Trade-offs in the value capture of architectural firms

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

Bos-de Vos, M. (TU Delft Design & Construction Management)
Wamelink, J.W.F. (TU Delft Management in the Built Environment)
Volker, L. (TU Delft Public Commissioning)

Management in the Built Environment

2016

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.

Architectural management
collaboration
professional service firms
value capture
value creation

http://resolver.tudelft.nl/uuid:22bf7bc0-bb67-4fce-97cd-a7ee29b2f5c9

https://doi.org/10.1080/01446193.2016.1177192

0144-6193

Construction Management and Economics, 34 (1), 21-34

Institutional Repository

journal article

© 2016 M. Bos-de Vos, J.W.F. Wamelink, L. Volker