New career models in UK professional service firms: from up-or-out to up-and-going-nowhere?

In this paper, we empirically examine how professional service firms are adapting their promotion and career models to new market and institutional pressures, without losing the benefits of the traditional up-or-out tournament. Based on an in-depth qualitative study of 10 large UK based law firms we find that most of these firms do not have a formal up-or-out policy but that the up-or-out rule operates in practice. We also find that most firms have introduced alternative roles and a novel career policy that offers a holistic learning and development deal to associates without any expectation that unsuccessful candidates for promotion to partner should quit the firm. While this policy and the new roles formally contradict the principle of up-or-out by creating permanent non-partner positions, in practice they coexist. We conclude that the motivational power of the up-or-out tournament remains intact, notwithstanding the changes to the internal labour market structure of these professional service firms.     

Structuration of precarious employment in economically constrained firms: the case of Dutch agriculture

Precarious employment practices such as short‐term contracts, low pay and lack of voice have undesired outcomes for workers, because these impede employees in their ethical rights to freedom, well‐being and equality. Still, precarious employment practice is common in sectors with restrained economic conditions, such as Dutch agriculture. However, in every restrained industry, examples of more socially responsible employment management are reported. The question why some firms develop more socially responsible employment systems when economic conditions predict the use of low cost, precarious employment systems is central in this article. Structuration theory provides a lens to understand how employers position their employment practice in the wider (institutionalised) social context. Insight in the reproduction circuits that link employers' actions with their social context (product, market, institutions and policies, demographics) can reveal where, at a sector level, change to avoid unethical employment practice could start.     

The influence of HR practices upon knowledge brokering in professional organizations for service improvement: Addressing professional legitimacy and identity in health care

Drawing upon sociology of professions, our study extends insight into the specific HR practices that shape the microdynamics of knowledge-sharing behaviors among professionals. Empirically, we examine the influence of Human Resource (HR) practices on enactment of a knowledge-brokering role by doctors to drive service improvement in health care. Our study shows, first, HR practices influence professional identity, which is predicated on jurisdictional autonomy and client interest. Second, HR practices influence the legitimacy of any role and associated activities, with professionals valuing collegial leadership and evidence-based practice. Our study highlights it is employee perceptions of the effect of HR practices upon their legitimacy and identity that shape their attitudes and behavior toward knowledge sharing. Thus, different HR practices have different effects on knowledge sharing. Further, the same HR practice may be perceived differently even within the same cadre of professionals, depending upon their relative status and career interests.     

A Fresh Approach to Context Influence,Development and Performance in Environmental Management

Respect for the environment has rapidly gained importance in the context of firms, regardless of their pollution levels. Most of the existing research has related to the most polluting sectors and has been limited to the effect that the adoption of cleaner practices has on performance, primarily in terms of operations, financial performance and competitiveness. This paper expands the research towards a more complete picture of environmental management by examining context, development and performance to understand how other factors can influence the development of cleaner practices. In addition, we focus our research on the service sector. In our analysis, we differentiated between the affiliation and size of the studied companies to better understand their specificities. Based on a sample of 374 restaurants, the results show the importance of the influence of institutions and the limited influence of competitors in encouraging firms to adopt a strategic, clean approach, especially for the smallest firms. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Engaged and committed? The relationship between work engagement and commitment in professional service firms

Our study explores the relationship between employee engagement and foci-commitment of employees in professional service firms (PSFs). PSFs compete on the basis of their ability to encourage their employees to generate exceptional knowledge-based services and products, acting within and beyond the organizational boundaries. In order to achieve these outputs, the PSFs need to ensure that their professionals are engaged and committed. Drawing on 375 surveys from the employees of a global PSF, we compare two models to test the relationship between work engagement and multi-foci commitment: the organization, the client, the team and the profession. We first explore an overall positive effect of work engagement on commitment to all four foci. We then compare the overall impact to the independent effects of work engagement dimensions on four commitment foci. Our findings suggest that work engagement with three dimensions is a better-fitting model in the PSFs context.     

