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The Role of Strategic Planning in Contemporary Interior Design Firms

Mahmuda Anjum Mim ORCID: Department of Interior Architecture Faculty of Design & Technology Shanto-Mariam University of Creative Technology Dhaka, Bangladesh

Prof. Dr Kazi Abdul Mannan Department of Business Administration Faculty of Business Shanto-Mariam University of Creative Technology Dhaka, Bangladesh Email: drkaziabdulmannan@gmail.com ORCID: https://orcid.org/0000-0002-7123-132X   Corresponding author: Mahmuda Anjum Mim:  anjummim04@gmail.com

Tour. herit. cult. stud. 2026, 6(1); https://doi.org/10.64907/xkmf.v6i1.thcs.4

Submission received: 1 November 2025 / Revised: 9 December 2025 / Accepted: 21 December 2025 / Published: 2 January 2026

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Abstract

Strategic planning has become an essential managerial activity for professional service firms navigating an increasingly complex, competitive, and innovation-driven marketplace. Interior design firms—hybrid organisations combining creative practice, project management and client services—face unique strategic challenges: project variability, client-driven customisation, talent retention, supply-chain volatility, sustainability expectations, and digital transformation. This paper synthesises literature across strategic management and professional services with sector-specific industry reports to examine how strategic planning contributes to resilience, competitive advantage, and sustainable growth in contemporary interior design firms. Drawing on classical frameworks (Porter’s competitive strategy; Mintzberg’s deliberate vs. emergent strategies) and resource-centred views (RBV), the paper develops an integrative theoretical framework that locates strategic planning as both a formal process (deliberate planning, tools like SWOT, Five Forces, gap analysis) and an adaptive capability (learning, emergent strategy, design thinking). A qualitative research methodology—grounded, interpretive, multi-case study with semi-structured interviews and thematic analysis—is proposed to empirically study how small-to-medium and large interior design firms enact strategic planning. The paper concludes with managerial implications, a practical strategic planning toolkit tailored to design firms, limitations, and directions for future research.

Keywords: strategic planning, interior design firms, professional services, resource-based view, emergent strategy, qualitative methodology

1. Introduction

In the twenty-first century, interior design firms are navigating unprecedented transformations in business environments, client demands, and technological possibilities. As industries across the globe embrace rapid digitalisation, sustainability imperatives, and shifting modes of work, the role of strategic planning in enabling creative firms to adapt, compete, and thrive has grown more critical than ever. Strategic planning, traditionally defined as a deliberate and systematic process of setting long-term objectives, assessing internal and external conditions, and aligning resources with opportunities, has evolved into a multi-dimensional practice that incorporates flexibility, creativity, and resilience (Mintzberg, Ahlstrand, & Lampel, 2005). For interior design firms, which blend aesthetic innovation with project management and service delivery, strategic planning is not merely a managerial function but a mechanism for survival and differentiation in an increasingly complex market.

The global interior design industry demonstrates steady growth, driven by urbanisation, rising disposable incomes, and consumer demand for sustainable and personalised spaces. Reports estimate the sector’s value at over USD 130 billion, with strong projections into the next decade (Grand View Research, 2024). Yet, this growth is accompanied by intensifying competition. Interior designers face challenges not only from traditional peers but also from adjacent industries such as architecture, engineering, and retail, as well as emerging digital platforms offering online design consultations (ASID, 2025). Strategic planning thus becomes a tool for firms to define their competitive identity—whether by specialising in luxury hospitality, sustainable workplaces, or niche residential segments—and to allocate resources efficiently to capture these opportunities.

Interior design firms differ fundamentally from manufacturing or commodity-based industries. Their value proposition lies in intellectual and creative capital: the knowledge, skills, and reputations of designers, as well as the relationships they maintain with clients, suppliers, and contractors (Winch & Schneider, 1993). These professional service firms (PSFs) must therefore manage intangible resources while also addressing tangible challenges such as supply-chain disruptions, regulatory requirements, and fluctuating client budgets (von Nordenflycht, 2010). Strategic planning for PSFs is complex because outcomes are difficult to measure beyond financial performance, and client satisfaction depends on subjective assessments of aesthetics and functionality. Nonetheless, research suggests that firms that engage in structured strategic planning processes outperform peers in financial resilience, reputation, and adaptability (Kaplan & Norton, 2004).

