Circular Business Models for Construction Companies: A Literature Review and Future Research Directions

Bowen Zhang (), Johan Larsson and Wiebke Reim
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Bowen Zhang: Department of Civil, Environmental and Natural Resources Engineering, Luleå University of Technology, 971 87 Luleå, Sweden
Johan Larsson: Department of Civil, Environmental and Natural Resources Engineering, Luleå University of Technology, 971 87 Luleå, Sweden
Wiebke Reim: Entrepreneurship and Innovation, Luleå University of Technology, 971 87 Luleå, Sweden

Sustainability, 2025, vol. 17, issue 10, 1-24

Abstract: The construction industry, being material-intensive, is a major target for sustainability initiatives due to its significant consumption of energy and resources. In response, circular economy principles are gaining interest from the construction industry, since they benefit the environment and promote sustainable societal development. Nevertheless, the implementation of these circular economy principles has not been widely adopted by construction companies within the construction industry, indicating substantial room for improvement in areas such as coordinating policies, market conditions, and business model development for different actors within the project-based construction industry. The objective of this research is to explore the content of circular business models for construction companies, as they play a critical role in promoting the implementation of circular economy principles to foster responsible consumption of raw materials and mitigate the environmental impact of the industry. Current research in this field lacks systematic views, which may enhance understanding and provide a theoretical basis for researchers and construction companies transitioning toward circular economy principles. This article employs a literature review method of including 53 journal articles, where the content of analysis reveals 34 aspects related to circular business models for construction companies. Additionally, the study outlines future research directions, focusing on the intersections between different elements within the business model. The findings of this study offer valuable insights for policymakers on how to strengthen external support and the development of circular value networks to promote the adoption of circular business models from the perspective of construction companies.

Keywords: construction; business models; circular business model; construction company; literature review (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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