Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-26T09:45:52.044Z Has data issue: false hasContentIssue false

Acquiring knowledge through management consultancy: a national culture perspective

Published online by Cambridge University Press:  22 September 2021

Joe O'Mahoney
Affiliation:
Cardiff Business School, University of Cardiff, CardiffCF10 3EU, UK
Andrew Sturdy*
Affiliation:
School of Management, University of Bristol, BristolBS8 1SD, UK
Anna Galazka
Affiliation:
Cardiff Business School, University of Cardiff, CardiffCF10 3EU, UK
*
Corresponding author. E-mail: [email protected]

Abstract

This paper examines how national culture informs the sourcing of management knowledge through external consultancy. First, it hypothesises and compares the relationship between quantitative measures of Hofstede's cultural indices with adjusted expenditure on consulting in nine countries. Two cultural indices are found to correlate with consulting use – power distance (negatively) and individualism (positively). However, the disparity between our findings and prior research suggests limitations of generalisation in studies solely employing quantitative cultural indices to understand the purchasing of business knowledge. We therefore propose the use of supplementary, qualitative data with sensitivity to local contexts and briefly apply this by using secondary sources to provide historical narratives for two countries – the UK and Japan. Overall, we find and tentatively explain significant statistical relationships between Hofstede's cultural indices and adjusted expenditure on consultancy. We then draw attention to wider implications for consulting research and for practitioners involved in this context.

Type
Research Article
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, I. (1998). Ideology and politics in Britain today. Manchester: Manchester University Press.Google Scholar
Ardichvili, A., & Dirani, K. M. (2005). Human capital practices of Russian enterprises. Human Resource Development International, 8, 403418.CrossRefGoogle Scholar
Armbrüster, T. (2010). The economics and sociology of management consulting. Cambridge: Cambridge University Press.Google Scholar
Armbrüster, T., & Glückler, J. (2007). Organizational Change and the Economics of Management Consulting: A Response to Sorge and van Witteloostuijn. Organization Studies, 28(12), 18731885.CrossRefGoogle Scholar
Barthélemy, J. (2020). The impact of economic development and national culture on management consulting expenditures: Evidence from Europe and North America. European Management Review, 17, 185196.CrossRefGoogle Scholar
Basabe, N., & Ros, M. (2005). Cultural dimensions and social behavior correlates: Individualism-collectivism and power distance. International Review of Social Psychology, 18, 189225.Google Scholar
Baum, H. (Ed.) (1997). Japan, economic success and legal system. In Japan: Economic success and legal system. New York: Walter de Gruyter.CrossRefGoogle Scholar
Bergh, D. D., & Gibbons, P. (2011). The stock market reaction to the hiring of management consultants: A signalling theory approach. Journal of Management Studies, 48, 544567.CrossRefGoogle Scholar
Berry, H., Guillén, M. F., & Zhou, N. (2010). An institutional approach to cross-national distance. Journal of International Business Studies, 41, 14601480.CrossRefGoogle Scholar
Bhagat, R. S., Kedia, B. L., & Harveston, P. D. (2002). Cultural variations in the cross-border transfer of organizational knowledge: An integrative framework. Academy of Management Review, 27, 204221.CrossRefGoogle Scholar
Boussebaa, M., Morgan, G., & Sturdy, A. (2012). Constructing global firms? National, transnational and neocolonial effects in international management consultancies. Organization Studies, 33, 465486.CrossRefGoogle Scholar
