The sustainable competitive advantage model for corporate real estate

Abstract

PurposeThis purpose of this paper is to propose a model for the relationship between corporate real estate management (CREM) practices and an organisation's sustainable competitive advantage. Corporate real estate (CRE) plays an important but poorly recognised role in organisational competitiveness.Design/methodology/approachThe model was developed from the strategic management, organisational competitiveness, and CRE literatures. A total of 162 CREM practices from the literature were connected, where possible, with cost, innovation and differentiation sources of sustainable competitive advantage. Clustering similar practices allowed the summarising of competitive effects in those clusters and each of the sources of sustainable competitive advantage. Technical CREM practices were the focus of analysis as they constitute the traditional core of CREM.FindingsMany gaps were identified in the theoretical connections between practices and sources of sustainable competitive advantage. Overall, cost dominated as the mode of competition most affected by the practices. Cost, innovation and differentiation made roughly equivalent positive contributions, but cost was most negatively affected by CREM practices.Research limitations/implicationsThe model is conceptual and provides a framework for aligning CREM practices with an organisation's competitive strategies, to build CRE‐based strategic capabilities for competitiveness, and to optimise practices' competitive effects. The holistic model directly links core CRE techniques with business outcomes and establishes a framework for further exploration of this important relationship.Originality/valueOrganisational competitiveness, CRE, and CREM are seldom studied. This paper provides a useful connecting framework for CRE researchers and practitioners to research and advance efforts to realise CRE value for organisations.