HOME BUILDING BUSINESS MODELS ALIGNED WITH THE BCG ECONOMY MODEL FOR SUSTAINABLE DEVELOPMENT

Abstract

This research aims to (1) analyze the application of the Bio-Circular-Green (BCG) Economy model in the home building business and (2) propose guidelines for developing business models aligned with this concept. A qualitative case study approach was employed. Data were collected through in-depth interviews with five key informants, including home building entrepreneurs, architects, engineers, and stakeholders within the construction supply chain, along with relevant document reviews. The data were then analyzed using content analysis and thematic analysis. The findings suggest that the interviewed entrepreneurs demonstrated varying levels of BCG Economy adoption within their business operations. The green economy and circular economy dimensions are the most widely implemented. In contrast, the bioeconomy dimension remains in its early stage due to cost constraints and limited availability of bio-based materials. Furthermore, sustainable business models in the home building sector are characterized as Business Model Innovation (BMI), involving adjustments in key components: value proposition (focusing on sustainable housing), value creation and delivery (integrating technology and sustainability concepts), and value capture (generating added value from sustainability). In terms of systemic factors, the study identifies key supporting factors, including knowledge and skills of personnel, access to technology and innovation, and increasing market demand. Meanwhile, major barriers include high costs, lack of clear standards, and supply chain limitations. The research also proposes development guidelines emphasizing the integration of bioeconomy, circular economy, and green economy principles into all business components, the adoption of advanced technologies, workforce development (upskilling and reskilling), and collaboration across the supply chain. In addition, policy support from the government is essential to facilitate the transition toward sustainable home building businesses in the long term.