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Digitalization innovation capabilities and absorptive capacity in the Swedish real estate ecosystem
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Real Estate Business and Financial Systems.ORCID iD: 0000-0001-7559-4761
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Construction and Facilities Management.ORCID iD: 0000-0001-5608-5013
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Real Estate Business and Financial Systems.ORCID iD: 0000-0001-5371-1445
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Purpose:The purpose of this article is to increase the knowledge of real estate firms’ capabilities to innovate and, consequently, their capacity to absorb new innovations and benefit from digital technologies in an ecosystem context.Design/methodology/approach:The results are based on 32 interviews with representatives of Swedish real estate owners, real estate owner industry associations and suppliers of digital technology to real estate owners. The data is interpreted using theories on absorptive capacity (i.e. the capacity to absorb new innovations), innovation capabilities, and innovation ecosystems.Findings:The real estate owners, technology suppliers, and real estate owner industry associations have expanded their innovation capabilities and reshaped their innovation ecosystem by initiating a number of different digitalization activities, for example, development of new IT systems, digital platforms, services and business models. The absorptive capacity has been improved as the organizations have changed routines and structures related to innovation and they have taken on new roles related to digitalization and innovation, making them better able to absorb new innovations. Also, this article identifies several drivers and obstacles to digitalization in the real estate sector.Research limitations/implications:The increased capabilities related to digitalization can lead to better absorptive capacity on an individual firm level, which can contribute to the overall development of these firms on a longer term. Also, new capabilities may lead to better absorptive capacity in the real estate sector at large, as firms may benefit from each other’s capabilities through collaboration. The limitations are that this study does not interview tenants or facility management firms, and that the findings represent the context of the Swedish real estate market.Originality/value:This article investigates innovation capabilities, absorptive capacity and innovation ecosystems of real estate owners, their technology suppliers and real estate owner industry associations on the organizational level and on the sector level, into which there is little previous research. Also, the article highlights the novelty of digitalization as a phenomenon in the sector. 

Keywords [en]
digitalization, facility management, property technology, real estate, innovation, absorptive capacity
National Category
Business Administration
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:kth:diva-309390OAI: oai:DiVA.org:kth-309390DiVA, id: diva2:1641418
Note

QC 20220317

Available from: 2022-03-01 Created: 2022-03-01 Last updated: 2022-06-25Bibliographically approved
In thesis
1. Digitalization, sustainability, and ecosystems: An application of social network analysis to the real estate sector
Open this publication in new window or tab >>Digitalization, sustainability, and ecosystems: An application of social network analysis to the real estate sector
2022 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Societies today have increasing economic, social, and environmental needs for their built environments. The performance of the built environment depends largely on urban development, with the role of digital technologies therein being a long-standing research topic. The extant literature, however, has focused less on the organizational capabilities, such as absorptive capacity, that are needed for new technology adoption and organizational change. The capabilities of real estate owners, who are key decision makers throughout the built environment life cycle, have also, surprisingly, been neglected. 

The purpose of this thesis is to increase the understanding of digitalization and sustainability in the built environment. To this end, this thesis presents the results of an empirical study of the capabilities of real estate owners, technology suppliers and industry associations in the context of a business ecosystem within the Swedish real estate sector. The findings show that real estate actors have developed new organizational capabilities related to digitalization and within collaborations inside the business ecosystem overall. For example, real estate owners have invested in R&D labs and business development functions that are atypical within the sector. These new capabilities may contribute to digitalization and sustainability within the built-environment sector more broadly. Nevertheless, many structural issues characteristic of a fragmented sector remain. 

Additionally, this thesis contributes to ecosystem theory and its methodology and to the built environment research methodology. The literature on the use of social network analysis methods in ecosystem and built environment research is reviewed, with the conclusion that social network analysis methods have great research potential despite being rarely used. Furthermore, formal concept analysis of ecosystem concepts is conducted, and a methodological framework for understanding ecosystems as multilevel structures that consist of flows between ecosystem actors and emergent system-level properties is presented. The introduction of new theories and methods in the built environment literature is important, as digitalization and sustainability transcend traditional organizational and technological boundaries. 

Abstract [sv]

Samhällen har idag ökande ekonomiska, sociala och miljömässiga behov av sina byggda miljöer. Den byggda miljöns prestanda beror till stor del på stadsutveckling, där den digitala teknikens roll är ett mångårigt forskningsämne. Den befintliga litteraturen har dock fokuserat mindre på de organisatoriska förmågor, såsom absorptiv kapacitet, som behövs för att ta i bruk ny teknik och organisatorisk förändring. Förmågan hos fastighetsägare, som är viktiga beslutsfattare under hela den bebyggda miljöns livscykel, har också, överraskande nog, försummats. 

Syftet med denna doktorsavhandling är att öka förståelsen för digitalisering och hållbarhet i den byggda miljön. För detta ändamål presenterar denna avhandling resultaten av en empirisk studie av fastighetsägares, teknikleverantörers och branschorganisationers förmåga i ett affärsekosystem inom den svenska fastighetssektorn. Resultaten visar att fastighetsaktörer har utvecklat nya organisatoriska förmågor relaterade till digitalisering och inom samarbeten inom affärsekosystemet överlag. Till exempel har fastighetsägare investerat i forskning och utveckling -labb och affärsutvecklingsfunktioner som är atypiska inom sektorn. Dessa nya förmågor kan bidra till digitalisering och hållbarhet inom den byggda miljösektorn bredare. Ändå kvarstår många strukturella frågor som är karakteristiska för en fragmenterad sektor. 

Dessutom bidrar denna doktorsavhandling till ekosystemteorin och dess metodik och till forskningsmetodik för byggd miljö. Litteraturen om användningen av sociala nätverksanalysmetoder inom ekosystem- och byggmiljöforskning granskas, med slutsatsen att sociala nätverksanalysmetoder har stor forskningspotential trots att de sällan används. Vidare genomförs formell begreppsanalys av ekosystemkoncept, och ett metodiskt ramverk för att förstå ekosystem som flernivåstrukturer som består av flöden mellan ekosystemaktörer och emergenta systemnivåegenskaper presenteras. Införandet av nya teorier och metoder i den byggda miljölitteraturen är viktigt, eftersom digitalisering och hållbarhet överskrider traditionella organisatoriska och tekniska gränser. 

Place, publisher, year, edition, pages
Stockholm, Sweden: KTH Royal Institute of Technology, 2022. p. 112
Series
TRITA-ABE-DLT ; 225
Keywords
absorptive capacity, built environment, business development, business ecosystem, dynamic capabilities, digitalization, entrepreneurial ecosystem, facility management, Formal Concept Analysis, innovation ecosystem, literature review, methodology, platform ecosystem, property technology, real estate, research methods, Social Network Analysis, sustainability
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:kth:diva-309392 (URN)978-91-8040-155-5 (ISBN)
Public defence
2022-03-24, Kollegiesalen Brinellvägen 8, KTH Campus, registration for online or physical participation - https://www.kth.se/form/disputation-olli-vigren, Stockholm, 13:00 (English)
Opponent
Supervisors
Note

QC 20220302

Available from: 2022-03-02 Created: 2022-03-01 Last updated: 2022-06-25Bibliographically approved

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