry has significant impacts at different levels. At the industry level, GI can contribute to industry modernization and development (Isa et al., 2019). While at the firm level, Xue et al. (2014) asserted that GI can improve firm image, support decision-making, and increase market share and customer satisfaction. For the project level, Isa and Abidin (2021) indicated that GI can shorten project duration and save costs by simplifying construction activities and increasing productivity. Thereby, adopting GI in the construction firms is inevitable for fostering reputation, competitive advantage, quality of life, and environmental performance. Nevertheless, Alsharif and Tong (2019) revealed that the construction industry faces some challenges related to adopting GI, such as a lack of green construction materials and equipment, insufficient funds, ineffective project management, insufficient expertise, and absence of eco-friendly regulations. Despite these challenges, some construction firms have achieved remarkable success in adopting GI. Indeed, Halicioglu (2020) addressed a case study of three construction firms and summarized the factors affecting their success in adopting GI as follows: collaboration with R&D universities, support for new ideas and knowledge sharing, involvement of stakeholders in the GI process, and focus on reducing ecological impacts through adherence to ecological regulations. Furthermore, Isa et al. (2019) mentioned that most construction firms look at adopting GI as a burden. Besides that, Alsharif and Tong (2019) pointed out that the construction 11 industry is one of the most change-resistant sectors that fails to adopt GI compared to other industries. On the contrary, Tajuddin et al. (2015) asserted that the opinions of previous researchers are inconclusive and necessitate further investigation, since, according to Isa and Abidin (2021), low adoption levels of GI in the construction industry could pose a threat to the industry's sustainability in the long run. Based on the previous debate, this study was carried out to examine how adopting GI affects the sustainable performance of construction firms, which may convince firms to invest in GI and thus reap its potential benefits. 1.4.1 Green Innovation Practices Generally, GI practices refer to a set of innovative actions and initiatives implemented by the firm to reduce its ecological footprint (Shamsuzzoha et al., 2022). In the construction industry context, GI practices require those engaged in construction activities to raise their commitment in order to minimize the ecological impacts of their operations (Hashim, 2018). Accordingly, Isa et al. (2019) asserted that integrating GI practices within construction firms ensures the successful execution of the construction project. Hence, construction firms should strive to integrate GI practices into their business strategy and equip themselves with the required knowledge to increase their innovation capability. However, the study by Isa and Abidin (2021) suggested that GI practices vary among different industries due to differences in job activities and business outcomes. In this regard, researchers suggested different classifications for GI practices in the construction industry. For instance, Hashim (2018) classified GI practices into technical innovation, process innovation, and administrative innovation. On the other hand, Xue et al. (2014) and Hazarika and Zhang (2019) divided these practices into two main components, i.e., management innovation and technological innovation. Furthermore, Tajuddin et al. (2015) proposed that innovation in the construction context consists of three parts: innovation in equipment, materials, and techniques; management innovation; and information technology innovation, where the first part was referred to as technical innovation, taking the form of either process or product innovation. In the context of this study, GI practices were divided into three primary categories: product innovation, process innovation, and organizational innovation (Isa & Abidin, 2021; Halicioglu, 2020). The study by Tajuddin et al. (2015) acknowledged that GI 12 practices enable construction firms to grow sustainably, survive over the long run, and strengthen their market position. Accordingly, it is critical for construction firms to understand the nature of these practices, as this enhances the firm's ability to successfully adopt GI practices and thus gain superior opportunities for growth and sustainability. Drawing on past literature, it is worth mentioning that the majority of construction firms are still incapable of incorporating the appropriate GI practices into their business plans and operations because of misunderstanding the form of these practices (Isa et al., 2019; Duong et al., 2021). To address the aforementioned research gap, each practice was explained in detail within the construction context to facilitate the transition from traditional construction practices into eco-friendly practices, which in turn achieve better environmental performance. 1.4.2 Green Product Innovation In order to achieve a successful GI in the product, it is essential to understand the dimensions of the product term within the construction context. Accordingly, Bamgbade et al. (2017) emphasized that the product term refers to construction products, materials, and components, which are utilized during the construction process and obtained from suppliers. Therefore, Miozzo and Dewick (2004) indicated that product suppliers or producers could serve as a source of key innovations within the construction industry. In this study, green product innovation relates to adopting new or improved products, materials, and technological components with the aim of minimizing ecological impacts during their life cycle (Miozzo & Dewick, 2004). Thus, from the construction industry perspective, the environmental impact of eco-innovative construction products results mainly from their use throughout the entire building life cycle and their disposal rather than during their manufacturing process. According to Isa and Abidin (2021), green product innovation in the construction industry is divided into three major components. Firstly, product management refers to providing guidelines and plans for product and material storage in order to minimize unforeseen waste, as well as preserving positive relationships with regional suppliers that minimize transportation-related pollution (Miozzo & Dewick, 2004). Secondly, product adoption relates to the ability of construction firms to adopt innovative green materials and products early, which in turn reduces energy consumption throughout the transportation 13 and installation of products on site (Bamgbade et al., 2017). The last component is green procurement, which involves purchasing and using recycled and renewable construction products and materials, as well as selecting suppliers who adopt 3R strategies in developing products (Marcelline et al., 2022). As found by Bamigboye et al. (2019), the cost of construction materials could account for 40% of the total project cost; therefore, the adoption of innovative green construction products and materials is indispensable for saving costs. Moreover, Halicioglu (2020) mentioned that innovative products should be durable, reliable, high-quality, energy- efficient, eco-friendly, cost-saving, and have low carbon emissions during the building life cycle. Several studies proposed different types of eco-innovative construction materials, such as precast concrete, green concrete, recycled steel, solar panels, green roofs, energy-efficient windows, and low-emissivity glass (Bamigboye et al., 2019). Accordingly, construction firms that acquire and utilize new green products and materials can stand out in the market, gain a competitive edge, enhance life quality for end users, and contribute greatly to sustainability. 