Is a new office a blessing in disguise? The strategic importance of relocation

Abstract

PurposeCorporate relocation is a rare event in the history of an individual company. The choices related to location, building and workplace constitute major long-term strategic decisions that determine the company’s future operating environment. However, business decision-makers often do not evaluate all the aspects of relocation before making relocation decisions. Thus, the purpose of this paper is to systemise the knowledge behind corporate relocation and the strategic qualities and impacts of these choices.Design/methodology/approachThis conceptual paper is based on a comprehensive literature review of 74 articles on the strategic qualities of short-distance corporate relocation of knowledge-intensive firms. Based on the review insights, a conceptual model of the strategic operational qualities for work environment selection is developed.FindingsThis paper identifies three strategic layers of physical environment change, namely, location, building and physical work environment, which need to be considered when deciding to relocate. Corporate relocation affects a company through five operational qualities, namely, staff productivity, costs, employee retention and availability, operational changes and organisational culture.Practical implicationsRelocation is a complex process for an individual company. Justifying choices based on direct costs can lead to unexpected changes in indirect costs for the company. This paper helps decision-makers understand the strategic importance of corporate relocation, identify relocation goals and plan successful relocation.Originality/valueThis paper uses a strategy and organisation lens to provide a systematic overview and synthesis of the strategic qualities of short-distance corporate relocation of knowledge-intensive firms.