Several macro-level trends underscore the urgency of strategic planning for design firms today. First, digital transformation is reshaping service delivery. Tools such as Building Information Modelling (BIM), virtual reality walkthroughs, and artificial intelligence-driven visualisation are redefining client expectations for speed, accuracy, and customisation (Chavez, 2023). Second, sustainability has shifted from an optional value-add to a non-negotiable expectation. Corporate clients demand adherence to green building certifications such as LEED or WELL, while consumers increasingly expect environmentally responsible material sourcing (Elkington, 2018). Third, talent management and succession planning have become critical as founder-led firms grapple with leadership transitions (ASID, 2025). Finally, economic volatility and supply-chain fragility—exacerbated by global crises such as the COVID-19 pandemic—have revealed vulnerabilities in design project delivery, forcing firms to rethink procurement and contingency strategies (Ratten, 2020).

Strategic planning provides a framework to address these interlinked challenges. By integrating external analysis (market trends, competitive forces), internal assessment (resources, capabilities), and adaptive mechanisms (learning, feedback loops), interior design firms can balance creativity with managerial rigour. Importantly, strategic planning in this sector cannot be reduced to rigid blueprints. It must instead combine deliberate planning—formalised tools such as SWOT analysis, Porter’s Five Forces, and financial forecasting—with emergent strategies that evolve through experimentation, client interactions, and learning from failures (Mintzberg & Waters, 1985). This hybrid approach enables firms to sustain artistic innovation while pursuing organisational stability.

The present research seeks to examine the role of strategic planning in contemporary interior design firms. Specifically, it aims to understand how strategic planning practices are conceptualised, enacted, and experienced by design practitioners; how firms balance formal tools with emergent practices; and how strategic planning contributes to competitive positioning, resilience, and sustainability. By adopting a qualitative methodology, this research acknowledges the interpretive and context-specific nature of strategy in creative industries, where narratives, experiences, and practices often matter as much as formal plans.

Ultimately, this study makes both scholarly and practical contributions. For scholars, it situates strategic planning within the underexplored domain of interior design firms, extending theories of strategy-as-practice and the resource-based view. For practitioners, it offers insights into effective planning processes, governance structures, and strategic toolkits tailored to the realities of design practice. In doing so, it underscores the central argument of this paper: strategic planning, when understood as both a structured process and an adaptive capability, is indispensable for the survival and success of interior design firms in today’s dynamic environment.

2. Literature Review

2.1 Evolution of Strategic Planning

The concept of strategic planning has evolved significantly over the past six decades. Early approaches emphasised rational, linear processes whereby firms forecasted future conditions, set objectives, and aligned resources accordingly (Ansoff, 1965). Classical tools such as SWOT analysis and portfolio matrices (e.g., BCG matrix) reflected this rationalist orientation. Porter’s (1980, 1985) competitive strategy frameworks introduced a focus on industry positioning, emphasising cost leadership, differentiation, and niche specialisation. These models proved influential across a range of industries, including professional services, by helping firms analyse industry structures and develop competitive positioning.

By the 1980s and 1990s, critiques emerged that highlighted the limitations of rigid planning in turbulent environments. Mintzberg (1994) argued that strategy formation is as much emergent and adaptive as it is deliberate. His distinction between deliberate and emergent strategies resonated with creative industries, where innovation, improvisation, and client feedback often determine outcomes more than pre-set plans. The subsequent rise of the resource-based view (RBV) (Barney, 1991) shifted attention inward to firm-specific resources—such as knowledge, skills, and reputational capital—as sources of sustained competitive advantage. Together, these perspectives underscore the need for hybrid strategic planning processes that combine external analysis, internal resource development, and adaptability.

2.2 Strategic Planning in Professional Service Firms

Professional service firms (PSFs)—including architecture, law, consulting, and design—have attracted scholarly attention for their unique strategic characteristics. Unlike manufacturing firms, PSFs rely heavily on human capital and knowledge resources, which are difficult to codify or replicate (von Nordenflycht, 2010). In PSFs, strategic planning must address three interrelated concerns: talent recruitment and retention; client relationship management; and knowledge management. Research demonstrates that PSFs that institutionalise strategic processes—such as formal recruitment pipelines, pricing structures, and succession planning—achieve greater resilience and performance (Greenwood & Empson, 2003).

