Leaders, Let’s Get Agile: Examining Project Performance Through Sequential Moderated Mediation of Value Co-Creation and Stakeholder Satisfaction Using the Lens of Agile Leadership

Abstract

The purpose of this study is to examine project performance through the sequential mediation of value co-creation and stakeholder satisfaction, as well as the moderate mediation of stakeholder management in construction companies. The data were collected from project-based organizations using a non-probabilistic, convenience sampling technique. The data were analyzed using structural equation modeling in Smart PLS V. 4. The results suggest that there is a positive and significant association between agile leadership and project performance. Value co-creation and stakeholder satisfaction both separately and sequentially mediate the association between agile leadership and project performance. It was also revealed that stakeholder management moderates this mediation, such that the relationship between agile leadership and project performance is stronger when stakeholder management is high. The implications for theoretical body of knowledge and practices are aligned with stakeholder theory.

1. Introduction

In the rapidly changing business landscape, organizations expect leaders to deliver strategic outcomes while navigating the constant flux of change (PMI, 2025). The journey from theory to practice in Agile transformation is full of opportunities, but also challenges (IPM, 2025). Agile Leadership is essential in environments where flexibility, responsiveness, and collaboration are key to success, and it strengthens the project management profession by expanding access to agile resources, broadening skill sets, and fostering a flexible mindset (Alliance, 2024; PMI, 2025).

Agile leaders focus on delivering value to customers through engaging them to maximize the overall project impact (Bambauer-Sachse & Helbling, 2021; Kocot & Maciaszczyk, 2024; Nájera-Sánchez et al., 2022; Prahalad & Ramaswamy, 2004; Tabassum et al., 2024). To survive as a corporation in today’s world, a fundamental transformation to become more agile is crucial (Steinhart, 2025). The transformation of every organization starts with its leadership driving successful change while adopting new mindsets and capabilities (Porkodi, 2024). Agile leadership (AL) is a management philosophy that explores leadership agility in the context of organizational agility (Akkaya, 2020; Akkaya & Tabak, 2020). Likewise, the study by Tandon et al. (2024) suggests that leadership agility is one of the key dimensions to foster organizational agility, though challenging in practice and difficult to implement (Tandon et al., 2024). Likewise, agile leadership plays a pivotal role in shaping the project performance (PP) (Z. Li et al., 2020). Managing stakeholders throughout the project ensure transparency in the development process. According to research studies, agile leadership, which achieves team effectiveness through interpersonal trust, has revealed significant results in improving business agility (Akkaya & Bagieńska, 2022; Steinhart, 2025). Likewise, engaged stakeholders are more likely to contribute to value co-creation (VCC), as it provides insights that align with organizational strategies and priorities (Asiedu & Iddris, 2022; Ladjar & Bantugan, 2024; Lucien & Amolo, 2025). The co-creation process often involves iterative feedback loops, where stakeholders contribute to refining project outcomes (Ansell et al., 2022). Studies reveal that stakeholder satisfaction (SS) reflects the effectiveness of project management strategies and their alignment with project outcomes and stakeholder expectations (Lucien & Amolo, 2025; Russo et al., 2019). The research reveals that ensuring a high level of stakeholder satisfaction is crucial in the construction industry, given the large number of stakeholders and their diverse requirements.

There is a need to identify the research gaps, as it helps guide future research efforts and contributes to a deeper understanding of agile leadership and its consequences. Furthermore, existing literature often falls short in providing a comprehensive understanding of agile leadership within the unique context of multiple companies (IPM, 2025; PMI, 2025). Secondly, the research gap in examining value co-creation and stakeholder satisfaction as sequential mediators and project performance as a dependent variable within construction companies is evident (Asiedu & Iddris, 2022; Dugbartey & Kehinde, 2025; A. Raza et al., 2020; Urban et al., 2019). The existing literature often lacks a nuanced understanding of how value co-creation and stakeholder satisfaction, along with stakeholder management (SM) in collaborative efforts, contributes to the enhancement of project performance. Bridging this gap is essential for shedding light on the mechanisms through which value co-creation and stakeholder satisfaction influence the effectiveness of project outcomes (Bal et al., 2023; Mirzaei et al., 2024; Nájera-Sánchez et al., 2022; Trencher et al., 2018). There is a further need to investigate how the sequential mediation linkage influences project performance (B.-J. Kim et al., 2022; Nosrati et al., 2024; Pan et al., 2024; Zugna et al., 2022). Keeping in view the identified research gaps, the objective of the current study is to address the research question of to what extent agile leadership is associated with project performance along with sequential mediation of stakeholder satisfaction and co-creation, and to what extent stakeholder management moderates the mediation to improve project performance such that it strengthens the association. The research framework is developed as guided by the existing literature (A. Ali & Sameh, 2024; Jintian et al., 2022; Moullin et al., 2020; Sheng et al., 2019; Sultan et al., 2020).

2. Literature Review

Agile leadership represents a dynamic and adaptive strategy for directing teams and organizations within the contemporary, fast paced, and constantly shifting business environment (Adhiatma et al., 2023; Attar & Abdul-Kareem, 2020; Kaya, 2023). Rooted in the principles of agile methodologies, this leadership style prioritizes adaptability, collaboration, and customer focus (Akkaya, 2020; Armanious & Padgett, 2021; Bushuyev et al., 2021; Indiarti & Lantu, 2022). Agile leaders foster a culture that encourages continuous learning, embraces change, and values individuals and interactions over rigid processes and tools (Bushuyeva et al., 2019; Setiawati, 2021; Skogen et al., 2018). Unlike traditional hierarchical models, agile leadership promotes decentralized decision-making, empowering teams to self-organize and make informed choices based on real-time feedback. Agile leaders act as facilitators of open communication and transparency, fostering an environment in which team members are empowered to express ideas, share insights, and actively contribute to the collaborative process (Briciu et al., 2020; Bushuyeva et al., 2019; Gren & Lindman, 2020; Neto et al., 2022). The emphasis on iterative progress and incremental delivery allows agile leaders to respond swiftly to shifting priorities and emerging challenges (Jain et al., 2024). They recognize the importance of delivering value to customers and stakeholders, driving teams to focus on outcomes that align with organizational goals. By fostering a mindset of continuous improvement, agile leaders enable teams to learn from experiences, adapt to changing circumstances, and enhance their performance over time (Durak et al., 2024; Roberts & Bacon, 1997; Weiss et al., 2023). Effective project performance goes beyond completing tasks on schedule; it involves the strategic management of resources, efficient communication, and the adaptability to changes in project scope or external factors (Assaad et al., 2020; Awuni et al., 2016; Ingle & Mahesh, 2022). This approach is particularly relevant in construction companies where the nature of work is dynamic, and projects often encounter unforeseen challenges. This proactive and iterative approach not only accelerates project delivery but also ensures that the final outcomes meet or exceed customer expectations, contributing to overall improved project performance. Agile leadership is not merely a set of practices; it represents a philosophy that values flexibility, collaboration, and innovation (Bayram & Öztırak, 2023). Whether applied in project management or organizational leadership, agile principles underpin a mindset that is well-suited to navigate the complexities of modern work environments and drive sustained success (X. H. Chen et al., 2022; Özdemir, 2023; Surapto et al., 2024). This adaptability results in reduced project risks, improved problem-solving capabilities, and ultimately, more successful project outcomes (C.-C. Chen et al., 2018; Hofman et al., 2023; Jintian et al., 2022; Porkodi, 2024). The proposed hypothesis underpins the stakeholder in the shared leadership research stream because of growing popularity of the agility paradigm (Hofman et al., 2023). Hence, the first hypothesis is proposed as follows:

H1. 

Agile leadership has a positive association with project performance.

