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Trade-offs in the value capture of architectural firms: the significance of professional value

Published on Jan 2, 2016in Construction Management and Economics
· DOI :10.1080/01446193.2016.1177192
Marina Bos-de Vos1
Estimated H-index: 1
(TU Delft: Delft University of Technology),
J.W.F. Hans Wamelink1
Estimated H-index: 1
(TU Delft: Delft University of Technology),
Leentje Volker8
Estimated H-index: 8
(TU Delft: Delft University of Technology)
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Abstract
Architectural firms often have difficulty generating profit from their services as they pursue not only commercial but also professional goals. These goals frequently conflict and have to be balanced during the process of value creation and value capture. So far, literature has focused on the interaction between the perceived use value for the customer and the fee that is paid to the firm. To better understand how professional service firms realize their organizational targets, professional value needs to be included. In this study, in-depth interviews with the architects and clients of nine housing projects provide insight into the content and process of value capture by architectural firms. The data reveal strategies by which architects tried to maximize the capture of professional value at the expense of profit or sometimes even their clients’ perceived use value. These trade-offs in value capture confirm the importance of professional value when studying value creation and capture in a professional service context. This paper provides an understanding of how architectural firms struggle to balance competing goals and highlights the importance of well-managed value capture.
  • References (34)
  • Citations (6)
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References34
Newest
Published on Sep 1, 2015
Mirko Noordegraaf20
Estimated H-index: 20
(UU: Utrecht University)
It is tempting to stick to traditional, ‘pure’ images of professionalism—as the protected treatment of complex cases—and to resist ‘alien’ intrusions, especially managerial ‘encroachments’. However, it has become rather normal to link professionalism to well-managed organizational surroundings and to focus on emerging hybrid professional practices in which professional work is (re)organized in one way or the other. Contradictory professional and managerial principles such as autonomy and control...
Published on May 10, 2013in Journal of Business Strategy
Deirdre Canavan2
Estimated H-index: 2
(DIT: Dublin Institute of Technology),
Pamela Sharkey Scott9
Estimated H-index: 9
,
Vincent Mangematin28
Estimated H-index: 28
Purpose – Reliance on individual talent and motivation renders creative professional service firms (PSFs) highly dependent on their ability to attract and mobilise the right individuals. This paper aims to build an integrated framework showing firstly how creative industry PSFs can differ in their strategy for growth, and secondly how these alternative strategies for growth can influence the firm's approach to organising and the type of talent required.Design/methodology/approach – The findings ...
Published on Feb 1, 2013in Building Research and Information3.74
Francis Duffy Cbe1
Estimated H-index: 1
,
Andrew Rabeneck2
Estimated H-index: 2
The astounding success of UK professionals in the three decades after the Second World War inevitably led to a backlash and political recrimination in the economic turmoil of the mid-1970s. The subsequent rise of free-market economics and the deskilling of the demand side in construction weakened building professionals and left them vulnerable to undermining their responsibility, and assimilation into the supply side. Yet the concept of public good embodied in professional principles of trust an...
Published on Feb 1, 2013in Building Research and Information3.74
Will Hughes14
Estimated H-index: 14
(University of Reading),
Cathy Hughes8
Estimated H-index: 8
(University of Reading)
Professionalism and professional institutions have developed and changed very gradually in recent decades, such that there are conflicting and competing definitions of what it means to be a professional. The direction of travel is examined through an institutional lens in terms of current trends and practices that have transformed professional life. At first sight, the evolution of professionalism appears to be developing into a new professionalism that requires less of professional institutions...
Published on Jan 1, 2013in Organizational Research Methods6.55
Dennis A. Gioia44
Estimated H-index: 44
(PSU: Pennsylvania State University),
Kevin G. Corley30
Estimated H-index: 30
(ASU: Arizona State University),
Aimee L. Hamilton5
Estimated H-index: 5
(DU: University of Denver)
For all its richness and potential for discovery, qualitative research has been critiqued as too often lacking in scholarly rigor. The authors summarize a systematic approach to new concept development and grounded theory articulation that is designed to bring “qualitative rigor” to the conduct and presentation of inductive research.
Published on Jan 1, 2012
Beatrice Manzoni2
Estimated H-index: 2
,
Peter W. G. Morris25
Estimated H-index: 25
,
Hedley Smyth14
Estimated H-index: 14
In architecture competitions are fascinating. Over the years, they have increasingly become a popular mechanism for architects in acquiring work and clients in looking for designers. Still they are a debated topic presenting several controversial issues. In fact, competitions, as architecture in general, are a fertile ground for contradictions and management oxymora struggling among opposing forces, such as artistic recognition and market constraints, individual passion and collective collaborat...
