Professional Services Sector Research Articles

Exploring the Effect of Transformational Leadership on Job Performance in the Service Industry: The Moderating Role of Organizational Citizenship Behaviour

This study aims to research how transformational leadership affects job performance and subsequently the moderating role of Organizational Citizenship Behaviour (OCB). A total of 190 employees working in the Malaysia service industry, specifically the professional service sector, as respondents have participated in the research questionnaire. Convergent validity, discriminant validity, reliability and hypothesis testing were analysed by using SmartPLS3 software. This study revealed that only two dimensions of transformational leadership: idealised influence (behaviour) and intellectual stimulation were positively related to job performance. OCB only partially moderates the relationship between transformational leadership and job performance such as inspirational motivation, individualized consideration, and job performance. This study provides a framework for the management field to incorporate and recognize further need to study the importance of OCB on transformational leadership and job performance in Malaysia.

Рэнкинг крупнейших групп и компаний в области аутсорсинга учетных функций: итоги 2023 года

The results of the next, 15th list of the largest companies and groups in the field of outsourcing accounting functions, prepared by the rating agency RAEX by the end of 2023, demonstrate a steady increase in demand in this professional service sector

The impact of high-performance work practices on employee burnout experience in UK higher education: a professional services perspective

ABSTRACT Evidence demonstrates work intensity is on the rise and can lead to higher rates of burnout. The UK Higher Education professional services sector has been under-researched in terms of work intensity levels and experience of burnout. This research measured these levels and sought evidence of whether high-performance work practices (HPWPs) moderate the user’s level of burnout. Quantitative data were collected using a cross-sector survey and tested for correlation. The results evidenced a moderate, positive relationship between work intensity and burnout, and a strong, negative relationship between HPWPs and burnout. Drawing on the Job Demands – Resources model (Demerouti et. al. 2001), this research contributes to the understanding of the factors contributing to burnout in the UK Higher Education context. Practical implications include addressing the widespread culture of overwork and employing HPWP suites to moderate burnout. Suggestions for further research provide additional clarity.

Employability Skills Requirements in the Professional Services Sector: An In-depth Analysis of Graduates

In today’s competitive job market, the gap between academic preparation and industry expectations has become increasingly evident, highlighting the urgency of identifying the key employability skills required by graduates. This study evaluates the essential employability skills of graduates in the professional services sector. Using a descriptive research design, a questionnaire was administered to 282 respondents in the Philippines. The sample size was determined using Slovin's formula and a stratified random sampling technique. Data analysis involved frequency percentage distribution, weighted mean, and analysis of variance (ANOVA). Findings reveal a significant proportion of respondents as team leaders, holding bachelor’s degrees, and working in professional services firms with more than 151 employees. Effective communication skills emerged as the foremost requirement, complemented by leadership skills that foster enthusiasm and commitment within organizations. Notably, disparities in employability skills were found when respondents were categorized based on organizations’ sizes. Concurrently, respondents reported challenges in articulating well-defined career objectives and demonstrating adaptability. These findings underscore the imperative for higher institutions to emphasize curricula that enhance graduates’ employability skills, particularly in communication, leadership, critical thinking, and problem-solving. Universities should tailor their academic programs to strengthen these crucial skills, benefiting both graduates and the professional services industry. Furthermore, continuous professional development and industry-academic partnerships are recommended to keep curricula aligned with evolving industry needs, ensuring that graduates are well-equipped for the dynamic job market.

Digital transformation in Vietnam: the impacts on external auditors and their practices

