IDEAS home Printed from https://ideas.repec.org/a/spr/jbecon/v90y2020i7d10.1007_s11573-020-00972-4.html
   My bibliography  Save this article

Transformation of the real estate and construction industry: empirical findings from Germany

Author

Listed:
  • Andreas Pfnür

    (Technische Universität Darmstadt)

  • Benjamin Wagner

    (Technische Universität Darmstadt)

Abstract

The German real estate and construction industry is facing a transformation, triggered by fundamental changes in technology, the economy and society. The purpose of this paper is to explore how these changes exert pressure to adapt on existing business models, while also offering opportunities for their further development. A model that attributes the transformation of the real estate industry to megatrends, specific structural change drivers, business models and the interaction of the groups of players in the value creation system is developed. The model is tested empirically by a survey. Structural equation modelling is used to measure the impact of various determinants of transformation and the relevance of adaptation strategies to the different groups of players. As a result, the study explains three impact mechanisms of the transformation in the real estate industry. The transformation originates from the occupiers, who need more flexible space and are focusing on holistic solutions that are not provided by the real estate industry. Service providers are striving to increase the efficiency of their traditional processes, rather than evolving new business models or services. The investors recognise the increasing importance of the occupiers but they are rarely pursuing the resulting strategies. Property developers recognise these requirements: their adaptation strategies most strongly question their previous business. For practitioners, the results point out the opportunities and risks of transformation and help to illustrate the need for change. For academicians, the results indicate a way to explain and measure the transformation of a value creation system.

