Ownership, structure, and performance of architectural firms

Abstract

With architectural firms, owners are often managers whose characteristics may influence the firm structure. This study investigated the relationships between ownership characteristics, organizational structure, and performance of architectural firms. Utilizing a sample of architectural firms from Nigeria, a questionnaire survey of 92 architectural firms was carried out. Data were analyzed using multiple analysis of variance (MANOVA) and regression analyses. A generally low level of specialization of duties was observed even though professional service firms were defined as highly specialized firms. For most of the firms, level of formalization was moderate or high, while level of centralization was mostly low. Results revealed a direct significant relationship between legal ownership form and formalization dimension of structure. In addition, the centralization dimension of structure influenced firm performance. However, no direct relationship between ownership characteristics and performance was noted, although different fits of ownership characteristics and structural variables were observed. The results suggest that principals of architectural firms should match their characteristics with the firm structure to enhance performance in relation to profit.

Keywords

Architectural firm / Professional service firm / Ownership / Organizational structure / Performance

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