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Many studies demonstrate the importance of communication in project performance. However, little is known about how project communication exerts its effects on the outcomes of capital projects that have a large impact on environmental and economic sustainability. Using a longitudinal survey and bootstrap-based structural-equation modeling, this study uncovers how project competencies and team innovative behavior affect the relationship between project communication and capital project performance. This study collects repeated measures from project managers at two time points: immediately after the initiation and planning stages end and immediately after project completion. Excluding responses with missing data, this study’s sample includes 108 capital projects. This study finds that project technical and managerial competencies completely mediate the relationship between project communication and project performance. This study also finds that team innovative behavior affects project performance through the mediating effect of project technical competence. Team innovative behavior also moderates the relationship between project technical competence and project performance. Project communication has the largest effect on project performance despite having the smallest direct effect; project managerial competence possesses the next-largest effect on project performance despite having the largest direct effect. This study discusses the managerial and research implications.

Impact of Communication on Capital Project Performance: A Mediated Moderation Model