Unpacking the effect of institutional environment on knowledge innovation in megaprojects: evidence from China

Purpose Grounded in the unique institutional characteristics of megaprojects in China, this study aims to investigate how different institutional factors shape knowledge innovation in megaprojects. Drawing on the institution-based view, it examines three types of institutional pressures (coercive, mimetic, and normative) and two types of institutional support (formal and informal), with particular attention on the mediating role of top management support. Design/methodology/approach This study adopted a quantitative design based on a questionnaire survey of 182 practitioners engaged in megaprojects in China. The partial least square structural equation modelling (PLS-SEM) was applied to test the effects of institutional pressures and support, as well as the mediating role of top management support. Findings The results reveal that coercive pressures, mimetic pressures, and both formal and informal institutional support significantly promote knowledge innovation in megaprojects, whereas normative pressures exert no significant effect. In addition, top management support plays a crucial but differentiated mediating role in linking institutional factors to knowledge innovation. Originality/value This study extends the institution-based view to the domain of megaproject knowledge innovation. By uncovering the distinct impacts of institutional pressures and support, it offers practical guidance for practitioners aiming to harness institutional forces and strengthen innovation capabilities in megaprojects.