The Economics and Sociology of Management Consulting

Management consultancy is a key sector in the economic change toward a service and knowledge economy. Originally published in 2006, this book explains the mechanisms of the management consulting market and the management of consulting firms from both economic and sociological perspectives. It also examines the strategies, marketing approaches, knowledge management and human resource management techniques of consulting firms. After outlining the relationships between transaction cost economics, signaling theory, embeddedness theory and sociological neoinstitutionalism, Thomas Armbrüster applies these theories to central questions such as: Why does the consulting sector exist and grow? Which institutions connect supply and demand? And which factors influence the relationship between clients and consultants? By applying both economic and sociological approaches, the book explains the general economic changes of the previous thirty years and sharpens the relationship between the academic disciplines.

Thomas Armbruster is Professor of Business Administration in the Department of Management and Economics at Witten/Herdecke University, Germany.

List of figures; List of tables; Preface and acknowledgements; 1. Management consultancy viewed from economic and sociological perspectives; Part I. The Mechanisms of the Consulting Market: 2. Why do consulting firms exist and grow? The economics and sociology of knowledge; 3. How do supply and demand meet? Competition and the role of social institutions; 4. Who is more powerful? Consulting influence and client authority; 5. Substitutes or supplements? Internal versus external consulting; Part II. The Drivers of Managing a Consulting Firm: 6. Diversified services or niche focus? Strategies of consulting firms; 7. Fostering reputation and growth? Marketing consulting services; 8. Economics and sociology of knowledge distribution: organizational structure and governance; 9. Gaining talent and signaling quality: human resource management; Part III. Conclusions: 10. The knowledge economy, management consultancy, and the multitheoretical approach; References; Index.