Table Of ContentMichael 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
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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
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Dissertation European Business School Oestrich-Winkel, 2006
D1540
1.AuflageDezember2006
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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
