Maina, J J (2024) Modelling business performance from marketing practices of architecture firms in Nigeria. Journal of Financial Management of Property and Construction, 29(3), pp. 425-443. ISSN 1366-4387
Abstract
Purpose: This study aims to establish marketing practices which predict business performance of architecture firms within the Nigerian Construction Industry (NCI) to address the sustained poor business performance of firms, which affects allied professionals as many projects in the built environment depend on design proposals from architects. Design/methodology/approach: Survey responses from 86 firms were used to model business performance measured as total revenue of the firms from 40 commonly deployed marketing practices in construction. Findings: Two-thirds of the marketing practices most used by architectural firms were ineffective in predicting business performance. The model also explains up to half the variance in business performance (37.4–49.9%), supporting the view that marketing in the CI affects business performance. Researching client needs and competitors emerged as the only significant positive predictor of business performance (β = 0.827, p = 0.043). Using social media (β = −1.247, p = 0.004), regular participation in awards/competitions (β = −1.420, p = 0.013) and inclusion of political offers in bids (β = −1.050, p = 0.016) negatively predicted business performance. Practical implications: Architecture and allied professional bodies in Nigeria need to rethink existing restrictions regarding marketing based on traditional code of ethics in light of present-day realities of digital and internet business environments. Principals and management of architecture firms require a paradigm shift in deploying the appropriate marketing practices, especially as it relates to research regarding changing client expectations and current competition within the NCI. Originality/value: The study established marketing practices which model business performance and demonstrate their value in a framework for improving the financial sustainability of architecture firms within the NCI. © 2024, Emerald Publishing Limited.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | architecture firms; business performance; construction industry; marketing; practices; strategies |
| Index terms: | business performance, competition, methodology, revenue, survey, strategy, proposal, construction industry, modelling, internet, built environment, marketing, architect, social media, paradigm, Nigeria, ethics, architectural firm, variance |
| Subjects: | computing systems, business, data collection methods, profession, analytical methods, economic analysis, technology adoption, ethical practice, project planning, Geography, research methods, education and knowledge transfer, management, performance measurement, infrastructure and transport systems, industry analysis, measurement and scaling, market analysis |
| Topics: | Digital Applications, Urban Studies, Quality Management, Roles and Professions, Business Strategy, Research Practice, Geographical Context, Project Management, Engineering Principles |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here