Business environment and property management issues: A study of growth firms in Sweden

Abstract

Purpose

What effect do different business environments, caused primarily by changes in GDP, have on property management of growth firms?

Design/methodology/approach

This paper investigates the dynamic effects of two successive periods on property management variables with data from 387 Swedish growth firms during the six year period of 1998‐2003. The variables cover two three‐year time periods: 1998‐2000 (high growth of GDP) and 2001‐2003 (low growth of GDP). The empery originates from a quantitative survey with variables related to: office areas; affiliation changes (events of M&A, outsourcing of core business has occurred) and if those events have changed the total use of office space; use of temporary staff and staff that works in office area; flexibility of contracts; propensity to rent office space and location events. Dramatic changes of GDP are here associated to the dynamic effects of the business environment that have implications on property management variables of the two periods.

Findings

The two periods themselves correlate strongly to each other. The results reveal correlations between down turn‐business period and variables that describe the hiring temporary staff; propensity to rent office spaces; significance of flexible contracts; office location in rural area and relocation frequency.

Research limitations/implications

The survey is limited geographically to Sweden with strict growth criteria. The findings argue for a behaviour among growth firms that responds to changes in business environment into property management decisions.

Practical implications

Dramatic changes in GDP influence growth firms behaviour of renting office spaces; down turn of GDP is likely related in particular to increase of rented offices space.

Originality/value

Empery from an extensive survey of growth firms of an entire country with focus on property management variables during two distinct periods regarding GDP.

Citation

Dettwiler, P., Lindelöf, P. and Löfsten, H. (2006), "Business environment and property management issues: A study of growth firms in Sweden", Journal of Corporate Real Estate, Vol. 8 No. 3, pp. 120-133. https://doi.org/10.1108/14630010610711748