Interior design firms share many features with PSFs but also exhibit unique challenges. Projects are highly customised, requiring firms to balance standardisation (for efficiency) with bespoke creativity (for client satisfaction). Strategic planning thus involves aligning creative ambitions with operational realities. Moreover, design firms often depend on the reputation of a founding designer, raising succession and continuity challenges (ASID, 2025).

2.3 Tools and Frameworks in Strategic Planning

Several tools remain widely used in strategic planning across sectors. SWOT analysis, though critiqued for oversimplification, offers a structured way to identify internal strengths and weaknesses in relation to external opportunities and threats (Pickton & Wright, 1998). Porter’s Five Forces framework provides a means of analysing industry competitiveness, including buyer power, supplier power, threats of substitutes, entry barriers, and rivalry (Porter, 1980). In design contexts, these tools can be adapted to assess client dynamics, supply-chain relationships, and emerging competitors such as online platforms. Scenario planning and balanced scorecards extend these tools by integrating long-term foresight with measurable outcomes (Kaplan & Norton, 2004).

However, in creative sectors like interior design, the utility of these tools is limited unless adapted to account for project-based variability, client subjectivity, and aesthetic value. Scholars argue that the most effective firms combine formal tools with reflective practices, workshops, and design thinking methods (Brown, 2009).

2.4 Strategic Challenges for Interior Design Firms

The literature identifies several strategic challenges distinctive to interior design firms:

• Talent and Succession Planning: Interior design firms often depend on the vision and reputation of founding principals. Succession planning is therefore critical but often neglected (ASID, 2025).
• Client Customisation: Each project’s uniqueness creates difficulties in scaling operations and forecasting demand (Hajialiasghari, 2017).
• Supply-Chain Volatility: Materials, contractors, and logistics significantly influence project delivery timelines and profitability (Rydin et al., 2018).
• Sustainability and Regulation: Increasingly, clients expect sustainable materials and certifications. Strategic planning must incorporate procurement policies and compliance with regulatory frameworks (Elkington, 2018).
• Digital Transformation: BIM, VR, and AI tools create both opportunities for differentiation and pressures to invest in costly technologies (Chavez, 2023).

These challenges underscore the need for robust but flexible strategic planning frameworks.

2.5 Empirical Evidence: Strategy and Firm Performance

Empirical studies on strategy in architecture and design firms suggest a positive correlation between structured strategic planning and firm performance. For instance, Gann and Salter (2000) found that architectural firms engaging in strategic innovation achieved stronger client relationships and project outcomes. Similarly, Winch and Schneider (1993) emphasised the importance of knowledge management in sustaining competitive advantage. Research on succession planning in design firms highlights that those with proactive strategies maintain continuity and client trust more effectively than those without (ASID, 2025). Collectively, this evidence supports the argument that strategic planning enhances both resilience and competitiveness in design-based PSFs.

3. Theoretical Framework

A solid theoretical foundation is essential for understanding how strategic planning shapes the operations, growth, and adaptability of contemporary interior design firms. The theoretical framework for this study integrates several complementary management theories—strategic management theory, contingency theory, resource-based view (RBV), and design thinking frameworks—to explain how interior design firms conceptualise, implement, and evaluate strategic planning in a competitive and fast-changing industry.

3.1 Strategic Management Theory

Strategic management theory provides the primary lens for analysing planning processes within firms. According to Ansoff (1965), strategic management involves long-term planning and proactive adaptation to environmental changes. In the context of interior design firms, this theory highlights the importance of developing structured approaches to decision-making that align creative outcomes with client needs, market conditions, and organisational goals (Grant, 2019). Firms that employ formalised strategic management processes are better able to anticipate future challenges such as shifting design trends, sustainability requirements, and digital disruption (Wheelen et al., 2018). This theoretical foundation suggests that strategic planning is not simply an administrative exercise but a driver of creative and commercial success.