Heterogeneity in Professional Service Firms

Research on professional service firms emphasizes similarities in their organization and management and distinctiveness from other types of organization. In this paper we take a different tack and focus on the differences between professional service firms, that is, on heterogeneity across different professional sectors. We argue that differences between professions on a number of dimensions affect the nature of professionals' work and, in turn, the organization and management of firms across different professional sectors. Drawing on the sociology of professions literature we focus on three key dimensions of knowledge, jurisdictional control and client relationships to compare legal, auditing and engineering consulting firms. We consider how differences in these dimensions across the three professional services sectors impact upon the way firms are organized. We offer a number of propositions explicating how differences in the nature of knowledge, jurisdictional control and client relationships have implications for organizational form, team-working and pricing systems.     

International entrepreneurship and the small business

The topic of ‘international entrepreneurship’ is becoming increasingly popular with researchers concerned with examining how international and entrepreneurial activities intersect when people in organizations engage in pro-active brokering and risk-taking behaviour in cross-border contexts. Some caution is needed in over-generalizing the meaning and significance of international entrepreneurship – especially in relation to small businesses. Not all entrepreneurial risk-taking, brokering and opportunity-seeking activities lead to internationalization (as the statistics on small business international activities indicate). This might suggest then that the only truly internationally entrepreneurial firms are those that are ‘born global’. However, their entrepreneurial activities are more ‘spatial’, concerned with what can be constructed again in relation to global markets rather than in relation to the local/regional context in which the business is located. For small firms that internationalize a few years after start-up (late starters), processes of international entrepreneurship are different. For ‘later starters’, international entrepreneurship is distinctive in that it is characterized by extending and modifying entrepreneurial understandings and practices that have been socially constructed in relation to the local and regional context in which the small firm is located.     

The role of human sustainability in professional service firms. Evidence from Italy

Sustainability is a central topic for an increasing number of companies, as a part of their business strategies. Human sustainability, that is, preserving and improving the quality of human life, in other words, maintaining and advancing human capital, appears as one relevant issue in that context. Humans and human capital are the foremost resources for professional service firms. Their role in the international economic scenario will most likely depend on how they deal with human sustainability and the wellbeing of their people. In this perspective, the paper investigates the antecedents, and organisational implications, of human sustainability in such firms using a structural equation model (SEM) developed on 4,301 questionnaires filled by Italian Chartered Accountants. Findings shed new lights on some implications of human sustainability. Results show that human sustainability has a direct and significative impact on a firm's ability to innovate, fostering creativity and intellectual capital, thus being significant for corporate performance. As a practical implication, firms should accordingly shape their business strategies towards accounting for human sustainability aspects.     

Conflicting logics? The role of HRM in a professional service firm

HRM is considered of vital strategic importance in professional service firms, but professionals generally resist these managerial initiatives. In this article, I report on an in‐depth case study of a tax consultancy department in a major accounting firm by exploring the way professionals reconcile the logics of professionalism and HRM. Results indicate that the logics are reconciled in several ways as they are simultaneously replicated, revised, and rejected. Whereas current theories argue that the different logics balance each other, this study indicates that the professionals strengthen professional logic by acknowledging HRM and its procedures, simultaneously circumventing them through inverted appropriation. Results suggest that hybridity between conflicting logics may appear on an organisational level, whereas a single logic dominates in everyday work. The study contributes to in‐depth studies of institutional logics and to a detailed understanding of the workings of HRM in professional contexts.     

Comparing assistant roles in education and social care: backgrounds,behaviours and boundaries

This paper explores the character of two assistant roles drawn from different parts of the public services, the teaching assistant from education and the social work assistant from social care. Noting that these roles have assumed increasing importance as part of New Labour's modernization project, it suggests that they have nonetheless been neglected by policymakers and various research communities, particularly relative to professional roles. Using interview and survey data from eight case studies, the paper assesses the contribution made by these roles to the programme of public service reform in relieving burdens on professionals, contributing to the standards agenda and addressing difficulties in recruiting professionals. While the findings confirm the contribution made by both types of assistant, they also highlight differences in the balance of contribution, encouraging a focus on sub-sector institutions in explaining the development of occupational roles.     

