The Managers’ Perception on Corporate Real Estate and Sense of Belonging on Corporate Real Estate Asset Management

Abstract

The aim of corporate real estate asset management (CREAM) as a distinct function is to enhance the value of real estate assets of the core business and elevate the Corporate Real Estate (CRE) as a strategic function of a business. However, as the discipline is still at
an emerging stage in the Sri Lankan context, it is evident that corporate management does not support the strategic approach of corporate real estate of a business. This is mainly due to the mangers’ perception where they recognized CRE as a non-functional area of the
business. This leads to ineffective and inefficient practices of CREAM in an organizational setting. Nevertheless, changes in the business environment and increasing demands for greater performance are forcing organizations to review its strategic approach of non-core operational resources; especially on effectiveness and efficiency of supporting activities/resources, such as real estate and facilities management. Therefore, analysis of managers’ perception on the sense of belonging of non-core operational resources in a
strategic management context is very important. The conceptualization of relationship between perception and sense of belonging on CREAM is confirmed based on the social exchange theory and psychological theory. On the other hand, the same theoretical model argued that the manager’s involvement on promoting and supporting of CREAM could mediate this relationship. In this context, the study aims to investigate the mediation effect of the managers’ involvement on promoting and supporting of a CREAM, on their perception of CREAM and sense of belonging to CREAM. A questionnaire survey was administrated within the National Water Supply and Drainage Board, Sri Lanka who owns a significant level of CRE. Partial Least Squares-Structural Equation Modeling (PLS-SEM) was applied to the resultant 129 sample respondents. The results revealed that managers’ involvement on
promoting and supporting of CREAM mediates managers’ perception and sense of belonging of CREAM. Thus, the study recommended operational steps to increase managers' involvement on promoting and supporting of CREAM at the strategic level decision making and accommodation of their ideas at CREAM decision making. This support to create positive impact on managers’ perception of CREAM to sense of belonging of CREAM of an organization.
Keyword: Corporate Real Estate Asset Management, Perception, Sense of belonging, Involvement and Mediation