1.4.3 Green Process Innovation In general, green process innovation refers to the application of new or improved production processes to minimize environmental consequences (Tang et al., 2018). Whereas in the construction industry, green process innovation is defined as improving the current construction processes or creating new technologies that, either completely or partially, change how buildings are built while having the fewest negative effects on the environment (Miozzo & Dewick, 2004). In this regard, Isa and Abidin (2021) divided green process innovation to be consistent with the nature of the construction industry into two components. The first component is green technology, which includes keeping up with the latest technological advancements to be embedded into construction processes, like Building Information Modeling (BIM), 3D printing, and low-emission equipment, resulting in the protection of natural resources including land, water, and energy (Alkahtani & Nordin, 2020). The second component is green operations, which relates to the establishment of site plans for waste management, pollution prevention, and noise control, as well as constantly improving these plans at the firm and project levels to preserve the natural environment throughout the duration of the services provided (Bamgbade et al., 2017). 14 In light of the extreme progress of artificial intelligence (AI) technologies, it is impressive to employ them in construction processes. For instance, AI-driven robots can be used for performing repetitive tasks such as welding, whereas AI-driven cameras can be used for monitoring construction sites to detect safety infractions and promptly notify managers. Additionally, AI-enabled drones can perform site surveys and track the progress of construction work remotely instead of manual inspections (Regona et al., 2022). In sum, adopting modern construction methods can improve the efficiency of construction processes, reduce costs and time, and achieve environmental sustainability. 1.4.4 Green Organizational Innovation The study by García-Granero et al. (2020) defined green organizational innovation as upgrading and reorganizing a firm's policies, procedures, structures, and systems to address environmental needs. It is worth noting that implementing innovation at the organizational level is as important as other types of innovation. In supporting this notion, many scholars have acknowledged that green organizational innovation facilitates the development and implementation of green product and process innovations (García- Granero et al., 2020). Indeed, integrating green organizational innovation ensures that the firm's decisions are consistent with green orientation, whether in selecting products, processes, suppliers, or other resources. Drawing on relevant literature, green organizational innovation can be divided into three main components: firm policy, supply chain collaboration, and human resources (Isa & Abidin, 2021). With respect to firm policy, it involves providing written environmental documents in the form of policies, procedures, and mission and vision statements, in addition to performing an environmental audit at both project and firm levels to ensure compliance with ecological regulations (Hashim, 2018). Regarding supply chain collaboration, construction firms should maintain good relationships and exchange knowledge with suppliers to stay up to date on the newest green processes and products, thus improving the firms' operational activities to be innovative and eco-friendly (Duong et al., 2021). In terms of human resources, firms should continue to offer green education and training to their employees to enrich their environmental knowledge and also motivate them with incentives based on their environmental initiatives (Bamgbade et al., 2017). In sum, green organizational innovation is crucial to the success of businesses; 15 therefore, construction firms should implement an environmental management system in order to demonstrate their commitment to environmental conservation. 1.5 Sustainable Performance The term sustainability gained more popularity after the publication of the Brundtland Report by the World Commission on Environment and Development (WCED) in 1987. Based on this report, sustainability can be defined as the capacity to satisfy current needs without jeopardizing the ability of coming generations to satisfy their own (Brundtland, 1987). Hence, sustainability seeks to provide a healthy, reliable, and high-quality life for the present and coming generations. According to Piwowar-Sulej (2020), sustainability has evolved to include three pillars: social, economic, and environmental, called the "triple bottom line" (TBL). The WCED asserted that these three pillars should be adopted simultaneously, as losing one will probably result in losing another (Brundtland, 1987). Thus, these pillars should be viewed as integral parts of a whole to assure long-term sustainability. One of the industries that causes the most damage to the environment is the construction industry (Pero et al., 2017). Indeed, the World Green Building Council recognized that the construction industry accounts for around 40% of total global carbon emissions, as well as 25% of global solid waste (World Green Building Council [WGBC], 2023). Therefore, the sustainability concept must be integrated within the construction industry in order to address and mitigate its ecologically harmful impacts. Consequently, the phrase "sustainable construction" was first proposed in 1994 to characterize the construction industry's responsibility in achieving overall sustainability (Aigbavboa et al., 2017). In this regard, Pero et al. (2017) asserted that various definitions of the concept of sustainable construction have been put forward in the literature, where it was defined as one aspect of corporate social responsibility that construction firms should incorporate into their operations. In addition, Aghimien et al. (2018) described sustainable construction as a holistic process aimed at restoring and