Role of Entrepreneurial Strategic Planning on Development of Architectural Firms in Nigeria

Abstract

It is nearly impossible for architecture firms to maintain even the status quo of their firm – much less to grow – over the long time without a strategic plan. Many successful medium and large architecture firms in the developed countries have already institutionalized a strategic planning process and take advantage of it regularly, enjoying the accomplishments that they have been able to achieve as a result; while micro and small architectural firms mainly in the developing countries do not undertake a strategic planning process for one or two reasons. This study examines the role of entrepreneurial strategic planning on development of architectural Firms in Nigeria in terms of their profitability, increase number of projects and new branches. Data was collected through a quantitative exploratory descriptive survey methodology. One hundred and sixty-two (162) registered architectural firms were sampled from a population of six hundred and forty (640) firms through simple random sampling. Hypotheses were tested to ascertain the relationship between entrepreneurial strategic planning using all the components (planning for sustainability, strategic management, strategic financial planning, strategic marketing and adherence to regulations) and development of architectural Firms. The overall results of this study showed a significant positive relationship between entrepreneurial strategic planning and development of architectural firms. However, the study found out that there was only 4.9% of corresponding change in the development of architectural firms for every change in all the five predictor variables jointly confirming their very low performance, lack of development and subsequent early exit.; the architectural firms in Nigeria should thus adopt entrepreneurial strategic planning to develop and cultivate talented employees, envision, plan, promote, and implement an exciting future for their firms to improve on their performance and subsequent development. The findings provide valuable insights for Nigerian Institute of Architects (NIA), Architect Registration Council of Nigeria (ARCON) and owner/managers of architectural firms on the relationship between entrepreneurial strategic planning and development of architectural firms in a globalized developing economy context. The study contributed empirically to the field of strategic entrepreneurship and strategic planning management of Micro and Small Enterprises.