Globalisation and corporate real estate strategies

Abstract

Purpose - The purpose of this paper is to examine the impact of globalisation on corporate real estate strategies. Specifically, it seeks to identify corporate real estate capabilities that are important in a hypercompetitive business climate. Design/methodology/approach – This paper utilises a qualitative approach to analyse secondary data in order to identify the corporate real estate capabilities for a hypercompetitive business environment. Findings - Globalisation today is an undeniable phenomenon that is fundamentally changing the way business is conducted In the light of global hypercompetition, corporate real estate needs to develop new capabilities to support global business strategies. These include flexibility, network organization and managerial learning capabilities. Research limitations/implications – This is a conceptual paper and future empirical research needs to be conducted to verify the propositions made in this paper. Practical implications – Given the new level of uncertainty in the business climate, that is, hypercompetition, businesses need to develop dynamic capabilities that are harder for competitors to imitate in order to maintain what is considered a 'momentary' competitive advantage. The findings of this paper are useful to guide corporate real estate managers in this regard. Originality/value – This paper is original in two ways. First, it applies the strategic management concept of capabilities to corporate real estate. Second, it links the key challenge that businesses face today, i.e., globalisation, to the concept of capabilities as a means to maintain competitive advantage.