Unraveling Supply-Driven Business Models of Architectural Firms

Architectural firms deliver services for various, unique projects that are all characterized by a high level of uncertainty. To successfully propose, create and capture value, they need business models that are able to deal with this variety and uncertainty. So far, little is known about the different business models that are used in architectural service delivery and how they enable or constrain firms to create and capture value in their projects. To continuously compete in a changing and competitive environment, this insight is much needed. In this research, a theoretical framework is developed to study the business of architectural firms. The framework is used to systematically unravel the business models for three types of value proposition that were identified from interview data collected at 22 Dutch architectural firms. The focus is on a supply-driven context. Findings highlight the importance of financial knowledge, capital-intensive partners, support of influential actors and a relationship with the buyer. Resources that are beneficial to the firm’s value creation, can sometimes constrain the firm’s value capture. The contribution of this research is a profound insight into the pitfalls and opportunities of business models for supply-driven architectural service delivery. It helps architectural firms to develop future business model alternatives and to enhance benefits from the offer of unique, creative value propositions.