Anchoring the mission: A framework for understanding mission maintenance in professional service firms

Mission maintenance in professional service firms must balance the commercial and professional logics and prevent mission drift. Based on a case study of ‘auditing in action’ in a German professional service firm we argue that mission maintenance results from interactions between the practice and field level. We find that anchors on the field level target individuals’ discretionary choices by balancing competing demands from the commercial and professional logics on the practice level. Therefore, we identify anchoring as a central cross-level mechanism for maintaining the balance between routinizing for professional quality and ‘flexibilizing’ for efficiency on the practice level. With these findings we make two contributions to the literature: an analysis of how the field level can contribute to maintaining organisations’ missions in fields that have competing logics, and the identification of anchoring as a central mechanism to balance competing demands with the expectations of referent audiences on the field level.     

Developing service climate in local vs. foreign firms in smaller Asian emerging markets: a resource-based and social exchange perspective

While research on drivers of service climate has focused on organisational resources and human resource practices such as training, employee autonomy and inter-departmental support, how these resources interrelate and influence service climate has not been examined, especially in the context of smaller Asian emerging market. Drawing on the resource-based view and its extension on dynamic capability, and social exchange theory, this qualitative study investigates how local and foreign firms in smaller Asian emerging markets create a favourable service climate. Our findings suggest three inter-related groups of factors that influence service climate, namely firm-based, market-based and culture-based drivers. Notably, foreign service firms perform better than their local counterparts in several firm-based drivers (e.g. service-oriented human resource management practices, work facilitation resources). Our study proposes a conceptual framework that integrates inter-relationships of organisational resource-based factors and explains how internal and external factors drive service climate in firms in smaller Asian emerging markets.     

Environmental Management Systems and Local Community Perceptions: the Case of Petrochemical Complexes Located in Ports

Most oil refineries and factories producing basic chemical products are located in port areas, with the result that industrial complexes potentially have a strong environmental impact on their area of influence. These externalities result in a loss of welfare for citizens residing in neighbouring areas. In a context of sustainable development, companies must integrate concerns about the natural environment in their business strategy. External stakeholders, as residents, find it difficult to visualize the actions firms take to reduce their environmental impact, and the adoption of voluntary certified environmental management systems (EMSs) acts as a signal indicating the adequate environmental behaviour of these companies. These certifications enable companies to achieve the social legitimacy they need for long‐term survival and competitiveness. In the context of a petrochemical industrial complex located in the port of Castellón (Spain), this paper primarily discusses whether such certifications – which act as signals of firms’ desirable environmental conduct – translate into higher trust in firms and lower risk perception by residents. Contrary to what might be expected, despite the widespread use by companies of voluntary and certified EMSs, the research findings confirm a relatively high citizen perception of risk regarding the industrial complex and a low trust in companies. On the other hand, the findings also show a low trust in the public institutions responsible for authorizing and monitoring firms’ activities and for enforcing possible sanctions in non‐compliance cases. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Business service firms,service space and the management of change

The growth of business service firms represents the latest stage in a continuing twentieth century process of technological and organizational restructuring of production and labour skills. It is associated with the rising information intensiveness of production and the development of an economy of signs. Business service activities located in service spaces drive innóva.tions both in production technology and in management systems. The co-presence of business service firms with their clients as well as other business service firms shapes the possibilities of trust between them. A detailed case study of the way in which large client firms utilize the services of independent business service companies is provided. This is followed by an examination of the relationship between small firms and business service expertise. A dual information economy may be developing in which large firms are able to search for specialist business service expertise irrespective of its location, while SMEs are tied into local providers of more generalist expertise.     

Committed to whom? Professional knowledge worker commitment in cross‐boundary organisations

This paper examines the impact of contemporary cross‐boundary working on employee commitment. It contributes directly to the literature on employee commitment and in particular it advocates a multiplicity approach to commitment. We identify three foci of commitment which co‐exist and illustrate their dynamic interaction. Importantly, our unit of analysis extends beyond the boundaries of the firm to include the actions of professional working which capture the main influences on employee commitment. Thematic analysis of data in 12 professional service firms identifies the interaction between the foci of commitment as well as managerial responses to tensions between the commitment foci that arise within the cross‐boundary context.     

