Institutional View of Public-Private Value Co-Creation in Real Estate Development Projects

Aleksi Luoma

ERES from European Real Estate Society (ERES)

Abstract: Purpose: This study delves into the realm of public-private value co-creation within real estate development projects. The rise in project-based planning has necessitated enhanced collaboration between the private and public sectors. A key observation is the unclear relationship between such cooperation and land-use practices. The primary goal of this research is to identify institutional factors that either facilitate or impede value co-creation in these projects.Study Design/Methodology: In this qualitative study, data were collected through semi-structured interviews with real estate developers and public sector representatives in Finland. To analyze the data, we applied Scott's (2008) framework of institutional pillars. This framework helps categorize various institutional indicators, including laws, norms, and beliefs, and assess their impact on value co-creation as either barriers or facilitators.Findings: The study provides insights into improving value co-creation in real estate development. We found that normative and cultural-cognitive factors have a greater influence than regulatory factors. The main drivers identified for value co-creation include a faster, more predictable development process, and the creation of more valuable outcomes. However, the study also brings to light barriers such as inadequate operational practices, conflicting objectives, and challenges in cooperation. It concludes with the emphasis on the need for innovative collaborative practices and fostering an open culture of co-creation in the real estate development sector. Addressing these challenges and leveraging these drivers are critical for effective value co-creation.Originality/Value: This study contributes to the field of value co-creation literature by offering new insights into the institutional environment in real estate development, particularly in understanding how various institutional factors can either support or impede the process of value co-creation.

Keywords: institutional factors; Public-Private Collaboration; Real Estate Development; Value Co-Creation, (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-ppm and nep-ure
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