Legitimacy Management by Smaller Professional Services Firms in the Context of Negative Spillover Threats from Larger Professional Services Firms
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2023-01-25
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en
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This multiple-case study provides knowledge on how smaller PSFs operating within a crisis
sensitive industry manage their legitimacy and how the legitimization efforts that were found correlate with crucial characteristics of smaller PSFs. Interviews with partners and employees of four different smaller accounting firms were conducted. In addition, publicly available documentary data regarding ‘smaller accounting firms’ and ‘the trust in the accounting profession’ has been collected. To derive theoretical statements from the collected data, during the process of data analysis a grounded theory-based approach has been used. This research found seven crucial characteristics for legitimacy management at smaller accounting firms: client knowledge; industry knowledge; educating clients; personalizing client relationships; collaboration between firms; good behavior, and strategic manipulation. In addition, this study found that smaller accounting firms do not actively respond to industry crises, given that none to less negative spillover effects are experienced within the relationship with clients. Further, this study shows that the legitimization efforts of smaller accounting firms have similarities with all three of the main legitimization strategies found in literature: isomorphic adaptation, moral reasoning, and strategic manipulation. Lastly, this study found that the preferential detachment method is occasionally being applied by smaller accounting firms.
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Faculteit der Managementwetenschappen