Green business models in the construction sector: An analysis of outcomes and benefits

Abstract

Purpose – The call to examine green business models (GBMs) in the construction sector has been growing louder because they represent the logic of green value creation and capture. The aim is to identify benefits of GBMs by adopting five essential elements of the GBM from the literature: green value proposition (GVP); target group (TG); key activities (KA); key resources (KR); and financial logic (FL). Design/methodology/approach –19 semi-structured interviews are conducted with construction sector practitioners and academics in the UK. Thematic analysis is used to obtain benefits of GBMs. Further, Interpretive Ranking Process (IRP) is used to examine which elements of the GBM have a dominant role in providing benefits to the construction businesses. Findings – The benefits are grouped into three themes: credibility/reputation benefits; financial benefits; and long-term viability benefits. The IRP model shows that the KR is the most important element when evaluated against the three benefit themes. Implications – Linking GBM elements and benefits will help companies in the construction sector to analyse the business case of environmental sustainability for embracing it. Originality/value - This research is one of the few empirical academic works investigating benefits of GBMs in the construction sector. IRP method is a novel contribution to GBMs and construction research.