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Record W2169865069 · doi:10.1093/jpo/jou002

Does the emergence of publicly traded professional service firms undermine the theory of the professional partnership? A cross-industry historical analysis

2014· article· en· W2169865069 on OpenAlexaff
Andrew von Nordenflycht

Bibliographic record

VenueJournal of Professions and Organization · 2014
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicCorporate Finance and Governance
Canadian institutionsSimon Fraser University
Fundersnot available
KeywordsMistakeValue (mathematics)Order (exchange)Interpretation (philosophy)Service (business)BusinessGeneral partnershipEconomicsPublic relationsMarketingPolitical scienceFinanceLaw

Abstract

fetched live from OpenAlex

Economists and organization theorists typically theorize the ‘professional partnership’ as an advantaged organizational archetype in the knowledge intensive setting of professional services. However, the emergence of publicly traded corporations in some professional services seems to challenge this theory. I identify three alternative interpretations of the existence of publicly traded professional service firms: (1) that they are a mistake, an inefficient choice that does not survive in the long run; (2) that they indicate that some professional service firms face a greater need for or value of capital than conventionally thought; or (3) that their absence stems from strong professional norms rather than any economic disadvantage, and they appear when those norms weaken. To assess the validity of these interpretations, I analyze cross-industry and cross-firm patterns of the emergence and characteristics of public corporations from 1960 to 2003 across five professional services. Although the analysis offers some support for each interpretation, I argue there is an order or precedence among them. Professional norms are the first-order factor: the absence of public corporations in an industry stems primarily from professional norms. The value of capital is second order: where professional norms are not binding, the distribution of public corporations correlates strongly with the relative value of capital and firm size. If the mistake interpretation applies at all, it only applies to small firms. Public ownership appears to be a viable form for large professional service firms, even where the value of capital is low. Overall, the analysis suggests that the core assumption of typical theories of the professional partnership—that it generates advantages in retaining talent or motivating effort—may be flawed.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.001
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.029
Threshold uncertainty score0.429

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.001
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.002
Science and technology studies0.0010.000
Scholarly communication0.0000.001
Open science0.0010.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.021
GPT teacher head0.252
Teacher spread0.231 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations21
Published2014
Admission routes1
Has abstractyes

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