Published on Apr 1, 2011in Academy of Management Review10.63
Wendy K. Smith20
Estimated H-index: 20
(UD: University of Delaware),
Marianne W. Lewis24
Estimated H-index: 24
(UC: University of Cincinnati)
As organizational environments become more global, dynamic, and competitive, contradictory demands intensify. To understand and explain such tensions, academics and practitioners are increasingly adopting a paradox lens. We review the paradox literature, categorizing types and highlighting fundamental debates. We then present a dynamic equilibrium model of organizing, which depicts how cyclical responses to paradoxical tensions enable sustainability—peak performance in the present that enables s...
Published on Mar 15, 2011in Journal of Service Management3.23
Christian Grönroos49
Estimated H-index: 49
(Hanken School of Economics),
Annika Ravald6
Estimated H-index: 6
(Hanken School of Economics)
Purpose – The purpose of this article is to analyze the scope, content and nature of value co‐creation in a service logic‐based view of value creation, addressing the customer's perspective in a supplier‐customer relationship. The nature of the activities and the roles of the supplier and the customer in value creation and co‐creation are analyzed. Furthermore, the purpose is to discuss what implications for marketing can be derived from this analysis.Design/methodology/approach – The article an...
Published on Apr 1, 2010in Long Range Planning3.36
David J. Teece72
Estimated H-index: 72
Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit. It thus reflects management's hypothesis about what customers want, how they want it, ...
Cited By6
Newest
Published on Jan 1, 2019in International Journal of Project Management4.69
Marina Bos-de Vos1
Estimated H-index: 1
(TU Delft: Delft University of Technology),
Leentje Volker8
Estimated H-index: 8
(TU Delft: Delft University of Technology)
+ 0 AuthorsHans Wamelink3
Estimated H-index: 3
(TU Delft: Delft University of Technology)
Abstract Project-based firms have to capture value from the projects in which they engage. This can be challenging as firms need to reconcile project goals and organizational goals while attempting to avoid the slippage of value to other actors. Drawing on interviews with architects and clients, this research reveals how architectural firms used the strategies of postponing financial revenues in a project , c ompensating for loss of financial revenues across projects and rejecting a project to a...
Published on Jan 2, 2019in Construction Management and Economics
Leentje Volker8
Estimated H-index: 8
(TU Delft: Delft University of Technology),
Leentje Volker (TU Delft: Delft University of Technology)
In reaction to the recent call for critical debate in the field of construction management research, I argue that we should embrace the richness of adjacent fields of study in order to dynamically develop our own and face the plethora of contemporary societal challenges that exist in our industry. I introduce the concepts of other-than-rational thinking in decision-making and multiplicity in management responses as examples of inspirational sources from social sciences that would contribute to t...
Published on Mar 1, 2017
Gurjeet Kaur Sahi1
Estimated H-index: 1
,
Sanjeewani Sehgal1
Estimated H-index: 1
,
Rita Sharma1
Estimated H-index: 1
Executive SummaryThere are countless illustrations where companies are involving their customers in the creation of products and delivery of services, commonly viewed as co-creation of value (CCV). The present work explores the value co-creation concept in the house construction business that requires maximum customer engagement with the service provider as compared to other subsectors in the real estate.With this background, the present study examined the comprehensive framework of antecedents ...
Published on Mar 1, 2017in Scandinavian Journal of Management1.42
Beatrice Manzoni2
Estimated H-index: 2
(Bocconi University),
Leentje Volker8
Estimated H-index: 8
(TU Delft: Delft University of Technology)
Abstract Despite their business relevance, creative professional service firms are under-researched, in particular with regard to how they compete for work. Competing for work is key to survival, but also extremely challenging due to the complexity of the services offered. In this paper we use a paradox framework to investigate the opposing demands that creative professional service firms experience when competing for work. Based on a set of semi-structured interviews in the context of architect...
Published on Jan 1, 2017
Marina Bos-de Vos1
Estimated H-index: 1
,
Leentje Volker8
Estimated H-index: 8
+ 1 AuthorsChristopher J. Neilson
Architectural firms experience difficulties to establish healthy and sustainable business models as they have to reconcile the often-competing value systems that they are based upon. Organizational members continuously negotiate professional values and beliefs with the firm's commercial goals, resulting in identity-strategy struggles. This study adopts a 'work lens' to investigate the reciprocal tensions between identity and strategy in 17 business model design workshops with members of architec...