Impacts of organizational relocation: a conceptual framework

Abstract

Purpose -Relocation is a significant event in the course of an organization's lifetime. The purpose of this paper is to focus on the impacts that relocation has on the relocating organization itself and to identify the economic, social, and environmental impacts of office occupier relocation. Design/methodology/approach -Drawing from the existing literature on impacts of occupiers' relocation, a conceptual framework for modelling organizational relocation impacts is developed. The literature review is done by a systematic review of the ten most relevant journals within the corporate real estate, property, and facilities sector. Findings -Relocation has various impacts including relocation costs, disruption, employee reactions to change, altered lease attributes, and changed environmental footprint. Further, the changes in productivity, employee satisfaction, employee turnover, organizational dynamics, ways of working, commuting, accessibility for external stakeholders, and organizational culture and image are all possible impacts of organizational relocation.Research limitations/implications -The identified impacts are limited to office occupiers' short distance relocations. As the paper is conceptual by nature, there is a need for more empirical research on the impacts of relocation. The framework introduced in the article requires testing with experiences of relocated case companies and accordingly, it is to be developed further. Practical implications -The paper provides central questions that relocating organizations should ask themselves. Originality/value -Using the perspective of the relocating organization, the paper provides insight into the impacts of relocation from the expanded spectrum of Triple Bottom Line of sustainability. The study is of value to corporate real estate researchers and practitioners.

Academic unit relocation: students’ pre- and post-move responses

“…Due to change of location, one of the possible impacts of relocation is the changed commuting (Christersson and Rothe 2012). Krausz, Bizman and Fox (2002) found that perceived changes in commuting were significantly related to relocation satisfaction.…”

“…Krausz, Bizman and Fox (2002) addressed perceived changes in various organisational dimensions after relocation. Christersson and Rothe (2012) maintain that two of the main factors from which the relocation impacts derive are the location change (old versus new) and the building change (old versus new). Accordingly, two perceived changes related to the location (accessibility of the behavioural sciences school site, and the school site's surroundings) were examined.…”

“…Christersson and Rothe (2012) maintain that while the actual distance between the old and the new premises in short-distance relocations taking place within the same general area might not be significant, there can still be a difference between the micro locations of the two. Moreover, the new facilities will be different, and for the organisation's employees this might mean new ways of working.…”

“…Relocation has various impacts, including relocation costs, work disruption, employee reactions to change, altered lease attributes and changed environmental footprint. Further, changes in productivity, employee satisfaction, employee turnover, organisational dynamics, ways of working, commuting, accessibility for external stakeholders and organisational culture and image are all possible effects of organisational relocation (Christersson and Rothe 2012).…”

How far and often do organizations relocate offices?

“…They are critical yet potentially stressful events (Peach et al, 2005) for organizations and there can be a variety of economic, social and environmental impacts due to the relocation (see e.g. a framework developed by Christersson and Rothe, 2012). These impacts can derive from the relocation management, or location, building, or workplace changes.…”