Value propositions for advancing circular economy business model in construction-related organisations

Purpose – Value proposition defines the unique benefits and solutions an organisation delivers to its customers or clients. Hence, this study aims to explore value propositions for advancing the circular economy business model, offering actionable pathways for construction organisations to transition effectively to circular economy business models. Design/methodology/approach – This study adopts an exploratory sequential mixed-methods approach. First, qualitative data were collected until saturation was achieved and analysed. Thereafter, the findings guided a subsequent quantitative phase. A well-structured questionnaire was used to collect data, and the data were analysed using descriptive statistics, Kruskal–Wallis and confirmatory factor analysis. Findings – The analysis showed that all estimated model parameters met the required fit indexes. In addition, the findings confirmed the significant influence of eight value propositions in CEBM for construction organisations: constructing with fewer resources and less waste, facilitating collaboration among stakeholders, designing out waste, facilitating client education, facilitating take-back of used construction items/materials, construction waste handling, upcycling construction components/items and construction waste processing. Practical implications – The findings offer a structured approach for construction organisations to optimise resource consumption and diversify revenue streams, enhancing circularity in construction practices. Originality/value – This study is the first to examine value propositions in the CEBM for construction organisations using an exploratory sequential mixed-methods approach. Hence, its findings help reduce the existing knowledge gap in this area.