International collaboration and partnering in the supply chain as business opportunities for architectural firms

Due to a shift towards market driven concepts, a risk allocation from the demand side to the supply side and the increasing competition with other skilled actors in the value chain, architectural firms have to adapt quickly to stay competitive. They need to innovate not only their products and services, but also make more fundamental changes in the way they create and appropriate value, thereby replacing or innovating their business models. This research addresses business model design of architectural firms from an activity system perspective. It aims to identify activity systems that are used within the architectural service sector to create and capture value. By analysing the possibilities and restrictions of the activity systems in relation to both firm and supply chain, business opportunities for architectural firms are explored. Archival data and 20 explorative interviews with different architects, clients and contractors, contribute in the identification of two emergent activity systems: international collaboration and partnering in the supply chain. Since the activity systems include new activities, linkages and actors, they require managerial attention in order to 1) enhance value creation and capture by the firm and 2) guarantee optimal collaboration within the supply chain. By applying the concept of activity systems on the field of architecture, the importance of business model design for the value chain of architectural services is showed.