Purpose This study aims to explore some perceptions related to the suggestion that external auditors will be replaced by audit technologies that use artificial intelligence (AI) tools to make audit judgements when performing the financial statement audits. Digital transformation is revitalising the technologies used by external auditors and their firms; thus, the authors seek to understand what challenges this creates for the auditing profession in Vietnam. Design/methodology/approach Through the theoretical lens of new institutionalism theory, this study uses a qualitative approach involving 20 semi-structured interviews conducted with external auditors in Vietnam during 2022. This sample includes the global Big Four, global mid-tier and smaller local Vietnamese audit firms. Findings The findings indicate that there is resistance or disagreement with the suggestion that in the future audit technologies using AI tools can replace humans (external auditors). The role of external auditors in the professional services sector will gradually be changed by audit technologies; however, external auditors are unlikely to be replaced by audit technologies that use AI tools based on the responses of the participants. Strict institutional rules that exist in Vietnam would prevent the replacement of (human) external auditors. In the future, external auditors may take on new roles as consultants, with unique skills in classifying and processing data for decision-making processes; however, they will not be completely replaced by technology in the audit space. Research limitations/implications This study has limitations that it is based on the data collection from a single developing country, Vietnam; therefore, the generalisability of the findings is limited to Vietnam. Also, the authors sought insights into the future of external audits in Vietnam. Practical implications This study highlights the changing role of auditors and institutions. Thus, policymakers, external auditors and auditees in other developing countries would find the findings helpful. Originality/value This study provides new perspectives, particularly from local Vietnamese firms, about audit practices that emerge due to high-level technological advancements and then embed themselves into existing audit practices in an emerging economy. Prior studies tended to focus on the global Big Four firms, thus this study contributes by sharing the perceptions of the smaller practitioners also.

Franchise management strategy driving franchisee performance in the service sectors in Thailand

AbstractThis empirical study aims to investigate the impact of different dimensions of franchise management strategies on franchisee performance in the professional service sector. The hypothesized relationship was supported by agency theory, which explains the situation of two parties, one representing the other in day‐to‐day transactions. The samples were 259 managers and supervisors who had worked for franchise service businesses located in Thailand and had regular contact with the franchisor of the global firm. Purposive and snowballing methods were employed to distribute questionnaires to the target respondents. The results of structural equation modeling indicated a good fit of the data to the proposed model. Hypothesis testing revealed noteworthy direct influences of four franchise management strategies, namely innovative culture, supportive service, information exchange, and recommendation, on the performance of franchisees. This study offers valuable insights into the importance of implementing effective franchise management strategies and their direct implications for franchisee performance. The findings have practical implications for franchise businesses, highlighting key areas of focus for enhancing franchisee success and overall business performance.

Factors that affect voluntary turnover among millennials in the professional services industry of Kuala Lumpur

The purpose of this research is to examine the factors that affect voluntary turnover among millennials in the professional services industry in Kuala Lumpur, Malaysia. An online survey using convenience sampling was used, of which a total of 120 samples were successfully collected from millennials working or having worked in the professional services industry and residing in Kuala Lumpur, Malaysia. Structural equation modelling was employed in the analysis part to suggest a working turnover model. Results of the analysis showed that career development showed little significance with voluntary turnover; work-life integration showed a moderate relationship with voluntary turnover, while stress has a strong relationship with voluntary turnover. On the other hand, working culture has no significant effect on the dependent variable. It is essential to emphasize that the findings of this research article will most significantly contribute to the sector of the economy that is concerned with professional services. In the context of forthcoming research, it is necessary to broaden the scope of past studies that have focused on the disparities across different generations of workers about their inclination to change employment willingly. It is crucial to take good care of the employees' physical and mental health. Employers may want to think about setting up an employee assistance programme ("EAP") that includes a hotline that anyone can call to speak with an outside counsellor who is available around the clock. Further investigation can be done to determine the other variables that might influence millennials' voluntary turnover in Kuala Lumpur's professional services sector.

Authenticity and woman’s leadership: a qualitative study of professional business services in the UK

PurposeThis study aims to investigate the research question: how do women leaders in the professional business services (PBS) sector develop and approach workplace (in)authenticity?Design/methodology/approachTen senior women leaders in the Midlands region of the UK were purposefully selected and interviewed. A semi-structured approach meant that the author adopted a social constructionist paradigm and feminist interpretation. Questions were designed to elicit rich descriptions from the participants. An inductive thematic analysis was conducted to address the study’s purpose.FindingsFour themes were important to women when they developed and approached workplace (in)authenticity: (1) Power Structures, (2) Fit to Belong, (3) Influential Femininity and (4) Through Her Evolution. Women described masculine-majority organisations exerting power. They were pressured into altering their behaviours to “fit” into workplaces. When women had the latitude to be themselves, their leadership excelled. Women’s authenticity developed through increased self-knowledge, helping them to overcome workplace challenges. The study concluded that women face complexities when developing and approaching their constructions of authenticity, namely in the barriers and ramifications they face.Practical implicationsThe study suggests several implications for practice and theory concerning enablers and barriers to women leaders' workplace authenticity. The link between authenticity and workplace gender equity needs to be investigated.Originality/valueThe study provides evidence that women are challenged when becoming authentic, therefore, altering their careers irrecoverably in some cases.

