Theoretical Framework of Circular Business Model Innovation for Building Contractors

Lin Kjerulf () and Kim Haugbølle ()
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Lin Kjerulf: Department of the Built Environment, Aalborg University
Kim Haugbølle: Department of the Built Environment, Aalborg University

Chapter Chapter 6 in SDGs in Construction Economics and Organization, 2023, pp 77-90 from Springer

Abstract: Abstract The construction industryConstruction industries’s traditional linear business modelsBusiness models of “take, make, and dispose” are being challenged in practice due to the increased market demands and the political agenda that points towards sustainable and circular practices. The majority of existing research within sustainable and circular business modelsBusiness models is limited to short-term consumer products, but the research is poorly matching the conditions of buildings as capital-intensive goods with significantly longer life cycles. The data collection builds on an integrative literature reviewLiterature reviews that will synthesize current findings on sustainable and circular business modelsBusiness models by assessing the four major business modelBusiness models dimensions of value proposition, value delivery, value creation, and value capture. The aim of this paper is to identify and discuss important shortcomings in the general framework of sustainable business modelsBusiness models with regard to application in the construction and real estateReal estate sector and more specifically larger contractorContractors firms. The main findings conclude there is a research gap in terms of developing new business modelsBusiness models that both capture the distinctive characteristics of the construction industryConstruction industries and innovate building contractorsContractors’ traditional practices towards the sustainable and circular transition. This paper points out that future circular business modelsBusiness models of larger contractorContractors firms will probably include elements of the business modelsBusiness models “Orchestrator” and “inclusive value creation” due to the increased need for coordination and early project involvement with multiple stakeholdersStakeholders in the value chainValue chains for the co-creation of long-term and valuable partneringPartnering agreements as well as participation in new types of procurementProcurements.

Keywords: Circular economy; Business model; Material flows; Innovation; ContractorsContractors (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-3-031-25498-7_6

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