Green dynamic capability of construction enterprises : role of the business model and green production

Zhang, Jingxiao, Ouyang, You, Philbin, Simon P., Zhao, Xiaojing, Ballesteros-Pérez, Pablo and Li, Hui (2020) Green dynamic capability of construction enterprises : role of the business model and green production. Corporate Social Responsibility and Environmental Management, 27(6), pp. 2920-2940. ISSN (print) 1535-3958

Abstract

Improving green dynamic capability is an important business strategy to enhanceenterprises' competitive advantage. This study proposes a theoretical framework thatconsiders the business model and green production to analyze how green dynamiccapability can be fostered by enterprises. In this study, 202 managers of Chinese con-struction enterprises were questionnaire surveyed, and partial least squares structuralequation modelling was used to test hypotheses. Results show that: (a) the businessmodel is positively related to green dynamic capability, so enterprises need to adjust business model to balance economic benefits and environmental responsibility; and(b) green production directly and indirectly affect green dynamic capability through apositive mediating role of the business model. This study extends the current litera-ture on dynamic capability by investigating the relationship between the businessmodel, green production, and green dynamic capability. This study also provides guidance for enterprises to enhance green dynamic capability and promote sustainable development

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