Suggested Citation

  • Andreas Pfnür & Benjamin Wagner, 2020. "Transformation of the real estate and construction industry: empirical findings from Germany," Journal of Business Economics, Springer, vol. 90(7), pages 975-1019, August.
    • Handle: RePEc:spr:jbecon:v:90:y:2020:i:7:d:10.1007_s11573-020-00972-4
    DOI: 10.1007/s11573-020-00972-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11573-020-00972-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11573-020-00972-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel Cook, 2015. "RICS futures: turning disruption from technology to opportunity," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 33(5), pages 456-464, August.
    2. Gilbert Richard J, 2006. "Competition and Innovation," Journal of Industrial Organization Education, De Gruyter, vol. 1(1), pages 1-23, December.
    3. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    4. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    5. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    6. Hornsby, Jeffrey S. & Kuratko, Donald F. & Shepherd, Dean A. & Bott, Jennifer P., 2009. "Managers' corporate entrepreneurial actions: Examining perception and position," Journal of Business Venturing, Elsevier, vol. 24(3), pages 236-247, May.
    7. Blind, Knut & Cremers, Katrin & Mueller, Elisabeth, 2009. "The influence of strategic patenting on companies' patent portfolios," Research Policy, Elsevier, vol. 38(2), pages 428-436, March.
    8. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    9. Susanne Hügel & Markus Kreutzer & Nico B. Rottke, 2019. "Firm Innovativeness In Service Industries: A Construct Validation In The External Environment And Industry Structure Contexts," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-57, August.
    10. Alexiev, Alexander S. & Volberda, Henk W. & Van den Bosch, Frans A.J., 2016. "Interorganizational collaboration and firm innovativeness: Unpacking the role of the organizational environment," Journal of Business Research, Elsevier, vol. 69(2), pages 974-984.
    11. Richard Gilbert, 2006. "Looking for Mr. Schumpeter: Where Are We in the Competition-Innovation Debate?," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 159-215, National Bureau of Economic Research, Inc.
    12. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    13. Just, Tobias & Voigtländer, Michael & Eisfeld, Rupert & Henger, Ralph & Hesse, Markus & Toschka, Alexandra, . "Wirtschaftsfaktor Immobilien 2017," Beiträge zur Immobilienwirtschaft, University of Regensburg, Department of Economics, number 19, August.
    14. Pfnür, Andreas & Wagner, Benjamin, 2018. "Transformation der Immobilienwirtschaft - Eine empirische Studie deutscher immobilienwirtschaftlicher Akteure," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 110439, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    15. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
    16. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    17. Allan G. B. Fisher, 1939. "Production, Primary, Secondary And Tertiary," The Economic Record, The Economic Society of Australia, vol. 15(1), pages 24-38, June.
    18. Pfnür, Andreas & Seger, Julian, 2017. "Produktionsnahe Immobilien - Herausforderungen und Entwicklungsperspektiven aus Sicht von Corporates, Investoren und Dienstleistern," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 88540, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. Oana Buliga & Christian W. Scheiner & Kai-Ingo Voigt, 2016. "Business model innovation and organizational resilience: towards an integrated conceptual framework," Journal of Business Economics, Springer, vol. 86(6), pages 647-670, August.
    20. Christian Mühlroth & Michael Grottke, 2018. "A systematic literature review of mining weak signals and trends for corporate foresight," Journal of Business Economics, Springer, vol. 88(5), pages 643-687, July.
    21. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huihui Liu & Hui Yu & Hongmin Zhou & Xiantang Zhang, 2023. "Research on the Influencing Factors of Construction Enterprises’ Digital Transformation Based on DEMATEL-TAISM," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    2. Benjamin Wagner & Andreas Pfnür, 2022. "Veränderungen für Projektentwickler in der immobilienwirtschaftlichen Transformation – Netzwerkanalyse und Stakeholder-Interviews zur Bestimmung handlungsrelevanter Einflüsse und strategischer Anpassu," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 8(1), pages 35-78, April.
    3. Kyra Voll & Felix Gauger & Andreas Pfnür, 2022. "CREM perspective on home office—a consideration of the workplace and its mechanisms of action [CREM Perspektive auf Heimarbeit – eine Betrachtung ausgewählter Wirkungsmechanismen des Arbeitsorts]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 8(2), pages 139-171, October.
    4. Voll, Kyra & Gauger, Felix & Pfnür, Andreas, 2022. "CREM perspective on home office—a consideration of the workplace and its mechanisms of action," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 133077, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    5. Isabelle Wrase, 2023. "An Analysis of Sustainability in Real Estate in Job Advertisements and Personal Profiles in Switzerland," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    6. Fernanda Antunes Batista da Silva, 2021. "Flexible workspaces within corporate real estate," LARES lares-2021-4dqc, Latin American Real Estate Society (LARES).
    7. Wolfgang Breuer & Bertram I. Steininger, 2020. "Recent trends in real estate research: a comparison of recent working papers and publications using machine learning algorithms," Journal of Business Economics, Springer, vol. 90(7), pages 963-974, August.
    8. Priyadarshini Das & Amer A. Hijazi & Duncan W. Maxwell & Robert C. Moehler, 2023. "Can Business Models Facilitate Strategic Transformation in Construction Firms? A Systematic Review and Research Agenda," Sustainability, MDPI, vol. 15(17), pages 1-20, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Peneder & Martin Woerter, 2014. "Competition, R&D and innovation: testing the inverted-U in a simultaneous system," Journal of Evolutionary Economics, Springer, vol. 24(3), pages 653-687, July.
    2. Susanne Hügel & Markus Kreutzer & Nico B. Rottke, 2019. "Firm Innovativeness In Service Industries: A Construct Validation In The External Environment And Industry Structure Contexts," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-57, August.
    3. Ross Levine & Chen Lin & Lai Wei & Wensi Xie, 2020. "Competition Laws and Corporate Innovation," NBER Working Papers 27253, National Bureau of Economic Research, Inc.
    4. Marshall, Guillermo & Parra, Álvaro, 2019. "Innovation and competition: The role of the product market," International Journal of Industrial Organization, Elsevier, vol. 65(C), pages 221-247.
    5. Rodríguez-Castelán, Carlos & López-Calva, Luis Felipe & Barriga-Cabanillas, Oscar, 2023. "Market concentration, trade exposure, and firm productivity in developing countries: Evidence from Mexico," World Development, Elsevier, vol. 165(C).
    6. Aghion, Philippe & Akcigit, Ufuk & Howitt, Peter, 2014. "What Do We Learn From Schumpeterian Growth Theory?," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 0, pages 515-563, Elsevier.
    7. Ali, Ashiq & Klasa, Sandy & Yeung, Eric, 2014. "Industry concentration and corporate disclosure policy," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 240-264.
    8. Bessonova, Evguenia & Gonchar, Ksenia, 2019. "How the innovation-competition link is shaped by technology distance in a high-barrier catch-up economy," Technovation, Elsevier, vol. 86, pages 15-32.
    9. Dario Guarascio & Mario Pianta & Francesco Bogliacino, 2017. "Export, R&D and New Products: A Model and a Test on European Industries," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 393-432, Springer.
    10. Montresor, Sandro & Vezzani, Antonio, 2015. "The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations," Research Policy, Elsevier, vol. 44(2), pages 381-393.
    11. Tammi, Timo & Saastamoinen, Jani & Reijonen, Helen, 2020. "Public procurement as a vehicle of innovation – What does the inverted-U relationship between competition and innovativeness tell us?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    12. Philippe Aghion & Peter Howitt & Susanne Prantl, 2015. "Patent rights, product market reforms, and innovation," Journal of Economic Growth, Springer, vol. 20(3), pages 223-262, September.
    13. Ronald Goettler & Brett Gordon, 2014. "Competition and product innovation in dynamic oligopoly," Quantitative Marketing and Economics (QME), Springer, vol. 12(1), pages 1-42, March.
    14. Brett Hollenbeck, 2020. "Horizontal mergers and innovation in concentrated industries," Quantitative Marketing and Economics (QME), Springer, vol. 18(1), pages 1-37, March.
    15. Mulkay, Benoît, 2019. "How does competition affect innovation behaviour in french firms?," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 237-251.
    16. Ugur, Mehmet, 2012. "Governance, Regulation and Innovation: Introducing New Studies," MPRA Paper 44151, University Library of Munich, Germany, revised Jan 2013.
    17. repec:spo:wpmain:info:hdl:2441/401t6job098n79ch91o9giov9d is not listed on IDEAS
    18. Haucap, Justus & Rasch, Alexander & Stiebale, Joel, 2019. "How mergers affect innovation: Theory and evidence," International Journal of Industrial Organization, Elsevier, vol. 63(C), pages 283-325.
    19. Elina Berghäll, 2016. "Innovation, competition and technical efficiency," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1199522-119, December.
    20. Dosi, Giovanni & Lamperti, Francesco & Mazzucato, Mariana & Napoletano, Mauro & Roventini, Andrea, 2023. "Mission-oriented policies and the “Entrepreneurial State” at work: An agent-based exploration," Journal of Economic Dynamics and Control, Elsevier, vol. 151(C).
    21. Banerjee, Rajabrata & Gupta, Kartick, 2021. "Do country or firm-specific factors matter more to R&D spending in firms?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 75-95.

    More about this item

    Keywords

    Real estate management; Real estate transformation; Structural change; Strategic management; Real estate trends;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Z10 - Other Special Topics - - Cultural Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jbecon:v:90:y:2020:i:7:d:10.1007_s11573-020-00972-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.