The Interplay of Digital Transformation, Organizational Agility, and Knowledge Management in Optimizing Construction Project Management

While digital transformation (DT) promises significant advancements in the construction sector, many firms report a disconnect between technological investment and realized project performance. This study investigates the mechanisms through which DT drives project management optimization (PMO), hypothesizing that organizational agility (OA) and knowledge management capability (KMC) serve as critical mediating factors. We propose and test a conceptual model in which DT directly enhances PMO and also exerts indirect influence through the parallel pathways of OA and KMC. Data from a survey of 312 construction professionals were analyzed using structural equation modeling. The results confirm a significant direct effect of DT on PMO. Furthermore, both OA and KMC are identified as complementary and significant partial mediators. This finding underscores that the efficacy of digital technologies is contingent upon supportive organizational structures and systematic knowledge processes. The study provides a nuanced theoretical framework explaining how DT translates into improved project outcomes and offers strategic guidance for practitioners: to fully capitalize on digital investments, construction firms must concurrently cultivate adaptive capabilities and robust knowledge management systems.