In construction companies, value co-creation represents a collaborative approach that involves the active participation and management of stakeholders, including project teams, clients, and end-users, throughout the entire project lifecycle. Unlike traditional project management models where value creation is often seen as a one-way process, value co-creation acknowledges the collective and interactive nature of creating value in a project setting (Dunlap et al., 2000; Kaya, 2023; Moarefi & Janami, 2025; Sjödin et al., 2020). Agile leadership, inspired by agile methodologies, promotes a flexible approach to project management, emphasizing iterative progress and quick responsiveness to changing requirements (Kocot & Maciaszczyk, 2024; Pohjola et al., 2021). Agile leaders prioritize adaptability and flexibility in responding to changing circumstances (Manafi Varkiani et al., 2024; Tabeau et al., 2024). This aligns with the dynamic and iterative nature of value co-creation, where adjustments and refinements are made based on ongoing feedback. Agile leadership also encourages open and transparent communication within project teams (Nikolić et al., 2021; Przybilla et al., 2019). This communication style is crucial for effective value co-creation, as it ensures that all stakeholders, including team members and clients, have a shared understanding of goals, expectations, and feedback (Jaiswal & Kant, 2018; Olufuwa, 2025). Agile leaders facilitate a culture of collaboration where ideas and insights flow freely between employees and customers (Cleveland & Cleveland, 2020; Ladjar & Bantugan, 2024; Porkodi, 2024; Temitope, 2022). The stakeholder theory endorsed that leaders need to understand the relationship with stakeholders for value cocreation and focus on joint interest, the ability to collaborate, and trust among stakeholders (Kujala et al., 2019). Hence, the Hypothesis 2 proposition is as follows:

H2. 

Agile leadership has a positive association with value co-creation.

The involvement of stakeholders in value co-creation ensures that the project outcomes align with the diverse needs and expectations of stakeholders (Asiedu & Iddris, 2022). The goal of value co-creation is to deliver value to customers (Nájera-Sánchez et al., 2022; Woratschek et al., 2020). By actively involving customers and end-users in the project development process, organizations can ensure that the final deliverables meet or exceed customer expectations, leading to higher satisfaction (Bal et al., 2023). Value co-creation also embraces adaptability and flexibility. Projects are viewed as dynamic processes where changes are expected, and the ability to adapt to evolving requirements is a crucial aspect of creating value that truly resonates with stakeholders (Agrawal et al., 2015; Merrilees et al., 2021). In the construction industry, different stakeholders with diverse requirements are involved (Pohjola et al., 2021). Therefore, utilizing value co-creation processes is essential for facilitating better communication, and understanding stakeholder requirements ensures higher stakeholder satisfaction (Kocot & Maciaszczyk, 2024). Active management of stakeholders in value co-creation processes positively affects stakeholder satisfaction as they feel their inputs are valued and integrated into project management (Giacomarra et al., 2020; Gligor & Maloni, 2022). The value co-creation is a construct derived from stakeholder theory that synergies the stakeholder satisfaction (Asiedu & Iddris, 2022) Hence, the Hypothesis 3 is as follows:

H3. 

Value co-creation has a positive association with stakeholder satisfaction.

Stakeholder satisfaction is an important factor that contributes to project performance in construction companies. Numerous studies prove that satisfied stakeholders including clients, suppliers, investors, employees and community play a significant role in improving project outcomes, thereby positively affecting project performance (Abolghasemi et al., 2024; White & Simpson, 2013). High stakeholder satisfaction plays an important role in overcoming challenges throughout project lifecycle and improves project performance (Ardhiansyah et al., 2023). The positive relationship between stakeholder satisfaction and project performance is further reinforced by recent studies that highlight the mechanisms through which satisfaction impacts project outcomes (Syamil et al., 2021). Additionally, research illustrates that stakeholder satisfaction not only influences immediate project performance but also affects long-term project sustainability and client loyalty (Maqbool et al., 2020). These findings suggest that satisfied stakeholders are more likely to offer continued support and resources, thereby fostering a more stable project environment and facilitating the achievement of project objectives (Blahnik, 2023; Gottlieb & Bergen, 2010). In line with stakeholder theory, stakeholders’ satisfaction is crucial for optimizing project performance, particularly in the dynamic and complex field of construction management (Abolghasemi et al., 2024; Abolghasemi et al., 2018; M. Ali et al., 2025; Calkins, 2008; Maqbool et al., 2022). Hence, Hypothesis 4 is proposed below:

H4. 

Stakeholder satisfaction has a positive association with project performance.

Value co-creation ensures that project outcomes are aligned with the diverse needs and expectations of stakeholders. When stakeholders actively participate in the co-creation process, there is a higher likelihood that the final deliverables will meet their requirements, ensuring greater stakeholder satisfaction. This alignment contributes to positive project performance by reducing the risk of misunderstandings and enhancing stakeholder satisfaction. Value co-creation fosters an iterative and feedback-driven approach to project development. Stakeholder involvement throughout the project allows for continuous feedback loops, enabling project teams to make timely adjustments and improvements. This iterative process contributes to higher project quality and overall performance. Collaborative value co-creation encourages the exchange of ideas and perspectives among stakeholders. This diversity of thought can lead to increased innovation and creativity in problem-solving (Xie et al., 2015). The integration of innovative solutions enhances project outcomes, making them more robust, adaptable, and ultimately contributing to greater stakeholder satisfaction and improved project performance.

Value co-creation also promotes adaptability by recognizing that project requirements and circumstances may evolve. Effective stakeholder management enables project teams to respond more effectively to changes in scope, priorities, or external factors. This adaptability enhances the project’s resilience and its ability to navigate uncertainties, contributing to improve project performance (Asiedu & Iddris, 2022; Liang et al., 2011). The active involvement of end-users and clients in the co-creation process ensures a customer-centric approach to project development (Tabassum et al., 2024). By delivering incremental value that aligns with customer expectations, value co-creation contributes to higher levels of innovation. Satisfied stakeholders are more likely to perceive the project as successful, positively impacting overall project performance (Naseer et al., 2022). The stakeholder theory underpins the value co-creation also reinforces a culture of teamwork and collaboration within project teams. When team members actively engage with stakeholders in the co-creation process, it fosters a sense of shared responsibility and accountability (Da Costa et al., 2020; H.-W. Kim et al., 2007). This strengthened collaboration positively impacts team dynamics and, consequently, project performance (Dantas, 2022; Shaukat et al., 2022). Hence, Hypothesis 5 is proposed below:

H5. 

Value co-creation has a positive association with project performance.

Similarly, the combined approach of agile leadership and value co-creation contributes to enhance project outcomes. It ensures that project teams are not only responsive to changing requirements but also deeply connected to the needs and expectations of stakeholders. This collaborative model not only accelerates project delivery but also maximizes the value delivered to customers. As a result, construction companies benefit from increased adaptability, improved stakeholder relationships, and a higher likelihood of meeting or exceeding project objectives. The synergy between agile leadership and value co-creation creates a holistic and customer-centric approach to project management in which the process of creating value becomes a collaborative journey shared by both the project team and stakeholders. Agile leaders maintain a strong customer-centric mindset, prioritizing the satisfaction of end-users and stakeholders. This focus on customer value aligns with the goals of value co-creation, and expectations of the customers (Bambauer-Sachse & Helbling, 2021; Nunes & Schokkaert, 2003; Shaukat et al., 2022). The proposed hypothesis underpins the stakeholder theory that agile leaders guide teams to consistently deliver value that meets or achieves customer requirements (Hofman et al., 2023; Khadair et al., 2024; Nguyen et al., 2024; Saeed, 2024; Wibowo et al., 2023). Hence, Hypothesis 6 is proposed below:

H6. 

Agile leadership has a positive association with stakeholder satisfaction.

Agile leaders empower cross-functional teams to self-organize and make decisions collectively (Umezurike et al., 2025). This team empowerment aligns with the collaborative spirit of value co-creation, allowing diverse perspectives and expertise to contribute to innovative ideas and solutions (Bochum et al., 2021; Vasudevan & Kumar, 2024). Agile leaders foster an environment where all members feel valued and included in the co-creation process (Kaya, 2023; Kocot & Maciaszczyk, 2024; Pohjola et al., 2021). Agile leaders prioritize delivering incremental value to stakeholders throughout the project lifecycle.

