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Three Essays Pertaining to Organizing for Value Creation in Professional Service Firms

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Abstract
Professional service firms (PSFs) including law firms, consulting firms, hospitals, and universities, have become an increasingly important fixture in the global economy. It is broadly accepted that due to their human capital intensity, knowledge intensity, and the professionalization of their workforce, such firms are imbued with several distinct management challenges that complicate organizing for value creation. In this dissertation, I develop three essays pertaining to organizing in PSFs. In essay one, I endeavor to make sense of the different ways in which client-based knowledge impacts PSF value creation and capture. Despite the consensus that client-based knowledge contributes to PSF performance and competitive advantage, the ubiquity of the concept has meant that there is little precision regarding what we are talking about in any given instance. Thus, I develop a taxonomy of different client-based knowledge types according to its explicitness and relative specificity. In essay two, I develop and test a model linking elements of a PSF’s structure to its ability to effectively create value via the acquisition and integration of strategically valuable knowledge. Specifically, I argue that as a PSF adopts a more generalist strategy, the cultivation and integration of client-based knowledge – relatively more idiosyncratic than problem-based knowledge – becomes more critical to PSF competitive advantage, necessitating the use of specific practices (lateral partner hiring, hiring for client overlap, a job rotation program, and a practice of mandating multiple client ties) to enhance firm growth. Finally, in essay three I develop an integrative review of what we know of how PSFs get the right resources to the right place at the right time to create value for clients. Specifically, I synthesize insights generated by coordination scholars, knowledge and human capital scholars, and strategic human capital scholars. The review reveals that each of these communities of practice follows a similar trajectory in their perspective, including elaborating the mechanisms that enable interdependent work and expounding on the relational dimension of organizing. It also reveals several shared assumptions and critical gaps that serve as the basis for a proposed agenda for future research on organizing for value creation in these firms.
Type
Dissertation (Open Access)
Date
2025-02
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Attribution-NonCommercial-NoDerivs 3.0 United States
License
http://creativecommons.org/licenses/by-nc-nd/3.0/us/
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