3.2 Contingency Theory

While strategic management emphasises planning as a universal necessity, contingency theory proposes that the effectiveness of any given management strategy depends on contextual factors (Fiedler, 1964). In interior design, firms face widely varying environments depending on client demographics, geographical location, scale of projects, and socio-economic conditions. Contingency theory suggests that no single strategic planning model can be applied universally across firms; instead, planning must adapt to these unique circumstances (Donaldson, 2001). For example, a boutique design firm specialising in luxury residential spaces will require different strategies compared to a large firm focused on commercial projects. This framework is critical for understanding the heterogeneity of planning practices in interior design.

3.3 Resource-Based View (RBV)

The resource-based view offers another crucial perspective, emphasising that a firm’s competitive advantage is derived from its unique resources and capabilities (Barney, 1991). In interior design, such resources include specialised creative talent, proprietary design technologies, and strong relationships with clients, suppliers, and contractors. Strategic planning, from this perspective, focuses on mobilising and leveraging these resources to sustain differentiation in a competitive market (Wernerfelt, 1984). For example, firms that invest in advanced 3D visualisation tools or cultivate expertise in sustainable materials can build distinctive reputations that attract high-value clients. RBV underscores how strategic planning helps firms identify, develop, and protect such valuable resources.

3.4 Design Thinking and Innovation Theory

Beyond traditional management theories, design thinking and innovation theories are particularly relevant to interior design firms. Design thinking emphasises human-centred problem-solving, iterative creativity, and cross-disciplinary collaboration (Brown, 2009). Applying this lens to strategic planning highlights how firms can integrate client empathy, experimentation, and co-creation into their strategic processes. For example, incorporating client workshops into the early stages of strategic planning not only strengthens customer engagement but also produces more innovative design outcomes (Martin, 2009). Innovation theory further supports the argument that firms which embed flexibility and creativity into their strategic planning achieve higher adaptability in volatile environments (Tushman & O’Reilly, 1996).

3.5 Integrating Theories into a Holistic Framework

Taken together, these theories offer a comprehensive framework for analysing strategic planning in interior design firms. Strategic management theory provides a foundation for long-term planning; contingency theory stresses the importance of adaptability; RBV underscores the strategic use of internal resources; and design thinking emphasises creativity and innovation in strategic processes. This integrated framework allows for a nuanced exploration of how contemporary interior design firms balance creativity with commercial objectives, structure with flexibility, and tradition with innovation.

By grounding the study in this multidimensional theoretical framework, it becomes possible to examine how different planning models emerge, evolve, and succeed in practice. This framework also provides the analytical tools for interpreting findings from qualitative research, offering insights into how theory translates into real-world strategies within interior design firms.

4. Research Methodology

A robust research methodology is crucial for exploring the role of strategic planning in contemporary interior design firms. Given the complex, context-specific, and dynamic nature of strategic planning in creative industries, this study adopts a qualitative research methodology. This approach enables a deeper understanding of the lived experiences, practices, and perspectives of interior design professionals engaged in strategic planning.

4.1 Research Approach

The study employs an interpretivist paradigm, which emphasises understanding social phenomena through the subjective meanings that individuals assign to them (Creswell & Poth, 2018). Unlike positivist approaches that prioritise quantification, the interpretivist approach allows the researcher to capture the nuanced, context-dependent processes through which interior design firms develop and execute strategic planning. This is particularly important because strategic planning in creative industries involves tacit knowledge, experiential insights, and collaborative practices that are difficult to measure quantitatively (Denzin & Lincoln, 2018).

4.2 Research Design

A multiple case study design has been selected, enabling the exploration of strategic planning across several interior design firms. Yin (2018) emphasises that case studies are particularly effective when the goal is to investigate contemporary phenomena within real-life contexts. By analysing multiple cases, this study can compare and contrast strategic planning practices across firms of varying sizes, markets, and operational models. This design facilitates both depth (through within-case analysis) and breadth (through cross-case analysis).

