MITIGATING STRATEGIC RISK AND PROMOTING SUSTAINABLE RESOURCE CONSERVATION: FOCUS ON SOUTH-EAST NIGERIA CONSTRUCTION FIRMS

Abstract

This study examined the effect of strategic risk mitigation on sustainable resource conservation among construction firms in South-East Nigeria. The increasing intensity of construction activities in the region has heightened concerns about inefficient resource utilization, environmental degradation, and long-term sustainability challenges. Despite the growing emphasis on sustainability, many construction firms continue to face strategic risks arising from weak planning systems, regulatory uncertainty, technological limitations, and economic instability. Against this backdrop, the study empirically investigated the relationship between risk identification, risk mitigation, and sustainability outcomes in selected large-scale construction firms. A survey research design was adopted. The population comprised 2,505 management staff from 25 registered construction firms across the five states of South-East Nigeria. Using the Taro Yamane formula, a sample size of 345 respondents was determined, while 313 valid responses were analyzed. Data were collected through a structured questionnaire measured on a five-point Likert scale. The instrument was validated through face and content validity and tested for reliability using Cronbach’s alpha. Data were analyzed using descriptive statistics and simple linear regression with SPSS version 27. Findings revealed that risk identification has a significant positive effect on operational efficiency sustainability (R² = .189, F(1,311) = 72.316, p < 0.05), indicating that proactive identification of financial and project-related risks enhances revenue stability and operational performance. More importantly, risk mitigation was found to have a strong and statistically significant effect on resource conservation sustainability (R² = .345, F(1,311) = 163.788, p < 0.05), explaining 34.5% of the variation in sustainable resource conservation practices. The study concludes that strategic risk mitigation significantly enhances resource efficiency, waste reduction, and environmental performance in construction firms. It recommends the institutionalization of comprehensive enterprise risk management systems to strengthen sustainability outcomes in the construction sector of South-East Nigeria.