Cagliano, R., Caniato, F., Golini, R., … (2011). The impact of country culture on the adoption of new forms of work organization. International Journal of Operations & Production Management, 31, 297323.CrossRefGoogle Scholar
Canback, S. (1999). The logic of management consulting: Part 2. Consulting to Management, 10, 3.Google Scholar
Cannon, J. P., Doney, P. M., & Mullen, M. R. (2010). Building long-term orientation in buyer–supplier relationships: The moderating role of culture. Journal of Operations Management, 28, 506521.CrossRefGoogle Scholar
Chanlat, J.-F.. (1996). From cultural imperialism to independence: Francophone resistance to Anglo-American definitions of management knowledge in Québec. In Clegg, S, & Palmer, G. (eds), The Politics of Management Knowledge. London: Sage, pp. 121–140.Google Scholar
Choo, C. W., & Bontis, N. (eds) (2002). The strategic management of intellectual capital and organizational knowledge. New York: Oxford University Press.Google Scholar
Clegg, S. R., Kornberger, M., & Rhodes, C. (2004). Noise, parasites and translation: Theory and practice in management consulting. Management Learning, 35, 3144.CrossRefGoogle Scholar
Czarniawska, B. (2013). The uncertainties of consulting. International Studies of Management & Organization, 43(3), 1121.CrossRefGoogle Scholar
Datamonitor (2008a) Management & Marketing Consultancy in Asia- Pacific. Datamonitor Management Consulting Reports. Sydney: Datamonitor.Google Scholar
Datamonitor (2008b). Management & marketing consultancy in Europe. London: Datamonitor.Google Scholar
Datamonitor (2008c). Management & marketing consultancy in France. London: Datamonitor.Google Scholar
Datamonitor (2008d). Management & marketing consultancy in Germany. Frankfurt: Datamonitor.Google Scholar
Datamonitor (2008e). Management & marketing consultancy in Japan. Sydney: Datamonitor.Google Scholar
Datamonitor (2008f). Management & marketing consultancy in the United Kingdom. London: Datamonitor.Google Scholar
Datamonitor (2008g). Management & marketing consultancy in the United States. New York: Datamonitor.Google Scholar
De Mooij, M., & Hofstede, G. (2002). Convergence and divergence in consumer behavior: Implications for international retailing. Journal of Retailing, 78, 6169.CrossRefGoogle Scholar
Deshpandé, R., & Farley, J. U. (2004). Organizational culture, market orientation, innovativeness, and firm performance: An international research odyssey. International Journal of Research in Marketing, 21, 322.CrossRefGoogle Scholar
Dower, J. (2000). Embracing defeat: Japan in the wake of World War II. New York: Norton & Co.Google Scholar
Ebbinghaus, B. (2006). Reforming early retirement in Europe, Japan and the USA. Oxford: Oxford University Press.CrossRefGoogle Scholar
Engwall, L., Alvarez, J., & Amdam, R. (2001) CEMP – The creation of European management practice. Luxembourg: CEMP.Google Scholar
Engwall, L., Kipping, M., & Üsdiken, B. (2016). Defining management: Business schools, consultants, media. London: Routledge.CrossRefGoogle Scholar
Ernst, B., & Kieser, A. (2002). In search of explanations for the consulting explosion. In Sahlin-Andersson, K. & Engwall, L. (eds), The Expansion of Management Knowledge: Carriers, Flows, and Sources. Stanford, CA: Stanford University Press, pp. 47–73.Google Scholar
Faulconbridge, J. R., Beaverstock, J. V., Hall, S., … (2009). The ‘war for talent’: The gatekeeper role of executive search firms in elite labour markets. Geoforum; Journal of Physical, Human, and Regional Geosciences, 40, 800808.Google Scholar
Faust, M., & Schneider, K. (2014). Functional equivalents to external consulting – A case of a reluctant German corporation. In Faust, M. (ed.), Globale managementberatung. Berlin: Rainer Hampp Verlag, pp. 155192.Google Scholar
Furusten, S., & Garsten, C. (2005) ‘New’ professionalism – Conditions for expertise in management consulting and temporary administrative staffing. In Furusten, S. & Werr, A. (eds), Dealing with confidence – The construction of need and trust in management advisory services. Copenhagen: CBS Press, pp. 1238.Google Scholar