Industry and occupational employment projections overview and highlights, 2022–32

Employment and real output are projected to grow from 2022 to 2032. The total economy is projected to add about 4.7 million jobs during this decade, with employment reaching a level of 169.1 million in 2032. Most of the projected employment gains are concentrated in the healthcare and social assistance sector and the professional, scientific, and technical services sector. The retail trade and manufacturing sectors account for the bulk of the projected job losses from 2022 to 2032.

The Effect of Climate Risk on Stock Market Performance Evidence from Sri Lanka

This study aims to identify the effect of climate risk on stock market performance in Sri Lanka. As an island, the country is frequently affected by climate change variabilities. Due to the higher climate risk exposure of Sri Lanka, it is highly needed to identify the risk at a prior stage. As, this is the first study in Sri Lanka to identify the climate risk impact on stock market performance the primary objective of this study is to identify the climate risk effect on the All-Share Price Index, Standard and Poor’s SL20 index and 20 industry groups according to the GICS classification. The considered climate risk variables are drought, flood, high wind, heavy rain, landslide, and lightning. The findings of the study revealed there is no significant impact from climate risk variables to the All-Share Price Index, and Standard and Poor’s SL20 index. However, the analysis discovered significant impact of several climate risks to certain specific sectors of CSE such as drought significantly impacts automobiles and components, banking and transportation sectors. At the same time, the high wind is a key factor for food, beverage and tobacco. The drought and high wind influence are significant in sectors like capital goods, utilities, consumer durable and apparel, consumer services, healthcare, equipment and services, materials and household and personal products. As well as drought and lightning have a significant impact on the commercial and professional service sector and energy sector while the diversified financial sector is impacted by drought, high wind and heavy rain. Apart from that, sectors like food and staples, retailing, insurance, real estate and telecommunication are unaffected by any climate risk factor. At the same time, the pharmacy and bio-tech industries are impacted by all the climate risk variables except floods. Ultimately, the study's findings will provide direction to decision-makers including potential investors to consider the climate risk in their decisions making processes.

The geography of commercial activities in business parks in Cape Town

ABSTRACT Business parks have increasingly become part of Cape Town’s industrial built environment over the last 25 years. It signifies a shift from large industrial premises to smaller units in communal industrial settings. This paper investigates the types of business activities found in the business parks using the conceptual underpinnings of location theory and industrial cluster theory. Online and fieldwork surveys of the businesses found in 49 business parks in Cape Town, South Africa, were conducted to compile a database of businesses and their activities. Each business was classified using the South African Standard Industrial Classification (SIC) codes to establish which economic sectors are represented in the business parks. It was found that the predominant economic sectors in business parks were the wholesale and retail trade, which included the repair of motor vehicles, motorcycles and personal and household goods and catering and accommodation, as well as the financial sector consisting of banking, insurance, real estate and business services. Manufacturing activities and commercial, social and personal services were also well represented. The findings indicate that business parks are the popular location for retail-orientated businesses and small manufacturing concerns and affirm the growing importance of the professional and business service sectors. The paper lays the groundwork for further investigation into the multi-scalar economic linkages of firms in business parks in Cape Town.

Employment of geography study graduates in Latvia

Geography is an interdisciplinary field that explores human-nature interactions. Critical thinking and a knowledge of diverse interrelations are required for the study of geography. Geography graduates must be adaptable and quick learners in order to meet the needs of a continuously changing employment market. The aim of this paper is to investigate the nature of employment for geography graduates. The paper gives an overview of the field of geography and labour market demand for geography graduates. This study is based on the data of the 2021 census, labour market data from the Ministry of Economics, monitoring data from the Ministry of Education and Science on graduates in 2017–2020, and also State Revenue Service data on occupations. The findings demonstrate that higher levels of education lead to better job chances. Graduates of geography study programmes receive qualifications that allow them to work in science-intensive sectors of the economy, such as the professional, scientific, and technical services sector of the quaternary economy.

