Innovation diffusion effects on student housing investment in Ghana

Abstract

PurposeThe diffusion of innovations in student housing, a commercial real estate subsector, is a critical concern to developers. Aside from how innovations contribute to investor' returns, there is a question of interest in real estate investment policies and contemporary real estate research. The study aims to assess the extent of innovation diffusion in student housing and its effects on investment returns in Ghana.Design/methodology/approachThe study used a mixed methods approach foregrounded on the innovation diffusion theory. With the mix of surveys and interviews of 828 student housing managers/investors and 25 key student housing association leaders across selected off-campus student housing among six universities in Ghana, the study used both primary and secondary sources. Selection criteria were based on at least one of these criteria: Have operated in the student housing market over the past ten years, have adopted the use of technology in student housing management, have introduced new student housing marketing strategies and have made improvements (added value) to student housing services. Multiple regression and narratives were the main analytical tools employed in this study.FindingsThe study demonstrates that over the past ten years, student housing investors in Ghana have invested hugely in product, marketing, process and organisation innovations. Among these innovations, innovations by: marketing through souvenirs and annual-get-togethers product through Internet services processes through Information Management Systems (IMS), and organisation through student leadership were most utilised to descending extent. Furthermore, the study identified marketing and organisation innovation to have the highest effects on investment returns. However, process and product innovation showed a weak and moderate effect on investment returns because management hastily implemented these services without understanding the consequences it has on investment returns in the long run.Practical implicationsThe moderate effect of product and process innovation on student housing investment can be a predictor for future student housing investment innovation strategies for new entrants as they do not provide an immediate positive investment return. Key takeaways require management to incrementally implement these innovations and adopt space management practices that create opportunities for future product and process innovations in Ghana. Investors should capitalise on marketing and organisational innovations as the best innovation strategies that yield the highest returns in Ghana.Social implicationsStudent housing investors should focus on emerging student preferences such as entertainment, improved building services and Information Communication to stimulate student housing selection intentions.Originality/valueInnovation diffusion in student housing is understudied. The closest connection of innovation diffusion theory to product enhancement, marketing and managerial improvement is a strategic tool that facilitates efficiency and productivity in student housing investment.