Real estate decision making as actor networks

Abstract

Purpose -Sound real estate decisions are both financially and strategically essential to corporate success. Given their importance, this paper aims to illustrate how the actor network theory (ANT) can be a valuable alternate lens to bounded rational and political perspectives in providing insights into corporate real estate decision-making processes. Design/methodology/approach -This exploratory investigation uses a case study approach to retroactively examine the real estate decision-making process over five to seven years in four organizations ranging in size from four to 125 employees. The study uses multiple data sources including 25 in-depth interviews, site visits, archival data, websites, documents, and email correspondence. Findings -Using the constructs of ANT, the findings reveal how real estate decision making involves iterative but identifiable phases through which heterogeneous actors seek to converge diverse interests and where artifacts affect behaviors and outcomes as much as or sometimes more than their human creators. Research limitations/implications -Given the case study method, this research lacks generalizability. Researchers are encouraged to test the findings in different contexts. Practical implications -The ANT perspective helps managers faced with real estate decisions to appreciate the relevant matrix of need, power, and interests; recognize and seek to control the power of artifacts; and, view real estate decision making not as simply making a choice among logical alternatives, but as orchestrating a long, complex process. Originality/value -This investigation compares the perspectives of ANT to the classical bounded rational and political lenses in examining corporate real estate decision making; demonstrates ANT's value in providing additional insights; and, discusses its implications for understanding and managing these complex processes.

An actor–network theory model of property development

“…For example, a project manager’s interest in time management is inscribed into a programme. Thus, non-humans are not neutral and, as Grabowski and Mathiassen (2013, p. 146) express, they “act upon others just as others act upon them”. However, mediators intervene during the development process and impact the stability of networks.…”

“…ANT provides a platform from which it can be understood how connections between actors with diverse interests are formed, negotiated and maintained to create a network (Grabowski and Mathiassen, 2013, p. 139; Rydin, 2013, p. 25). ANT’s focus on the process of network formation highlights its applicability to property development research, given property development encompasses a variety of actors with diverse motives who are required to work together.…”

“…Under the principles of ANT a network also comprises of “non-humans” (Latour, 2005, p. 72). These are artefacts that contain the interests of human actors through a process known as inscription, and therefore, artefacts also encompass a degree of agency (Grabowski and Mathiassen, 2013, p. 139).…”

“…In accordance with ANT, a network is created through a process known as translation (Rhodes, 2009, p. 5). Translation is defined by Grabowski and Mathiassen (2013, p. 141) as “a process attempting to achieve alignment of interests or ordering effects”. This occurs through four moments or phases including problematisation, interessement, enrolment and mobilisation (Callon, 1986).…”

“…A black box is a further ANT concept. It is a single actant that represents a network of actants who have agglomerated to achieve an objective; a black box is only maintained if the interests of actants continue to align (Grabowski and Mathiassen, 2013, p. 141). A black box represents the outcome of a translation process and can be punctualised into another network where it is represented as a single actant (Grabowski, 2012, p. 47; Callon, 1991, p. 153).…”