Business model changes and green construction processes

Abstract

Green construction or sustainable construction differs from traditional construction in terms of the materials and processes used. To profit from green construction, firms may need to change their business models, including their offers, activities, networks and revenue models. However there is no explicit study on what changes are required or common in construction companies’ business models when they are involved in green construction projects. To systematize prior research a literature review identified changes in business model elements. The results showed that (1) most business model elements can change in a non-trivial manner as a consequence of green construction; (2) value configuration, cost structure, partner networks and capability are the elements emphasized in literature and are expected to be the most difficult and important to change; and (3) to be successful, firms may need to simultaneously change the business model elements of capability, value configuration and partner network on the one hand, and value proposition, cost structure and capability on the other hand.