The impact of a delivery project's business model in a project-based firm

If projects are independent business organizations having goals of their own instead of being direct subordinates to the parent firm, then project-level goals might contradict those of the parent firm. This raises an empirical question on the impact of delivery projects in a project-based firm. We use the business model concept to study the mechanisms of generating revenues in five delivery projects in a case firm from the mining and metallurgical industry. Our findings suggest that although project-level business models are often derived top–down from firm-level business models, projects also create autonomous business models that have a bottom–up effect on the firm by shaping the existing business models or creating completely new ones. These results strengthen the understanding of the dynamic relations between a project-based firm and its delivery projects.

► Project-level business models are most often derived top–down from firm-level. ► However, projects also create autonomous business models in their own environments. ► Projects affect the firm by shaping or inventing new firm-level business models.