Open Access Article

Title: Innovating for performance: the role of lean construction and strategic partnerships in construction firms

Authors: Johan Arifin; Harjanto Prabowo; Mohammad Hamsal; Elidjen Elidjen

Addresses: Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta, 11480, Indonesia ' Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta, 11480, Indonesia ' Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta, 11480, Indonesia ' Management Department, BINUS Business School Doctor of Research in Management, Bina Nusantara University, Jakarta, 11480, Indonesia

Abstract: This study examines the effects of lean construction and strategic partnerships on firm performance, with business model innovation as a mediating mechanism in the construction industry. A quantitative research design was employed, using data collected from 226 largescale construction firms registered as national contractors. The data were analysed using PLS-SEM. The results indicate that lean construction has a positive direct effect on firm performance and a stronger indirect effect when mediated by business model innovation. Strategic partnerships do not exert a significant direct influence on firm performance, but they contribute positively when their impact is channelled through business model innovation. In addition, business model innovation shows a strong and positive direct effect on firm performance. These findings suggest that operational efficiency and interorganisational collaboration yield optimal performance outcomes only when supported by systematic innovation across value creation, value proposition, and value capture.

Keywords: lean construction; LC; strategic partnership; business model innovation; BMI; firm performance.

DOI: 10.1504/IJBIR.2026.151634

International Journal of Business Innovation and Research, 2026 Vol.39 No.6, pp.1 - 25

Received: 18 Dec 2025
Accepted: 05 Jan 2026

Published online: 10 Feb 2026 *