Towards construction 4.0: Pathways to innovation and the green economy

The rapid advancement of Construction 4.0 (C4.0) has intensified the need for leadership approaches that can simultaneously drive digital transformation and strengthen organizational capabilities that support future innovation and the transition toward a green economy. This study examines how transformational, transactional, and servant leadership styles are associated with digital capabilities (DC) and leadership capabilities (LC), which are recognized as critical organizational capabilities for C4.0 transformation. Data were collected through a quantitative survey and analyzed using PLS-SEM. Results showed that transformational, transactional, and servant leadership styles were positively associated with both DC and LC.. The findings indicate that strengthening these capabilities can better position construction firms to pursue digital transformation and provide a foundation for future innovation and sustainability initiatives. Accordingly, firms and policymakers should integrate visionary, structural, and collaborative leadership approaches to strengthen DC and LC, thereby supporting long-term innovation and sustainable development within the C4.0 environment.