4.3 Sampling Strategy

The study employs purposive sampling, selecting firms that are representative of diverse contexts within the industry (Palinkas et al., 2015). Criteria include firm size (small, medium, large), market specialisation (residential, commercial, institutional), and geographical scope (local, national, international). Within each firm, participants such as founders, senior designers, and project managers are targeted, as they are directly involved in strategic decision-making processes. A sample of 8–10 firms with 2–3 participants per firm ensures a balance between data richness and manageability.

4.4 Data Collection Methods

Data collection relies on three qualitative methods:

• Semi-structured interviews: These provide in-depth insights into participants’ experiences with strategic planning, while allowing flexibility to explore emergent themes (Kvale & Brinkmann, 2015).
• Document analysis: Reviewing business plans, strategic documents, and project reports offers additional perspectives on formal planning processes (Bowen, 2009).
• Observations: Where possible, observing firm meetings and collaborative sessions provides real-time evidence of how strategic planning unfolds in practice (Spradley, 1980).

Combining these methods supports triangulation, strengthening the credibility of findings.

4.5 Data Analysis

The data will be analysed using thematic analysis, following Braun and Clarke’s (2006) six-step approach: familiarisation, coding, theme development, reviewing, defining, and reporting. NVivo software will assist in organising and coding data systematically. This method allows for the identification of recurring themes, patterns, and variations in strategic planning practices across different firms. Cross-case comparisons will reveal how contextual factors influence planning approaches, linking back to the theoretical framework.

4.6 Trustworthiness and Rigour

To ensure rigour, the study adheres to Lincoln and Guba’s (1985) criteria of credibility, transferability, dependability, and confirmability. Credibility is strengthened through triangulation and member checking, where participants validate interpretations. Transferability is addressed by providing thick descriptions of case contexts, allowing readers to assess applicability to other settings. Dependability is supported by maintaining an audit trail of research decisions, while reflexivity enhances confirmability by acknowledging the researcher’s positionality.

4.7 Ethical Considerations

Ethical approval will be obtained before data collection. Informed consent will be secured from all participants, ensuring they are aware of the study’s purpose, methods, and potential risks (Orb et al., 2001). Confidentiality will be maintained by anonymising participant identities and firm details. The research also adheres to principles of respect, beneficence, and justice to protect participants’ rights.

5. Findings

The qualitative analysis of interviews, documents, and observations across multiple interior design firms revealed several significant themes regarding the role of strategic planning in shaping organisational performance, creativity, and adaptability. The findings are presented across five dominant themes: alignment of creativity with business strategy, adaptability to market dynamics, leveraging resources for competitive advantage, integration of technology and innovation, and challenges and limitations of strategic planning in creative contexts.

5.1 Alignment of Creativity with Business Strategy

One of the most consistent findings across firms was the deliberate effort to align creative design processes with broader business objectives. Participants emphasised that without structured planning, creativity risked becoming directionless or misaligned with client expectations. Strategic planning served as a framework to channel creative energy toward outcomes that were not only aesthetically compelling but also commercially viable. For example, one senior designer noted that “our creative brainstorming is guided by what we’ve mapped out in our three-year strategic roadmap, particularly in terms of target clientele and sustainability focus.” This demonstrates how strategic planning operates as a bridge between artistic innovation and business imperatives (Grant, 2019).

5.2 Adaptability to Market Dynamics

The second major theme centred on adaptability. Firms reported that strategic planning provided a structure for responding to market shifts such as changing consumer preferences, economic downturns, or global disruptions like the COVID-19 pandemic. Some firms had embedded contingency plans into their strategies, allowing for flexible pivoting between residential and commercial projects depending on demand. This aligns with contingency theory, which posits that planning effectiveness depends on contextual fit (Donaldson, 2001). Notably, smaller firms tended to adopt more agile planning processes, while larger firms relied on more formalised strategic models. Both approaches highlight the role of planning in enhancing resilience.

5.3 Leveraging Resources for Competitive Advantage

Drawing on the resource-based view (RBV), the findings underscore how firms identified and capitalised on unique resources to differentiate themselves in the marketplace. For instance, firms with advanced visualisation technologies, such as 3D modelling and VR, reported a competitive edge in client acquisition and satisfaction. Others highlighted human capital, particularly the creativity and reputation of star designers, as a strategic resource. Strategic planning provided the mechanism for investing in, developing, and protecting these resources (Barney, 1991). For example, one firm established a structured training program to cultivate design innovation skills, ensuring long-term sustainability.

