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

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  • Jingxiao Zhang
  • You Ouyang
  • Simon P. Philbin
  • Xiaojing Zhao
  • Pablo Ballesteros‐Pérez
  • Hui Li

Abstract

Improving green dynamic capability is an important business strategy to enhance enterprises' competitive advantage. This study proposes a theoretical framework that considers the business model and green production to analyze how green dynamic capability can be fostered by enterprises. In this study, 202 managers of Chinese construction enterprises were questionnaire surveyed, and partial least squares structural equation modelling was used to test hypotheses. Results show that: (a) the business model 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 a positive mediating role of the business model. This study extends the current literature on dynamic capability by investigating the relationship between the business model, green production, and green dynamic capability. This study also provides guidance for enterprises to enhance green dynamic capability and promote sustainable development. Highlights This paper proposes a theoretical framework that takes into account business models and green production to analyze how to cultivate and enhance enterprises' green dynamic capability. Takes China as an example to empirically analyze the impact of business model and green production on the green dynamic capability of enterprises, and eventually lay a theoretical guidance for enterprises to achieve green development goals. Good business model is positively correlated with green dynamic capability. The higher the level of green production, the stronger the positive relationship between business model and green dynamic capability.

Suggested Citation

  • Jingxiao Zhang & You Ouyang & Simon P. Philbin & Xiaojing Zhao & Pablo Ballesteros‐Pérez & Hui Li, 2020. "Green dynamic capability of construction enterprises: Role of the business model and green production," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2920-2940, November.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:6:p:2920-2940
    DOI: 10.1002/csr.2012
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    3. Zahid Yousaf & Magdalena Radulescu & Crenguta Sinisi & Abdelmohsen A. Nassani & Mohamed Haffar, 2022. "How Do Firms Achieve Green Innovation? Investigating the Influential Factors among the Energy Sector," Energies, MDPI, vol. 15(7), pages 1-14, March.
    4. Ying Guo, 2023. "External Knowledge Acquisition and Green Innovation in Chinese Firms: Unveiling the Impact of Green Dynamic Capabilities," SAGE Open, , vol. 13(3), pages 21582440231, July.
    5. Hailan Guo & Ming Dong & Christos Tsinopoulos & Mengyuan Xu, 2024. "The influential capacity of carbon neutrality environmental orientation in modulating stakeholder engagement toward green manufacturing," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 292-310, January.
    6. Xiu-e Zhang & Xinyu Teng, 2023. "Effects of environmental orientation on agricultural enterprises’ performance: mediation and moderation analyses," Asian Business & Management, Palgrave Macmillan, vol. 22(3), pages 955-977, July.
    7. Tu Thanh Hoai & Nha Nguyen Minh & Hien Vo Van & Nguyen Phong Nguyen, 2023. "Accounting going green: The move toward environmental sustainability in Vietnamese manufacturing firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1928-1941, July.

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