Adaptation problems of corporate governance mechanisms in construction companies during the transition to a green economy: the case of Uzbekistan

Introduction. Over the past five years, the CIS countries have been undergoing significant institutional changes, with the state assuming a new and more active role in the economy. These transformations are related to the further development of the private sector and, as a result, require changes in enterprise management systems. In the Republic of Uzbekistan, these processes are accompanied by growth in infrastructure investment, increased demand for external project financing, and higher requirements for transparency and managerial accountability. In addition, changes in the business models of construction companies are driven by the transition to a green economy, which increases the need to consider environmental factors in company activities. In this context, corporate governance becomes especially important; however, industry-specific features and institutional limitations constrain its implementation in the construction sector.

The purpose of this paper is to identify key problems, constraints, and other critical factors that affect the pace of adaptation of corporate governance mechanisms in construction companies in Uzbekistan, particularly in the context of the green economy, while considering the institutional environment of the CIS countries.

Materials and methods. The study is based on an institutional approach aimed at identifying the factors that hinder the widespread adoption of corporate governance among construction enterprises, which are largely composed of SMEs. Corporate governance is viewed as the result of interaction between regulatory requirements, industry characteristics, and established management practices. The research employs institutional and sectoral analysis, analysis of official statistical data, and logical reasoning to identify the links between ownership structure, financial characteristics of the sector, and the potential for implementing corporate governance and ESG practices. The empirical base includes official statistical data of the Republic of Uzbekistan for the period 2015–2024.

Results. The findings confirm that a sound corporate governance model has not yet been developed in the construction sector, constraining the widespread adoption of modern management practices by enterprises. Corporate governance principles are applied unevenly and in a fragmented manner, and are mainly observed in state-owned and quasi-state organizations. It has been established high concentration of ownership, a combination of ownership and management functions, and the dominance of a projectbased business model ddistinguish the private sector. In this context, many companies are reluctant to implement green practices in their operations. Since ESG principles are an integral part of modern corporate governance, the current situation highlights the need to develop a hybrid corporate governance model adapted to the construction sector.

Conclusions. The development of corporate governance in the construction sector of Uzbekistan depends not on the creation of new institutions as such, but largely on better coordination of existing mechanisms. This includes strengthening the link between corporate governance, access to finance, and public procurement, developing project-oriented control mechanisms, and gradually integrating ESG approaches into the investment and contractual logic of construction projects.

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