maintaining balance between built and natural environments, as well as establishing settlements that foster economic fairness and support human dignity. Generally, Afzal and Lim (2022) indicated that the term sustainable performance is widely used to measure a firm's integration of sustainability principles within its 16 operations. Accordingly, the sustainability concept in construction firms can be achieved by paying attention to economic, environmental, and social performance at the firm and project levels (Mavi et al., 2021). For environmental performance, it pertains to how a firm's activities impact the natural environment (Sezen & Çankaya, 2013). According to Pero et al. (2017), the environmental performance of construction firms encompasses several aspects, such as avoiding overuse of finite resources, reducing waste, recycling, and conservation of energy and water. In addition, Yılmaz and Bakış (2015) added other environmental aspects, including reducing the usage of harmful materials and decreasing the frequency of environmental accidents. Therefore, firms' compliance with these aspects enhances their environmental performance and minimizes damage to the environment. In terms of social performance, it generally relates to the workforce and the firm's standing as perceived by the local community (Piwowar-Sulej, 2020). Thus, social performance can be achieved by protecting the right to life for future generations, distributing opportunities fairly, reducing poverty, and providing social services (Judi et al., 2022). Also, a socially sustainable construction firm should interact with related stakeholders, invest in its human resources by educating and training employees, and increase labor opportunities (Mavi et al., 2021). Regarding economic performance, it reflects the firm's effect on the economic status of stakeholders (Sezen & Çankaya, 2013). As mentioned by Afzal and Lim (2022), economic performance requires construction firms to reduce costs, increase profits, enhance productivity, and boost market share while maintaining efficient utilization of resources. Hence, Sezen and Çankaya (2013) emphasized that focusing only on economic performance will not ensure prolonged survival; instead, the firm should include the three pillars of sustainability in its strategic plan. 1.6 Green Organizational Culture Many researchers have emphasized that GOC is an emerging new research field, and as a result, its definition is still somewhat ambiguous (Imran & Jingzu, 2022). Therefore, Imran et al. (2021) confirmed that the definition of GOC can be inferred from the previous definitions of organizational culture (OC). As mentioned by Aggarwal and Agarwala (2023), OC is the values, assumptions, and attitudes that govern an organization's conduct in several contexts. Accordingly, GOC was described as an ecological philosophy 17 consisting of a set of principles, values, and beliefs that direct the behavior of the organization and its employees toward protecting the natural environment (García- Machado & Martínez-Ávila, 2019). Hence, it can be concluded that incorporating the green approach within the organization is the tool for enhancing OC. Based on past literature, various terms are used interchangeably to describe GOC, such as sustainability culture, eco-friendly culture, and pro-environmental culture (Imran & Jingzu, 2022). It is worth mentioning that GOC has the ability to guide the firm toward more sustainable performance, in addition to increasing profits as a result of its impact on sales and market behavior (Selfiani & Yunita, 2022). Additionally, Aggarwal and Agarwala (2023) pointed out that GOC provides the firm with a competitive edge as it is considered an intangible asset that cannot be imitated by rivals. Indeed, the GOC concept permits the firm to employ new advanced approaches instead of conventional ones, which leads to attracting more customers and increasing market share. Previous studies suggested different models for GOC. For instance, Aggarwal and Agarwala (2021) proposed that GOC comprises three dimensions, namely, diffusion, depth, and degree. Whereas Fang et al. (2022) identified four dimensions for GOC: peer involvement, message credibility, employee empowerment, and leadership emphasis. On the other hand, Yang et al. (2017) mentioned another culture model called the "Denison Model", which states that OC can be measured using four cultural traits in terms of mission, adaptability, involvement, and consistency. In this regard, the study by García- Machado and Martínez-Ávila (2019) confirmed that the Denison model can be adapted for GOC as follows: green involvement culture, green consistency culture, green adaptability culture, and green mission culture. In this study, the Denison culture model was used to measure GOC since, to our knowledge, it has not been addressed previously in the context of the construction industry. In more detail, the indicators of the Denison culture model can be summarized as follows:  Green involvement culture: it refers to the participation of employees in achieving the firm's environmental responsibilities, in addition to making decisions based on environmental protection. Furthermore, this culture requires the firm to train its employees on environmental care in order to boost green living (García-Machado & Martínez-Ávila, 2019). In light of the construction industry, project managers and 18 supervisors must be well trained and equipped with the required knowledge to use advanced technologies, such as AI-driven drones.  Green consistency culture: it focuses on stability and adherence to established principles within the firm regarding individuals' behavior toward environmental care. In other words, this culture refers to the agreement and consensus of all firm members to comply with established environmental policy (S. Wang et al., 2022). Thus, this culture requires construction firms to take established environmental policy into consideration at the firm and project levels when carrying out construction works and activities.  Green adaptability culture: it includes the firm's ability to adapt to various changes and new information in order to protect the natural environment and enhance current environmental policies, as well as listening to customer opinions that may require organizational changes (Yang et al., 2017). Therefore, an adaptable construction firm constantly modifies its structure and technology by monitoring and incorporating the newest eco-friendly technologies into its operations.  