Ghemawat, P. (2001). Distance still matters. Harvard Business Review, 79, 137147.Google ScholarPubMed
Grant, A. M., & Wall, T. D. (2009). The neglected science and art of quasi-experimentation: Why-to, when-to, and how-to advice for organizational researchers. Organizational Research Methods, 12(4), 653686. doi: 10.1177/1094428108320737CrossRefGoogle Scholar
Haffner, J., Klett, T. C., & Lehmann, J. P. (2009). Japan's open future: An agenda for global citizenship. London: Anthem Press.Google Scholar
Hobsbawm, E. J., & Wrigley, C. (1999) Industry and empire: From 1750 to the present Day. New York: New Press.Google Scholar
Hofstede, G. (1980). Culture's Consequences: International differences in work related values. Beverly Hills/London: Sage.Google Scholar
Hofstede, G. (1993). Cultural constraints in management theories. The Executive, 7, 8194.Google Scholar
Hofstede, G. (1994). The business of international business is culture. International Business Review, 3, 114 .CrossRefGoogle Scholar
Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions and organizations across nations. London: Sage Publications.Google Scholar
Hofstede, G. (2010). Cultures and organizations: software of the mind. Maidenhead: McGraw-Hill.Google Scholar
Hofstede, G., Hofstede, G. J., & Minkov, M. (2010), Cultures and organizations: Software of the mind (3rd Edn). New York: McGraw-Hill Education.Google Scholar
Hofstede, G., & Minkov, M. (2010). Long- versus short-term orientation: New perspectives. Asia Pacific Business Review, 16, 493504.CrossRefGoogle Scholar
House, R. J., Hanges, P. J., Javidan, M. … (2004) Culture, leadership, and organizations: The GLOBE study of 62 societies. London: Sage Publications.Google Scholar
Huczynski, A. (2012). Management gurus, Revised Edition). London: Taylor & Francis.Google Scholar
Hurrell, S. (2014). Critical realism and mixed methods research. In Edwards, P., O'Mahoney, J. & Vincent, S. (Eds.), Putting critical realism into practice: A guide to research methods in organization studies. Oxford: Oxford University Press, pp. 241–263.Google Scholar
Husted, K., Gamelgaard, J., & Michailova, S. (2005). Knowledge-sharing behavior and post-acquisition integration failure. In Buono, A. & Poulfelt, F. (eds), Challenges and issues in knowledge management. Chicago: IAP Press, pp. 209228.Google Scholar
Ichniowski, C., & Shaw, K. (1999). The effects of human resource management systems on economic performance: An international comparison of US and Japanese plants. Management Science, 45, 704721.CrossRefGoogle Scholar
ISMO (2013). Special issue on uncertainty and consulting. International Studies of Management and Organization (ISMO), 43, 155.Google Scholar
Johnson, K. R., Head, T., & Sorensen, P. F. (1989). Proposed models for the reporting of cross-cultural OD interventions: A critique and proposed paradigm for OD evaluations. Academy of Management Proceedings. Academy of Management, 1, 153157.CrossRefGoogle Scholar
Jones, C. W. (2019). Adviser to the king: Experts, rationalization and legitimacy. World Politics, 71, 143.CrossRefGoogle Scholar
Karjalainen, K., & Salmi, A. (2013). Continental differences in purchasing strategies and tools. International Business Review, 22, 112125.CrossRefGoogle Scholar
Kennedy Information (2010) Global and US trends in management consulting A Kennedy information perspective. New York: Kennedy Information, pp. 1–6.Google Scholar
Kihn, M. (2006). House of lies: How management consultants steal your watch and then tell you the time. New York: Grand Central Publishing.Google Scholar
Kipping, M. (1999b). British economic decline: Blame it on the consultants ? Contemporary British History, 13, 2338.CrossRefGoogle Scholar
