Innovation and the ambidextrous mindset in commercial real estate: a paradox management approach

Abstract

Purpose

This paper addresses decision-making for commercial real estate (CRE) firms and professionals within the context of rapid technological innovations capable of business model disruption. It considers the paradoxical notion of the need for CRE firms to become ambidextrous by simultaneously exploiting their existing business model and exploring possible opportunities and threats. The paper develops a practical approach, the paradox map, for dealing with this paradoxical problem.

Design/methodology/approach

This qualitative research draws on work from organizational management, leadership, social sciences and technology. This research frames the definition and development of an ambidextrous mindset and its components. Paradox management is explored as a possible source of useful tools.

Findings

The ambidextrous mindset is a paradox in that exploit and explore are ongoing interrelated opposing forces. Further, the mindset is the product of a number of sub-paradoxes that act as levers for its development and adjustment. The paradox map is developed to facilitate dealing with numerous paradoxes.

Practical implications

The paradox map is a useful tool for commercial real-estate firms to understand and develop an ambidextrous mindset.

Originality/value

Commercial real estate is experiencing a wave of substantive technological disruption in the proptech marketplace and beyond. This paper attempts to clarify the paradox of innovation and its underlying sub-paradoxes to help professionals navigate the interrelated landscape of exploiting past products and exploring innovations.

Citation

Wofford, L.E., Wyman, D. and Starr, C.W. (2021), "Innovation and the ambidextrous mindset in commercial real estate: a paradox management approach", Journal of Property Investment & Finance, Vol. 39 No. 2, pp. 144-156. https://doi.org/10.1108/JPIF-01-2020-0004