PROPERTY DEVELOPMENT: A BUSINESS PROCESS MODEL
Main Article Content
Keywords
Property Development, Business process, Built Environment, Real Estate
Abstract
Property development constitutes one of the largest business enterprises and gross domestic product contributors of the world. The business of property development however incurred substantial losses over the centuries as a result of non-compliance to good governance in terms of considering all factors influencing perceived success of property development projects. The primary objective of this study was to develop a business process model for perceived success of property development projects, enterprises and role players. This model should guide role players, enterprises and actors within the property development business towards pro-active, effective and relevant decision making in achieving success in property development. To address the primary objective, a number of secondary objectives were raised whereby a conceptual model constituting identified variables was developed based on a comprehensive survey of the related literature. Appropriate hypotheses were formulated constructing a path diagram between the dependant variable and subsequent anteceding and intervening variables. Data was gathered using an electronic survey measuring primary data sourced from the identified international population of property development practitioners. This data was empirically analysed by means of structural equation modelling. The factors were namely financial risk forecast, consumer confidence and ability, procurement, urban planning, financial feasibility and practical viability considerations and professional feasibility and viability reporting, identified in the business process model affecting success of property development projects. This research broke new ground relative to the profession of property development in introducing the business process model for perceived success of property development.
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References
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Potocan, V., Mulej, M., & Kajzer, S. (2005). Business cybernetics: a provocative suggestion. Kybernetes, 34(9/10), 1496-1516.
Rajabifard, A. (2010). Spatially enabled government and society-the global perspective. FIG Congress 2010-Facing the Challenges-Building the Capacity.
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Ratcliffe, J. Stubbs, M. & Shepherd, M. (2004). Urban Planning and Real Estate Development. 2nd Edition. London: UCL Press.
Ratcliffe, J. (2000). Scenario building: a suitable method for strategic property planning? Property Management, 18(2), 127-144.
Reed, R. & Wu, H. (2010). Understanding property cycles in a residential market.
Sun, G., McNulty, S.G., Myers, M.J.A. & Cohen, E.C. 2008. Impacts of Climate Change, Population Growth, Land Use Change, and Groundwater. Water Supply and Demand across the Conterminous U.S. Available at: http://www.forestthreats.org/publications/raleigh/WatershedUpdate_Impacts.pdf. (Accessed 13 December 2011).
Syms, P. (2002). Land Development & Design. Melbourne: Blackwell Publishing
Thatcher, M. & Sweet, A. S. (2002). Theory and practice of delegation to non-majoritarian institutions. West European Politics, 25 (1), 1-22.
Tay, J.Y. & Tay, L. (2007). Market orientation and the property development business in Singapore. International Journal of Strategic Property Management, 11 (1), 1-16.
Wilkinson, S., Reed, R. & Cadman, D. (2008). Property Development. 5th Edition. London: Taylor & Francis.
Adelaja, A. O. & Gottlieb, P. D. (2009). The political economy of downzoning. Agricultural & Resource Economics Review, 38(2), 181.
Adedeji, O.H., (2007). Human Environment. Available at: http://www.unaab.edu.ng/attachments/464_Human%20Environment__421_Notes.pdf [Accessed 13 December 2007]
Aguilar-Saven, R. (2001). Business process modelling techniques and tools. Department of Production Economics. WP291, Linkoping: Sweden.
Benter, P.M. & Chou, C.P. (1987). Practical issues in structural modelling. Sociological. Methods and Research. Asian Social Science, 16 (1), 78-117.
Cloete, C.E. (2007). Informal urban property markets and poverty alleviation. Urban studies, 44 (1), 147-165.
Cohen, W.M., & Levinthal, D.A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35 (1).
Collins, J. & Hussey, R. (2003). Business Research. 2nd Edition. New York: Palgrave Macmillan.
Dehesh, A. & Pugh, C. (2000). Property cycles in a global economy, Urban Studies, 37 (13), 2581-2602.
Douglas, J. (2006). Building adaptation. Routledge.
Enemark, S., Rajabifard, A., Wallace, J. & Williamson, I.P. (2010). Land administration and sustainable development, Culture and Property Rights.
Fisher, P. & Collins, T. (1999). Commercial property development. Newcastle: University of North Umbria.
Gammelgaard, B. (2008). Exploring processes for customer value insights, supply chain learning and innovation: an international study. Journal of Business Logistics, 29(1), 257-281.
Garson, G.D. (2006). Reliability analysis. Retrieved July 11, 2006.
Gardiner, C. & Henneberry, J. (1991). Predicting Regional Office Rents Using Habit-persistence Theories, Journal of Property Valuation and Investment, 9 (3), 215–226.
Garson, G.D. (2006). Public information technology and e-governance: Managing the virtual state. Jones & Bartlett Learning.
Godet, M. (1987). Scenarios and strategic management (p. 210). London: Butterworths.
Guy, S. (2000). Understanding Urban Development Processes: Integrating the Economic and the Social in Property Research Urban Studies December 2000 37: 2399-2416.
Guy, S. & Henneberry, J. (2000). Understanding Urban Development Processes. The editors of urban studies.
Guy, S. & Henneberry, J. (2002). Developments and developers: perspectives on property. Oxford: Blackwell Science.
Hair, J.F., Black, W.C., Babin, J.B., Anderson, R.E. & Tatham, R.L. (2006). Multivariate data analysis.6th Edition. Upper Saddle River, New Jersey: Pearson/Prentice Hall.
Hair, J.F., Jr., Anderson, R.E., Tatham, R.L. & Black, W.C. (1998). Multivariate Data Analysis with Readings. 5th Edition. Englewood Cliffs, New Jersey: Prentice Hall.
