ENHANCING SUSTAINABLE PERFORMANCE WITH GREEN CONSTRUCTION BASED ON LOCAL WISDOM THROUGH IMPLEMENTATION STRATEGY AS A MEDIATING VARIABLE

This research examines the integration of local wisdom-based green construction practices and their influence on sustainable performance through implementation strategies in the Indonesian construction industry. It focuses on ten construction projects in Bali. The main problem faced is the lack of understanding of the effectiveness of local wisdom-based green construction practices in improving sustainable performance in developing countries. Using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method, data was collected from 200 engineers involved in green construction projects. Results show that local wisdom-based green construction practices significantly influence sustainable performance, both directly (path coefficient 0.290) and indirectly through the mediation of implementation strategies (indirect effect 0.575). The research model shows high explanatory power with R-squared values of 0.802 for Implementation Strategy and 0.831 for Sustainable Performance. These findings indicate that integrating local wisdom in green construction practices when mediated by an effective implementation strategy, can significantly improve the sustainable performance of construction projects. Sustainable waste management was identified as the dominant indicator (loading factor 0.936) of local wisdom-based green construction. In contrast, alignment with government policies and regulations (loading factor 0.925) became critical in the implementation strategy.