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Advancing Circular Business Models in Construction: An Integrative Framework for Sustainable Value Creation

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John R. Harrison ¹ ,

⁴ Global Institute for Sustainable Built Systems, University of Greenfield, Nigeria

Abstract

The transition from linear to circular economy paradigms necessitates rethinking business models (BMs), particularly in resource-intensive sectors such as construction. This study synthesizes extant literature across circular economy (CE) business models (CBMs), institutional frameworks, value‑network dynamics, and product-service system (PSS) strategies to propose an integrative conceptual framework for advancing CE adoption in construction. By systematically reviewing and thematically analyzing major contributions—including case studies on reverse logistics, life extension policies, and CE in construction and port ecosystems—this paper derives key drivers, barriers, enabling mechanisms, and governance conditions. The resulting framework posits three interdependent dimensions: (1) Value‑Network Orchestration, (2) Institutional and Policy Alignment, and (3) Product‑Service System & Life‑Extension Strategies. Within this tripartite structure, the study identifies critical enablers (collaborative networks, sustainable public procurement, supportive legislation, life‑extension incentives) and obstacles (fragmented supply chains, regulatory misalignment, economic disincentives, behavioral inertia). The framework underscores the necessity of dynamic stakeholder coordination and systemic shifts beyond individual firms. Implications for researchers, policymakers, and industry practitioners are elaborated, alongside propositions for empirical validation and longitudinal assessment. The article contributes a robust theorization of CBM deployment in construction, bridging gaps between abstract CE principles and actionable industry strategies.

Keywords

Circular economy, Circular business models, Construction industry

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