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.