A Research Of Parnter Motivation In Accounting Firms Toward A Resource-based View

After decades of probation and exploration, accounting firms have developed a set of management system, which is dfferent from that in corporations. Such system, called partnership, has inspired generations of partners to work for survival and growth of accounting firms through social and economical changes, and beyond succession of partners themselves. The most successful accounting firms, such as the Big Four, have developed networks of operation in most countries of the world with hundreds of thousands professionals. Their success is no less than that of any incorporation in history.China’s public accountancy industry was rebuilt as a part of market economy. In thirty years, some China’s local CPA firms have narrowed the gap between them and the Big Four China firms, in revenue and service quality. In order to build even stronger and long lasting frims, China’s local CPAs need to learn more about management of firms as partnerships.Nonetheless, theoretical research and empirical study of partnership in accounting firms are limited, notably incumbered in obtaining details inside accounting firms, e.g. partner selection and remuneration. Such condition may not help accounting firms to improve management or prevent local Chinese firms from learning international practices. This dissertation strives to explore partnership, in a resource-based view, in accounting firms and other professional services firms (PSF) through criterion analysis, qualitative research, and empirical study, in order to reveal the law of survival and development of accounting firm.Through decipherment of accounting firms in a resource based view, this dissertation introduces a new conceptual framework for understanding PSF on a time basis. Both static and dynamic mathematical models are built to describe internal aspects in PSF and partner motivation in accounting firm is thoroughly explored. The research conclusion is verified through investigation of partnership culture in dozens of PSF, interview of dozens of PSF partners, re-interpretation of an empirical study on top100US accounting firms, and case studies over China SW CPAs (accounting), King&Woods (legal service), Arthur Andersen (accounting), McKinsey (consulting).Main conclusions and innovations are made by this dissertation as follows:First, a new conceptual framework for understanding accounting firm is introduced in a resource based view. Traditionally, professionals are loosely defined as human resources or human capital. This dissertation points out that such definition may cause misunderstanding about the dual role of partner as service provider and profit claimer. Transferable personalized resource, as a new term, is introduced to describe such important resources as client relationship, knowledge and expertise. Based on above definition, a framework is introduced for understanding accounting firm in a resource based view:an accounting firm is composed of partners and resources, in which partners apply resources to provide services for their clients. Partnership may motivate partners to create and share resources.Second, this dissertation investigates the partner motivation in PSF on such apects as management of resources, motivation of partners, succession of partners, cultural orientation, and merger and acquisition of accounting firm. Although in setting up the mathematical model and research of individual aspects of accounting firm, this dissertation benefits from some previous works, it surpasses, in comleteness and innovativeness, any of previous research works.Third, this dissertation reveals interaction between partnership culture and partner motivation, In synthesis of works from psychology and sociobiology, this dissertation points out that self-discipline and altrusim, as the core elements of partnership culture, may help improve partner motivation and survive through succession, merger or division of partnership by proper partner motivation.