Closing the loop with construction clients: relationship strategies for circular economy business model adoption

Abstract

Purpose Growing sustainability pressures are compelling the construction industry to adopt circular economy (CE) business models (CEBMs). However, weak client engagement continues to restrict this transition. This underscores the need to understand how client relationships can drive circular value creation. Hence, this study aims to examine the relationship attributes that will enable construction organisations to establish and maintain client engagement within the CEBM framework. Design/methodology/approach This study used an exploratory sequential mixed-methods design. Initially, qualitative data were collected and analysed until saturation was achieved. Subsequently, the insights from the qualitative phase informed the design of the quantitative phase. A structured questionnaire was then used to gather data from respondents. The data were analysed using descriptive statistics, the Kruskal–Wallis test and confirmatory factor analysis. Findings Five attributes emerged as significant in strengthening client relationships for CEBM in construction organisations. They are Web advertisements, emails, social media, electronic learning and one-to-one marketing. These findings demonstrate that digitally enabled and personalised engagement strategies play a crucial role in driving long-term client relationships in CEBM. Practical implications The study provides construction organisations with a clear guide for designing relationship strategies that engage diverse client groups and reinforce their transition towards circular practices. Originality/value This study provides the first empirical examination, to the best of the authors’ knowledge, of the client relationship construct within CEBMs for construction organisations. It advances understanding of how client engagement can be leveraged as a strategic mechanism to accelerate the adoption of a CE in the construction industry.