The interplay between global accounting firms and national institutional contexts: The establishment of the Big Four in China from 1978 to 2007

This paper provides an analysis of the establishment of global accounting firms (the ‘Big Four’) in China between 1978 and 2007. Drawing on the extant literature on professional service firms, and the work of Faulconbridge and Muzio (2015) , this paper examines how the Big Four entered China following the country's ‘Reform and Opening-up’ and evolved from tentative representative offices to established accounting firms in the Chinese audit market. Based on an extensive analysis of archival materials and interviews, the findings of this paper show that the Big Four's establishment in China has been deeply intertwined with the country's socio-political and economic transition. It reveals important conjunctural moments in history that have provided the Big Four with important windows of opportunity to actively shape local institutional change to their own interests. This paper contributes to the extant accounting literature on the expansion of the Big Four in China by highlighting the interplay between their surrounding institutional context and their capacity for agency.

Internationalization and knowledge management strategies of service firms: impact of regulatory environment in regional markets

Purpose This study aims to the influence and impact of regulations and highlights the barriers to market entry faced by Australian professional service firms in the European Union (EU) and their strategies to manage and transfer tacit knowledge. Design/methodology/approach The authors collected data by reviewing relevant regulatory documents and conducting semi-structured interviews with key informants from Australian architecture firms and senior representatives from the professional, trade and regulatory bodies in Australia and Europe. Findings Historically, Australian professional service firms use the United Kingdom (UK) as their EU base. The mutual recognition of qualifications and prior experiences are barriers to intra-organizational expatriation and knowledge transfer. The study identifies the dual nationality of the architects as a way of circumventing the residency/nationality restrictions. Originality/value The study discusses Brexit and how the uncertainty surrounding the UK and EU’s agreement adds to the complexity for non-European firms’ market entry and operations in the region.

ORGANISING FOR INNOVATION IN PROFESSIONAL SERVICES FIRMS: ECONOMETRIC EVIDENCE FROM THE UK

Undertaking innovation involves a range of different activities from ideation to the commercialisation of innovations. Each activity may have very different resources and organisational requirements, however, most prior studies treat innovation as a single un-differentiated activity. Here, using new survey data for professional service firms (PSFs) in the UK, we are able to examine separately how a range of organisational work practices influence success in ideation and commercialisation. In particular, we use principal component analysis (PCA) to identify and compare the benefits of four groups of organisational work practices relating to strategy & information sharing, recruitment & training, work flexibility & discretion and culture & leadership. Strong contrasts emerge between those work practices that are important for success in ideation and commercialisation. Work practices linked to culture & leadership are important for ideation activities, while strategy &information sharing practices are more strongly associated with commercialisation success. The results suggest clear managerial implications depending on the priority

Managing international professional service firms: a review and future research agenda

PurposeResearch on international professional service firms (PSFs) has grown in recent years, reflecting the increasing relevance of these firms in the global economy. However, to date, no attempt has been made to systematically examine and integrate this literature. This study reviews the body of knowledge on the international management of PSFs and proposes a future research agenda that aims to strengthen the research on international PSFs, by applying the conceptual lens of PSF characteristics.Design/methodology/approachA systematic review of 108 empirical articles on the management of international PSFs was carried out.FindingsThe authors analyse where, how and what research was carried out on the international management of PSFs, and find that currently the field offers few opportunities to integrate findings or explain differences across different types of international PSFs. In recommendations for future research, the authors show how the lens of PSF characteristics can help overcome these issues and unveil promising avenues for future research that will lead to a more fine-grained theorising and understanding of the international management of PSFs.Originality/valueThe study provides a comprehensive state of the art of research on the international management of PSFs and a future research agenda, which builds on PSF characteristics to explore and better understand the heterogeneity of international PSFs, in order to develop more robust explanations of their behaviour and open new research avenues.

“Feeling in Control”: Optimal Busyness and the Temporality of Organizational Controls

This study extends prior research seeking to understand the reproduction and persistence of excessive busyness in professional settings by addressing the relationship between organizational controls and temporal experiences. Drawing on 146 interviews and more than 300 weekly diaries in two professional service firms, we develop a framework centered on the emerging concept of optimal busyness, an attractive, short-lived temporal experience that people try to reproduce/prolong because it makes them feel energized and productive as well as in control of their time. Our findings show that individuals continuously navigate between different temporal experiences separated by a fine line, quiet time, optimal busyness, and excessive busyness, and that optimal busyness that they strive for is a fragile and fleeting state difficult to achieve and maintain. We show that these temporal experiences are the effect of the temporality of controls—that is, the ability of controls to shape professionals’ temporal experience through structuring, rarefying, and synchronizing temporality. Moreover, we find that professionals who regularly face high temporal pressures seek to cope with these by attempting to construct/prolong optimal busyness through manipulating the pace, focus, and length of their temporal experiences, a process we call control of temporality. Our study contributes to a better understanding of the reproduction of busyness by explaining why professionals in their attempts to feel in control of their time routinely end up overworking.

From Host Country Nationals to Entrepreneurs: Insights from Professional Service Ventures in Vietnam

ABSTRACT Working for multinational companies (MNCs) is often viewed as a privilege for host country nationals (HCNs) in emerging economies. This raises the question: Why do HCNs leave their jobs to pursue the hardship of establishing their own business? This article addresses this question by adopting a phenomenon-based approach to study 12 professional service firms in Vietnam. We explore why HCNs initially become entrepreneurs and identify how they make this transition. We reveal several idiosyncratic motivations and identify four types of migration pathways: MNC returnee, committed hybrid, transitional hybrid, and direct spin-off. Our findings address the shortcomings of the existing HCNs literature that centers on MNCs’ view and employee entrepreneurship literature that overlooks the context of emerging markets. We find evidence that institutional voids often promote, rather than suppress, entrepreneurship in emerging markets. Importantly, by taking a local perspective, our findings help MNCs increase their awareness that in the fast-growing market of Vietnam, a brain drain might occur as a result of HCNs becoming entrepreneurs.

Client-Related Factors and Collaboration Between Human Assets

Collaborations between individuals in firms have important implications for the development of relational and human capital. In knowledge-intensive contexts where collaborations are formed to deliver services to clients, collaboration decisions can involve nontrivial tradeoffs between short-term and long-term benefits: individuals and firms must carefully manage the tradeoffs between leveraging existing relational and human capital for the reliable performance of repeat collaboration and creating new relational and human capital through new collaboration. Building from the premise that servicing clients is central to collaboration decisions in human asset–intensive firms, we examine how client-related factors shape collaboration decisions among lawyers (partners) in UK law firms providing M&A legal advisory services. We focus on three key client-related dimensions that we predict govern collaboration decisions: the depth of individual- and firm-level relationships with the focal client, key client attributes that reflect the client’s status and its use of different firms to undertake its outsourced work, and client-driven individual- and firm-level resource constraint. Our empirical findings support our proposition that client-related factors influence the pattern of collaborations between individuals in firms. We also reveal how client-related factors at the individual level can have opposite effects on collaboration decisions from those at the firm level. Overall, our findings contribute to research on relational capital, strategic human capital, team formation, professional service firms, and the microfoundations of strategy.