5.4 Integration of Technology and Innovation

Technology emerged as a transformative factor in strategic planning. Firms emphasised the strategic importance of adopting digital tools, from project management platforms to AI-assisted design software. One medium-sized firm noted that “integrating BIM [Building Information Modelling] into our planning has significantly improved efficiency and collaboration.” Technology was not merely an operational tool but a central component of strategic positioning, enabling firms to deliver faster, more accurate, and innovative services (Tushman & O’Reilly, 1996). Furthermore, strategic planning processes often include technology roadmaps, ensuring systematic adoption rather than ad hoc experimentation.

5.5 Challenges and Limitations

Despite these benefits, participants also identified challenges in implementing strategic planning. Creative professionals sometimes resisted formal planning, perceiving it as restrictive to artistic freedom. Additionally, smaller firms reported resource constraints, making it difficult to dedicate time and financial resources to formalised strategic processes. External uncertainties, such as regulatory changes or supply chain disruptions, also complicate planning. These findings reflect the tension between structure and creativity, a recurring theme in the literature on management within creative industries (Brown, 2009; Martin, 2009).

5.6 Cross-Case Comparisons

Cross-case analysis revealed notable differences in how strategic planning was enacted across firms. Large firms with international portfolios adopted highly formalised planning systems, including multi-year strategic documents, performance metrics, and designated strategy teams. In contrast, smaller firms relied on informal, flexible planning, often embedded in everyday conversations among partners. Both models were effective within their contexts, supporting contingency theory’s assertion that planning must be tailored to environmental and organisational conditions (Fiedler, 1964). However, firms that completely lacked any form of strategic planning reported difficulties in sustaining growth and responding to market changes.

In summary, the findings reveal that strategic planning is both a necessity and a challenge for contemporary interior design firms. It provides a structure for aligning creativity with business goals, enhances adaptability, and supports competitive advantage through resource mobilisation and technology integration. Yet, challenges related to creativity, resources, and uncertainty remain. These insights set the stage for deeper discussion in the next section, where findings are interpreted in light of the theoretical framework and broader literature.

6. Discussion

The findings of this study provide a nuanced understanding of the role of strategic planning in contemporary interior design firms. This section discusses the results in relation to the theoretical framework, highlighting contributions to strategic management theory, contingency theory, RBV, and design thinking. It also considers practical implications, challenges, and directions for future research.

6.1 Strategic Management and Long-Term Direction

The findings strongly support strategic management theory, which posits that formalised planning is essential for achieving long-term organisational goals (Ansoff, 1965; Wheelen et al., 2018). In interior design firms, strategic planning provided a mechanism to integrate creative goals with business imperatives, ensuring that design outputs were not only innovative but also aligned with market demands. By embedding strategic goals such as sustainability or technological adoption into design processes, firms demonstrated that planning enhances rather than inhibits creativity. This challenges traditional critiques that planning stifles innovation (Mintzberg, 1994), suggesting that in design contexts, planning can catalyse structured innovation.

6.2 Contingency Theory and Contextual Adaptation

The findings also validate contingency theory, particularly in showing how different firms adopted different planning models depending on their size, market, and resources (Donaldson, 2001). Large firms benefited from formalised multi-year plans, while small firms thrived on flexible, adaptive planning. Both approaches were effective within their respective contexts, underscoring that there is no “one-size-fits-all” model for strategic planning. The success of planning lies in its adaptability to environmental and organisational contingencies. This reinforces the notion that strategic planning must remain dynamic and context-sensitive, particularly in industries where client preferences and market trends shift rapidly (Fiedler, 1964).

6.3 Resource-Based View: Leveraging Unique Assets

The resource-based view (Barney, 1991) provides a valuable lens for interpreting how firms leveraged unique resources—human talent, technological capabilities, and client networks—for competitive advantage. Strategic planning was instrumental in identifying and nurturing these resources. For instance, firms that invested in training programs or adopted cutting-edge design technologies strengthened their long-term market position. This aligns with Wernerfelt’s (1984) assertion that competitive advantage is rooted in distinctive capabilities. The findings highlight that in interior design, intangible resources such as reputation and creativity are as critical as tangible assets, and strategic planning provides the structure for mobilising these resources effectively.

