SUSTAINABLE DESIGN PRACTICES, ENTREPRENEURIAL CAPABILITY AND COST MANAGEMENT AS STRATEGIC DRIVERS OF PROJECT PROFITABILITY
Abstract
The present study investigated the effects of the sustainable design practices, entrepreneurial capability, and cost management on project profitability in architecture and interior design firms. The study also examined mediating role of project efficiency in strengthening the relationship between design- related managerial practices and financial project outcomes. A quantitative research approach was used to collect data from architects, interior designers, project managers and design entrepreneurs. The structured questionnaire was developed to measure sustainable design practices, entrepreneurial capability, cost management, project efficiency, and project profitability. The data were analyzed using structural equation modeling to test the direct and mediating relationships among the study variables. In this regard, the findings showed that sustainable design practices, entrepreneurial capability, as well as cost management significantly improved project efficiency. Project efficiency was also found to have a significant positive effect on project profitability. The mediation results confirmed that project efficiency served as an important mechanism through which sustainability, entrepreneurship, and cost control enhanced profitability. Thus, the results suggest that architecture & interior design firms achieve the stronger economic returns when they combine the sustainable design decisions with entrepreneurial project handling and strict financial control.