Green mission culture: it indicates that the firm's mission statement should embrace the green approach and environmental protection when conducting business. Thereby, firms should have a well-defined mission statement that prioritizes valuable environmental outcomes and considers environmental preservation a central corporate value (Aggarwal & Agarwala, 2023). Thus, construction firms should develop a green-based mission statement to achieve long-term success. According to Imran et al. (2021), if the firm establishes a GOC based on a win-win strategy including all its members, then its environmental performance is predicted to improve remarkably. Despite the importance of GOC, Aggarwal and Agarwala (2021) asserted that the field of GOC research is still in its early stages, with only a few studies having been conducted. Similarly, Fang et al. (2022) confirmed the need for further research in this significant field. Accordingly, this study is considered one of the first studies to address the GOC concept within the context of the construction industry. 19 1.7 Adoption of GI practices and Sustainable Performance The study by Shamsuzzoha et al. (2022) acknowledged that GI is a key determinant in the attainment of sustainable development. Accordingly, Halicioglu (2020) found in a study within the Malaysian construction industry that GI positively affects sustainable construction, where any type of innovation should improve sustainable performance in all its three dimensions, i.e., economic, social, and environmental. In the same context, the study by Alkahtani and Nordin (2020), including a sample of 364 construction companies, revealed that firms with GI capability can readily implement sustainability- oriented solutions, such as green buildings, and thus attain a better sustainable future. Based on insights from relevant literature, the role of GI practices in accomplishing sustainability goals in the construction industry is inevitable and cannot be ignored. Furthermore, Li et al. (2023) found that the GI strategy is positively contributing to fostering sustainable performance and gaining a competitive advantage. In this regard, H. Wang et al. (2021) demonstrated in the Pakistan manufacturing sector that the practices of GI have a positive impact on firms' ecological performance. Besides that, the study by Marcelline et al. (2022) pointed out that adopting GI of technology enables firms to promote their sustainable economic and environmental performance. Moreover, Tang et al. (2018) found that green product and process innovation minimizes a firm's negative ecological footprint and enhances its social and economic sustainability. In sum, the adoption of GI should be perceived as an established proactive policy, not as a reactive response due to the emergence of problems. In addition, Hazarika and Zhang (2019) affirmed that firms adopting GI practices have the potential to achieve higher profits and also concluded that GI practices positively influence economic performance. In contrast, few studies have claimed that GI negatively influences firm performance; for instance, Tang et al. (2018) indicated that GI is correlated with poor financial performance as it leads to increased costs, and Alsharif and Tong (2019) discussed that the construction industry encounters challenges in achieving economic prosperity through innovative practices as a result of cost issues and time- intensive projects. Despite the fact that the GI concept has conventionally been associated with economic issues, social and environmental forces have promoted the rethinking of GI within the framework of sustainability. 20 Based on previous literature, this study supports the idea that GI is a valuable organizational asset that firms leverage to enhance their performance and gain the confidence of critical stakeholders. Therefore, it is crucial to study the relationship between GI and sustainable performance within the construction sector in developing countries in order to encourage construction firms to adopt GI practices and thus foster the country's economic growth. To our knowledge, no study in Palestine has explored the correlation between the adoption of GI and sustainable performance in the construction industry. As a result, the following hypothesis is suggested: H1: The adoption of GI practices has a positive impact on sustainable performance in the Palestinian construction industry. 1.8 Green Organizational Culture as a Moderator It is clear that awareness of the ecological impacts of daily activities and the adoption of green practices have gained significant attention in recent times as a result of increasing environmental problems (García-Machado & Martínez-Ávila, 2019). Accordingly, recent studies propounded two main concepts related to environmental care: GOC as a guideline to govern employee behavior toward the environment and GI as a form of green practices. In this regard, the majority of research has demonstrated that GOC can impact GI. For instance, Şengüllendi et al. (2024) confirmed that the adoption of GI requires the environmental culture to be dominant throughout the firm; hence, GOC positively impacts GI. Additionally, the study performed by Qu et al. (2022) in the service sector indicated that GOC encourages firms to incorporate the green approach into their processes to produce innovative green products. Another study by Fang et al. (2022) pointed out that green involvement culture, as one of the GOC indicators, enhances the green behavior of employees, which in turn facilitates the adoption of GI practices within the firm. In this regard, Xiaoyi et al. (2023) conducted a study in the manufacturing sector with a sample of 399 managers, where it was revealed that the firm's integration of eco-friendly practices within its OC leads to motivating employees to come up with innovative green solutions. Furthermore, Xiaoyi et al. (2023) mentioned that GOC has a significant positive effect on green process, product, and organizational innovation. Indeed, GOC can push employees to accept GI as a central value of the firm and thus reduce the resistance to change resulting from adopting a new approach within the firm. 21 According to Şengüllendi et al. (2024), the success of adopting GI practices depends mainly on the establishment of GOC in advance, where C. H. Wang (2019) declared that a well-defined corporate culture is the driving force behind GI, leading to high levels of innovation within the firm. Similarly, García-Granero et al. (2020) added that there is a clear correlation between GOC and GI, and that this relationship has only been tested in high-tech and industrial sectors. Thus, it is interesting to study this relationship in other dominant sectors, such as construction, especially since there is a lack of studies examining the antecedent effect of GOC on GI in the Palestinian construction industry. Based on the above discussion, the following hypothesis is proposed: H2: The GOC has a positive impact on the adoption of GI practices in the Palestinian construction industry. Due to the significance of GOC, several studies have explored how GOC affects sustainable performance, especially environmental performance. Indeed, the study by Onputtha et al. (2023) in the automobile industry asserted that OC creates a climate that promotes sustainable outputs within the firm. In this regard, Fang et al. (2022) revealed that the environmental performance of