Circular economy business model: an exploratory study on the key resources for construction organisations

Abstract

Purpose – Construction organisations face increasing pressure to adopt circular economy business models (CEBM), yet there is limited understanding of the key resources needed to support this transition. Hence, this study uncovers the key resource attributes in CEBM for construction organisations. Design/methodology/approach – This study adopted an exploratory sequential mixed-methods approach. Semi-structured interviews with senior construction professionals were analysed using content analysis. The findings from the interviews were used to develop the questionnaire. A total of 208 responses were collected through stratified random sampling and analysed using descriptive statistics, Kruskal–Wallis tests, and confirmatory factor analysis to validate the findings. Findings – The analysis showed that all estimated model parameters met the required fit indexes. In addition, the findings confirmed the significant influence of the seven key resource attributes in CEBM for construction organisations: sustainable construction sites, operating in energy-efficient buildings, energy from renewable sources, direct visualisation of materials through digitalisation, substituting resources with better-performing materials, circular sourcing and land restoration. Practical implications – The findings present a structured approach to identifying the key resources construction organisations need to deliver circular value propositions to different client segments. Thus, it provides a guide for construction organisations seeking to implement the CEBM. Originality/value – This study combines qualitative insights and quantitative validation to explore how key resources influence CEBM in construction, an area not previously studied. It fills a clear research gap and offers a foundation for future circular construction research and practice.