Welcome to Francis Academic Press

Academic Journal of Business & Management, 2022, 4(14); doi: 10.25236/AJBM.2022.041419.

The Influence of Corporate Strategy on the Performance of Professional Service Firms under Covid-19 Pandemic

Author(s)

Yanjie Yong

Corresponding Author:
Yanjie Yong
Affiliation(s)

Zibo Vocational School, Zibo City, Shandong Province, 255300, China

Abstract

Professional service firms has been regarded as prototypes of knowledge economy and “future enterprise” (Boussebaa& Faulconbridge, 2019)[1]. With the development of digital technology and rapidly changing external environment, companies face great challenges. Especially when the Covid-19 pandemic stoke the world. Previous researches indicated valid relation between corporate strategy and firm performance. (Porter, 1991[2]; Park, Shin and Jurn, 2009[3]). This article adopted quantitative analysis, taking three professional service firms as case studies. Secondary data is collected through financial reports, and official websites of the three companies. It is revealed that the largest professional service firms, though striving with the VUCA environment, managed to maintain a profit. Based on acquired information, the author first made a descriptive analysis of the data, then conducted correlation test and linear regression test. The relationship between both independence variables and company performance was identified to be valid.

Keywords

Professional Service Firm; Corporate Strategy; Performance; Pandemic

Cite This Paper

Yanjie Yong. The Influence of Corporate Strategy on the Performance of Professional Service Firms under Covid-19 Pandemic. Academic Journal of Business & Management (2022) Vol. 4, Issue 14: 116-125. https://doi.org/10.25236/AJBM.2022.041419.

References

[1] Boussebaa, M, Faulconbridge, JR (2019). Professional service firms as agents of economic globalization: A political perspective. Journal of Professions and Organization.

[2] Porter, M. E (1991). Towards a dynamic theory of strategy. Strategic Management Journal, 12(S2): pp95–117. 

[3] Park, H. Y., Shin, G. C. and Jurn, I (2009). Corporate Strategies and Performances of Korean Firms: The Unified Theory of the Firm Perspective. Global Economic Review, 38:2, 185-203.

[4] Fladmoe-Lindquist, K., Aharoni, Y (1993). The impact of bargaining and negotiating on the globalization of professional service firms. In Coalitions and Competition: The Globalization of Professional Business Services: 143-152. 

[5] Greenwood, R., Morris, T., Fairclough, S., and Boussebaa, M (2010). The organizational design of transnational professional service firms. Organizational Dynamics, 39, pp173–83.

[6] Okhuysen, G. A., Lepak, D., LEE ASHCRAFT, K. A. R. E. N., LABIANCA, G. J., Smith, V., and Steensma, H. K(2015). Theories of Work and Woring Today. Academy of Management Review, 4015.

[7] Greenwood, R., Hinings, C. R., and Brown, J (1990). “P2-form” strategic management: corporate practices in professional partnerships. Academy of management journal, 33(4), pp725-755.

[8] Singh, J., Brady, M., Arnold, T., & Brown, T. (2017). The emergent field of organizational frontlines. Journal of Service Research, 20(1), 3-11.

[9] Hentschel, M. (1992) Hentschel, B. (1992). Besonderheiten der Dienstleistungsqualität. In Dienstleistungsqualität aus Kundensicht, pp. 61-110. Deutscher Universitätsverlag.

[10] Aharoni, Y (1996). The organization of global service MNEs. International Studies of Management and Organization, 26, pp 6–23.

[11] Mintzberg H (1989). The Structuring of Organizations. In: Asch D., and Bowman C. Readings in Strategic Management. Palgrave, London. 

[12] Johnson, G., Whittington, R., Scholes, K., Angwin, D., and Regnér, P (2011). Exploring strategy. Financial Times Prentice Hall

[13] Johnson, G., Scholes, K., Whittington, R., Regnér, P., and Angwin, D (2017). Fundamentals of strategy. Pearson UK.

[14] Porter, M. E (1997). Competitive strategy. Measuring business excellence.

[15] Grant R. M (1995). Contemporary Strategy Analysis, 2nd edition, Basil Blackwell: Oxford.