the firm may improve as a result of its green culture. In more detail, S. Wang et al. (2022) affirmed that a culture of employee involvement and empowerment raises their ecological awareness, and as a consequence, they alter the procedures that consume excess raw materials, enhance projects to reduce waste, and establish recycling initiatives. Consequently, these outcomes of environmental awareness lead to improved environmental performance. Moreover, Selfiani and Yunita (2022) confirmed that GOC is a modern environmental ideology that leads to enhanced environmental and economic sustainability. Therefore, Küçükoğlu and Pınar (2018) suggested that there would be potential to attain higher performance if the firm integrated its adopted GOC within its functions and operations. The study by Fang et al. (2022) in the Malaysian manufacturing sector found that GOC can mediate the impact of green human resource management on environmental performance, which in turn emphasizes that GOC affects sustainable performance. In sum, it is undoubted that the improvement of firm performance is driven by GOC. It was noted that the majority of prior studies focused on environmental performance alone in terms of GOC impact. Therefore, this study examined the impact of GOC on all dimensions of sustainability (i.e., environmental, social, and economic performance), as 22 these metrics should be treated as one integrated part without neglecting any of them. Moreover, literature on the Palestinian construction industry has never explored the relationship between GOC and sustainable performance. Drawing on the prior review, it is obvious that there is a link between GOC and sustainable performance, so the following hypothesis is reached: H3: The GOC has a positive impact on sustainable performance in the Palestinian construction industry. Generally, Onputtha et al. (2023) revealed that the presence of GOC can affect GI, environmental performance, and competitive edge. Indeed, Şengüllendi et al. (2024) declared that GOC is considered the most preeminent green driver, as GI and green performance are being led by GOC. In this regard, C. H. Wang (2019) emphasized that firms with a well-structured GOC can improve their ability to adopt GI, thus increasing their green performance. Another study by Li et al. (2023) stated that corporate green responsibility motivates employees to adopt innovative behaviors and abilities that boost the firm's capacity for GI, thus attaining sustainable performance. Similarly, S. Wang et al. (2022) revealed that the green behavior of employees pushes the firm to adopt green product innovation, which results in sustainable performance. In light of the prior discussion, the literature clearly supports the notion that GOC plays a moderator role between GI adoption and sustainable performance. Several studies have addressed GOC as a moderator variable. For instance, the study by Sangkala et al. (2023) in the chemical industry discussed how green culture moderates the effect of green innovation behavior on green environmental effects. Additionally, Qu et al. (2022) addressed the moderator role of GOC between green absorptive capacity and GI in a sample of Chinese restaurants and hotels. Similarly, Nassani et al. (2022) found in a study within the Pakistani energy industry that GOC has a significant and positive moderating effect between social networks and GI. Following a comprehensive search of existing literature, this study is considered the first to examine the moderator role of GOC in the relationship between the adoption of GI practices and sustainable performance in the Palestinian construction industry. Accordingly, the following hypothesis is suggested: H4: The GOC moderates the relationship between the adoption of GI practices and sustainable performance in the Palestinian construction industry. 23 1.9 Construction Industry in Palestine The construction industry is considered a key economic sector that comprises the whole construction process, from importing manufactured and raw construction materials and providing professional services, like design and project management, to executing actual physical work at construction sites. Obviously, this industry is highly correlated with other industries, particularly manufacturing that supplies construction materials and components like cement, reinforcement steel, electrical machinery, aluminum, glass, etc. Moreover, the construction industry is viewed as highly fragmented, involving four main types of construction: residential, commercial, industrial, and infrastructure construction (Gorbaneva et al., 2024). In Palestine, the construction industry is considered one of the most dynamic and influential industries due to its significant impact on the national economy. In supporting this notion, the annual statistical report issued by PCBS classified the construction industry among the most important economic activities, contributing 3.1% to the Palestinian GDP during 2024. Additionally, the percentage of the labor force in the Palestinian construction industry, especially in the West Bank, reached 11.8% in 2024 (PCBS, 2024). Despite these positive indicators, Palestine is experiencing an environmental, economic, and humanitarian catastrophe due to the Israeli occupation, leading to a sharp decline in the added value of the majority of economic activities, with construction being the most affected. According to the report published by PCBS in 2024, the construction industry in the West Bank recorded the highest rate of decline at 38% (PCBS, 2024). In general, the construction industry is among those that have the greatest need for green practices due to its considerable adverse effects on the surrounding environment; however, in the Palestinian context, this need becomes even more urgent. Indeed, Hammad et al. (2021) pointed out that the amount of waste produced throughout the construction of buildings in Palestine ranges from 17 to 81 kg per square meter of building floor. Another study by Gorbaneva et al. (2024) performed a life cost analysis for buildings in Palestine, indicating that the amount of energy consumed during the construction phase equals 40 GJ/m2. In the same context, Gorbaneva et al. (2024) found that the construction phase accounts for 3.9 tons of greenhouse gas emissions per square meter of building floor as a result of increasing energy consumption. 24 In light of the foregoing, it can be said that greening the Palestinian construction industry is critical. This green transformation is not only essential for capturing the industry's valuable impacts on the Palestinian GDP and economic growth rate but also for avoiding its noticeable environmental effects. Nevertheless, Sadeh (2025) stated that the eco- friendly practices in Palestine face ecological challenges that may hinder their implementation, such as climate change and restricted control over resources, which are made worse by the unstable political situation. More specifically, the adoption of green practices is still in the maturity phase in the Palestinian construction industry and has only been recently implemented in externally funded projects. Therefore, as far as we know, this is the first time that GI practices and green organizational culture have been studied within the construction industry in Palestine. 