In line with the stakeholder theory, iterative approach allows for continuous improvement based on stakeholder feedback, ensuring that the co-created value remains aligned with evolving expectations (Cai et al., 2024; Jintian et al., 2022; Standing et al., 2019). Hence, Hypothesis 7 related to moderation of association between agile leadership and stakeholder satisfaction is as follows:

H7. 

Value co-creation mediates the relationship between agile leadership and stakeholder satisfaction such that it strengthens the association.

Value co-creation ensures that project outcomes are closely aligned with the diverse needs and expectations of stakeholders. By actively involving stakeholders, including project teams, clients, and end-users, in the co-creation process, there is a likelihood of meeting their requirements increases (Abolghasemi et al., 2024; Xie et al., 2008). This alignment reduces misunderstandings and enhances stakeholder satisfaction, positively influencing project performance (Nguyen et al., 2024). The Effective stakeholder management enables ongoing feedback loops, enabling project teams to make timely adjustments and refinements (Zhang et al., 2025). This process enhances stakeholder satisfaction, project quality, efficiency, and adaptability, positively impacting overall project performance (Cheng et al., 2018; Javed et al., 2020). Value co-creation encourages the exchange of ideas and perspectives among stakeholders, with this diversity of thought leading to greater innovation and creativity in problem-solving. The incorporation of innovative solutions enhances project outcomes, making them more robust and adaptable, thereby positively influencing project performance (Asiedu & Iddris, 2022; Pea-Assounga et al., 2024; Pouri & Hilty, 2018). The customer-centric approach inherent in value co-creation ensures that project deliverables align with the expectations of end-users and clients, thereby increasing stakeholder satisfaction. This focus on innovation contributes to a positive perception of the project’s success. Satisfied customers are more likely to view the project as highly performing, further enhancing overall project performance (Bal et al., 2023; Pohjola et al., 2021). Value co-creation recognizes the dynamic nature of project requirements to improve project performance (Bucher et al., 2016; Manafi Varkiani et al., 2024). The active involvement of stakeholders enables project teams to respond effectively to changes in scope, priorities, or external factors to improve the performance (Dantas, 2022). This adaptability contributes to the project’s resilience and its ability to navigate uncertainties, positively impacting project performance that also underpins the stakeholder theory that directly considers stakeholder participation and the influence of stakeholder pressure on organizational value creation and performance (Maqbool et al., 2020; Pea-Assounga et al., 2024; Scheepers et al., 2022). Hence, Hypothesis 8 related to mediation of stakeholder satisfaction between the value co creation and project performance is as follows:

H8. 

Stakeholder satisfaction mediates the relationship between value co-creation and project performance.

Value co-creation emphasizes the collaborative engagement of stakeholders, including project teams, clients, and end-users, throughout the project lifecycle. This collective effort ensures that the project’s outcomes align with stakeholder expectations, fostering a sense of shared ownership and accountability (Eckhardt & Bardhi, 2016). The iterative and feedback-driven nature of value co-creation promotes continuous improvement and innovation, positively influencing project quality and adaptability. The combined influence of value co-creation and agile leadership significantly increases stakeholder satisfaction and strengthens project performance (Balaji et al., 2025). Stakeholder satisfaction achieved through value co-creation ensures that the project meets diverse expectations, while agile leadership contributes to effective project planning, adaptability to evolving requirements, and iterative progress. The customer-centric focus shared by both value co-creation and agile leadership enhances stakeholder satisfaction, positively influencing the overall success and performance of the project (Costello & Reczek, 2020; Kaya, 2023; Nadeem et al., 2025). Hence, Hypothesis 9 related to mediation of value cocreation between the agile leadership and project performance is as follows:

H9. 

Value co-creation mediates the relationship between agile leadership and project performance.

The proposition that value co-creation & stakeholder satisfaction sequentially mediates the relationship between agile leadership and project performance suggests a dynamic and interconnected framework within construction companies. In this scenario, agile leadership, with its focus on adaptability, collaboration, and customer-centricity, establishes the foundation for a project environment conducive to value co-creation. The mediating role of value co-creation implies that the positive impact of agile leadership on stakeholder satisfaction and, ultimately, on project performance is channeled through the collaborative process of creating value with stakeholders. Agile leadership lays the groundwork for effective project management by promoting flexibility, open communication, and iterative progress.

Agile leaders empower teams, foster a culture of continuous improvement, and prioritize innovation. These principles enhance project planning, strengthen team dynamics, and improve adaptability, critical factors for achieving higher stakeholder satisfaction and superior project performance (Hamari et al., 2016; Kaya, 2023). When operating as a mediator, value co-creation signifies that the positive influence of agile leadership on project performance is partly realized through collaborative stakeholder management (Akkaya, 2020; Dugbartey & Kehinde, 2025). The iterative and feedback-driven nature of value co-creation aligns project outcomes with stakeholder expectations, reducing misunderstandings and improving deliverable quality, and ultimately enhancing project performance (Dugbartey & Kehinde, 2025). In this context, project performance is shaped not only by the direct effects of agile leadership but also by the sequential mediating effect of value co-creation & stakeholder satisfaction is underpins the stakeholder theory that states that stakeholder satisfaction, in turn, serves as a key performance indicator reflecting how well a project meets the needs of its diverse stakeholder groups, including customers, employees, suppliers, and the community (Badran & Abdallah, 2025; Hofman et al., 2023; Martin & Chen, 2016; Olufuwa, 2025). Hence, Hypothesis 10 related to mediation of stakeholder between the agile leadership and project performance is as follows:

H10. 

Stakeholder satisfaction mediates the relationship between agile leadership and project performance.

The collaborative and customer-centric orientations fostered by both agile leadership and value co-creation contribute to successful project outcomes, elevated stakeholder satisfaction, and enhanced organizational effectiveness (Jang et al., 2021). The mediation of value co-creation in agile leadership and project performance link underscores the inherently collaborative nature of project management (Ermiychuk, 2025; Mattia et al., 2022). The benefits of agile leadership extend through value co-creation, highlighting the importance of stakeholder management and iterative improvement in maximizing satisfaction and performance within construction projects (Liandra et al., 2025). This integrated perspective is aligned with the stakeholder theory that emphasizes that realizing optimal project outcomes requires not only adopting agile leadership principles but also embedding value co-creation practices to strengthen stakeholder relationships and sustain project performance (Hossan & Hossain, 2025; J. Raza, 2025; Standahl Johannessen & Karlsen, 2025). Hence, Hypothesis 11 related to sequential mediation of value co creation and stakeholder satisfaction mediates the relationship between agile leadership and project performance is as follows:

H11. 

Value co-creation and stakeholder satisfaction sequentially mediate the relationship between agile leadership and project performance.

When stakeholder management functions as a moderator between agile leadership and value co-creation, a nuanced and interactive relationship emerges within construction companies (Zhang et al., 2025). In this context, agile leadership and value co-creation are central components, while stakeholder management shapes the strength and nature of their relationship (L. Chen et al., 2025). As a moderator, stakeholder management suggests that the influence of agile leadership on value co-creation depends on the effectiveness of stakeholder management practices (Nyamai et al., 2025). High levels of stakeholder management amplify the positive effects of agile leadership on value co-creation, whereas low levels may weaken or alter this relationship. The preposition is also endorsed by stakeholder theory that explains that it, “encourages organizations to acknowledge and consider their stakeholders, which exist internally or externally to the organization, promotes understanding and managing stakeholder needs, wants, and demands, represents a holistic and responsible framework that goes beyond the focus of shareholders in decision-making processes, which, in turn, enables organizations to be strategic, maximize their value creation, and safeguard their long-term success” (Mahajan et al., 2023). Stakeholder management is the practical application of stakeholder theory, that involves the strategic process of identifying, analyzing, and engaging with these diverse groups to meet their needs and expectations, ultimately fostering better relationships and improving project performance. Further, stakeholder theory directs the organizations to consider stakeholder integration for better performance (Danso et al., 2020). Thus, stakeholder management’s role determines both the strength and direction of the agile leadership and value co-creation linkage (Abolghasemi et al., 2024; Bal et al., 2023; Farajallah et al., 2016; Jintian et al., 2022; Jurković et al., 2024). Hence, Hypothesis 12 is proposed below:

H12. 

