Prioritizing sustainable practices for decarbonizing construction SMEs: an actionable roadmap for capability development in developing economies

Abstract

Purpose As the construction sector strives to meet global climate targets, small and medium-sized enterprises (SMEs) in developing economies represent a critical yet often overlooked frontier for decarbonization. Despite their significant role, construction SMEs face barriers such as limited financial capacity, weak technical capability and fragmented institutional support, which hinder the adoption of sustainable practices. This study aims to address this gap by identifying and prioritizing key sustainable entrepreneurship practices (SEPs) that can support decarbonization in construction SMEs, with a focus on Pakistan. Design/methodology/approach This study uses a hybrid methodology that integrates the decision-making trial and evaluation laboratory (DEMATEL), machine learning (ML) and interpretive structural modeling (ISM)-cross-impact matrix multiplication applied to classification (MICMAC). DEMATEL is used to identify causal relationships among SEPs, ML is used to validate the robustness of these relationships and ISM-MICMAC is applied to rank the SEPs based on their strategic influence. This integrated approach provides context-specific insights for decarbonization planning in construction SMEs. Findings The results identify artificial intelligence (AI)-driven process optimization (SEP19), building information modeling (BIM)-based sustainability integration (SEP17), energy-efficient building design (SEP16) and smart construction materials (SEP15) as key drivers of low-carbon transformation. These SEPs play a central role in improving operational efficiency, reducing carbon emissions and supporting long-term sustainability in the construction sector. Originality/value This study develops a context-specific decision-support framework for construction SMEs in a developing-economy setting, particularly Pakistan. By integrating DEMATEL, ML and ISM-MICMAC, it offers a structured approach for analyzing SEPs and provides actionable insights for SME owners, policymakers and other stakeholders seeking to advance decarbonization through strategically prioritized sustainability practices.