1.10 Conceptualization of the Proposed Model The suggested conceptual model was developed in accordance with the literature review that has been presented earlier. As depicted in Figure 1, the model includes three main constructs: adoption of GI practices, sustainable performance, and GOC. Each construct was measured using specific dimensions, and every dimension has its own indicators. Moreover, the model shows the aforementioned hypotheses in order to examine the impact of the adopted constructs on one another. Figure 1 Research Conceptual Model 25 Chapter Two Methodology 2.1 Chapter Overview This chapter provides a comprehensive description of the methodology followed to complete this thesis. More specifically, the chapter explains the type and approach of research adopted in addition to the sampling plan, which involves the target population, sample size, and sampling method. Furthermore, it illustrates the design of the research instrument used for data collection as well as the techniques used for data analysis. 2.2 Research Type Generally, Mishra and Alok (2017) defined research as a systematic approach involving gathering and analyzing data to better understand a particular phenomenon. In other words, research is an endeavor to find answers or solutions through applying scientific procedures. It is crucial to note that the research design is the core of the overall research process. In this regard, Olawale et al. (2023) described the research design as a logical plan that outlines the appropriate framework for addressing research questions, including the choice of techniques for data gathering and analysis. Similarly, Olawale et al. (2023) added that well-designed research ensures the credibility of study results and averts drawing insufficient conclusions. In sum, a proper research design contributes to increasing the study's overall value and producing maximal information; therefore, it is imperative to prepare such a design well. Most scholars agree on classifying research types according to the following criteria: study applications, objectives, and information needed (Taherdoost, 2022). According to the study objectives, Casula et al. (2021) revealed that one of the most common types of research is exploratory research since every research topic was previously "new" and has the potential for continuous "newness." Additionally, Casula et al. (2021) defined exploratory research as a type of research conducted to address problems or issues that have not been thoroughly investigated; in other words, it deals with relatively new subjects with few or no previous studies. Besides, Olawale et al. (2023) asserted that the exploratory research can be employed to identify the relationships between variables in the research model and can be both qualitative and quantitative. 26 Based on a thorough review of the existing literature on the Palestinian construction industry, there is a lack of studies that examine the issue of the moderating role of GOC between GI adoption and sustainable performance; hence, exploratory research is the most suitable type to be adopted. Indeed, the choice of this research type seems logical because the GOC topic is still in its early stages and requires further investigation. Also, the adoption of GI practices in the Palestinian construction industry has not been explored, although this topic is commonly mentioned among other sectors in the literature. 2.3 Research Approach The research can be divided according to the type of information needed into qualitative, quantitative, and mixed approaches (Casula et al., 2021). The qualitative approach refers to studying the deep meanings and driving forces of the issues that people face daily, which are not quantifiable, whereas the quantitative approach involves using numerical data to illustrate a specific phenomenon. On the other hand, the mixed approach combines the quantitative and qualitative techniques, depending on the study goal (Taherdoost, 2022). Moreover, Mishra and Alok (2017) stated that research methods comprise the tools used by a researcher to gather the required data. In this study, the quantitative approach was adopted due to its ability to generalize the study results to the whole target population. In addition, the study by Taherdoost (2022) asserted that the quantitative approach is crucial for any firm's growth, as the conclusions resulting from number analysis are more reliable and dependable. Thus, the quantitative approach in this study would help construction firms gain new realistic insights and make effective decisions. Since selecting the proper research method is one of the most essential factors for conducting research successfully, an electronic questionnaire was employed in this study as a main instrument for collecting data. 2.4 Research Methodology Generally, research methodology refers to the approach used by a researcher to conduct research. According to Mishra and Alok (2017), the research process comprises a set of steps that are followed in a specific sequence to carry out research effectively; however, there is a possibility of moving backward and forward between some steps. Besides that, Mishra and Alok (2017) arranged the research steps as follows: problem definition, 27 literature review, hypotheses development, research design, data collection, data analysis, and results interpretation. The methodology adopted in this study consists of three primary phases: formulation, implementation, and analysis. The formulation phase starts with identifying the research problem, followed by a thorough literature review regarding the primary concepts addressed by the research, specifically GI, GOC, and sustainable performance; thus, the knowledge gap is clearly emphasized during this phase. Then, this phase concludes with developing research questions, objectives, and testable hypotheses. The implementation phase entails basically the survey process and data collection; therefore, the questionnaire was designed within this phase and evaluated by academic experts to assure content validity. In addition, this phase involves selecting a sample of the Palestinian construction firms (i.e., contracting firms, consultant firms, and engineering firms) in order to generalize the results to the entire target population, as well as distributing the questionnaire via email, followed by reminder emails and phone calls. Finally, after gathering the required data, the analysis phase begins with the use of Microsoft Excel and SmartPLS software to analyze the collected data, test the proposed hypotheses, and thus draw results, recommendations, and limitations. Figure 2 