Digitalization processes in small professional service firms: drivers, barriers and emerging organisational tensions

PurposeThis study aimed to provide an exploratory analysis of digitalization processes in small professional service firms (SPSFs) by examining their main drivers and barriers and their impact on customer management practices, considering the intra-organizational, inter-organizational and service offering dimensions.Design/methodology/approachThis study adopted a qualitative, exploratory and inductive research methodology based on in-depth interviews with 19 owners or consultants of small tax/accounting firms, focusing on the role of digitalization in their internal and external processes.FindingsThe findings reveal external and internal barriers to and drivers of digitalization, as well as its effects on customer management practices. They also reveal the emergence of tensions related to the intra-organizational, inter-organizational and service offering dimensions.Originality/valueThis work contributes to the research on the role of digital technologies in the professional service sector, with a focus on SPSFs, which has thus far received limited attention. This research highlights the complexity of combining increasingly standardized processes and services with the need to maintain flexibility and informality in internal and external interactions.

Multi-trait, multi-method talent assessment through a digital platform: Relationship with job performance

This study investigated whether a multi-method assessment approach increases variance for predicting future job performance compared to a single-method approach measuring similar constructs. Participants were managers (n = 539, female = 29%, average age 38 years, SD = 7 years) across a variety of organisations, including the utilities (n = 145), mining (n= 83), telecommunications (n = 98), Information Technology and professional service sectors (n = 213), drawn from samples across Namibia (n = 54), Nigeria (n = 53), Saudi Arabia (n = 105), South Africa (n = 177), the United Arab Emirates (n = 88), and the United Kingdom (n = 62). The managers used a digital platform to complete multi-trait multi-method (MTMM) measures which included competency-based video interviewing, work-related self-report measures, work simulations and aptitude assessments, each measuring work-related competencies. Structural equation modelling was used to determine paths between measures and work performance. Acceptable model fit for the measurement model was established through confirmatory factor analysis. A constrained and baseline model was used to investigate predictive paths to job performance. The baseline model proved to explain greater variance between measures and job performance than the constrained model. This provides support for deploying a multi-method assessment approach, including both self-rated and expert rated content, in a modern organisational context; and using an integrated digital platform.

IMPROVEMENT OF ACCOUNTING AND ANALYSIS OF CONSULTING SERVICES AT THE ENTERPRISE

The service sector is a rapidly developing sector of the modern economy. The emerging market required first the creation and then the expansion of the professional services sector. The most significant changes in the services market are associated with the transformation of demand for consulting services, the need for which is becoming more and more recognized. In the practice of many countries, consulting services are an important factor in the effective functioning and development of business entities in the conditions of market relations. The tasks voiced are quite complex, because the changing economic conditions caused by competition, modernize financial accounting and planning, analyze financial indicators, draw up and adapt such business plans that will provide smooth operation of the organization and achievement of the optimal level of profitability.

Characterizing the changing profile of employment in Australian agriculture

Existing methods of quantifying agricultural employment mask the changing profile of agricultural employment occurring in response to the pressures of competitive productivism, general progress in scientific and technical knowledge, an increasingly complex value chain and changing consumer expectations. This article critically reviews the traditional sources of data used to inform the quantification of the agricultural labor force data and presents a method, the Professional Agricultural Services Sector (PASS) Trident, which measures employment in the agriculture sector more fully, by including employment in professional services and capturing key demographic characteristics. Applying the PASS Trident, our analysis of the industry and occupation level data indicates that the existing method of measuring agricultural employment under-counts the contribution of agribusiness professionals. Moreover, people employed in the professional agricultural services sector are highly educated, younger than the traditional on-farm workforce and reside in urban areas. The methodology proposed in this paper provides a framework for future studies for monitoring shifts in agricultural employment.

Successful Partnerships in Emerging Markets: The Moderating Role of Operational Performance

