Ensuring internal corporate responsibility in personnel management of construction companies (implementation practice in the Czech Republic)

Introduction. The construction sector of the Czech Republic is characterized by high labour intensity, significant wage differentiation, a project-oriented organization of work, and a persistent shortage of qualified labour. These features substantially complicate personnel management and payroll processes, increasing the requirements for employer responsibility in the field of HR management. The aim of this study is to analyze the relationships between structural labour shortages, wage variability, and the institutional complexity of HR processes, as well as to empirically assess their impact on the level of internal corporate responsibility in construction companies.

Materials and methods. The empirical basis of the study includes industry-level macroeconomic data and aggregated operational indicators of HR and payroll processes in construction companies, which made it possible to identify stable management characteristics and ensure the comparability of the analyzed cases. Principal Component Analysis (PCA) and structural modelling based on PLS-SEM were employed to identify latent factors of HR complexity and to analyze causal relationships between the studied variables.

Results. The study demonstrates that increasing wage differentiation and labour shortages act not only as economic pressure factors but also as key determinants of growing complexity in internal corporate responsibility management within HR processes. The digitalization of HR and payroll systems contributes to a reduction in operational errors and enhances the transparency of certain procedures; however, it does not eliminate the institutional complexity of management, nor does it shift responsibility toward technological systems. The findings indicate that the use of digital tools intensifies requirements for the quality of managerial decision-making, process formalization, and coordination in personnel management. Internal corporate responsibility is established as a systemic managerial characteristic that determines the sustainability of HR management under conditions of high workforce uncertainty and project dynamics.

Conclusions. The results contribute to the development of personnel management in the construction sector and substantiate the thesis that the digitalization of HR and payroll systems does not eliminate employer responsibility but rather transforms the requirements for its institutionalization.

1. Bajpai A., Misra S.C. Evaluation of success factors to implement digitalization in the construction industry. Construction Innovation. 2024; 24(4):865-891. DOI: 10.1108/CI-02-2022-0042

2. Berlak J., Hafner S., Kuppelwieser V.G. Digitalization’s impacts on productivity: a model-based approach and evaluation in Germany’s building construction industry. Production Planning & Control. 2020; 31(4):335-345. DOI: 10.1080/09537287.2020.1740815

3. Çetin S., Gruis V., Straub A. Digitalization for a circular economy in the building industry: Multiple-case study of Dutch social housing organizations. Resources, Conservation & Recycling Advances. 2022; 15:200110. DOI: 10.1016/j.rcradv.2022.200110

4. Nachmias S., Mitsakis F., Aravopoulou E., Re-es C.J., Kouki A. Line managers’ perceptions of diversity management: insights from a social exchange theory perspective. Employee Relations: The International Journal. 2022; 44(2):294-318. DOI: 10.1108/ER-12-2019-0484

5. Bedoya M., Román E., Gutiérrez S., Pérez E., Zapata C., Castro-Gómez J. et al. The impacts of corporate social responsibility on internal organizational processes to create shared value. Cogent Business & Management. 2024; 12(1). DOI: 10.1080/23311975.2024.2418420

6. Kuzin D.V. Russian corporate governance conceptions: evolution and comparative analysis. Moscow University Economics Bulletin. 2024; 59(1):3-28. DOI: 10.55959/MSU0130-0105-6-59-1-1. EDN BBDHUW. (rus.).

7. Yan X., Espinosa-Cristia J.F., Kumari K., Cioca L.I. Relationship between corporate social responsibility, organizational trust, and corporate reputation for sustainable performance. Sustainability. 2022; 14(14):8737. DOI: 10.3390/su14148737

8. Busina F. Personnel Management Economisation in the Building Industry. Saarbrücken, Scholars’ Press, 2015; 280.

9. Klaro Ramires P.M.R. The impact of institutional environment on corporate sustainability of Russia’s companies. Moscow University Economics Bulletin. 2025; 60(2):178-201. DOI: 10.55959/MSU0130-0105-6-60-2-9. EDN IGMLPS. (rus.).