Kipping, M. (2002). Why management consulting developed so late in Japan and does it matter? Hitotsubashi Business Review, 50, 621.Google Scholar
Kipping, M., & Armbrüster, T. (1999). The consultancy field in Western Europe. The University of Reading, CEMP Report.Google Scholar
Kipping, M., & Armbrüster, T. (2002). The Burden of Otherness – Limits of Consultancy Interventions in Historical Case Studies. In Kipping, M & Engwall, L (eds), Management Consulting – Emergence and Dynamics of a Knowledge Industry. Oxford: Oxford University Press, pp. 203–221.Google Scholar
Kipping, M., & Saint-Martin, D. (2005). Between regulation, promotion and consumption: Government and management consultancy in Britain. Business History, 47, 449465.CrossRefGoogle Scholar
Kipping, M., & Wright, C. (2012) Consultants in context: Global dominance, societal effect and the capitalist system. In Clark, T. & Kipping, M. (eds), The Oxford handbook of management consultancy. Oxford: Oxford University Press, pp. 165187.Google Scholar
Kirkman, B. L., Lowe, K. B., & Gibson, C. B. (2006). A quarter century of culture's consequences: A review of empirical research incorporating Hofstede's cultural values framework. Journal of International Business Studies, 37, 285320.CrossRefGoogle Scholar
Lee, J., Roehl, T. W., & Choe, S. (2000). What makes management style similar and distinct across borders? Growth, experience and culture in Korean and Japanese firms. Journal of International Business Studies, 31, 631652.CrossRefGoogle Scholar
Lung-Tan, L. (2006). The relationship between cultural distance and performance in international joint ventures: A critique and ideas for further research. International Journal of Management, 23, 436.Google Scholar
Magnusson, P., Wilson, R. T., & Zdravkovic, S. (2008). Breaking through the cultural clutter: A comparative assessment of multiple cultural and institutional frameworks. International Marketing Review, 25, 183201.CrossRefGoogle Scholar
Mahoney, J. (2007). Qualitative methodology and comparative politics. Comparative Political Studies, 40(2), 122144. doi: 10.1177/0010414006296345CrossRefGoogle Scholar
Marsh, S. (2009). The feminine in management consulting – Power, emotion and values in consulting interactions. Basingstoke: Palgrave.CrossRefGoogle Scholar
May, T. (2011). Social research: Issues, methods and process (4th ed.). Maidenhead: Open University Press.Google Scholar
McKenna, D. (1995). The origins of modern management consulting. Business and Economic History, 24(1), 5158.Google Scholar
McKenna, C. D. (2006). The world's newest profession: Management consulting in the twentieth century. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
McSweeney, B. (2002). Hofstede's model of national cultural differences and their consequences: A triumph of faith – A failure of analysis. Human Relations, 55, 89118.CrossRefGoogle Scholar
Menon, T., & Pfeffer, J. (2003). Valuing internal vs. external knowledge: Explaining the preference for outsiders. Management Science, 49, 497513.CrossRefGoogle Scholar
Michailova, S., & Hutchings, K. (2006). National cultural influences on knowledge sharing: A comparison of China and Russia. Journal of Management Studies, 43, 383405.CrossRefGoogle Scholar
Minkov, M., & Hofstede, G. (2011). The evolution of Hofstede's doctrine. Cross Cultural Management: An International Journal, 18, 1020.CrossRefGoogle Scholar
Miroshnik, V., & Basu, D. (2014). Corporate culture in multinational companies: A Japanese perspective. Basingstoke, UK: Palgrave Macmillan.CrossRefGoogle Scholar
Mohe, M. (2008). Bridging the cultural gap in management consulting research. International Journal of Cross Cultural Management, 8, 4157.CrossRefGoogle Scholar
Monteiro, F., & Birkinshaw, J. (2017). The external knowledge sourcing process in multinational corporations. Strategic Management Journal, 38(2), 342362.CrossRefGoogle Scholar
Morgan, G. (1998). Images of organization. Oakland: Berrett-Koehler Publishers.Google Scholar
