Business model reconfiguration in green construction: A theoretical perspective

Abstract

Business models describe the business logic of a particular company and green business model is when a company changes part(s) of its business model and thereby both captures economic value and reduces the ecological footprint in a life-cycle perspective. In this paper, business model literature is reviewed with the intention of promoting learning to understand the economic complexity of environmental sustainability in the construction context. Although the green construction literature does not explicitly deal with the changes of construction companies business model, there is a considerable research that implicitly investigates features and elements of the business models of green construction. Key features from this literature are: green value propositions should always be related to customer/stakeholder issues. Going green will improve relationships among stakeholders and with particular customers since key activities are performed in a greener manner. Knowledge and partnership are the most important resources needed to go green and moreover green branding is an important resource and can be a source of competitive advantage. To unlock green value proposition opportunities, cost structure and revenue models should be considered from a long-term perspective.