Stakeholder management moderates the relationship between agile leadership and value co-creation such that high stakeholder management strengthens the relationship between agile leadership and value co-creation.

Value co-creation involves collaborative efforts among stakeholders, including project teams, clients, and end-users, to generate and enhance project value. The iterative and feedback-driven nature ensures (Giacomarra et al., 2020) that project outcomes align with stakeholder expectations (Geissinger et al., 2022). When stakeholder management is high, agile leadership tends to have a more pronounced positive influence on value co-creation (Abolghasemi et al., 2024). Active stakeholder involvement amplifies the collaborative and adaptive characteristics of agile practices, fostering an environment where value is co-created more effectively (Maqbool et al., 2020). Conversely, low stakeholder management can weaken the positive effects of agile leadership on value co-creation. Without active engagement, the collaborative dynamics central to agile practices may be less effective, potentially hindering the co-creation process. The moderating role of stakeholder management in agile leadership and value co-creation relationship highlights the importance of active stakeholder involvement in strengthening collaborative efforts. The provided statement describes a moderating role for stakeholder management within a framework grounded in stakeholder theory, suggesting that effective stakeholder management enhances the link between agile leadership, value co-creation, and ultimately, stakeholder satisfaction, the level of stakeholder management can amplify the positive impact of agile leadership on value co-creation within construction companies (Asiedu & Iddris, 2022; Blahnik, 2023; Giacomarra et al., 2020; Mont et al., 2020; Pea-Assounga et al., 2024; Syamil et al., 2021; Wibowo et al., 2023). Hence, Hypothesis 13 is proposed below:

H13. 

Stakeholder management moderates the mediation of value co-creation between agile leadership and stakeholder satisfaction, such that high stakeholder management strengthens the relationship between agile leadership and value co-creation.

High stakeholder management enhances the collaborative and iterative nature of agile practices (Özdemir, 2023). Agile leaders are better positioned to leverage the diverse insights of engaged stakeholders, resulting in more innovative solutions and refined project outcomes. Actively engaged stakeholders are more likely to be satisfied with project deliverables, as their needs and expectations are thoroughly considered throughout the co-creation process (Kraus et al., 2020). The positive stakeholder relationships and improved project performance are present in a setting where high stakeholder management moderates the relationship between agile leadership and value co-creation, and the collaborative efforts are amplified. There is a further need to investigate how the sequential mediation linkage influences project performance (B.-J. Kim et al., 2022; Nosrati et al., 2024; Pan et al., 2024; Zugna et al., 2022). Stakeholder theory underpins how the agile practices, guided by strong leadership, synergize with engaged stakeholders to create a robust environment for co-creating value, ultimately enhancing project outcomes and stakeholder satisfaction (M. Ali et al., 2025; Cleveland & Cleveland, 2020; Javed et al., 2020; Jurković et al., 2024; Pohjola et al., 2021; Zhang et al., 2025). Hence, Hypothesis 14 is proposed below:

H14. 

Stakeholder management moderates the sequential mediation of value co-creation and stakeholder satisfaction between agile leadership and project performance, such that stakeholder management strengthens the sequential mediation of value co-creation and stakeholder satisfaction between agile leadership and project performance. The theoretical framework developed based on the above literature is presented in Figure 1.

3. Methods

This study employs a cross-sectional survey design as a methodology to address its research questions, facilitating data collection and analysis using research questionnaires. To collect data from respondents, closed-ended and self-administered questionnaires were used as practiced in existing literature (Miao et al., 2020). The purpose of the questionnaire survey was explained in the anonymous cover letter in English language appended to the questionnaire, ensuring the privacy and confidentiality of participant’s responses. Further, participants were also informed that it was not necessary to disclose their identities, nor was it required anywhere in the questionnaire. The sampling technique adopted in the current study was non-probabilistic convenience sampling. To address its limitation, the common method bias was accounted for in the current study by following the guidelines provided in the literature, whose responses taken from different points of time reduced the common method bias and protected respondents’ anonymity and reduced evaluation apprehension (Podsakoff et al., 2024). Further, the current study employed a cross-sectional but time-lagged approach which is recognized to minimize common method bias (Aguinis et al., 2021). The measurement instruments for data collection were distributed at different time points spaced 8 weeks apart, to reduce the bias associated with simultaneous data collection (Dey et al., 2022; Park et al., 2023). The questionnaire has two sections. Section 1 comprised demographics as control variables (age, gender, qualification and experience), while Section 2 was based on adopted questionnaire instruments.

The data were collected using instruments adopted from previous studies, based on a 5-point Likert scale. Agile leadership was measured on a 32-item scale. For example: “My supervisor acts quickly in producing products that may be in demand in the market and bringing these products to market” developed by (Akkaya & Tabak, 2020). Project performance was measured using a 5-item scale developed by Um and Kim (2018). For example: “This project is operating within the pre-estimated budget.” The value co-creation scale consisted of 4 items, for example: “Involving stakeholders at project operations.” Stakeholder management was measured by using a 10-item scale developed by (Agarwal & Bhal, 2020), for example: “Stakeholders of the project, especially those with high power and influence, had their needs deployed in actions and activities throughout the life of the project.” Stakeholder satisfaction was measured using a 5-item scale developed by (Gazzola et al., 2019), for example: “I am satisfied with the progress I have made toward meeting my overall project goals.” The detailed questionnaire can be found in Supplementarily Section. Data collection process was initiated based on the guidelines using the survey questionnaire ensuring a consistent approach for measuring study constructs and minimizing potential measurement errors (Aguinis et al., 2021). A total of 1400 questionnaires were distributed traditionally and online among stakeholders (customers, suppliers, contractors). During data preparation for analysis, missing responses (35), outliers (7), and extreme responses (40) were removed, resulting in 410 usable responses for analysis, representing a 29% response rate. According to G-power’s calculation, a minimum of 395 responses was required, which is already used in literature (Bartlett et al., 2019; Kang, 2021). The data was entered in SPSS v. 26, then exported as .csv to Smart PLS v .4.1.1.5, which is used to test the new linkages among the constructed in exploratory framework by (Alrashedi, 2025; J. F. Hair et al., 2019). Moreover, one-way ANOVA was applied to test the significance of demographic or control variables, i.e., age, gender, qualification, and experience, to avoid social bias and results were found insignificant (Singh et al., 2025). PLS-SEM is also used as an advanced analytical method for relationships among constructs used in existing literature (J. Hair & Alamer, 2022; Kunal et al., 2025; Latan, 2018; Nosrati et al., 2024; Osrof et al., 2025).

4. Results

This section presents the results obtained through various quantitative techniques and statistical procedures for rigorous analysis initiated by a descriptive analysis. Then, structural equation modeling (SEM) using SmartPLS v 4.1.1.5 software was applied to thoroughly examine both the measurement model and structural model to test the proposed theoretical framework. The statistical examination included tests of construct reliability, comprising Cronbach alpha, composite reliability, and average variance extracted (AVE), as well as factor loading, correlation, regression, and path analysis for mediation and moderation using bootstrapping. The analysis results were presented in the form of tables and descriptive interpretations.

4.1. Descriptive Statistics

Condensed informative coefficients, or descriptive statistics, are useful for summarizing a single dataset. This dataset may consist of a population sample or a comprehensive representation of the entire population. Descriptive statistics include both measures of central tendency and measures of variability. The three primary categories of descriptive statistics are measures of central tendency (e.g., mean), measures of variability, and frequency distributions. In this study, descriptive statistics summarize the values of each variable in the sample, such as agile leadership, project performance, stakeholder management, stakeholder satisfaction and value co-creation.