[16] Rumelt. R (1991). How much does industry matter? Strategic Management Journal 12(3): pp167–185. 

[17] Hill, C. W. L., and Snell, S. A (1988). External Control, Corporate Strategy, and Firm Performance. Strategic Management Journal, Vol. 9, pp577-590. 

[18] Savall, H., and Zardet, V. (2015) Reflecting on conventional wisdom: Learning from the database. In A. F. Buono, & H. Savall, The socio‐economic approach to management revisited: The evolving nature of SEAM in the 21st century (pp. 29–53). Information Age Publishing: Charlotte, NC

[19] Lorange, P (2001). Strategic re-thinking in shipping companies. Maritime Policy & Management, 28(1), pp23-32.

[20] De Loecker, J., and Goldberg, P. K (2014). Firm performance in a global market. Annu. Rev. Econ., 6(1), pp201-227. 

[21] Smith, W. L., Hillon, Y. C., and Liang, Y. (2019) Reassessing measures of sustainable firm performance: A consultant's guide to identifying hidden costs in corporate disclosures. Business Strategy and the Environment, 28(2), 353-365.

[22] Bowman, E. H., and Helfat, C. E (2001). Does corporate strategy matter? Strategic management journal, 22(1), 1-23.

[23] Chathoth, P.K., and Olsen, M.D (2007). The effect of environment risk, corporate strategy, and capital structure on firm performance: An empirical investigation of restaurant firms. Hospitality Management 26: pp502–516 

[24] Cucculelli, M., and Bettinelli, C (2015). Business models, intangibles and firm performance: evidence on corporate entrepreneurship from Italian manufacturing SMEs. Small Business Economics, 45(2), pp329-350.

[25] He, Q., Wang, M. and Martínez-Fuentes, C (2020).Impact of corporate entrepreneurial strategy on firm performance in China. Int. Entrep Manag. J 16, pp1427–1444. 

[26] Apergis, N., and Sorros, J (2010). Disaggregated earnings and stock prices: Evidence from international listed shipping firms. International advances in economic research, 16(3), pp 269-281.

[27] Saunders, M., Lewis, P. and Thornhill, A (2009). Research methods for business students. Pearson education.

[28] Bryman, A (2012). Qualitative research on leadership: A critical but appreciative review. The leadership quarterly, 15(6), pp729-769.

[29] Accenture (2021). Accenture | Our purpose. [online] Available at: <https://www.accenture.com/us-en/about/company-index> [Accessed 20 August 2021].

[30] Booz Allen Hamilton (2021). About Us. [online] Available at: <https://www. boozallen. com/about. html> [Accessed 20 August 2021].

[31] Marsh& McLennan (2021). About Us. [online] Mmc.com. Available at: <https: //www.mm com/about.html> [Accessed 20 August 2021].

[32] Accenture (2019). Annual Report. Dublin: Accenture, plc.

[33] Accenture (2020). Annual Report. Dublin: Accenture, plc.

[34] Booz Allen Hamilton (2019) .Annual Report. McLean, VA: Booz Allen Hamilton. Inc

[35] Booz Allen Hamilton (2020) .Annual Report. McLean, VA: Booz Allen Hamilton. Inc

[36] Marsh& McLennan (2019). Annual Report. New York, NY: Marsh& McLennan Companies, Inc.

[37] Marsh& McLennan (2020.) Annual Report. New York, NY: Marsh& McLennan Companies, Inc.

[38] Rosenberg, N (1990). Why Do Firms Do Basic Research (with Their Own Money)? Research Policy 19(2): pp165-174

[39] Sharma, C. (2012) R&D and firm performance: evidence from the Indian pharmaceutical industry, Journal of the Asia Pacific Economy, 17:2, 332-342

[40] Acs, Z.J., and Audretsch, D.B (1987). Innovation, Market Structure, and Firm Size. Review of Economics and Statistics, 69 (4),pp 567-574

[41] Rumelt, R (1982). Diversification Strategy and Profitability. Strategic Management Journal 3: pp359-369.