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Customer orientation in real-estate companies: The espoused values of customer relations
Malmö högskola, Faculty of Culture and Society (KS), Department of Global Political Studies (GPS).ORCID iD: 0000-0001-5547-0710
2011 (English)In: Property Management, ISSN 0263-7472, E-ISSN 1758-731X, Vol. 29, no 2, p. 130-145Article in journal (Refereed)
Abstract [en]

Purpose – The purpose of this paper is to analyse how the espousing of customer relations has evolved over time in the real estate sector. Has a shift occurred within the Swedish real estate sector from product thinking towards customer thinking? Design/methodology/approach – The research is based on an analysis of 25 commercial real estate companies’ annual reports from the last five years. The annual reports are analysed through text analysis using the theoretical framework of Mintzberg’s five Ps. Findings – The Swedish real estate sector has in general made the shift from product orientation to customer orientation. There was, however, no significant change during the last five years and most of the companies espoused customer orientation already in 2004. The study implies that it is not sufficient to categorise the companies between product or customer oriented. Instead four categories are suggested: product, customer, project, and financial orientated. Customer orientation, as measured, was higher in listed companies and in larger companies. Research limitations/implications – The research in this paper is limited to the Swedish real estate sector. Originality/value – The paper shows the espoused values regarding customer relations of the commercial real estate companies that can be found in their annual reports. As the annual reports are a marketing instrument it should reflect the senior management’s core values. By highlighting how the top management’s core values regarding customer relations are espoused an understanding for the sector is built up.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2011. Vol. 29, no 2, p. 130-145
Keywords [en]
Customer relations, Real estate, Customer orientation
National Category
Medical and Health Sciences
Identifiers
URN: urn:nbn:se:mau:diva-2180DOI: 10.1108/02637471111122435ISI: 000212172000003Scopus ID: 2-s2.0-79953273899Local ID: 30613OAI: oai:DiVA.org:mau-2180DiVA, id: diva2:1398922
Available from: 2020-02-27 Created: 2020-02-27 Last updated: 2024-02-06Bibliographically approved
In thesis
1. Challenges of Commercial Real Estate Management: An analysis of the Swedish commercial real estate industry
Open this publication in new window or tab >>Challenges of Commercial Real Estate Management: An analysis of the Swedish commercial real estate industry
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [sv]

Avhandlingen består av fem artiklar som var och en adresserar ett specifikt område inom förvaltning av kommersiella fastigheter. Det övergripande syftet med avhandlingen är att se till de utmaningar förvaltning av kommersiella fastigheter innebär. De två första artiklarna utgör en plattform för resten av avhandlingen och är en kartläggning av branschen. Artikel I fokuserar på branschens kund och service medvetenhet i deras årsredovisningar. Artikel II är en uppföljande intervjustudie av företagen i artikel I gällande ledningens uppfattning gällande vilka organisations frågor som är av strategisk natur för att leverera god kundservice. Tredje artikeln adresserar kontorsmarknaden och hur fastighetsägarens organisatoriska attribut påverkar annonseringstiden av kontorslokaler. Den testar eventualiteten att internet som marknadsplats för uthyrning av kontor är en så kallad lemons market, där företrädelsevis ”dåliga” objekt marknadsförs. De två sista artiklarna studerar sedan incitament i förvaltningsorganisationen om den bedrivs in-house eller är outsourcad. Den första av dessa två berör specifikt hur incitament för att genomföra arbetsuppgifter regleras och den andra artikeln ser istället till hur beslutsfattaren säkerställer sig information från förvaltningen för att kunna ta väl informerade beslut. I första artikeln får vi med oss att den kommersiella fastighetsmarknaden i Sverige är kundorienterad. Vi kan konstatera att branschen redan före 2004 hade gjort skiftet från produkt orientering till kund/service orientering. Däremot kunde vi inte konstatera att kundfokus hade ökat i företagens årsredovisningar mellan åren 2004-2008. Slutsatsen från artikel II är att oavsett förvaltningsorganisation, in-house eller outsourcad, är argumentationen från ledningen i dessa företag att val av organisering av förvaltningen är bottnad i service leveransen till deras kunder/hyresgäster. Tredje artikeln är ett test av internet som marknadsplats för kontor i Malö CBD där teorin om market for lemons testas. Organisering av förvaltningen var en av kvalitetssignalerna, tillsammans med storlek, kontor på orten och om företaget varit i Hyresnämnden. Slutsatsen är att vi inte kan förkasta hypotesen om att marknadsplatsen är en market for lemons. Slutsatsen från artikel IV och V lyfter fram skillnaden i hur incitament skapar i förvaltningsorganisationerna, då den är organiserad in-house alternativt outsourcad. Förvaltningen i outsourcade organisationer regleras primärt av kontraktet, mellan ägarbolaget och service bolaget som de är anställda av, där det stipuleras när och hur de förväntas leverera såväl information som kund service. Förvaltningen i företagen med in-house förvaltning arbetar istället genom frihet under ansvar där de bedöms genom resultatet av deras service istället för genom checklistor och Job beskrivningar. Oavsett organisering av förvaltningen så finns där inte några monetära incitament för förvaltaren som baseras direkt på deras individuella prestationer.

Abstract [en]

This dissertation consists of five papers with specific objectives. The overall objective is, however, to seek a deeper understanding of the challenges of real estate management in the commercial real estate sector. The purpose of the first two papers is to provide a mapping of the industry and a better knowledge of the main organizational strategies of the companies and their view of customer relations. The third paper looks at the possibility that the online office market is a so-called lemons market, where primarily "bad" objects are marketed. The last two papers compares companies that outsource property management and companies that has property management in house. The first of the two (paper IV) address the question of incentives for effort and the second (paper V) address information for decision-making, both however consider how the real estate owner has created incentives and regulations to ensure that they are informed. From the first paper we learn that the commercial real estate industry in Sweden already before 2004 had made a shift from a product focus towards a customer/service focus. However we could not see an increased customer focus in the annual reports during the years 2004-2008. Paper II also conclude that regardless of organisational form of management, in-house or outsourced, the executives state that the chosen form I to be able to deliver best service to the customer. In paper III a test of the online marketplace for offices in Malmö CBD was conducted to investigate if the market is a lemon market or not. Management form was one of the quality signals together with scale, existence of a local office and if the company has been involved in cases in the special court for rents (Hyresnämnden). The conclusion was that lemons hypothesis could not be rejected. The conclusions from paper IV and V pinpoints the occurrence of differences in how to build incentives for the real estate management organisation, if it is organised in-house or outsourced. As the management teams in the outsourced setting primarily is governed by the contract between the real estate owning company, and the service providing company, and there it is decided when and how they are to deliver in terms of service and information. The real estate management teams in the in-house setting instead act under a large freedom with responsibilities governing the outcome of their services and not any checklists or job-descriptions. Regardless of how the management teams are governed they do not have monetary incentives tied to their individual performance.

Place, publisher, year, edition, pages
Royal Institute of Tecnhology (KTH), 2015. p. 148
Series
TRITA-FOB-DT ; 2015:7
Keywords
Real estate management, Quality in real estate management, Incentives for effort, Information sharing, Organisational structure, Customer focus
National Category
Medical and Health Sciences
Identifiers
urn:nbn:se:mau:diva-7440 (URN)19613 (Local ID)978-91-85783-53-3 (ISBN)19613 (Archive number)19613 (OAI)
Public defence
2015-10-20, KTH, 13:00 (English)
Opponent
Note

Paper IV and V in dissertation as manuscripts.

Available from: 2020-02-28 Created: 2020-02-28 Last updated: 2024-03-15Bibliographically approved

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