Green business models in the UK construction sector: Empirical study

Abstract

A business model is considered to be green when a business changes part(s) of its business model and thereby both captures economic value and provides environmental improvement. The aim of this paper is to explore how managers define the term “green business model” in the UK construction sector. Twelve experienced managers defined green business models differently than what is found in literature and empirical studies, however some of them provided definitions that are partially consistent: they highlighted the relationship between economic benefits and environmental benefits in these models. Nevertheless, their understandings and definitions lacked the view of using green business models as an effective tool to create green value propositions and analyze how this value can be captured in the form of profits and reputation. The results of the interviews suggest that some of the managers do neither understand the concept fully nor utilize any similar value creation analysis in their companies. This thinking may not be limited only to the UK.