Table 1. Descriptive statistics of Agile Leadership, Value Co-Creation, Project Performance, Stakeholder Management, and Stakeholder Satisfaction showing Mean and Std. Deviation.

Research Constructs	N	Mean	Std. Deviation
	Statistics	Statistics	Statistics
AL	410	3.23	0.669
SM	410	3.28	0.796
VCC	410	3.31	0.923
SS	410	3.29	0.884
PP	410	3.26	0.889
Valid N (listwise)	410

Where AL = Agile Leadership, SM = Stakeholder Management, VCC = Value Co-creation, SS = Stakeholder Satisfaction, PP = Project Performance.

presents the descriptive statistics, which include mean values and standard deviations for the constructs, as well as skewness and kurtosis values. The mean values for all constructs are 3.00 or higher. This indicates that the average response for the construct is approximately above average, measured on a Likert scale (i.e., 1–5). The standard deviation measures the degree of dispersion from the mean, and all standard deviation values fall within the acceptable threshold range (−1 to +1), indicating that the data are generally below 1. Therefore, the dataset was deemed suitable for further statistical analysis.

4.2. Correlation Analysis

Table 2. Correlation matrix of Agile Leadership, Value Co-Creation, Project Performance, Stakeholder Management, and Stakeholder Satisfaction.

Variables	1	2	3	4	5
Agile Leadership	1
Value Co-Creation	0.709 **	1
Project Performance	0.745 **	0.562 **	1
Stakeholder Management	0.829 **	0.676 **	0.707 **	1
Stakeholder Satisfaction	0.744 **	0.609 **	0.647 **	0.693 **	1

Correlation is significant at the 0.01 level (2-tailed) **.

represents the correlation analysis is a statistical technique used to assess the strength and direction of the relationship between continuous variables (Alshehadeha et al., 2025). It helps to identify how strongly variables are related and whether the relationship is positive or negative as guided by (Toubiana & Maruenda, 2021). The significance of the correlation is based on the p value that needs to be less than <0.05 as guided by (Cao et al., 2024; Di Leo & Sardanelli, 2020; Hubbard, 2025).

The correlation analysis indicates that agile leadership and project performance are positively and significantly correlated (r = 0.745 **, p < 0.01). Agile leadership and stakeholder management also show a strong positive correlation (r = 0.829 **, p < 0.01). Similarly, agile leadership is positively associated with value co-creation (r = 0.709 **, p < 0.01) and stakeholder satisfaction (r = 0.744 **, p < 0.01). Project Performance is positively and significantly correlated with stakeholder management (r = 0.707 **, p < 0.01) and stakeholder satisfaction (r = 0.647 **, p < 0.01). Value co-creation is positively linked to stakeholder satisfaction (r = 0.609 **, p < 0.01) and project performance (r = 0.562 **, p < 0.01), as well as stakeholder management (r = 0.676 **, p < 0.01). Finally, stakeholder satisfaction and stakeholder management are positively and significantly correlated (r = 0.693 **, p < 0.01).

4.3. Measurement Model

To evaluate the internal consistency and reliability of the variables,

Table 3. Measurement Model representing values of Cronbach’s alpha, Composite reliability, and Average variance extracted (AVE).

Variables	Cronbach’s Alpha	Composite Reliability (rho_a)	Composite Reliability (rho_c)	Average Variance Extracted (AVE)
Agile Leadership	0.989	0.990	0.990	0.753
Project Performance	0.942	0.942	0.956	0.812
Stakeholder Management	0.971	0.775	0.975	0.796
Value Co-Creation	0.911	0.973	0.938	0.790
Stakeholder Satisfaction	0.943	0.944	0.957	0.816

represents the different indicators that were calculated, including Cronbach’s alpha, composite reliability, and average variance extracted (AVE). When Cronbach’s alpha and composite reliability (rho_a and rho_c) values exceed 0.70 and the AVE is greater than 0.50, the data are considered reliable for further analysis (Anirvinna & Goodwin, 2025; J. F. Hair et al., 2019, 2020, 2025; Kamis et al., 2020; Kapoor, 2025). The table below presents the Cronbach’s alpha, composite reliability (rho_and rho_c), and AVE values, which indicate the reliability level of each scale. The AVE values surpassed all the constructs association above 0.5 while below 0.85, affirming the constructs convergent validity (J. Hair & Alamer, 2022; J. F. Hair et al., 2019) and Fornell and Larcker criterion also confirm the discriminate validity (Becker et al., 2023).

4.4. Structural Model

The structural model examines the impact of agile leadership on project performance, considering the sequential mediation effect of value co-creation and stakeholder satisfaction, as well as the moderation effect of stakeholder management. The research model is designed to test the hypothetical paths by measuring specific outcomes through direct and indirect relationships. Regression analysis between latent variables, based on the measurement model, was conducted to generate the structural model. Figure 2 presents the structural model (Becker et al., 2023; J. Hair & Alamer, 2022; J. F. Hair et al., 2025). Direct paths were assessed between Agile Leadership and Project Performance, Agile Leadership and Value Co-Creation, Value Co-Creation and Stakeholder Satisfaction, Stakeholder Satisfaction and Project Performance. Additional direct paths were analyzed between Value-Co-Creation and Project Performance, and Agile Leadership and Stakeholder Satisfaction. A summary of the direct path analysis results is provided below in

Table 4. Direct Path Analysis among Agile Leadership, Stakeholder Management, Value Co-creation, Stakeholder Satisfaction, and Project Performance.

Structural Path	B	Mean (M)	SD	t	p-Value	Results Status
H1: AL → PP	0.579	0.581	0.060	9.610	0.000	Supported
H2: AL → VCC	0.516	0.515	0.068	7.539	0.000	Supported
H3: VCC → SS	0.161	0.161	0.058	2.806	0.005	Supported
H4: SS → PP	0.198	0.197	0.057	3.460	0.001	Supported
H5: VCC → PP	0.029	0.029	0.052	0.567	0.571	Not Supported
H6: AL → SS	0.631	0.632	0.050	12.507	0.000	Supported

Where AL = Agile Leadership, VCC = Value Co-creation, SS = Stakeholder Satisfaction, PP = Project Performance.

.

The study’s examination of the relationship between agile leadership and project performance revealed that the two variables are positively and significantly correlated. This means that a 1-unit change in agile leadership results in 0.579 units change in project performance. So, the results supported Hypothesis 1. Likewise, agile leadership has a positive and significant impact on value co-creation. This was the second path evaluated in the study, and the findings indicate that agile leadership is strongly and positively associated with value co-creation, with a 1-unit change in agile leadership leading to 0.516-unit change in value co-creation. Hence, the results support Hypothesis 2, which proposed that agile leadership has a positive relationship with value co-creation. Similarly, value co-creation has a positive and significant impact on stakeholder satisfaction. This was the third path evaluated in the study, and the findings indicate that value co-creation is strongly and significantly associated with stakeholder satisfaction, with a 1-unit change in value co-creation resulting in a 0.631-unit change in stakeholder satisfaction. Therefore, the results support Hypothesis 3, which proposed that value co-creation has a positive relationship with stakeholder satisfaction. Similarly, stakeholder satisfaction has a positive and significant impact on project performance.

Stakeholder satisfaction was the fourth path evaluated, leading to project performance. The findings indicate that stakeholder satisfaction is positively and significantly associated with project performance, with a 1-unit change in stakeholder satisfaction resulting in a 0.198-unit change in project performance. Hence, the results support Hypothesis 4, which proposed that stakeholder satisfaction has a positive relationship with project performance. Further, value co-creation was the fifth path evaluated, leading to project performance. The findings indicate that value co-creation is positively and significantly associated with project performance, with a 1-unit change in value co-creation resulting in a 0.029-unit change in project performance. However, results do not support Hypothesis 5, which proposed that value co-creation has a positive relationship with project performance. Moreover, agile leadership was the sixth path evaluated, leading to stakeholder satisfaction. The findings indicate that agile leadership is positively and significantly associated with stakeholder satisfaction, with a 1-unit change in agile leadership resulting in 0.631-unit change in stakeholder satisfaction. Hence, the results support Hypothesis 6, which proposed that agile leadership has a relationship within stakeholder satisfaction. The significance of the results based on the p-value that needs to be less than <0.05 as guided by (Cao et al., 2024; Di Leo & Sardanelli, 2020; Hubbard, 2025).

