Smart Building Energy Optimization and Green Corporate Strategy: A Structural Equation Modeling Approach

Authors

  • Muhammad Williams Rahaditama Management and Science University, Malaysia Author
  • Rayhan Universitas Indonesia, Indonesia Author
  • Saprilia Tri Lestari Universitas Muhammadiyah Surakarta, Indonesia Author

DOI:

https://doi.org/10.65875/h1stvd24

Keywords:

Smart building energy optimization, Green corporate strategy, Structural equation modeling, Dynamic capabilities, Sustainable competitive advantage

Abstract

Buildings occupy a strategically important position in corporate sustainability because their energy demand affects operating expenditure, greenhouse-gas emissions, employee experience, asset value, and stakeholder perceptions. Yet smart-building investments are frequently evaluated as technical projects rather than as organizational capabilities embedded in corporate strategy. This article develops a strategy-oriented structural equation modeling (SEM) framework to explain how smart building energy optimization can contribute to green corporate strategy and competitive advantage. Drawing on the resource-based view, dynamic capabilities theory, stakeholder theory, and the natural-resource-based view, the framework connects top-management commitment, digital and energy-management capability, stakeholder pressure, and organizational readiness to smart building energy optimization. It then models energy optimization as a pathway to environmental performance, operational efficiency, green reputation, and sustainable competitive advantage. The framework also considers green strategic integration as a mediator and organizational digital maturity and building-use intensity as potential boundary conditions. An explanatory, cross-sectional survey design is proposed, with building and sustainability managers in commercial, institutional, hospitality, and industrial organizations as the target respondents. The article specifies constructs, measurement principles, hypotheses, and a rigorous SEM analysis protocol without presenting uncollected data as empirical findings. The central argument is that smart-building technologies create strategic value only when data, operational routines, employee practices, and investment decisions are integrated into a coherent sustainability strategy. The contribution is a testable model that bridges building-energy research and strategic-management scholarship while identifying governance, rebound, interoperability, and measurement challenges that can weaken the expected benefits.

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Published

2026-10-23 — Updated on 2026-10-23

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