Impacts of organizational relocation: a conceptual framework

Abstract

PurposeRelocation 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/approachDrawing 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.FindingsRelocation 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/implicationsThe 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 implicationsThe paper provides central questions that relocating organizations should ask themselves.Originality/valueUsing 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.