Multiple paths to enhancing total factor productivity in the construction industry from the configuration perspective: evidence from China

Purpose The construction industry is currently grappling with challenges related to inefficiency and declining productivity, primarily due to its reliance on labor- and resource-intensive development practices. This study aims to investigate the paths to enhancing Total Factor Productivity (TFP) within the construction sector from a configurational perspective. Design/methodology/approach This research, grounded in the configurational perspective, proposes a conceptual model that explains how the interplay between the institutional environment and organizational resources affects the TFP of the construction industry. This model is informed by the resource-based view and institutional theory. To test the proposed model, Necessary Condition Analysis (NCA) and Qualitative Comparative Analysis (QCA) were employed, utilizing case data from 30 provinces in China for the year 2019. Findings This study demonstrates that no single condition is necessary for achieving high levels of TFP in the construction industry. Instead, four distinct pathways can lead to elevated TFP, which are the institutional environment-driven pathway, the technological resource-institutional environment-driven pathway, the managerial resource-institutional environment-driven pathway, and the all-round development-driven pathway. Originality/value This research advances the theoretical understanding of TFP performance in the construction industry through a configurational perspective. Furthermore, it offers valuable insights for practitioners aiming to enhance TFP within the construction sector.