Does megaproject social responsibility improve the sustainability of the construction industry?

Purpose – Since megaproject social responsibility (MSR) has received increasing attention in megaproject management and plays critical roles in megaproject practices, the purpose of this paper is to explore how MSR facilitates an improved sustainability of the construction industry. Design/methodology/approach – By integrating multiple theoretical perspectives of transaction cost theory, institutionalism and attention- and resource-based views, and by using survey data of Chinese megaprojects and construction enterprises, this paper offers a theoretical elaboration of and an empirical investigation into the impacts that MSR’s four dimensions exert on industrial improvement in economic sustainability and social responsibility. Findings – The study’s empirical results indicate that MSR has positive impacts on improving the sustainability of the construction industry, and that such positive impacts are weakened by the interactions of primary stakeholders in the megaprojects but are strengthened by the interactions of secondary stakeholders. Practical implications – This paper suggests that managers and policymakers make efforts to governmental guidance, media monitoring and public participation in megaprojects, so as to limit the potential unethical behaviors in megaproject management and enhance the sociopolitical legitimacy that are essential for the sustainability of the construction industry. Originality/value – By analyzing the industrial outcomes of MSR, this paper extends studies on the topic beyond the current literature’s focus on the antecedents of MSR, and it enriches the research on MSR stakeholders by elaborating on the contingent roles of the various stakeholders in megaproject management.