Organizational practice transfer within a transnational professional service firm: the role of leadership and control

Most cross-border organizational practice transfer involves implementation challenges, yet key literature in this field largely overlooks the mediating role of the transfer coalition, which serves as a ‘bridge’ between headquarters and subsidiaries in transferring an organizational practice. By exploring an in-depth case study of a top-tier professional service firm, this study contributes to the literature on cross-border human resource management practice transfer. We show that the transfer coalition displayed activities that translated into two separate managerial roles – transfer leadership and control – that were practiced with quite different levels of commitment by different members and impacted the successful management of the transfer process. We propose two distinctive transfer coalition archetypes – the entrepreneurial and the ceremonial type – where the leadership and control roles were practiced quite differently and reached different levels of organizational practice adoption. Furthermore, we suggest practical implications for HR professionals in order to improve global leadership and control competence.     

Closing the innovative loop: moving from the laboratory to the shop floor in biotechnology manufacturing

Innovation is a hallmark of successful technology-intensive start-up companies. This paper considers manufacturing as a knowledge-generating activity integral to product innovation in entrepreneurial biotechnology firms. The model of the virtual corporation has been advocated as a means to focus on the resources of start-up companies; yet regional specialization in technical applications and product categories suggests that manufacturing may be a knowledge-generating activity that can provide a potential source of regional advantage. This paper considers the manufacturing strategies that bio-entrepreneurs would like to pursue and explores barriers to forward integration. While capital constraints may force firms to licence and subcontract manufacturing, it was found that entrepreneurs believe that it is important to undertake manufacturing and, when they are financially able, they invest in manufacturing facilities. The authors conclude by providing a framework for considering when it might be most appropriate for biotechnology firms to invest in manufacturing.     

Influence factors for operational control and compensation in professional service firms

Professional service firms have distinct operational challenges due to the type of work that is transacted by the employees of these firms, and due to the nature of the employees themselves. In this paper, we develop and present factors that influence professional service operations in firms and compensation structures for professional service providers. We establish professional service influence factors, which we posit will impact agency relationships in professional service firms. That is, we hypothesize that professional service influence factors (PSIFs) will moderate the effect of task programmability and outcome measurability in predicting the use of behavior- or outcome-based compensation schemes (control strategy). Logistic regression is used on data provided by 192 professional service providers in order to examine the impact of the agency variables and moderating factors on control strategies. The results indicate that company- and profession-based factors have moderating effects on task programmability when predicting control strategy. We discuss the implications of our findings.     

Options‐based HRM,intellectual capital,and exploratory and exploitative learning in law firms' practice groups

The current study intends to uncover the strategic contribution of human resource management by introducing a unique construct of options‐based (vis‐à‐vis project‐based) HRM and examining its links to intellectual capital and exploratory and exploitative learning in the context of law firms' practice groups. Empirical results show that options‐based HRM is positively related to the practice group's explorative and exploitative learning. The intellectual capital mediates the relationships between options‐based HRM and the practice group's learning for exploration and exploitation. This study makes a valuable contribution to the HRM literature by establishing the mechanisms by which HRM enables organizational learning and extending the scope of HRM research to professional service firms. Our findings also provide valuable implications for the literature of organizational learning. © 2012 Wiley Periodicals, Inc.     

The impact of supply-side electronic integration on customer service performance

Although information technologies have been expected to directly enhance firm performance in specific value chain activities (e.g., supplier performance or customer service performance), their advanced capabilities offer the promise of organizational integration and spill-over benefits. Enterprise systems provide firms with platforms for electronically integrating their supplier and demand chain activities. Spill-over benefits refer to the impacts that occur when IT investments in one organizational domain benefit performance in a different value chain side of the firm. Supply-side electronic integration (SEI) refers to the use of electronic means to integrate the exchange of information and transactions with suppliers through enterprise systems. In our research, we examine whether SEI generates spill-over effects on customer service performance, over and beyond firms’ direct investments in customer-side digitization. We also examine whether structural attributes of the firm (e.g., vertical integration, diversification, and centralization) moderate the effects of supply-side electronic integration on customer service performance. Our analysis of a secondary dataset of InformationWeek 500 firms shows that SEI helps firms realize cost-savings in their customer service performance, especially if they are less vertically integrated. In addition, SEI investments help diversified and centralized firms achieve cross-selling with their customers. We also find that SEI is more likely to help decentralized and diversified firms achieve customization in their customer service activities. These results suggest that SEI helps firms achieve twin goals in customer service: cost reduction and revenue expansion. Overall, our research reveals how supply-side electronic integration could generate benefits in customer service performance in firms.