My recently completed doctoral research project, entitled Sources of Competitive Advantage in U.S. Engineering Firms, sought to uncover important factors affecting performance in design firms. Drawing upon a survey of the largest 300 firms from ENRs Top 500 Design Firms, in-depth interviews of senior executives and CEOs of firms, and a detailed postal survey, I evaluated a series of strategic factors that included:
There are interesting differences between high and low-growth firms, those with less than 10% revenue growth. Low-growth firms revealed a public-private market ratio of 44:56, the exact opposite of high-growth firms, which favor public clients. Low-growth firms also showed a stronger propensity to engage in price competition, while high-growth firms preferred to be selected on qualifications and found ways to differentiate their services.