Purpose – With the reported high failure rate among Small and Medium-sized Enterprises (SMEs) in the professional service sector of emerging markets, coalescing their resources via strategic partnerships to effectively compete in the market place is seen as crucial to their growth and survival. This paper investigates the impact of attributes of partnership, communication behaviour and collaborative conflict resolution on partnership success among Professional Service Firms (PSFs) in emerging markets. It further contributes to the body of knowledge by exploring the moderating role of operational performance in the hypothesised relationships. Design/methodology/approach – Relying on a positivistic paradigm, 300 small and medium-sized PSFs were surveyed, yielding a 79% response rate. Descriptive statistics, hierarchical regression and exploratory factor analysis were used to analyse the collected data. Findings – A positive significant relationship was found between two of the three dimensions of attributes of partnership (commitment and coordination) and the success of partnerships. Despite their importance for partnerships, trust and information sharing negatively impacted partnership success in this study. A positive significant impact was however realised for trust and information sharing when operational performance moderated the relationship. Practical implications – PSFs must develop innovative and workable tools to effectively monitor their operational performance given its significant influence on the relationship between attributes of partnership, communication behaviour and partnership success. Social and cultural competence training is needed for staff to improve the relationship bond, trust and collective goals of partnerships. Originality/value – This paper introduces operational performance as a moderating variable to investigate the hypothesised relationships. It offers insights into how PSFs can manage the pertinent issues critical to the effective management of partnerships in emerging markets.

Multinational Company (MNC) Client Influence on the Internationalization of Professional Services Firms: A Panel Data Analysis

Purpose - This paper investigates how the internationalization of professional services firms such as corporate law firms is affected by their multinational corporate clients and further explores firm-level characteristics moderating this relationship. Design/Methodology/Approach - The author has analyzed panel data on overseas branch openings of 233 U.S. corporate law firms from 1986 to 2008 using the negative binomial regression. The author also confirmed the robustness of the results by using the two-stage regression model to address some of the endogeneity issues raised in modeling the relationship between multinational corporate clients and their law firm internationalization. Findings - This study found that professional services firms such as corporate law firms are more likely to open overseas branches when they have been more dependent on multinational companies (MNCs) for their business. Moreover, additional results indicate that the effect of multinational corporate clients on the internationalization of U.S. corporate law firms varies by a particular firm-level characteristic such as firm orientation toward external expansion. Research Implications - By emphasizing existing relationships with the prominent market exchange partners (i.e., MNCs) as interorganizational antecedents of firm internationalization in the professional services sector, our study contributes to the literature on service firm internationalization and the adoption (and diffusion) of organizational forms and practices. This study also offers valuable insights for professional services industry participants and managers alike by shedding light on the interaction between the firm’s external environments and its strategy orientation.

Work-related social media use: The mediating role of social media communication self-efficacy

Social media use has become an indispensable part of knowledge work. Employees posting work-related content on social media are considered credible sources of information and have significant importance for how stakeholders, such as potential customers and future employees, perceive the organization. Therefore, employees’ ability to communicate about their work on social media has become a competitive advantage both for individual employees and for their organizations, especially in the professional service sector. Hence, understanding the role of employees’ ability to use these social media professionally is crucial for understanding the communicative behaviors of contemporary knowledge workers. In this study, we draw on social cognitive theory and focus on the antecedents and consequences of self-efficacy in individuals’ work-related communication on social media. The results show that perceived organizational commitment, clarity of communicative role, social media training, and prior experience with social media serve as antecedents of communication self-efficacy and subsequent work-related communication on social media. Thus, organizations and particularly management, have several aspects directly within the scope of their control that may aid employees in engaging in the professional use of social media. The paper contributes to the literature on employees’ communication behavior and provides important and actionable insights for management and the development of human resources.

Tempered disruption: Gender and agricultural professional services

AbstractAgriculture has traditionally been framed as men's work, while women's contributions to the sector have largely been rendered invisible. This article examines the emerging agricultural professional services sector, asking how a changing environment for agriculture may be disrupting traditional gender norms framing agricultural employment. Drawing together the literature in gender and agriculture, professional services and entrepreneurship and interviews with 22 women who have built businesses in agricultural professional services in Australia, our analysis identifies that a confluence of macro and micro activities are shaping new opportunities for women in agricultural employment. Through leveraging a changing industry environment, exercising agency, (valuing) local matters and communion, participants are disturbing traditional gendered patterns of agricultural employment. Our analysis highlights how, as participants build their businesses and demonstrate agency in a dynamic environment, they value the integrating, reconciling, and synthesizing they experience from supporting the flow of activities in their communities. In claiming their space in the changing landscape of agricultural professional services, they exemplify communion enriched by agency, and we see a tempered disruption of the gendered norms in agricultural employment. The article contributes to scholarship on agricultural professional work and identifies how historical patterns of employment and masculine privilege are being disrupted.