Can Lean Construction and Digitalisation Generate More Financial Returns? Evidence of Complementarity from Chinese Listed Construction Firms

Construction firms increasingly adopt lean construction and digitalisation to improve operational efficiency and strengthen competitiveness. However, whether these initiatives can generate measurable financial returns, particularly when implemented jointly, remains insufficiently understood. This study aims to examine the individual and complementary effects of lean construction and digitalisation on the financial performance of construction firms. Drawing on the resource-based view and complementarity theory, panel data from 132 Chinese A-share listed construction firms from 2007 to 2023 were analysed using two-way fixed-effects models. Firm-level lean construction and digitalisation indicators were constructed from publicly available corporate information, while financial performance was assessed using return on assets and Tobin’s Q. The findings show that both lean construction and digitalisation have significant positive effects on firm-level financial performance, extending their benefits beyond project-level operational outcomes. More importantly, the interaction between lean construction and digitalisation is significantly positive, confirming that their joint development is related to additional financial returns beyond their independent effects. The financial contribution of digitalisation is also stronger at higher levels of lean construction, indicating that lean-oriented processes can provide an important organisational foundation for realizing digital value. Further heterogeneity analysis shows that the complementary effect is statistically significant among non-state-owned firms but not among state-owned firms in the sample. Additionally, across small, medium, and large the sampled firms, this complementarity remains relatively weak and needs to be further enhanced to unlock its full financial value. On the one hand, this study extends current lean–digital research from project-level operational performance to firm-level financial outcomes and provides empirical evidence of their complementarity in the construction industry. On the other hand, the findings provide practical guidance for Chinese listed construction firms to coordinate lean-oriented process improvement with digital investment to enhance financial returns.