Emergence of the business models in the building and construction literature

Abstract

Business models play a key role on successful businesses since they describe how an organisation creates and delivers value for its customers and subsequently captures value. A good business model can separate a company from its rivals by creating a competitive edge. However, there is limited research on business models in the building and construction field. This paper aims to contribute to this limited literature by exploring how the business model concept is understood and conceived by the building and construction literature to shed some light on the concept and its associated benefits, establish a common language, and help position future enquiries. Yet, it becomes vital to cover the literature in the business and management field where business models originated. This approach helps gaining thorough understanding and seeing the big picture of business models. The findings suggest that there is a growing interest in the use of business models concept in the building and construction disciplines but most articles refer to business models without explicit definition which can lead to uncertainty on using the concept. Furthermore, recent studies provide explicit definition of business models and seek to develop an understanding of the concept with reference to the construction context. As suggested by the literature, business models concept can be relevant for sustainability studies since it helps companies converting their abstract environmental strategies into viable business concepts thus creating value for customers and capturing this value. Moreover, concentration on the business model can facilitate better evaluation of current construction companies’ business models and assess their future suitability of sustainability aspects and competitiveness. To benefit from business models in the building and construction context, they need to be considered and developed at the level of field of operation with clear explanation on what they mean.