Organisational and leadership impact on digital capabilities within the construction industry

Muhd Shafiq Johari; Syamsul Hendra Mahmud; Suria Musa; Hairuddin Mohammad; Mazura Mahdzir; Mat Nizam Uti; Syarif Abdul Asaad Jairin

doi:10.2478/otmcj-2026-0002

Abstract

This study investigates the interactions among leadership capability (LCAP), organisation capability (OCAP), emphasising the mediating role of digital mindset (DIND) and the moderating effect of digital technology capability (DCAP) in the Malaysian construction industry. Data from 341 managerial leaders, analysed through confirmatory composite analysis and the bootstrap method, indicate that a strong LCAP significantly enhances the leadership styles. The DIND mediates the relationship between LCAP and OCAP, confirming that enhanced digital leadership capability (DLCAP) is crucial for transforming OCAP towards effective organisational innovation. Furthermore, DCAP negatively moderates the relationship between leadership and organisational capability. The current lack of automation demands more effective management of organizational challenges, highlighting a key area for future technological advancement. These findings extend the discourse on digital literacy by offering practical insights for construction stakeholders striving to incorporate the Construction Industry Competency Standard (CICS) through advancements in digital capabilities. Moreover, provides an understanding of DLCAP on the synergy between digital technology, leadership styles and organisational innovation, offering valuable perspectives for policymakers and construction leaders aiming to foster continuous digital transformation within the construction industry.

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Organisational and leadership impact on digital capabilities within the construction industry

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