Real estate decision making as actor networks

Abstract

PurposeSound real estate decisions are both financially and strategically essential to corporate success. Given their importance, this paper aims to illustrate how the actor network theory (ANT) can be a valuable alternate lens to bounded rational and political perspectives in providing insights into corporate real estate decision‐making processes.Design/methodology/approachThis exploratory investigation uses a case study approach to retroactively examine the real estate decision‐making process over five to seven years in four organizations ranging in size from four to 125 employees. The study uses multiple data sources including 25 in‐depth interviews, site visits, archival data, websites, documents, and email correspondence.FindingsUsing the constructs of ANT, the findings reveal how real estate decision making involves iterative but identifiable phases through which heterogeneous actors seek to converge diverse interests and where artifacts affect behaviors and outcomes as much as or sometimes more than their human creators.Research limitations/implicationsGiven the case study method, this research lacks generalizability. Researchers are encouraged to test the findings in different contexts.Practical implicationsThe ANT perspective helps managers faced with real estate decisions to appreciate the relevant matrix of need, power, and interests; recognize and seek to control the power of artifacts; and, view real estate decision making not as simply making a choice among logical alternatives, but as orchestrating a long, complex process.Originality/valueThis investigation compares the perspectives of ANT to the classical bounded rational and political lenses in examining corporate real estate decision making; demonstrates ANT's value in providing additional insights; and, discusses its implications for understanding and managing these complex processes.