10. Risi D., Vigneau L., Bohn S., Wickert C. Institutional theory‐based research on corporate social responsibility: Bringing values back in. International Journal of Management Reviews. 2023; 25(1):3-23. DOI: 10.1111/ijmr.12299

11. Mahalingam A., Levitt R.E. Institutional Theory as a Framework for Analyzing Conflicts on Global Projects. Journal of Construction Engineering and Management. 2007; 133(7):517-528. DOI: 10.1061/(ASCE)0733-9364(2007)133:7(517)

12. Tunji-Olayeni P., Kajimo-Shakantu K., Ayodele T.O., Babalola O. Promoting construction for sustainability transformation: the perspective of institutional theory. International Journal of Building Pathology and Adaptation. 2023. DOI: 10.1108/IJBPA-07-2022-0104

13. Lapidus A.A., Shchukin A.Yu. Application of function-oriented modelling systems in construction control implementation. Vestnik MGSU [Monthly Journal on Construction and Architecture]. 2024; 19(10):1666-1675. DOI: 10.22227/1997-0935.2024.10.1666-1675. EDN BUZMCQ. (rus.).

14. Rodin E. Project activities in the construction industry: the specifics of competition and the development forecast. Bulletin of Kemerovo State University. Series: Political, Sociological and Economic sciences. 2023; 8(2):(28):189-196. DOI: 10.21603/2500-3372-2023-8-2-189-196. EDN BOTUHM. (rus.).

15. Pakhomova Yu.A. Prerequisites and prospects for the development of strategic partnerships in the Russian construction industry. Journal of Economics, Entrepreneurship and Law. 2024; 14(12):7727-7742. DOI: 10.18334/epp.14.12.122222. EDN EWFJOU. (rus.).

16. Martek I. International Construction Management Research. London, Routledge, 2024. DOI: 10.1201/9781003494706

17. Sarhan S., Pasquire C., King A. The concept of institutional waste within the construction industry: a potential theoretical framework. Lean Construction Journal. 2017; 12-24. DOI: 10.60164/a6e0d5b4i

18. Qiu Y., Chen H. A systematic review of the knowledge domain of institutional theory in construction project management. Engineering, Construction and Architectural Management. 2023; 30(6):2523-2544. DOI: 10.1108/ECAM-08-2021-0754

19. Beusch P., Frisk J.E., Rosén M., Dilla W. Management control for sustainability: Towards integrated systems. Management Accounting Research. 2022; 54:100777. DOI: 10.1016/j.mar.2021.100777

20. Zavyalova E., Sokolov D., Kucherov D., Lisovskaya A. Digitalization of human resource management: present and future. Foresight and STI Governance. 2022; 16(2):42-51. DOI: 10.17323/2500-2597.2022.2.42.51. EDN USSHZZ. (rus.).

21. Maliha M.N., Tayeh B.A., Aisheh Y.I.A. Impacts of human resources management strategies and practices on workers performance in construction industry : a review. Journal of Civil Engineering and Management. 2024; 31(1):20-37. DOI: 10.3846/jcem.2024.20989

22. Lieftink B., Smits A., Lauche K. Dual dynamics: project-based institutional work and subfield differences in the Dutch construction industry. International Journal of Project Management. 2019; 37(2):269-282. DOI: 10.1016/j.ijproman.2018.03.005

23. Stepanov A.V., Matveeva M.V., Peshkova E.S. Digitalization of the construction industry: prospects and challenges. Izvestiya vuzov. Investitsii. Stroitelstvo. Nedvizhimost. 2024; 14(2):(49):356-366. DOI: 10.21285/2227-2917-2024-2-356-366. EDN SJHHKT. (rus.).

24. Samuelson O., Stehn L. Digital transformation in construction : a review. Journal of Information Technology in Construction. 2023; 28:385-404. DOI: 10.36680/j.itcon.2023.020

25. Ershadi M., Lijauco F. A framework for digitalizing construction businesses: drivers, barriers and outcomes. Smart and Sustainable Built Environment. 2024; 15(1):120-155. DOI: 10.1108/SASBE-01-2024-0003

26. Tetteh F.K., Kwateng K.O., Obiri-Yeboah H. Understanding green building practices adoption in the construction industry: an extension of institutional theory. Property Management. 2025; 43(5):806-831. DOI: 10.1108/PM-09-2024-0096

27. Chew X., Gatea Atiyah A., Alnoor A., Abbas S., Muhsen Y.R., Bayram G.E. Partial Least Squares Structural Equation Modeling. Information Systems Engineering and Management. 2025; 3-16. DOI: 10.1007/978-3-032-01055-1_1