Learning from the world? Horizontal knowledge flows and geopolitics in international consulting firms

Abstract

This paper examines the nature of the contemporary multinational corporation (MNC) through a study of the use of knowledge management systems (KMS) in four major international consulting firms. In particular, we explore whether and how such systems facilitate horizontal (inter-subsidiary) flows of knowledge, as described in the network view of the MNC. Our analysis reveals the presence of horizontal flows within the four firms, but flows that are contextually constrained and partly shaped by geopolitical power relations. Thus, our study gives some support to the image of the MNC as a network whilst also highlighting the contextual limits of horizontal knowledge transfer and, importantly, the geopolitical conditions under which such knowledge transfer takes place. At the same time, it challenges the claim that consulting firms are model organizations in the area of knowledge management as well as the more negative view that questions the ability of KMS to facilitate knowledge transfer.

Professional service firms, globalisation and the new imperialism

“…Drawing on research into global management consultancies, Boussebaa et al (2012) begin to show that "the transnational social space of [GPSFs] is structured by power relations that have their roots in the broader international division of labour and history of colonialism and imperialism" (Boussebaa et al, 2012: 481) and call for more detailed research on these processes (see also Morgan, 2014, 2015;Boussebaa et al, 2014b). Echoing this view, Brock et al (2014: 10) highlight the study of imperialism as "a key priority" for future research on the societal role and impact of GPSFs.…”

The work of global professional service firms

“…The overall result is continual interoffice struggles over staff and revenue allocations that undermine global integrative efforts. Boussebaa (2015) reinforces this view and also identifies a disjuncture between the rhetoric of 'global' professional standards and the reality of 'local' practice in international consultancies (see also Boussebaa et al, 2014).…”

Internationalization of Professional Service Firms

“…), are required to adhere to the international standards laid down by the UK and US groups. Boussebaa et al (2012Boussebaa et al ( , 2014b describe such processes in terms of a form of "neo-imperialism" in that a few "core" offices based in the most powerful Western economies dominate and seek greater control over smaller and "peripheral" offices based in the rest of the world (see also Boussebaa 2009Boussebaa , 2015Cooper et al 1998). Here, it is useful to note that the vast majority of the world's largest accountancies, law firms, and management consultancies are headquartered either in the UK, a former colonial power with still much influence in the global political economy, or in the USA, today's only superpower and what many refer to as an empire (see e.g., Harvey 2003).…”

“…2014a;Ferner et al 2012;Frenkel 2008); we believe the time has come for PSF studies to follow suit (cf. Boussebaa et al 2012Boussebaa et al , 2014b.…”

“…This learning process enables the firm to evolve new products and innovate in ways that can lead to new and profitable service offerings. And the key to achieving this lies in the firm's ability to develop and implement global knowledge management and employee mobility systems (Beaverstock 2004;Boussebaa 2009;Boussebaa at al. 2014b); something which the transnational form is, theoretically, more capable of achieving than the federal model.…”