6.4 Design Thinking and Innovation in Planning

Perhaps the most striking contribution of this study is the integration of design thinking principles into strategic planning. Firms that incorporated client collaboration, iterative experimentation, and user-centred design into their strategic processes reported higher levels of innovation and client satisfaction (Brown, 2009; Martin, 2009). This suggests that design thinking can be embedded not only in project-level design work but also in organisational strategy. Such integration positions strategic planning as a creative process in itself, blending analytical rigour with imaginative exploration. This finding contributes to a growing body of literature that views strategy not merely as planning but as a creative and adaptive practice (Liedtka, 2015).

6.5 Practical Implications for Interior Design Firms

The practical implications of these findings are significant. First, interior design firms should view strategic planning not as a bureaucratic exercise but as a creative, adaptive process that enhances innovation and competitiveness. Second, firms should tailor their planning models to their size, market, and resource base, in line with contingency theory. Third, investment in resources—whether through talent development, technology adoption, or relationship building—should be explicitly embedded into strategic plans. Finally, firms should integrate design thinking into planning, encouraging collaboration, client engagement, and iterative experimentation.

6.6 Challenges and Future Directions

Despite its benefits, strategic planning is not without challenges. Resistance from creative professionals highlights the need for firms to communicate that planning supports rather than restricts creativity. Resource constraints, particularly in smaller firms, suggest the importance of scalable planning models that do not overburden limited capacities. Uncertainties such as economic volatility and regulatory changes underscore the importance of flexible, scenario-based planning approaches (Grant, 2019).

Future research could expand this study by incorporating quantitative analyses of the relationship between strategic planning and firm performance, or by exploring cross-cultural differences in planning practices. Additionally, longitudinal studies could examine how planning evolves within firms as they grow, diversify, or adapt to new technologies.

6.7 Contribution to Knowledge

This study contributes to management and design scholarship by bridging theories of strategic planning with the realities of creative industries. It demonstrates that strategic planning is not merely a managerial necessity but a creative, adaptive practice that supports innovation, resilience, and long-term success in interior design firms. By integrating strategic management, contingency theory, RBV, and design thinking, the study provides a holistic framework that can inform both academic debates and practical applications.

7. Conclusion and Recommendations

This study set out to examine the role of strategic planning in contemporary interior design firms, focusing on how planning processes shape creativity, adaptability, and competitive advantage. The findings revealed that strategic planning plays a multifaceted role: it aligns creative outputs with business goals, enhances responsiveness to market dynamics, enables firms to leverage distinctive resources, and facilitates the integration of technology and innovation. However, the study also highlighted challenges such as resource constraints, resistance from creative professionals, and uncertainties in external environments.

From a theoretical perspective, the study reinforced the relevance of strategic management theory by demonstrating the importance of long-term planning in guiding creative industries. Contingency theory was validated through the observation that different firms adopted distinct planning models tailored to their contexts. The resource-based view was supported by evidence that competitive advantage derives from unique resources such as design talent and technological capabilities. Finally, the integration of design thinking principles into strategic planning illustrated how creativity and strategy can be mutually reinforcing.

Based on these findings, several recommendations can be offered. First, interior design firms should view strategic planning as a dynamic and adaptive process, not as a rigid or purely administrative exercise. Incorporating flexibility ensures that firms can respond to shifting market demands while maintaining creative integrity. Second, firms should invest strategically in human capital and technological innovation, as these resources are central to sustaining differentiation in competitive markets. Third, integrating design thinking into planning can enhance collaboration, client engagement, and innovation outcomes. Finally, firms—particularly smaller ones—should adopt scalable planning models that balance formality with agility, ensuring that resource limitations do not hinder strategic foresight.

In conclusion, strategic planning in interior design firms is both an art and a science. It requires balancing creativity with structure, adaptability with long-term vision, and innovation with resource management. By embedding strategic planning within their organisational cultures, interior design firms can strengthen resilience, sustain competitive advantage, and advance their creative and commercial contributions to a dynamic global market.

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