Deriving Intellectual Capital Bottom-Line in Professional Service Firms

2021 ◽  
Vol 17 (2) ◽  
pp. 104-129
Author(s):  
Junaid Rehman ◽  
Igor Hawryszkiewycz ◽  
Osama Sohaib ◽  
Fatuma Namisango
Keyword(s):  
Intellectual Capital ◽  
High Performance ◽  
Professional Service ◽  
Service Firms ◽  
Linkage Mechanism ◽  
Professional Service Firms ◽  
Bottom Line ◽  
Knowledge Based ◽  
Knowledge Economies ◽  
High Performance Work Practices

The contribution of professional service firms (PSFs) has always been phenomenal in the knowledge economies. Given the ever-increasing focus on achieving knowledge-based trans-formations, the effectiveness of these firms is highly attributed to the knowledge capabilities embedded in their staff and how efficiently they are utilized in firm's optimal benefit. In view of growing services sector, it is vital for these firms to implement high performance work practices (HPWPs) so as to maintain high-quality services and meet competing client needs. However, the systematic implementation of these practices in the intellectual capital (IC) context is not fully developed. Hence, this research suggests a linkage mechanism on how HPWPs support IC development in the professional service firms. By operationalizing these practices as ability-, motivation-, and opportunity-enhancing bundles, the results indicate a positive effect on intellectual capital and the findings offer practical insights to the managers in service firms on building their knowledge capital and deriving competitive advantage.

scholarly journals Intellectual capital and organizational ambidexterity in Chinese and Irish professional service firms

2016 ◽  
Vol 3 (2) ◽  
pp. 94-114 ◽  
Author(s):  
Na Fu ◽  
Qinhai Ma ◽  
Janine Bosak ◽  
Patrick Flood
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Professional Service ◽  
Service Firms ◽  
Organizational Ambidexterity ◽  
Professional Service Firms ◽  
Content Type ◽  
Internal Management ◽  
The Impact

Purpose – Organizational ambidexterity enables firm to simultaneously exploit existing resources and explore new resources. It is associated with high levels of organizational performance. The purpose of this paper is to identify key internal management resources which contribute to building organizational ambidexterity. In particular, this study examines the impact of intellectual capital, i.e. human, social, and organizational capital, on organizational ambidexterity which in turn influences firm performance. Design/methodology/approach – The research was conducted within the context of professional service firms due to the importance of intellectual capital and organizational ambidexterity. Data were collected from 112 Chinese (cross-sectional design) and 93 Irish accounting firms (time-lagged design). Findings – Results provide support for the linkage of intellectual capital to organizational ambidexterity and firm performance. Interestingly, findings are mixed regarding the impact of the three types of capital resources on organizational ambidexterity across both countries. Practical implications – This study finds that various components of intellectual capital facilitate organizational ambidexterity which in turn improves firm performance. Therefore the authors provide managers with evidential support for the salience of intellectual capital in enabling organizations to simultaneously engage in exploiting existing resources while also exploring new ideas and opportunities. Originality/value – This study is unique in that it highlights the importance of internal management resources in building up organization’s ambidexterity capability. The link between intellectual capital and organizational ambidexterity was established using a rigorous research design which has not been done before. It also emphasizes the role of people in leading to organizational effectiveness via developing organizational ambidexterity. Furthermore the evidence is gathered in two countries.

scholarly journals How do high performance work systems influence organizational innovation in professional service firms?

2015 ◽  
Vol 37 (2) ◽  
pp. 209-231 ◽  
Author(s):  
Na Fu ◽  
Patrick C. Flood ◽  
Janine Bosak ◽  
Tim Morris ◽  
Philip O'Regan
Keyword(s):  
High Performance ◽  
Organizational Innovation ◽  
Professional Service ◽  
Service Firms ◽  
Professional Service Firms ◽  
Firm Innovation ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
Hrm Practices

Purpose – The purpose of this paper is to examine how a system of human resource management (HRM) practices, labelled high-performance work systems (HPWS), influences organizational innovation in professional service firms (PSFs). In this study, innovation in PSFs is seen as an indicator of firm performance and is calculated as the revenue per person generated from new clients and new services, respectively. Design/methodology/approach – Quantitative data were collected from 195 managing partners, HR managers or experienced Partners in 120 Irish accounting firms. Hierarchical regression analysis was used to test the hypotheses. Findings – The analysis results indicate strong support for the mediating role of employees’ innovative work behaviours in the relationship between HPWS and two types of PSFs’ innovation performance. Practical implications – Managers need to effectively adopt and implement innovation-based HRM practices to encourage and support employees’ creative thinking and innovation. Through the adoption and utilization of these practices managers can enhance the firm’s innovation and its performance. Originality/value – This study contributes to our understanding of the link between HRM and firm innovation by explicating a pathway between these variables. This study also generalizes consistent findings on the HRM-firm innovation relationship to a different context, i.e. PSFs.

High-Performance Work Systems in Professional Service Firms: Examining the Practices-Resources-Uses-Performance Linkage

2015 ◽  
Vol 56 (2) ◽  
pp. 329-352 ◽  
Author(s):  
Na Fu ◽  
Patrick C. Flood ◽  
Janine Bosak ◽  
Denise M. Rousseau ◽  
Tim Morris ◽  
...  
Keyword(s):  
High Performance ◽  
Professional Service ◽  
Service Firms ◽  
Professional Service Firms ◽  
Work Systems ◽  
High Performance Work Systems

Leadership and Professionals

2015 ◽  
Author(s):  
Ann Langley ◽  
Laura Empson
Keyword(s):  
Social Control ◽  
Professional Service ◽  
Professional Activity ◽  
Individual Autonomy ◽  
Service Firms ◽  
Professional Expertise ◽  
Professional Service Firms ◽  
Knowledge Based ◽  
Political Interaction ◽  
The Individual

This chapter examines the foci, resources, and mechanisms of leadership in Professional Service Firms, a context where traditional conceptions of leadership and followership are problematic given the importance of individual autonomy to knowledge-based work. The authors argue that leadership in professional service firms is, above all, a process of interaction among professionals seeking to exercise influence at the individual, organizational, and strategic level. It is manifested explicitly through professional expertise, discretely through political interaction, and implicitly through personal embodiment. The authors suggest that these resources are rarely combined in single individuals, which gives rise to the prevalence of collective forms of leadership, supported by embedded mechanisms of social control that channel professional activity.

Innovation in knowledge-based professional service firms. An integrated conceptual model

2019 ◽  
Vol 31 (9) ◽  
pp. 1118-1136 ◽  
Author(s):  
Andrea Tomo ◽  
Gianluigi Mangia ◽  
Stefano Consiglio ◽  
Paolo Canonico
Keyword(s):  
Conceptual Model ◽  
Professional Service ◽  
Service Firms ◽  
Professional Service Firms ◽  
Knowledge Based
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