illustrates the flowchart of the research methodology followed in this study. • Defining the research problem. • Conducting a literature review. • Identifying research objectives and developing hypotheses. • Designing research and methodology. Formulation phase • Designing the questionnaire. • Determining the sampling plan. • Collecting data via questionnaire. Execution phase • Analyzing data using SmartPLS. • Testing hypotheses. • Drawing the results and recommendations. • Identifying limitations. Analytical phase Figure 2 Research Methodology Flowchart 28 2.5 Sampling Plan In the case of a large study population, it is not feasible to survey the entire population due to time and budget constraints; therefore, a sampling process emerged as a practical solution in such a case. Generally, the sampling process refers to selecting a smaller group (sample) from a large population, where this sample should represent the population under study. Several substantial issues should be addressed during the sampling process, including study population, sampling frame, sampling method, and sample size. To ensure that the results can be generalized to the entire construction industry, the target population in this study was enlarged to include all the key players in the Palestinian construction firms. Accordingly, the target population consists of contracting, consulting, and engineering firms in Palestine, specifically in the West Bank region. In this regard, the Palestinian Contractors Union (PCU) is a non-profit institution registered with government departments to represent contractors in Palestine. The PCU divides the contracting firms into five classes based on their capital, experience, and the size of executed projects, considering class one is the highest classification. On the other hand, the Engineers Association - Jerusalem Center is the authority that combines all the Palestinian institutions working in the engineering field, which are divided into consultant firms and engineering firms. The latter are further categorized into three classes depending on staff qualifications and workforce size, with class one being the highest. The sampling frame refers to specific categories of interest within the population and from which the sample is selected. Consequently, the adopted sampling frame includes the contracting firms registered with PCU under the first and second classes in the field of buildings, in addition to the consulting firms and first-class engineering firms that have a valid registration within the Engineers Association. According to the databases of specialized unions, the number of firms that meet the conditions of the sampling frame equals 811, as shown in Table 1. The reason for selecting this sampling frame is to enhance the homogeneity of study participants and ensure their suitability regarding the study topic. In other words, the selected classes of firms share similar experience, capabilities, and work scope, including project supervision and execution. 29 Table 1 Sampling Frame Distribution Type of firm Number Contracting firms 211 Consulting firms 306 Engineering firms 294 Total 811 The sampling method applied in this study is random sampling, as Mishra and Alok (2017) confirmed that this probability technique is typically utilized in quantitative research and ensures the generalization of the results. Therefore, 320 firms were randomly selected from the sampling frame and contacted to participate in the survey, in which every firm was asked to submit one response. Accordingly, 143 valid responses were received out of 320 distributed electronic questionnaires, indicating a response rate of 44.69%. However, this rate can be considered adequate for the study based on Dorkenoo (2019), who stated that the survey results may be biased and inadequate if the response rate is less than 30%. Also, Afzal and Lim (2022) asserted that the response rate in the construction sector is always low compared to other sectors. Several approaches were followed to increase the response rate. Initially, the link to the questionnaire was sent to the sample firms via email, followed by reminders to take part in the survey. Then, an additional effort was made by searching for the telephone numbers of the sample firms in relevant databases, such as Engineering Firms Guide and Palestinian Construction Guide, with the aim of making telephone calls to induce them to participate in the emailed questionnaire. However, the number of responses received wasn't surprising due to the current unstable political conditions in the country, which directly affect the overall firm's performance and thus its willingness to participate in the survey. Prior studies have suggested several methods for determining the appropriate sample size for research. For instance, Hair et al. (2021) recommended using power analysis to estimate the sample size, such as G*Power software, due to its dependence on model setups and the reliability of its results. In this study, the recommended settings of the G*Power software were used as follows: significance level = 0.05, effect size = 0.15, power = 0.9, and number of predictors = 3, which indicates the number of independent variables, including the moderator and interaction item (Praharaj & Ameen, 2024; Memon 30 et al., 2020). Accordingly, the required sample size is 99 participants; thus, the sample size used in this study, i.e., 143, is strongly adequate. 2.6 Questionnaire Design and Measurement Development Generally, there are key points that should be identified when designing any questionnaire, such as the type of questions and the method of questionnaire administration. In this study, the questionnaire included closed-ended questions and was self-administered by sending an electronic copy to the target participants. The questionnaire was designed using an online Google Form and distributed via email after being reviewed and modified by specialized university professors to ensure the consistency and validity of the study tool. The study questionnaire was divided into four main sections as follows: the first section collected the demographic data of the respondents, such as gender, years of experience, job position, firm type, firm age, and types of the firm's clients, whereas the other sections measured the research constructs within the targeted firms, including adoption of GI practices, GOC, and sustainable performance. Accordingly, Appendices A and B include the questionnaire in English and Arabic languages, respectively, and Table C.1 in Appendix C includes the names of the questionnaire reviewers. Following an exhaustive search of the existing literature, the main research constructs were determined, and the measurement items for each construct were developed. Table C.2 in Appendix C shows the questionnaire questions, i.e., measurement items, as well as the corresponding reference for each item. Accordingly, the overall study model comprises a total of 40 items divided among three