Strategic and functional orientation of small and medium sized enterprises in professional services: An analysis of public accountancy

S. Bagchi-Sen, L. Kuechler

Research output: Contribution to journalArticlepeer-review

20 Scopus citations

Abstract

This study examines how SMEs in public accountancy remain competitive, promote and deliver their services. The association among strategic planning, functional diversification (services and markets), methods of promotion and delivery is also examined. These SMEs face considerable difficulty in overcoming both in-house and external barriers in accessing clients requiring non-traditional services (e.g. management consulting), and clients involved in international business (broadly defined). The results show that the proactive, functionally diversified, and/or internationally oriented firms outperform the reactive, functionally concentrated, and local market oriented firms. The competitive advantage for the former categories is based on flexible specialisation such as customisation of services for specific groups of clients, speed of delivery, collaboration with other producer service firms, and specialised skills. These firms utilise informal networks to promote their services with minimal investments in sponsorships or media selling. Face-to-face interaction with clients continues to be the preferred mode of service delivery despite the increased adaptation of local area networks and other modes of information technology by the proactive, functionally diversified or internationally oriented firms.

Original languageEnglish (US)
Pages (from-to)117-146
Number of pages30
JournalService Industries Journal
Volume20
Issue number3
DOIs
StatePublished - 2000
Externally publishedYes

ASJC Scopus subject areas

  • Strategy and Management
  • Management of Technology and Innovation

Fingerprint

Dive into the research topics of 'Strategic and functional orientation of small and medium sized enterprises in professional services: An analysis of public accountancy'. Together they form a unique fingerprint.

Cite this