Mosonyi, S., Empson, L., & Gond, J.-P. (2020). Management consulting: Towards an integrative framework of knowledge, identity, and power. International Journal of Management Reviews, 22(2), 120149.CrossRefGoogle Scholar
Newman, K. L., & Nollen, S. D. (1996). Culture and congruence: The fit between management practices and national culture. Journal of international business studies, 27, 753779.CrossRefGoogle Scholar
Nicolai, F., & Klein, P. (2010). Critiques of transaction cost economics: An overview. In Klein, P. & Sykuta, M. (eds), The Elgar companion to transaction cost economics. London: Elgar, pp. 323387.Google Scholar
Oliver, M. I., Pearson, N., & Coe, N. (2005). Help-seeking behaviour in men and women with common mental health problems: Cross-sectional study. The British Journal of Psychiatry, 186, 297301.CrossRefGoogle ScholarPubMed
O'Mahoney, J. (2007). Disrupting identity: Trust and angst in management consulting. In Bolton, S. & Houlihan, M. (Eds.), Searching for the H in human resource management. Basingstoke, UK: Palgrave, pp. 281–302.Google Scholar
O'Mahoney, J., Heusinkveld, S., & Wright, C. (2013). Commodifying the commodifiers: The impact of procurement on management knowledge. Journal of Management Studies.CrossRefGoogle Scholar
O'Mahoney, J., & Markham, C. (2013). Management consulting. London: Oxford University Press.Google Scholar
O’mahoney, J., & Sturdy, A. J. (2016). Power and the diffusion of management ideas: The case of McKinsey and Co. Management Learning, 47, 247265.CrossRefGoogle Scholar
O'Mahoney, J., & Vincent, S. (2014). Critical realism as an empirical project: A beginner's guide. In Edwards, P., O'Mahoney, J. & Vincent, S. (eds), Putting critical realism into practice: A guide to research methods in organization studies. London: Oxford University Press, pp. 1–20.Google Scholar
Pagell, M., Katz, J. P., & Sheu, C. (2005). The importance of national culture in operations management research. International Journal of Operations & Production Management, 25, 371394.CrossRefGoogle Scholar
Pawson, R. (2006). Evidence-based policy: A realist perspective. London, Thousand Oaks, Calif: Sage.CrossRefGoogle Scholar
Peltokorpi, V. (2006). Knowledge sharing in a cross-cultural context: Nordic expatriates in Japan. Knowledge Management Research & Practice, 4, 138148.CrossRefGoogle Scholar
Pemer, F., Sieweke, J., & Werr, A. (2014). The cultural embeddedness of professional service purchasing – A comparative study of German and Swedish companies. Journal of Purchasing and Supply Management, 20, 273285.CrossRefGoogle Scholar
Pemer, F., Sieweke, J., & Werr, A. (2018). The relationship between culture and the use of professional services: Evidence from two cross-country studies. Journal of Purchasing & Supply Management, 24, 314325.CrossRefGoogle Scholar
Pinault, L. (2009). Consulting demons. New York: HarperCollins.Google Scholar
Poynter, G. (2013). Restructuring in the service industries – Management reform and workplace relations in the UK service sector. London: Taylor & Francis.CrossRefGoogle Scholar
Ruef, M. (2002). At the interstices of organizations: The expansion of the management consulting profession, 1933–97. In Sahlin-Andersson, K. & Engwall, L. (eds), Carriers of management knowledge: Ideas and their global circulation. Stanford, CA: Stanford University Press, pp. 7498.Google Scholar
Saam, N. J. (2012). Economics approaches to management consulting. In Kipping, M & Clark, T (eds), The oxford handbook of management consulting. Oxford: Oxford University Press, pp. 207–224.Google Scholar
Saint-Martin, D. (2004) Building the New Managerialist State Consultants and the Politics of Public Sector Reform in Comparative Perspective.CrossRefGoogle Scholar
Samovar, L. A., Porter, R. E., & McDaniel, E. R. (2011). Intercultural communication: A Reader. London: Cengage.Google Scholar
