Analysis on the strategy of improving management consulting business performance: Evidence on a management consulting company established by an accounting firm

Abstract

Based on the viewpoint of the establishment of an additional management consulting company in an accounting firm, as well as the allied management consulting business and operations between the two accounting firms and management consulting companies, this paper discusses the key factors affecting management consulting business performance and then develops and empirically analyzes three regression models of management consulting business performance to conduct empirical analysis. It is found that the two models of the annual revenues and operating profits of management consulting companies show consistent results. When an accounting firm has the behavior of engaging in work in China and applying e-commerce in operation, and when the salary percentage of senior employees, percentage of management consultants, percentage of CPA-qualified employees, professionalism of employees, and concentration of business markets are all higher, positive benefits can arise for the management consulting companies, which can also help the allied management consulting business performance of the accounting firm and management consulting company. In addition, when the percentages of management consultants and CPA-qualified employees in the accounting firm are higher, a positive influence on the allied management consulting business performance of the accounting firm and management consulting company can be achieved. In terms of the control variables, there is no significant influence on the firm scale of the operating profits of management consulting companies, and the other control variables based on the three management consulting business models have a significant positive influence; i.e., the longer the history of the management consulting company, the bigger the scale of the accounting firm, and the better the management consulting business performance. It is expected that the results can provide a reference for the operational management of the consulting market, as well as the planning of future development strategies for managers of accounting firms. The results could help enable accounting firms to break through operational bottlenecks, strengthen competitive advantages, and improve the operational performance of accounting firms and management consulting companies in a highly competitive traditional auditing and tax business market.