Harvey, J. & Jowsey, E. (2004). Urban land economics. 6thEdition. New York: Palgrave Macmillan.
Havenga, J. & Hobbs, I. (2004). A practical guide to strategy: making strategic thinking, development and implementation accessible. Sun Press.
Healey, D. (1998). Review of Computer-assisted Language Learning: Context and Conceptualization, CELL Journal.
Healey, P. (1991). Urban Regeneration and the Development Industry. Regional Studies, 25 (2), 97-110.
Hoyt, H. (1947). The effect of cyclical fluctuations upon real estate finance. The Journal of Finance. 2, 51-64.
Hustic, I. (2009). A new model for renewal of business processes in innovative enterprises, p20-30. Nase Gospodarstvo, 55(25/6).
Hyden, G., Court, J. & Mease, K. (2003). The bureaucracy and governance in 16 developing countries. World Governance Survey Discussion, Paper 7(July), 1-27.
Janasz, S. C., Sullivan, S. E. & Whiting, V. (2003). Mentor networks and career success: Lessons for turbulent times. The Academy of Management Executive, 17(4), 78-91.
Jüttner, U., Peck, H. & Christopher, M. (2003). Supply chain risk management: outlining an agenda for future research. International Journal of Logistics: Research and Applications, 6(4), 197-210.
Johnson, G., Scholes, K. & Whittington, R. (2008). Exploring corporate strategy: text & cases. Pearson Education.
Kaiser, H.F. (1974). An index of factorial simplicity. Berkeley: University of California.
Keeping, M. & Shiers, D. (2004). Sustainable property development: A guide to real estate and the environment. Oxford: Blackwell Publishing.
Leedy, P.D. & Omrod, J.E. (2010). Practical research, planning and design. 7th Edition. New York: Pearson Prentice Hall.
Libecap, G.D. (1994). 7. The Conditions for Successful Collective Action. Journal of Theoretical Politics, 6(4), 563-592.
Logsdon, J.M. & Wood, D.J. (2002). Business citizenship: from domestic to global level of analysis. Business Ethics Quarterly, 12 (2).
Mayer, M., Mallick, P. & Branagan, V. (2002). The Business Case for Sustainability: An Investigation of Small and Medium Sized Enterprises in the House Building Construction Sector in the UK and Sweden.
McDonald, S.A.M. (2010). Risk in mixed-use property development in South Africa (Doctoral dissertation, University of Pretoria).
McHugh, P., Merli, G. & Wheeler, W.A. (1995). Beyond business process reengineering: towards the holonic enterprise. Chichester, England: Wiley.
Mills, E. (2003). Risk transfer via energy-savings insurance. Energy Policy 31(3), 273-281.
Morledge, R. & Smith, A. (2013). Building procurement. John Wiley & Sons.
Nieboer, N. (2005). How strategic is housing asset management of institutional real estate investors? Property Management, 23(1), 22-32
Needham, R.M. (1994). Denial of service: an example. Communications of the ACM, 37(11), 42-46.
Needham, B., Adair, A., Van Geffen, P. & Sotthewes, M. (2003). Measuring the effects of public policy on the finances of commercial development in redevelopment areas; gap funding, extra costs and hidden subsidies. Journal of Property Research, 20 (4), 319–342.
Nieuwenhuizen, C., Le Roux, E.E. & Jacobs, H. (2004). Entrepreneurship and how to establish your own business. 2nd Edition. Pretoria: Juta.
Nunnally, J.C. (1978). Psychometric theory. 2nd Edition. New York: McGraw-Hill.
O’Conner, C. (2004). Rethinking the bottom line: How Externalities of Private development Impact the Value Proposition and Negotiating Process, Masters Theses, Massachusetts Institute of Technology.
O’Neill, S. (2005). Integrated market management: Seamless information exchange and collaboration for CPGs and retailers. IBM Institute for Business Value. Available at: http://www-8. ibm. com/services/pdf.
Ormrod, J.E. (1995). Educational psychology: Principles and applications. Merrill.
Payne, G., Durand-Lasserve, A. & Rakodi, C. (2009). The limits of land titling and home ownership. Environment and Urbanization, 21(2), 443-462.
Potocan, V., Mulej, M., & Kajzer, S. (2005). Business cybernetics: a provocative suggestion. Kybernetes, 34(9/10), 1496-1516.
Rajabifard, A. (2010). Spatially enabled government and society-the global perspective. FIG Congress 2010-Facing the Challenges-Building the Capacity.
Ratcliffe, A. (1981). Towards the Planned City. Blackwell: Oxford.
Ratcliffe, J. Stubbs, M. & Shepherd, M. (2004). Urban Planning and Real Estate Development. 2nd Edition. London: UCL Press.
Ratcliffe, J. (2000). Scenario building: a suitable method for strategic property planning? Property Management, 18(2), 127-144.
Reed, R. & Wu, H. (2010). Understanding property cycles in a residential market.
Sun, G., McNulty, S.G., Myers, M.J.A. & Cohen, E.C. 2008. Impacts of Climate Change, Population Growth, Land Use Change, and Groundwater. Water Supply and Demand across the Conterminous U.S. Available at: http://www.forestthreats.org/publications/raleigh/WatershedUpdate_Impacts.pdf. (Accessed 13 December 2011).
Syms, P. (2002). Land Development & Design. Melbourne: Blackwell Publishing
Thatcher, M. & Sweet, A. S. (2002). Theory and practice of delegation to non-majoritarian institutions. West European Politics, 25 (1), 1-22.
Tay, J.Y. & Tay, L. (2007). Market orientation and the property development business in Singapore. International Journal of Strategic Property Management, 11 (1), 1-16.
Wilkinson, S., Reed, R. & Cadman, D. (2008). Property Development. 5th Edition. London: Taylor & Francis.