Effects of dual network embeddedness in distinct organizational network levels on megaproject performance

Purpose The performance dilemma of megaprojects remains a challenge. However, existing research on megaproject performance (MP) mostly ignored the role of network embeddedness. In particular, the effects of dual network embeddedness across distinct organizational levels – defined as the simultaneous embeddedness of project participants within project-level networks (PNE) and participants' parent companies within industry-level networks (INE) – remain underexplored, leaving the unclear influencing mechanism of MP. To bridge this gap, this study draws on network embeddedness theory and resource orchestration theory, proposing a conceptual model to explore how dual network embeddedness influences MP, with a particular focus on the mediating roles of project routine capability (PRC) and project innovative capability (PIC). Design/methodology/approach This study applies the triangulation approach, analyzing questionnaire data by partial least-squares structural equation modeling and substantiating findings with semi-structured interviews based on a megaproject case. Findings The results indicate that INE affects MP positively and significantly, whereas the direct impact of PNE on MP is verified only in public construction projects. Besides, PRC and PIC serve as mediating roles linking dual network embeddedness to MP. Originality/value The findings clarify the discrepancy impacts of dual network embeddedness on MP, identifying INE as the primary driver compared to PNE, which reveals the varying explanatory power of network embeddedness theory for MP. Additionally, the findings uncover the vital mediating roles of project capabilities, extending the applicability of resource orchestration theory in megaprojects by exploring the intrinsic impacts of network embeddedness on MP. This study also provides practical implications for project stakeholders on improving MP through network embeddedness and capability development.