4.5. Mediation Analysis

The mediation hypotheses are examined based on the lower and high-level confidence intervals (C. Li et al., 2025; Nyamai et al., 2025; K. Wang et al., 2024; Zhong et al., 2025).

The single mediation paths were identified in this study, as illustrated in the research model Figure 1. The first single mediation path examines the relationship between agile leadership and stakeholder satisfaction through value co-creation. The second single mediation path assesses the relationship between value co-creation and project performance through stakeholder satisfaction. The third single mediation path investigates the relationship between agile leadership and project performance through value co-creation. The fourth single mediation path evaluates the relationship between agile leadership and project performance through stakeholder satisfaction. Value Co-Creation mediates the relationship between agile leadership and stakeholder satisfaction (H7) as coefficient value (B = 0.083) while non-zero value exists between (LLCI, 2.50–97.50% ULCI). Stakeholder Satisfaction mediates the relationship between value co-creation and project performance (H8) as coefficient value (B = 0.032) while non-zero value exists between (LLCI, 2.50–97.50% ULCI). Value Co-Creation mediates the relationship between agile leadership and project performance (H9) as coefficient value (B = 0.015) while zero value exists between (LLCI, 2.50–97.50% ULCI). Stakeholder Satisfaction mediates the relationship between agile leadership and project performance (H10) as coefficient value (B = 0.125) while non-zero value exists between (LLCI, 2.50–97.50% ULCI). One sequential mediation path was also identified in this study, as illustrated in Figure 2.

In this path, value co-creation and stakeholder satisfaction sequentially mediate the relationship between agile leadership and project performance. The results presented in

Table 5. Mediation Path Analysis Standardized regression coefficients, Standard Error, T-Value and Confidence Intervals and Results Status.

Hypotheses	Structural Path	B	t	2.50%	97.50%	Results Status
H7	AL → VCC → SS	0.083	2.671	0.025	0.147	Supported
H8	VCC → SS → PP	0.032	2.107	0.007	0.066	Supported
H9	AL → VCC → PP	0.015	0.560	−0.039	0.068	Not Supported
H10	AL → SS → PP	0.125	3.392	0.051	0.196	Supported
H11	AL → VCC → SS → PP	0.017	2.049	0.004	0.035	Supported

Where AL = Agile Leadership, VCC = Value Co-creation, SS = Stakeholder Satisfaction, PP = Project Performance.

indicate that the lower and upper confidence intervals do not include zero, confirming that all hypotheses were supported, including the sequential mediation path (H11) as coefficient value (B = 0.017) while non-zero value exists between (LLCI, 2.50–97.50% ULCI).

4.6. Moderation Analysis

The moderation mechanism is examined under the guidelines (Bilal et al., 2025; Memon et al., 2019; Mulyani & Suwena, 2025). Three moderation structural paths were identified and examined using SmartPLS. The results are displayed below in

Table 6. Moderation Path Analysis Standardized regression coefficients, Standard Error, T-Value and Confidence Intervals and Results Status.

Hypotheses	Structural Path	B	t	2.50%	97.50%	Results Status
H12	SMxAL → VCC	0.118	4.410	0.066	0.171	Supported
H13	SMxAL → VCC → SS	0.019	2.046	0.005	0.038	Supported
H14	SMxAL → VCC → SS → PP	0.004	1.796	0.001	0.009	Supported

Where AL = Agile Leadership, SM = Stakeholder Management, VCC = Value Co-creation, SS = Stakeholder Satisfaction, PP = Project Performance.

. Stakeholder Management moderates the relationship between Agile Leadership and Value Co-Creation, such that high Stakeholder Management strengthens this relationship (H12) as coefficient value (B = 0.118) while non-zero value exists between (LLCI, 2.50–97.50% ULCI). Stakeholder Management moderates the mediation of Value Co-Creation between Agile Leadership and Stakeholder Satisfaction, such that high Stakeholder Management strengthens the relationship between Agile Leadership and Value Co-Creation (H13) as coefficient value (B = 0.019) while non-zero value exists between (LLCI, 2.50–97.50% ULCI), and Stakeholder Management moderates the sequential mediation of Value Co-Creation and Stakeholder Satisfaction between Agile Leadership and Project Performance, such that high Stakeholder Management strengthens this sequential mediation effect (H14) as coefficient value (B = 0.004) while non-zero value exists between (LLCI, 2.50–97.50% ULCI). All three hypotheses are supported as the lower and upper levels of confidence intervals have non zero values and no opposite sign is found in the values (Abaddi, 2025; Palmer et al., 2025).

5. Discussion

This study examines the relationship between agile leadership, project performance, value co-creation, stakeholder satisfaction and stakeholder management. Traditional construction project management often faces difficulties in responding swiftly to evolving conditions, leading to project delays and increased costs. The direct impact of agile leadership on project performance in construction companies is evident in its ability to optimize various facets of the project performance (Scheepers et al., 2022; Surapto et al., 2024). By incorporating stakeholder feedback throughout the project lifecycle, agile leadership ensures that the delivered outcomes align closely with stakeholder expectations (IPM, 2025; Scheepers et al., 2022). This collaborative approach not only enhances stakeholder satisfaction but also fosters a sense of ownership and shared responsibility (Bambauer-Sachse & Helbling, 2021; PMI, 2025). Similarly, value co-creation plays a strategic and pivotal role as a mediator in the relationship between agile leadership and project performance in construction companies (Evangelista et al., 2022; Manafi Varkiani et al., 2024). The mediation of value co-creation is instrumental in bridging the conceptual framework of agile leadership with the practical realization of project performance (Cai et al., 2024).

The transparency achieved through value co-creation contributes to a shared understanding of project goals, allowing for real-time adjustments and, ultimately, improved project performance (Dugbartey & Kehinde, 2025; Nguyen et al., 2024; Vasudevan & Kumar, 2024). Also, the continuous feedback loops established through value co-creation enable construction teams to adapt and refine project deliverables based on stakeholder feedback (Durak et al., 2024). In construction companies, where project performance depends on meeting diverse stakeholder expectations, the mediating role of value co-creation emerges as a critical factor in optimizing the impact of agile leadership on project performance (Ingle & Mahesh, 2022). Similarly, one study noted that effective value co-creation strategies not only enhance project outcomes but also shape how stakeholders perceive a project’s success and relevance (M. Ali et al., 2025). Badran and Abdallah (Badran & Abdallah, 2025) discussed the crucial role of value co-creation in construction projects by demonstrating a strong positive correlation between stakeholder satisfaction and project performance, where active stakeholder involvement in shaping deliverables directly impacts satisfaction levels. A project’s ability to meet deadlines, stay within budget, and produce high quality deliverables is significantly influenced by stakeholder satisfaction.

According to previous research, satisfied stakeholders are more likely to support project objectives, provide resources on time, and remain consistently engaged throughout the project duration. Furthermore, stakeholder satisfaction has been shown to reduce conflict, boost team morale, and ensure efficient communication between stakeholders and project teams, thereby leading to improved project outcomes. The findings highlight the strategic significance of managing stakeholder satisfaction as a vital component of project performance. Agile leadership significantly boosts stakeholder satisfaction in construction projects, which is supported by the research study (Ardhiansyah et al., 2023). Agile leadership involves flexible decision-making, adaptability to change, and a focus on ongoing stakeholder interaction (Pea-Assounga et al., 2024). Research indicates that agile leaders create an atmosphere of trust and cooperation, empowering stakeholders and valuing their input in the project (Kissi et al., 2025; Skogen et al., 2018). This active involvement nurtures positive relationships and increases stakeholder satisfaction by promptly addressing concerns and incorporating feedback into decisions.

