The evolution of Romanian Real Estate sector: dynamics towards value creation

2014 ◽  
Vol 32 (1) ◽  
pp. 28-47 ◽  
Author(s):  
Tuuli Jylhä ◽  
Seppo Junnila

Purpose – Although great emphasis has been given to the added value of real estate, the current studies miss the phase when the actual value is created, i.e., the production phase of real-estate services. Therefore, the purpose of this paper is to evaluate the current state of value creation of the commercial real-estate services from a lean thinking perspective. Design/methodology/approach – Value creation is studied in four Finnish cases through 122 interviews and eight workshops. Findings – Cross-case analysis identified six sources of waste resulting as poor value creation: sub-process optimisation instead of optimising the entire process, the price minimisation instead of cost minimisation, difficulties responding to customer value, overloaded employees, inability to make improvements, and poorly managed information. Research limitations/implications – Although the findings are grounded on a solid data collection and analysis, the case study nature of the research and the Finnish case study settings create limitations for the generalisation of the findings. Practical implications – Service providers and other process owners can use the findings to improve their value creation and increase the productivity of their service processes. Originality/value – This is one of the first research studies that utilise lean thinking in commercial service processes in the real-estate sector and thus provides new insight into how to increase productivity through waste minimisation.


2014 ◽  
Vol 18 (1) ◽  
pp. 56-65 ◽  
Author(s):  
Tuuli Jylha ◽  
Seppo Junnila

The trend of outsourcing operational property management services by the property owners has had a prominent role in the Finnish real estate sector. At the same time, value creation has been scattered across many players such as the owner, the property manager and several service providers. This paper aims to analyse the value creation practices and mechanisms between two partners, a real estate owner and its property management company, in order to assess the current value creation. The assessment is based on a lean partnering framework presented by Lamming (1993). The customers are office tenants in the Helsinki business district. The case findings showed that the expected customer value was challenging to deliver, because waste activities disrupted the value creation. The partners had also adapted some of the value creation practices differently, which caused turbulence in value creation. In addition, the partners had missed the power of doing improvements jointly, but prefer to use bidding to establish value creation. However, through lean thinking the organisations found a much-needed new approach to develop their partnership. The principles of lean management made the problem clearer and enabled the organisations to start dealing with the relevant challenges.


2021 ◽  
Vol 13 (14) ◽  
pp. 7621
Author(s):  
Daniella Troje

Procurement has long been used to fulfil policy goals, and social procurement policies can mitigate issues connected to social exclusion, unemployment and segregation. The target groups for such policies are disadvantaged people such as immigrants, young people and people with disabilities. Due to its close connection to exclusion and segregation issues, the construction and real estate sector has often been seen by policymakers as an appropriate sector for social procurement. However, practices to implement such policies are underdeveloped, which creates uncertainty and hinders the transition towards sustainability in the construction sector. This paper investigates how construction clients and contractors perceive the implementation of social procurement policies in practice. Drawing on policy-in-practice literature and interviewing 28 actors in the Swedish construction sector, the findings show a misalignment between: (1) social procurement policies, (2) the sector and its existing practices, and (3) the target group and their skills and needs. Although this misalignment adversely impacts policy implementation and practice formation, it can likely be mitigated if actors co-create policy goals and practices that mesh with existing practices, and provide more resources to enable policy implementation. This paper shows how procurement can help fulfil social policies and the difficulties of achieving that in practice.


2021 ◽  
Vol 13 (6) ◽  
pp. 3239
Author(s):  
Shirley Kempeneer ◽  
Michaël Peeters ◽  
Tine Compernolle

Investors are currently obliged to take environment, social, and governance (ESG) issues into consideration as part of their fiduciary duty. As such, it becomes increasingly important to identify sustainable investments that also hold financial value. A sector where this is especially underdeveloped is real estate. This has a lot to do with the obfuscated conceptualization of ESG. The article identifies key gaps in the literature and practice and provides a framework to further the understanding of how ESG factors can add societal and financial value in the real estate sector. A key premise of the article is that the user in the building is grossly overlooked. Drawing on insights from behavioral social science and environmental psychology, the paper explains the role of the user in improving buildings’ ESG, also taking into account the investment value. To conclude, the article makes the case that the transition to user-centered smart real estate is the solution to improving both the environmental (E) and social (S) sustainability of buildings, as well as their investment value. Therefore, practitioners and academics are encouraged to critically evaluate and contextualize the ESG framework they are using as well as the extent to which users are considered and smart technology is employed.


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