The purpose of this research is to analyse Facilities Management (FM) service market trends and different supply models of FM services in Finland. In addition, the implications of…
Abstract
Purpose
The purpose of this research is to analyse Facilities Management (FM) service market trends and different supply models of FM services in Finland. In addition, the implications of the prevailing market conditions for a client's decision‐making concerning FM services sourcing are discussed.
Design/methodology/approach
The research is based on thematic interviews and a survey that were conducted in Finnish FM service companies.
Findings
In order to compete successfully in the FM service market and fulfil the clients' needs in the near future, service providers need to be able to offer a wider range of FM services. In addition, it is important that the suppliers become stronger in the area of technical service competence. As the service companies are developing their internal technical competences, the clients might become more confident in outsourcing more technically demanding FM services. These market trends might explain why buyers in the FM service market are more ahead in using supply models like the integrated service provider model as opposed to using supply models like the specialized service provider model.
Research limitations/implications
This research offers new insight into FM service market trends in Finland and sheds light on the implications of the market conditions on the client's decision‐making process concerning the sourcing of FM services. In order to make stronger claims and to better understand the FM service industry as a whole, one should also gather data from the buyer side.
Practical implications
As information on a certain market is important for the buyers, it is suggested that the buyers of FM services should make a systematic research of the FM markets as part of sourcing strategy development or at least prior to releasing an invitation to tender to selected potential suppliers.
Originality/value
This research offers important market information that could be used to help the clients to make well‐grounded FM service sourcing decisions. In addition, this research describes those factors of competitiveness that come into play when service providers are in the process of reaching their competitive position in a certain market.
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Tomi Ventovuori and Tero Lehtonen
This paper aims to create a deeper understanding of the make or buy decision process, the criteria for the selection of a certain relationship type, and the differences between…
Abstract
Purpose
This paper aims to create a deeper understanding of the make or buy decision process, the criteria for the selection of a certain relationship type, and the differences between alternative relationship types in FM services.
Design/methodology/approach
The paper is based on literature review and qualitative research. Empirical data were collected from both clients and service providers using semi‐structured interviews, practical observations, informal discussions and focus group interviews.
Findings
When FM service activities entail strategically important skills and knowledge and when outsourcing may have a profound effect on the clients' ability to satisfy the end‐users needs, vertical integration is chosen. Respectively, a collaborative approach is recommended in cases where the service is of high importance for the client's or end‐user's business, there is a need to share sensitive or strategic information, the purchasing volume is high or the management of the purchasing situation is difficult because of the complexity of the purchased service package or market conditions. From the relationship management point of view, three different types of relationships (i.e. arm's length relation, operational partnering and strategic partnering) can be recognized in the FM services context.
Practical implications
The sourcing portfolio model, which can be used as an analytical tool to support the selection of an appropriate governance model for different service packages, is introduced. Additionally, the results aid the development of appropriate action plans for the management of different kinds of relationships.
Originality/value
This paper contributes to creating an enhanced understanding of outsourcing decisions and different types of relationships in the FM services context for both researchers and practitioners.
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Tomi Ventovuori, Tero Lehtonen, Anssi Salonen and Suvi Nenonen
The purpose of this paper is to review, evaluate and classify the academic research that has been published in facilities management (FM) and to analyse how FM research and…
Abstract
Purpose
The purpose of this paper is to review, evaluate and classify the academic research that has been published in facilities management (FM) and to analyse how FM research and practice are linked.
Design/methodology/approach
This paper is based on literature review and qualitative research. Qualitative data have been gathered from academic papers published in FM‐related journals (i.e. Facilities, Journal of Facilities Management, and the Nordic Journal of Surveying and Real Estate Research – Special Series) and in conjunction with academic conferences (i.e. European Research Symposium in Facilities Management and the CIB W70 Symposium) between 1996–2005.