constructs. The first construct, i.e., adoption of GI practices, was measured using 12 items that were adapted from prior literature (Isa & Abidin, 2021; Judi et al., 2022; Hashim, 2018; Hazarika & Zhang, 2019). More precisely, these measurement items were divided into three equal subgroups to evaluate green product innovation (GPDI), green process innovation (GPCI), and green organizational innovation (GOI). With respect to the second construct, GOC was assessed using 16 items selected from previous studies (Roscoe et al., 2019; Qu et al., 2022; Piwowar-Sulej, 2020; Shahriari et al., 2023; C. H. Wang, 2019; Al Doghan et al., 2022), in which four items were adopted for each of green involvement culture (GIC), green consistency culture (GCC), green 31 adaptability culture (GAC), and green mission culture (GMC). Ultimately, in the case of sustainable performance, twelve measurement items were generated from previous literature (H. Wang et al., 2021; Judi et al., 2022; Afzal & Lim, 2022; Zhu et al., 2008), with four items each for environmental performance (ENP), economic performance (EP), and social performance (SP). Moreover, all items were evaluated using a five-point Likert scale according to the following criteria: (1: strongly disagree), (2: disagree), (3: neutral), (4: agree), and (5: strongly agree). 2.7 Data Analysis Techniques The data collected through the online questionnaire was analyzed using different software tools: Google Forms, Microsoft Excel, and SmartPLS. First, Google Forms was used as a survey administration tool that could analyze the demographic data of respondents and, therefore, provide a statistical analysis of the demographic characteristics of the sample. Second, the data was directly imported from the online Google form to an Excel sheet for the purpose of sorting, organizing, and determining the mean and standard deviation for each construct. Ultimately, the SmartPLS software was used to assess the reliability and validity of the study model and test the proposed hypotheses. In more detail, the SmartPLS software was used as one of the prominent software tools for partial least squares structural equation modeling (PLS-SEM). By applying SmartPLS (v. 3.2.9), the study model was drawn based on the adopted conceptual framework, and the collected data for each variable was entered, considering the presence of first-order and second-order constructs. After that, the PLS algorithm analysis was performed to evaluate the reliability and validity of the model by comparing the results with the recommended thresholds. Also, bootstrapping analysis was conducted to assess the significance of the relationships so that the research hypotheses could be judged. It is worth noting that assessing the study model is a two-step process that involves assessing the measurement model and the structural model. The assessment of the reflective measurement model comprises verifying the construct reliability and validity through the following tests: outer loadings, composite reliability, average variance extracted, and Cronbach’s alpha, in addition to investigating the discriminant validity through cross-loadings, Heterotrait-monotrait ratio, and Fornell-Larcker. Further, the content validity was assessed by sending the study instrument to a scientific committee for a comprehensive review of its content and elements. 32 On the other hand, the structural model assessment involves evaluating the coefficient of determination, effect size, predictive relevance, model fit measures, and path coefficients to test the hypothesized relationships between variables. Further, the moderation analysis of GOC was performed according to the study model. All the aforementioned tests were illustrated in-depth in the next chapter, specifically Chapter Three, whereas the results were discussed in the light of the study context in Chapter Five. 33 Chapter Three Data Analysis and Results 3.1 Chapter Overview This chapter presents a detailed analysis of the data gathered through the online questionnaire from construction firms in the West Bank. The statistical analysis of the respondents' demographic data was conducted using the Google Form. Further, the data file was imported to Microsoft Excel to obtain the mean and standard deviation values for each item; therefore, the adoption level of GI practices as well as the level of GOC and sustainable performance can be determined. Then, the reliability and validity of the study model as well as the research hypotheses were evaluated using SmartPLS. 3.2 Analysis of Survey Responses 3.2.1 Response Rate The electronic questionnaire was emailed to the targeted firms that meet the conditions of the sampling frame, followed by reminder emails and phone calls to encourage more firms to fill out the attached questionnaire and thus increase the response rate. It is noteworthy that this study's survey relied mainly on the acquisition of only one response from each firm; thus, 143 valid responses were obtained out of 320 contacted firms, generating a response rate of 44.69%. The resulting response rate is consistent with previous studies, such as Dorkenoo (2019) and Aghimien et al. (2018), which claimed that the collected data can be regarded as biased and insufficient if the response rate is less than 30–40%. Accordingly, a response rate of 44.69% indicates that the data gathered from the distributed questionnaires is acceptable and sufficient for being analyzed. In addition, Afzal and Lim (2022) asserted that the construction sector is always linked to a low rate of response. Although the data were gathered over a relatively good period of two months, the response rate was affected by several factors, including the current precarious political situation, which in turn led to a deterioration in the economic situation and a decrease in the volume of construction projects. Therefore, the resulting response rate reflects the particularity of the Palestinian context. 3.2.2 Demographic Information In this study, the Google Forms tool was used to create the online questionnaire since it automatically generates a comprehensive demographic analysis of the respondents using 34 frequencies and percentages. Accordingly, the statistical analysis of the demographic data showed that 78.3% of the respondents were men, whereas the remaining 21.7% were women. Regarding years of experience in the construction industry, the respondents with more than 15 years of working experience recorded the highest portion at 53.8%. This was followed by 22.4% with 6-10 years of experience, 15.4% with 11-15 years of experience, and 8.4% with less than 6 years. With respect to the respondent's job position in the firm, the majority of the respondents were office engineers with 44.1%, closely followed by general managers and contractors with 39.2%. The remaining respondents were project managers with 14% and site engineers with 2.8%. Additionally, respondents were asked to provide information related to the demographic