Task, Firm Size, and Organizational Structure in Management Consulting: An Empirical Analysis from a Contingency Perspective PDF
Preview Task, Firm Size, and Organizational Structure in Management Consulting: An Empirical Analysis from a Contingency Perspective
Michael Graubner Task, Firm Size, and Organizational Structure in Management Consulting WIRTSCHAFTSWISSENSCHAFT Forschung Schriftenreihe der EUROPEAN BUSINESS SCHOOL International University SchloB Reichartshausen Herausgegeben von Univ.-Prof. Dr. Utz Schaffer Band 63 Die EUROPEAN BUSINESS SCHOOL (ebs) - gegrundet im Jahr 1971 - ist Deutschlands alteste private Wissenschaftliche Hoch- schule fiir Betriebswirtschaftslehre im Universitatsrang. Dieser Vorreiterrolle fiihJen sich ihre Professoren und Doktoranden in Forschung und Lehre verpfliciitet. IVIit der Schriftenreihe pra- sentiert die EUROPEAN BUSINESS SCHOOL (ebs) ausgewahlte Ergebnisse ihrer betriebs- und voll<swirtschaftlichen Forschung. Michael Graubner Task, Firm Size, and Organizational Structure in Management Consulting An Empirical Analysis from a Contingency Perspective With a foreword by Prof. Dr. Jean-Paul Thommen and Prof. Ansgar Richter, PhD Deutscher Universitats-Verlag Bibliografische Information Der Deutschen Nationalbibliothek Die Deutsche Nationalbibliothek verzeichnetdiese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet iiber <http://dnb.d-nb.de> abrufbar. Dissertation European Business School Oestrich-Winkel, 2006 D1540 1.AuflageDezember2006 Alle Rechte vorbehalten © Deutscher Universitats-Verlag I GWV Fachverlage GmbH, Wiesbaden 2006 Lektorat: Ute Wrasmann / Britta Gohrisch-Radmacher Der Deutsche Universitats-Verlag ist ein Unternehmen von Springer Science+Business Media. www.duv.de Das Werk einschlieBlich aller seiner Telle ist urheberrechtlich geschiitzt. Jede Verwertung auSerhalb der engen Grenzen des Urheberrechtsgesetzes ist ohne Zustimmung des Verlags unzulassig und strafbar. Das gilt insbe- sondere fur Vervielfaltigungen, Ubersetzungen, Mikroverfilmungen und die Einspeicherung und Verarbeitung in elektronischen Systemen. Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme, dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei zu betrachten waren und daher von jedermann benutzt werden durften. Umschlaggestaltung: Regine Zimmer, Dipl.-Deslgnerin, Frankfurt/Main Druck und Buchbinder: Rosch-Buch, ScheBlitz Gedruckt auf saurefreiem und chlorfrei gebleichtem Papier Printed in Germany ISBN 978-3-8350-0496-2 To my parents Jiirgen Graubner (1944 - 2003) Barbara Graubner (1947 - 2002) Foreword VII Foreword The management consulting industry has grown into a sizeable eco nomic sector and employment market in the outgoing 20* century. Globally operating management consulting firms, with thousands of consultants, have emerged. They coexist alongside many small consultancies and single practi tioners. As a result, a remarkable diversity in the organizational structure of management consulting firms has developed. Organizational structure is of utmost importance for consultancies as it directly impacts their business and employment models. Yet, little scientific explanation has been offered so far on the factors accounting for the diversity of organizational structure in manage ment consulting. Michael Graubner explores this contemporary topic. His research is guided by the contingency theory of organizations, one of the classical organi zation theory schools of thought that has been traditionally applied to investi gate organizational structure in manufacturing, banking, and the public sector. The author thoroughly reviews the different aspects of contingency theory - contingency factors, constructs of organizational structure, the concept of fit between contingencies and structure, organic vs. bureaucratic theory - and reflects on them in the light of other organization theory schools of thought. Building on Lex Donaldson's 'parsimonious model' of contingency theory, he develops seven research hypotheses on the relationships between organiza tional size and task uncertainty as contingency factors and structural differen tiation, specialization, centralization, and formalization as constructs of organ izational structure. The author tests the hypotheses empirically with qualitative and quantitative data, mostly obtained during a series of personal interviews in large and medium-sized management consulting firms with offices located in Germany, Austria, and Switzerland. The exploratory, NVivo software-supported analysis of the data pin points a number of measures with considerable differences between firms re garding the task uncertainty inherent in the services they provide and the way VIII Foreword they are structured. In the deductive part of the research, organizational size and to a lesser degree task uncertainty are found to be closely associated with the organizational structure of management consultancies. Positive relation ships are identified between size and structural differentiation, task uncertainty and specialization, and between size and formalization. A negative association is discovered between consultancies' size and their degree of centralization of decision-making. Overall, the findings uphold classical contingency theory of organizations rather than the 'parsimonious model'. Michael Graubner's work contributes to the advancement of the contin gency theory of organizations. He uses this well-established theory to study organizational structure in management consulting and thereby expands its application range beyond traditional industries. In addition, he empirically tests Donaldson's recent modification of structural contingency theory and re jects it in support of the theory's classical premises. The author investigates a current and vital, yet under-researched phe nomenon. While there has been a growing academic interest in professional service firms in recent years, comparatively little attention has been paid to the organization of these firms. Few researches, including a group of institutional theorists around Hinings, Brock, and Powell, have addressed organizational topics in the professional services. Their predominant focus, however has been on large accounting and law firms. The degree to which the findings can be transferred to other professional service industries remains unclear. Michael Graubner examines management consulting firms and therefore provides a substantial contribution to the body of knowledge on the organization of pro fessional service firms in general and management consultancies in particular. Prof. Dr. Jean-Paul Thommen Prof. Ansgar Richter, PhD Acknowledgements IX Acknowledgements This dissertation is an integral part of the management consulting research carried out at the European Business School (ebs) under the leadership of Prof. Dr. Jean-Paul Thommen and Prof. Ansgar Richter, PhD. Both have supervised my work, provided guidance, and counseled me whilst I conducted my research. They have created a highly stimulating and supportive working environment. I am deeply grateful to them. I would like to thank all members of the Department of Management and Leadership who have in different ways contributed to my research. I owe much to Dr. Sandra Niewiem and Dr. Katrin Schroder, who have in parallel analyzed the management consulting industry, as well as to Dr. Robert Urlichs. It has been a genuine pleasure working in this team of exceptional people. I am indebted to Linda Albrecht, Dr. Markus Gmiir, Dr. Daniela Peterhoff, Dr. Sascha Schmidt, and Dr. Denise Sumpf for their cooperation, support, and in sightful discussions. In particular I would like to mention Prof. Dr. Ulrich Grimm who was kind enough to act as co-supervisor for this dissertation. I am thankful to the ebs as a truly distinct academic institution and the ebs community, which I very much enjoyed belonging to. I highly appreciate the openness and time commitment of my interview partners from more than 30 consulting firms who have shared their experiences and insights. Without their contributions, this research project would not have been possible. I am indebted to Allison Burlew for her thoroughness and patience while correcting my English. Finally, I would like to thank my dear family and friends for their ongoing encouragement, personal advice, and love throughout recent years. Michael Graubner Overview XI Overview Foreword VII Acknowledgements IX Overview XI Contents XIII Tables XIX Figures XXI Abbreviations XXV 1 Introduction 1 2 Theory 21 3 Methodology 79 4 Results 137 5 Discussion 205 6 Conclusion 243 Appendix 249 References 267
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