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

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.