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How Small Consultancies Grow: Challenging Problem-Based Theorising

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  • O’Mahoney Joe

    (Cardiff Business School)

Abstract

This paper explores the adequacy of problem- based theorising in explaining the growth of small management consultancies. Literature on professional service firm growth tends to skip over the entrepreneurial stage, assuming ‘crises’ of governance during growth periods. Using interviews with 42 founders who grew their firms, the paper identifies challenges and potential solutions that impacted success. The paper argues that challenges were generally pre-empted by founders through the deployment of expertise that was acquired during experience, education or the use of software. The paper finds no evidence for the assumptions of ‘problem based’ theories of growth, and argues that changes in technology, experience and education may have rendered the theory useless – at least for understanding the growth of small consulting firms.

Suggested Citation

  • O’Mahoney Joe, 2021. "How Small Consultancies Grow: Challenging Problem-Based Theorising," Management Consulting Journal, Sciendo, vol. 4(1), pages 5-20, January.
    • Handle: RePEc:vrs:mancon:v:4:y:2021:i:1:p:5-20:n:6
    DOI: 10.2478/mcj-2021-0002
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    References listed on IDEAS

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    1. Joe O'Mahoney & Stefan Heusinkveld & Christopher Wright, 2013. "Commodifying the Commodifiers: The Impact of Procurement on Management Knowledge," Journal of Management Studies, Wiley Blackwell, vol. 50(2), pages 204-235, March.
    2. Monder Ram, 1999. "Managing Consultants in a Small Firm: A Case Study," Journal of Management Studies, Wiley Blackwell, vol. 36(6), pages 875-897, November.
    3. Jonathan Levie & Benyamin B. Lichtenstein, 2010. "A Terminal Assessment of Stages Theory: Introducing a Dynamic States Approach to Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(2), pages 317-350, March.
    4. Alexander Becker & Dodo zu Knyphausen-Aufseß & Alexander Brem, 2015. "Beyond traditional developmental models: a fresh perspective on entrepreneurial new venture creation," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 7(2), pages 152-172.
    5. Bianca A.C. Groen & Mirthe van de Belt & Celeste P.M. Wilderom, 2012. "Enabling performance measurement in a small professional service firm," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 61(8), pages 839-862, October.
    6. Enno Masurel & Kees Van montfort, 2006. "Life Cycle Characteristics of Small Professional Service Firms," Journal of Small Business Management, Taylor & Francis Journals, vol. 44(3), pages 461-473, July.
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