Findings
When analysing empirical research in FM, research papers can be classified according to the FM topics examined in them, the type of research performed and data‐gathering methods used in the study reported, the background of the authors, research field, and research sector. Evaluation of academic papers indicates that the reporting of the methods used, data collection and limitations is inadequate in many academic papers. However, to draw valid conclusions and align FM research, methodical issues should be clearly delineated in research papers. In order to progress, the FM discipline must increasingly employ hypothesis testing and more robust data analysis techniques.
Research limitations/implications
This research offers new insights into the current state of FM research and sheds light on the development steps needed in future. One limitation of this paper is that it does not include all the empirical research that has been done in FM.
Originality/value
This paper helps article writers to take into account the important issues brought up in literature when reporting the results of their research in order to improve validity and reliability of their studies.
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Rasita Masalskyte, Mia Andelin, Anna-Liisa Sarasoja and Tomi Ventovuori
Sustainability in corporate real estate management (CREM) has been lately recognized as an integral part of almost every business. However, its perception might extremely differ…
Abstract
Purpose
Sustainability in corporate real estate management (CREM) has been lately recognized as an integral part of almost every business. However, its perception might extremely differ in various industries. Sustainable CREM practices have been extensively analyzed in recent studies, yet real estate is an ambiguous field and the practices still lack holistic understanding. This research aimed to summarize and systematize the present sustainable CREM practices and propose a generic sustainability maturity model for CREM.
Design/methodology/approach
The research process was implemented in accordance with the grounded theory approach. Research data were collected in semi-structured interviews with major Finnish companies, recognized for their environmental work. The scope of the research was nine interviews.
Findings
The result of this research is the generic sustainability maturity model for CREM. It consists of 18 most typical sustainable CREM practices at the companies interviewed. The model demonstrates the value of implementing sustainable CREM.
Originality/value
Sustainability maturity model for CREM is an indicative tool for sustainability maturity assessment in CREM. The model demonstrates how CREM contributes to company's sustainability and provides a holistic approach towards the existing sustainable CREM practices. Additional practical implications of the model include sustainable CREM benchmarking and communication with stakeholders.
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Mia Andelin, Anna-Liisa Sarasoja, Tomi Ventovuori and Seppo Junnila
The study aims to examine how the vicious circle of blame for sustainable buildings can be turned into virtuous loops of adaptation when considering sustainable buildings and what…
Abstract
Purpose
The study aims to examine how the vicious circle of blame for sustainable buildings can be turned into virtuous loops of adaptation when considering sustainable buildings and what are the drivers for tenants and investors regarding sustainable buildings and gaining insights of investors’ and tenants’ corporate responsibility (CR) actions.
Design/methodology/approach
The paper consists of a literature review and two surveys. The literature review concentrates on exploring investors’ and tenants’ CR and sustainability drivers. Empirical evidence was gathered via two specific surveys. The first survey targeted investors, and the second survey targeted tenants to determine the focus areas of sustainability.
Findings
The findings of this study indicate that the vicious circle of blame can be turned into one of cooperation with respect to sustainable buildings if the mutual drivers for improving sustainability are linked with investor–tenant collaboration. Based on the survey, the tenants claim that productivity, corporate culture and image are the primary drivers for sustainable buildings, whereas the investors claim that corporate culture and image, tenant demand and marketability are the primary drivers. Both parties mentioned the same sustainability drivers: corporate culture and image and lower operating costs. However, it was found that investors are not communicating their CR actions to public or promoting image and productivity benefits of green buildings to potential tenants.
Research limitations/implications
The limitation of this study is the sampling of Nordic countries, as there are indications of different situation in other markets such as the USA.
Originality/value
Improving sustainability in the real estate industry is linked to investor–tenant collaboration. In addition to common drivers, both investors and tenants have their own list of benefits and drivers for sustainable buildings. These drivers are linked to each other. Making progress with respect to sustainability in the built environment depends on people in the industry being aware of the importance of and possibilities offered by sustainable buildings, as well as being able and willing to act on this knowledge. Only through partnership can the full potential of the built environment be realised and help deliver an economically, environmentally and socially sustainable future.