Sustainability Capability Internalization in Construction Supply Chain: An RBV–Stakeholder Perspective Using PLS-SEM

Abstract

Grounded in the resource-based view (RBV) and informed by stakeholder theory, this study investigates how responsible sourcing capabilities translate into responsible production outcomes within the Indian construction supply chain. Specifically, the study examines the mediating role of responsible consumption as an internal capability deployment mechanism and the moderating role of sustainability targets aligned with Sustainable Development Goal 12 (SDG-12) as an external stakeholder-driven institutional pressure. Based on a critical synthesis of prior research, twenty-three critical success factors were identified and characterized across sourcing, consumption, and production stages of construction activities. Primary data were collected from 362 construction-sector professionals in India (out of 556 approached) between August and November 2025 using a structured questionnaire administered through online surveys and personal interviews. The proposed theoretical model was empirically tested using Partial Least Squares Structural Equation Modelling (PLS-SEM) in SmartPLS4. The results indicate that responsible sourcing positively affects responsible production directly and via responsible consumption, while SDG-12–aligned sustainability targets negatively moderate this relationship, constraining the translation of sourcing capabilities into production outcomes. By explicating the capability-based mechanisms and boundary conditions through which sustainability practices operate across the construction lifecycle, this study extends RBV by integrating stakeholder-driven constraints into sustainability capability deployment. The findings contribute to construction supply chain sustainability literature by moving beyond linear RS–RP linkages and offer actionable insights for policymakers and industry practitioners seeking to balance internal capability development with external sustainability mandates.