Professional Service Firms, Knowledge-based Competition and the Heterarchical Organization Form
Research output: Contributions to collected editions/works › Chapter › peer-review
Authors
Professional  service  organizations,  such  as  advertising  agencies,  software  development  fi  rms,  accounting  organizations,  and  consulting  or  R&D  fi  rms,  operate  in  competitive  environments driven by an imperative of fl exibility and rapid learning (Empson, 2001; Starbuck,  1992).  Superior  competitive  positions  in  knowledge-  based  industries  derive  from greater agility and more valuable knowledge creation for problem-solving relative to that of competitors (Eisenhardt & Martin, 2000; Teece, Pisano, & Shuen, 1997). The organizational implications of knowledge- based competition are clearly illustrated in the commercial software business, where the internet gave rise to open source communities such as Linux or the Apache Foundation. In such organizations, the plurality of distrib-uted  intelligence  is  managed  by  principles  of  decentralization  of  authority  and  self-  organization  (Parhankangas  et  al.,  2005).  Similarly,  the  advertising  industry  has  been  described as having project ecology, in which temporary organizational architectures of learning  are  negotiated  between  diff  erent  actors  within  and  outside  the  fi rm (Grabher, 2001, 2002, 2004).The key idea of project ecology is that a fi rm is not a coherent entity organized around clearly  defi  ned  communication  and  authority  structures.  Rather,  project  ecologies  provide arenas “in which incongruent physical and organizational layers are ‘stapled’ for a  limited  period  of  time—just  to  be  reconfi  gured  anew  in  the  context  of  subsequent  projects”  (Grabher,  2002:  259).  Other  examples  from  technical  consultancy  (Miles  &  Snow,  1995),  management  consultancy  (Alvesson,  1995),  international  accounting  (Brown, Cooper, Greenwood, & Hinings, 1996; Reihlen, Albers, & Kewitz, 2009), virtual customer  environments  (Nambisan  &  Baron,  2010),  medical  trauma  centers  (Faraj  &  Xiao, 2006), and fi nancial services (Sydow, 2004; Sydow & Windeler, 1998) show that an increasing  amount  of  knowledge  work  is  organized  in  ways  that  supplant  typical  Weberian  categories  of  hierarchy  and  fi  rm-  centered  approaches  to  organizational  design
| Original language | English | 
|---|---|
| Title of host publication | Handbook of Research on Entrepreneurship in Professional Services | 
| Editors | Markus Reihlen, Andreas Werr | 
| Number of pages | 20 | 
| Place of Publication | Cheltenham, U.K. | 
| Publisher | Edward Elgar Publishing | 
| Publication date | 2012 | 
| Edition | 1. | 
| Pages | 107-126 | 
| ISBN (print) | 9781848446267 | 
| ISBN (electronic) | 9781781009109 | 
| DOIs | |
| Publication status | Published - 2012 | 
- Management studies
 
