Abstract:
Alliances in architectural business are considered to be advantageous. Companies can contribute their different knowledge and skills to create better results. Moreover, stronger alliances put them in a better position to stand the current unpredictable economic situation as well as the management difficulties of the present. The objectives of this research include: identifying the principles and practices of the world business alliances. Investigating the state of business alliances amongst local architectural firms as well as the international research and publications. Categorizing the architectural business alliances amongst architectural firms for projects in Thailand. Representing the way to build successful business alliances. Interviews are also conducted with top executives of selected architectural firms which include: 1) small-sized firms with staff fewer than 20, 2) medium-sized firms with staff of 21 but not over 50, 3) large-sized firms with staff of 51 but not over 100, and 4) super-sized firms with staff of more than 100. The findings reveals that: 1) Architectural business alliances in Thailand can be divided into two categories: (a) alliances between Thai firms, (b) alliances between Thai firm(s) and non-Thai firm(s). 2) The alliances between Thai firms can be sub-divided into four different categories, based on degree of responsibility amongst the partners: (a) sub-contracting with lesser liabilities, (b) two parties with equal liabilities, (c) a consortium, and (d) project-based joint partnerships. 3) The alliances between Thai firm(s) and non-Thai firm(s) can be sub-divided into four different category, based on degree of co-operation: (a) cross-border service, (b) foreign affiliation, (c) group companies: local and overseas, (d) project-based joint partnership with renowned international firm(s). 4) Factors determining the success in the architectural business alliance include, but are not limited to the following: 4.1) Selection of good partner(s) which will include: (a) different skills and expertise to promote synergy, (b) experience and good work records, (c) understanding mutual benefits of forming a partnership, (d) understanding the cultures and practice of the organization, (e) understanding ethics of good conduct of the architectural profession. 4.2) Shareholder agreement: clear and enforceable under the Thai laws, with full details on the rights and liabilities of joint venture shareholders, functions and procedures of the management, duties and responsibilities of each party, tax structure, share exit clause, etc. The shareholder agreement should be drafted by an experienced law firm. The findings also reveal that there are voices of concern by most interviewed architects on the prospect of architectural business alliances. They would like to see the Council of Architects come into play and set the proper standard of such alliances.