Green business models and organisational changes: Lessons from the UK construction sector

Abstract

Green business models (GBMs) can support green growth because they are based on green value creation and capture with emphasis on clients role. However, GBMs require substantial investment and strong change capabilities. This paper maps organisational changes associated with GBMs transformation. For this purpose, 19 semi-structured interviews are conducted with a heterogeneous sample of academics and managers from the UK construction sector. The interviews then are analysed by a means of thematic analysis with aim to capture any common changes and to form similar patterns of changes which occurred within the sample. Surprisingly, there are a lot of similarities that can be grouped broadly into three major themes: green profile development; structure; and operations. In addition, the change starts from the strategic level (policy) to the operational level but it may be triggered by the people at the operational level. Furthermore, GBMs not only change product/service and process but also catalyse broader systems change of the green value chain. Therefore, construction organisations have to accept that transition to GBMs will bring significant changes to the way they work if these models are to flourish.