Sergi, V., & Hallin, A. (2011). Thick performances, not just thick descriptions: The processual nature of doing qualitative research. Qualitative Research in Organizations and Management, 6, 191208.CrossRefGoogle Scholar
SGR (2020) Forecasts for 2020. Report for Source Global Research. Accessed from https://reports.sourceglobalresearch.com/report/6923/forecasts-for-2020.Google Scholar
Shi, Y., Sia, C.-L., Banerjee, P., … (2009). Choice of knowledge source in situations of equivocality: Impact of cultural traits. PACISProceedings, 4, 124.Google Scholar
Siakas, K. (2002) Software quality management – Cultural and organisational diversity evaluation. London: London Metropolitan University.Google Scholar
Smith, P. B. (1996) National cultures and the values of organizational employees: Time for another look. In Warner, P. & Joynt, M. (eds), Managing across cultures: Issues and perspectives. London: International Thomson Business Press, pp. 92104.Google Scholar
Smith, P. B, & Bond, M. H. (1998) Social psychology across cultures. London: Allyn and Bacon.Google Scholar
Søndergaard, M. (1994). Research note: Hofstede's consequences: A study of reviews, citations and replications. Organization Studies, 15, 447456.CrossRefGoogle Scholar
Sturdy, A. (1997). The consultancy process – An insecure business. Journal of Management Studies, 34, 389413.CrossRefGoogle Scholar
Sturdy, A. J., Handley, K., Clark, T., & Fincham, R. (2009). Management Consultancy, Boundaries and Knowledge in Action. Oxford: Oxford University Press.CrossRefGoogle Scholar
Sturdy, A. J., & O'Mahoney, J. (2018). Explaining national variation in the use of management consulting knowledge – A framework. Management Learning, 49(5), 537558.CrossRefGoogle Scholar
Triandis, H. C. (1995). Individualism & collectivism. Nashville: Westview Press.Google Scholar
Trompenaars, F., & Hampden-Turner, C. (1998). Riding the waves of culture. New York: McGraw-Hill.Google Scholar
Venaik, S., & Brewer, P. (2016) National culture dimensions: The perpetuation of cultural ignorance. Management Learning, 47(5), 563589.CrossRefGoogle Scholar
Volberda, H. W., Van Den Bosch, F. A., & Heij, C. V. (2013). Management innovation: Management as fertile ground for innovation. European Management Review, 10, 115.CrossRefGoogle Scholar
Waarts, E., & Van Everdingen, Y. (2005). The influence of national culture on the adoption Status of innovations: An empirical study of firms across Europe. European Management Journal, 23, 601610.CrossRefGoogle Scholar
Waisberg, I., & Nelson, A. (2018). When the general meets the particular: The practices and challenges of interorganizational knowledge reuse. Organization Science, 29/3, 432448.CrossRefGoogle Scholar
Whitley, R. (2000). Divergent capitalisms: The social structuring and change of business systems. Oxford: Oxford University Press.Google Scholar
Williams, P. (2014). Probability and models. In Edwards, P., O'Mahoney, J. and Vincent, S. (eds), Studying organisations using critical realism. Oxford: Oxford University Press, pp. 283300.Google Scholar
Williamson, D. (2002). Forward from a critique of Hofstede's model of national culture. Human Relations, 55, 13731395.CrossRefGoogle Scholar
Wood, P. (2002). Consultancy and innovation: The business service revolution in Europe. London: Routledge.CrossRefGoogle Scholar
Wright, C., & Kwon, S.-H. (2006). Business crisis and management fashion: Korean companies, restructuring and consulting advice. Asia Pacific Business Review, 12, 355373.CrossRefGoogle Scholar
Yoda, T., & Harootunian, H. (2006). Japan after Japan: Social and cultural life from the recessionary 1990s to the present. Durham, N.C.: Duke University Press.CrossRefGoogle Scholar
Zachariadis, M., Scott, S., & Barrett, M. (2013). Methodological implications of critical realism for mixed-methods research. MIS Quarterly, 37(3), 855879.CrossRefGoogle Scholar