Similarly, another study found that agile leadership approaches like transparency and open communication increased stakeholder satisfaction by creating a supportive project environment (Costello & Reczek, 2020; Kissi et al., 2025). The findings also highlighted the crucial role of agile leadership in enhancing stakeholder satisfaction in construction projects (Pohjola et al., 2021) and underscore the significance of leadership actions that prioritize stakeholder needs and expectations (Abolghasemi et al., 2024; Bambauer-Sachse & Helbling, 2021; Maqbool et al., 2020). The study supports the claim that in construction projects, value co-creation plays an important mediating role between agile leadership practices and stakeholder satisfaction. Agile leadership helps create a cooperative environment where stakeholders are actively involved in improving project outcomes gradually, ensuring they align with stakeholders’ changing needs and expectations (Vasudevan & Kumar, 2024). According to research studies, agile leadership techniques, such as flexible decision-making and ongoing stakeholder feedback loops, enhance stakeholder satisfaction by prioritizing transparency and responsiveness in project management (Durak et al., 2024; Maqbool et al., 2020; Vasudevan & Kumar, 2024). Likewise, research also revealed that agile leadership supports effective value co-creation processes, where stakeholders’ ideas are valued and integrated into project outcomes, thereby increasing satisfaction levels (Maqbool et al., 2020).

The findings highlight the key role of value co-creation in translating agile leadership principles into tangible benefits for stakeholders, thus improving overall project satisfaction (IPM, 2025). The current study discovered that stakeholder satisfaction plays a crucial role between value co-creation and project performance within construction environment. Value co-creation involves constant collaboration between stakeholders and project teams to refine project deliverables, ensuring they meet stakeholder expectations and enhance satisfaction levels (Vasudevan & Kumar, 2024). According to a study, successful value co-creation tactics lead to higher levels of stakeholder satisfaction by aligning project outcomes with stakeholder preferences and requirements (Blahnik, 2023). Additionally, research has shown that satisfied stakeholders are more likely to support project objectives, promptly provide necessary resources, and contribute positively to overall project outcomes (M. Ali et al., 2025). The findings show the importance of stakeholder satisfaction as a channel for collaborative value creation initiatives, which leads to improved project performance metrics. This emphasizes the need of proactive stakeholder engagement strategies in construction project management (L. Chen et al., 2025; Merrilees et al., 2021; Pohjola et al., 2021). The study discovered that in construction settings, stakeholder satisfaction plays an important role between agile leadership and project results (Pohjola et al., 2021). Agile leadership, known for its flexible decision-making, responsiveness to change, and focus on continuous stakeholder involvement, influences project performance indirectly by affecting stakeholder satisfaction (Giacomarra et al., 2020). Research shows that agile leadership practices boost stakeholder satisfaction by creating clear communication channels, addressing stakeholder issues promptly, and engaging stakeholders in decision-making (Giacomarra et al., 2020; Pohjola et al., 2021). This increased satisfaction among stakeholders leads to improvements in project performance measures like timeliness, deliverable quality, and overall project performance (Dugbartey & Kehinde, 2025). The results highlight the crucial role of stakeholder satisfaction as a mediator in the relationship between agile leadership behaviors and improved project performance in construction ventures (Badran & Abdallah, 2025; Gul et al., 2025; Naseer et al., 2022).

The research supports that value co-creation and stakeholder satisfaction play a critical role in boosting project performance through agile leadership in construction projects. Agile leadership practices, known for adaptive decision-making, ongoing stakeholder management, and iterative project management, initiate a collaborative value creation process (Pea-Assounga et al., 2024). This teamwork involves stakeholders refining project deliverables to match their changing needs and expectations, fostering ownership and satisfaction. Stakeholder satisfaction from this involvement then positively impacts project performance metrics such as efficiency, quality, and meeting project deadlines (Isang et al., 2025; Lucien & Amolo, 2025; Mashali, 2025; Wuni & Shen, 2020). Research emphasized that agile leadership practices empower stakeholders to contribute significantly to project outcomes, resulting in higher satisfaction levels and ultimately enhancing project performance (Bilal et al., 2025; Zhao, 2024). The findings highlight the combined effects of value co-creation and stakeholder satisfaction as sequential mediators in translating agile leadership principles into tangible benefits for successful projects in construction scenarios (Kocot & Maciaszczyk, 2024; Pohjola et al., 2021).

Stakeholder management plays an important role as a moderator in the relationship between agile leadership and value co-creation in construction companies. Agile leadership, characterized by adaptability and collaboration, sets the stage for effective project management (Ardhiansyah et al., 2023; Bal et al., 2023). However, the effectiveness of value co-creation, which involves stakeholders actively participating in decision-making processes, is significantly influenced by the level of stakeholder management (Belasen & Bertola, 2024). Stakeholder management serves as a moderator by influencing the dynamics of communication, trust-building, and developing a shared vision in the construction project ecosystem (Malla, 2024; Rozak et al., 2021; Wielopolski & Bulthuis, 2023). The cooperative nature of agile leadership is best shown when stakeholders are actively engaged, contributing to a shared understanding of project goals and facilitating the co-creation process (Dugbartey & Kehinde, 2025; Sjödin et al., 2020; Vasudevan & Kumar, 2024).

Stakeholder management facilitates enhanced communication and collaboration between agile leaders and project stakeholders. When stakeholders are actively involved in decision-making processes, there is an increased exchange of information, expectations, and insights. This amplified level of engagement fosters a collaborative environment in which agile leaders can better understand stakeholder needs, aligning agile principles with the expectations of those involved in the project (M. Ali et al., 2025). As a moderator, stakeholder management ensures that the iterative and adaptive approaches of agile leadership are applied in a context that resonates with the diverse perspectives of stakeholders (Nguyen et al., 2024). Stakeholder management, as a moderator, plays a pivotal role in fostering a sense of shared responsibility in construction projects.

Agile leadership principles, when complemented by active stakeholder management, create an environment in which stakeholders feel invested in the project’s performance (Porkodi, 2024; Scheepers et al., 2022). This shared responsibility contributes to improved project performance, as stakeholders actively participate in shaping project outcomes. By moderating the relationship between agile leadership and value co-creation, stakeholder management ensures that the dynamic leadership approach aligns seamlessly with the expectations and objectives of those directly impacted by the project (Abolghasemi et al., 2024; Mirzaei et al., 2024; K. Wang et al., 2024). In construction companies, where project performance relies on meeting stakeholder expectations, the moderating role of stakeholder management becomes instrumental in optimizing the positive outcomes derived from the interplay of agile leadership and value co-creation (Bushuyeva et al., 2019; Jain et al., 2024; Kaya, 2023; Kocot & Maciaszczyk, 2024). Stakeholder management moderates the relationship between agile leadership and value co-creation in such a way that high stakeholder management strengthens the relationship between agile leadership and value co-creation (Hong & Liu, 2022).

The research outcome indicates that stakeholder management strengthens the bond between agile leadership and value co-creation, highlighting the importance of effective stakeholder management in improving the collaborative efforts led by agile leadership (Jintian et al., 2022; Puschmann & Alt, 2016). Similarly, research also emphasized that strategic stakeholder management boosts stakeholder satisfaction by catering to diverse needs and expectations, thereby assisting agile leadership in nurturing collaborative project settings(Akkaya & Tabak, 2020; Mirzaei et al., 2024; Saeed, 2024). Furthermore, stakeholder management moderates the sequential mediation of value co-creation and stakeholder satisfaction between agile leadership and project performance that underpins the stakeholder theory that originated as an alternative theory of the firm, with the organization as the focus for stakeholder relationships.

Hence, effective stakeholder management not only supports the early stages of value co-creation but also maintains stakeholder satisfaction throughout the project lifecycle, optimizing project performance outcomes (Asiedu & Iddris, 2022; Giacomarra et al., 2020).

