Constructing business models around identity: Tensions in architectural firms

Architectural firms often have difficulties to establish healthy and sustainable business models, as the professional and commercial value systems that they are based on frequently contradict each other, resulting in organizational identity tensions. Identity tensions are also manifested at the individual and group level, as organizational members may have multiple targets of identification with different values and beliefs, such as the project, the organization or profession. So far, little is known about the strategizing process of architectural firms and how it is influenced by tensions between various aspects of their identity. This study integrates micro and macro perspectives on identity to examine the business model strategizing practices of 20 Dutch architectural firms. Interactive discussion groups are used to gather data and structured through the application of a field specific business model framework that was developed in a previous study. The relationship between identity and business model strategizing is investigated across multiple levels. The study contributes to the literature on strategic management of architectural firms by closely examining how the micro actions of individuals and groups connect to the projects, organizations and profession in which those actions are located and to which they contribute. Focusing on the process and outcomes of business model strategizing, the study develops a better understanding of how identity tensions affect organizational strategizing by architectural firms and how practitioners can deal with these identity tensions in their strategy-making.