Perceived customer involvement and organizational design in project business

SummaryAlthough there is a considerable amount of academic literature on project business firms, there is relatively little research on the role of the customer in the organizational design adopted by those project business firms. Understanding the specifics of customer relationships and the related interaction needs is important for managers wishing to organize the customer interface. The present study examines the relationship between perceived customer involvement and internal organizational design in different types of project business firms. Research on project based organizations is combined with research on project marketing to define the differentiating dimensions of organizing logics in the project business. An exploratory case study further elaborates the theoretical dimensions. Finally, four empirically grounded configurations of organizing logics in project businesses are synthesized. They illustrate the ways in which the forms of perceived customer involvement are intertwined with the unique character of projects and the coordination of work in project businesses.

► The interaction between the supplier and the customer is a central element of conducting business. It is essential to appreciate that customer involvement is closely intertwined with both uniqueness and coordination of work. ► The definition of the uniqueness of projects should consider both the uniqueness of the customer demands and the uniqueness of the outputs. Through taking into account the two viewpoints, we could illustrate the possibility of contrasting views to the uniqueness of demands and outputs in single configurations. ► Customer involvement can be described through its intensity and the timeframe of interaction, which force us to acknowledge variations in the need for information and other exchanges between the supplier and customer. ► Our typology can help managers comprehend the variety of organizing logics in project business firms and how managerial efforts concerning the dimensions are interrelated. This is especially relevant within firms where multiple organizing logics exist simultaneously. In building up corporate level structures and strategies these types of corporations need to understand the variety of their organizing logics. Each organizing logic poses its specific challenges for the management of project business firms.