It means project performance cannot be achieved without the interactions and collaboration within the collectivity of stakeholders, and it is the nature and process of those interactions that are of interest in the participative partnership.

In the alignment of stakeholder theory, research reveals that high-quality stakeholder management enhances the impact of value co-creation initiatives by aligning project results with stakeholder expectations and fostering a conducive project environment to improve the project performance (Armanious & Padgett, 2021; Z. Li et al., 2020; Mirzaei et al., 2024; Setiawati, 2021; Skogen et al., 2018; Trencher et al., 2018).

5.1. Conclusions

In conclusion, the impact of agile leadership on project performance in construction companies, with the sequential mediation of value co-creation and stakeholder satisfaction, and the moderating role of stakeholder management, underscores the significance of an integrated approach to project management. Through the lens of agile leadership, construction companies can navigate the dynamic challenges of industry with adaptability, collaboration, and iterative development. Value co-creation and stakeholder satisfaction act as sequential mediators, ensuring that stakeholder expectations are actively integrated into the project’s evolution, thereby enhancing project outcomes. Additionally, stakeholder management serves as a moderator, fostering enhanced communication, collaboration, and shared responsibility in the project environment. By leveraging these interconnected factors, construction companies can improve project performance, reduce risks, and enhance stakeholder satisfaction. This holistic approach not only fosters innovation and efficiency but also lays the foundation for sustained success in the ever-evolving landscape of the construction industry.

5.1.1. Theoretical Implications

The findings of the current study are contributing to the body of knowledge regarding project management, which consists of previous studies on agile leadership (AL) and project performance (PP). Whether applied in project management or organizational leadership, agile principles underpin a mindset that is well-suited to navigate the complexities of modern work environments and drive sustained success (X. H. Chen et al., 2022; Özdemir, 2023; Surapto et al., 2024). Similarly, the results reduced project risks, improved problem-solving capabilities, and ultimately provided more successful project outcomes (C.-C. Chen et al., 2018; Hofman et al., 2023; Jintian et al., 2022; Porkodi, 2024). This finding is important because agile leadership has been suggested as a contextual factor influencing project performance as well as a its potential predictors (Evangelista et al., 2022; Tabassum et al., 2024). Moreover, the present study contributes by showing that value co-creation and stakeholder satisfaction sequentially mediate the correlation between AL and PP, suggesting that the direction and strength of the association are positively influenced by the interaction between VCC and SS. This integrated perspective is aligned with the stakeholder theory that emphasizes that realizing optimal project outcomes requires not only adopting agile leadership principles but also embedding value co-creation practices to strengthen stakeholder relationships and sustain project performance (Hossan & Hossain, 2025; J. Raza, 2025; Standahl Johannessen & Karlsen, 2025). It is therefore recommended to build upon the research techniques and findings presented here, as they distinguish this study from earlier ones and could influence future organizational and behavioral research as an extension in the body of knowledge. On the other hand, according to research and theory, VCC and SS have frequently been investigated in organizational studies as antecedents or outcomes of various employee attitudes, perceptions, and behaviors (Agrawal et al., 2015; Miao et al., 2020; Sánchez et al., 2016). The current study accepts the evidence regarding the connection between sequential mediation of VCC and SS between the AL and PP. The results extend the stakeholder theory that directs organizations to consider stakeholder integration for better performance (Danso et al., 2020). Thus, stakeholder management’s role determines both the strength and direction of the agile leadership and value co-creation linkage (Abolghasemi et al., 2024; Bal et al., 2023; Farajallah et al., 2016; Jintian et al., 2022; Jurković et al., 2024). The theoretical implications of the current study followed by the implications in practice.

5.1.2. Practical Implications

The current research offers executives at construction companies practical insights. Construction today operates in a globalized marketplace and many construction projects today are international collaborative efforts that bring together companies with different cultural, ethical and moral ideas about how to conduct business. In addition to cultivating and exhibiting agile leadership traits, leaders should actively evaluate and harmonize the company culture with these values. To ensure that leadership approaches and the current organizational setting coexist effectively, this may entail cultural interventions, targeted communication techniques, and ongoing oversight. This study is important for leaders and team members because a large portion of project teams in Pakistan fail to meet their goals. Across various project-based businesses, project managers are encouraged to apply agile leadership to their team members (IPM, 2025; PMI, 2025). Managers must also ensure that this creative approach is not misused by staff members or other parties. Enhancing AL is expected to improve PP (Brewer & Kameswaran, 2019; Surapto et al., 2024). Agile Leadership may be incorporated into organizations by implementing these practices, such as through leadership training that emphasizes adaptability, participatory decision-making, and collaboration. It is recommended that future research be conducted in other countries with larger sample sizes. In such cases, the results would be more reliable and broadly applicable. To enhance the impartiality of responses and reduce biases from single sources, forthcoming surveys could explore the use of a leader-reporting method or incorporate diverse sources, including self-reports and leader assessments, to assess the association between agile leadership and project performance.

5.2. Limitations

This current research proposed a research framework for construction businesses, designed to integrate AL into the domain of project management like other researchers (Gul et al., 2025; Sjödin et al., 2020; Standahl Johannessen & Karlsen, 2025; H. Wang & Yang, 2019). The limitations identified in this study are applicable to most research methodologies (Maier et al., 2023; X. Wang & Cheng, 2020). The data were collected using a single quantitative method, and were cross-sectional, which may lead to information bias (Chirico, 2023; Georgeson et al., 2023; Kelly et al., 2024; X. Wang & Cheng, 2020). In future research, longitudinal approaches (Bani-Melhem et al., 2024) or time lag techniques could be employed for long-term and more nuanced data collection. Furthermore, as data collection through convenience sampling may restrict the scope of the study to project-based organizations in Rawalpindi and Islamabad (Emerson, 2021; Golzar et al., 2022; Scholtz, 2021; X. Wang et al., 2019). In future research, simple random sampling may be used to avoid bias (Noor et al., 2022; Rahman et al., 2022). Further, the sample size was limited to 410 participants, which is relatively small, the findings may not fully represent the broader population (Andrade, 2020; Cao et al., 2024; Fang, 2008; Van de Schoot & Miočević, 2020). Therefore, a larger sample size may provide better population representation and enhance the generalizability of the results (Andrade, 2020; Marek & Laumann, 2025). These suggestions may overcome the limitations of the current study in future research.

5.3. Future Directions

In a competitive environment, research is an ongoing process that continually reveals new gaps and guides scholars towards clear paths for further investigation. In this study, VCC and SS were examined as sequential mediating factors strengthening the relationship between AL and PP. Future researchers should remain cognizant of these limitations and constraints. The sample comprised only 410 participants; therefore, future research should focus on larger sample sizes and deeper analyses of the effectiveness of these factors and hypotheses. Although this study provides valuable insights, there remains significant scope for further investigation. Further studies may investigate additional variables that influence the relationship among agile leadership, value co-creation, stakeholder satisfaction and project performance. Longitudinal research could also shed light on how these dynamics evolve over time. The encouraging findings highlight the crucial role of agile leadership in improving project performance. Acknowledging the moderating effect of stakeholder management and the sequential mediating roles of value co-creation and stakeholder satisfaction enriches comprehension of the complexities of effective leadership in project teams. These insights can guide leaders in developing strategies that support agile cultures, thereby sustaining high project performance over the long term.

Future research on agile leadership should incorporate a variety of moderators and mediators. While the present study employed a cross-sectional design, future work could utilize alternative techniques, such longitudinal research design. Future research may investigate additional variables to broaden the list of factors that predict project performance, as the characteristics examined in this study have also been identified as sources of collaboration in many different organizational and construction contexts. To confirm and evaluate the mediating role of work engagement in the AL-PP relationship, further research is suggested. Moreover, previous research has linked various potential attributes to innovative behavior; future research could integrate these traits to complement the current findings. Lastly examining customer forgiveness as a moderating factor between value co-creation and project performance could provide new perspectives on sustaining positive project outcomes.