K. A. VAN PEURSEM AND P. K WELLS ARE with the Department of Accounting, University of Waikato, New Zealand. This study reports on the results of selected interviews and a survey of 280 New Zealand professional accounting firms. The purpose is to explore the characteristics that distinguish these firms in terms of their use of and perceptions towards outside expertise. The findings indicate distinctive practices by small (one owner), medium (up to four partners) and large firms. Vertical integration distinguishes the practices of larger firms; medium-sized firms participate and, to some extent, provide consulting services to other professionals; the small firm respondents indicate more resistance to the concept and they participate less in its practice. Given the results of the study, it is illustrated how a firm's formal networking practices contribute to understanding of the small business.
Get full access to this article
View all access options for this article.
References
1.
Atkins, M. H., and Lowe, J. F. (1998), 'Sizing-up the Small firm: UK and Australian Experience' , International Small Business Journal, Vol. 15, No. 3, pp 42-55 .
2.
Bolton, J. E. (1971), Report of the Committee of Inquiry on Small Firms, HMSO Cmnd. 4811-4811.
3.
Churchill, N. C., and Lewis, V. L. (1983), 'The Five Stages of Small Business Growth', Harvard Business Review, May-June, 1983, pp30-50.
4.
Clifford, M., Nilakant, V., and Hamilton, R. T. (1991), 'Management Succession and the Stages of Small Business Development' , International Small Business Journal, Vol. 9, No. 4, pp 43-55 .
5.
Courtis, J. K. (1989), 'Perception Data- gathering: A Note on Mail Questionnaire Methodology and Bias' , PaciJic Accounting Review, Vol. 2, No. 1, ppl 18-135 .
6.
Creedy, J., and Johnson, P. S. (1983), 'Firm Formation in the Manufacturing Industry' , Applied Economics, Vol. 15, No. 2, pp 177-185 .
7.
Cross, M. (1983), 'Small Firms in the United Kingdom', in Storey, D. J., The Small Firm: An International Survey, London, Croom-Helm .
8.
Eley, J. (1993), 'One-stop Shopping for One-stop Shopping' , Facilities, Vol. 11, No. 1.
9.
Forsaith, D., Fuller, D., Pattinson, W., and Callachor, J. (1995), 'Australian Evidence on the Interchangeability of Definitions of a Small Enterprise' , Australian Bulletin of Labour, Vol. 21, No. 2, pp 109-118 .
10.
Ganguly, P. (1985), UK Small Business Statistics and International Comparisons, London, Harper Row .
11.
Geletkanycz, M. A., and Hambrick, D. C. (1997), 'The External Ties of Top Executives: Implications for Strategic Choice and Performance' , Administrative Science Quarterly, Vol. 42, No. 4, pp 654-682 .
12.
Hesterly, J. C., Fladmoe-Lindquist, K., Borgatti, S. P. (1998), 'Professional Service Constellations: How Strategies and Capabilities Influence Collaborative Stability and Change' , Organisation Science, Vol. 9, No. 3, pp 396-411 .
13.
Heunles, F. J. (1998), 'Innovation, Creativity and Success' , Small Business Economics, Vol. 10, No. 3, pp 263-272 .
14.
Hitchens, D. M. W. N. (1997), 'The Adequacy of Supply of Professional Advisory Services to Manufacturing Firms in Rural Mid-Wales' , The Service Industries Journal, Vol. 17, No. 4, pp 669-690 .
15.
Hodge, N. (1998), 'Advice at a Price (Consultants)' , Accountancy, Vol. 122, No. 1264, pp 56-57 .
16.
Holmland, M., and Kock, S. (1998), 'Relationships and the Internationalisation of Finnish Small and Medium-sized Companies' , International Small Business Journal, Vol. 16, No. 4, pp 46-62 .
17.
Jarrett, A. (1999), 'Managing Diversity and Innovation in a Complex Organisation' , Internationaljournal of Technology Management, Vol. 17, No. 1/2, pp 5-16 .
18.
Jennings, P., and Beaver, G. (1998), 'The Performance and Competitive Advantage of Small Firms: A Management Perspective' , The International Small Business Journal, Vol. 15, No. 2, pp 63-78 .
19.
Jones, C., Hesterly, W. S., Fladmoe- Lindquist, K., and Borgatti, S. P. (1998), 'Professional Service Constellations: How Strategies and Capabilities Influence Collaborative Stability and Change' , Organisation Science, Vol. 9, No. 3, pp 396-410 .
20.
Keeble, D., Lawson, C., Smith, H. L., Moore, B., Wilkinson,. E (1998), 'Internationalisation Processes: Networking and Local Imbeddedness in Technology-intensive Small Firms' , Small Business Economics, Vol. 11, No. 4, pp 327-342 .
21.
Kent, P. (1994), 'Management Advisory Services and the Financial Performance of Clients' , International Small Business Journal, Vol. 12, No. 4, pp 45-59 .
22.
Kleeman, W. B. (1994), 'Out-tasking More Widespread than Outsourcing in the USA' , Facilities, Vol. 12, No. 2, pp 24-26 .
23.
Larson, K D. (1998), 'The Role of Service Level Agreements in IT Service Delivery' , Information Management and Computer Security, Vol. 6, No. 3, pp 128-132 .
24.
Leveson, R. (1996), 'Can Professionals be Multi-skilled?' , People Management, Vol. 2, No. 17, pp 36-39 .
25.
Lorange, P. (1996), 'Developing Learning Partnerships' , The Learning Organisation, Vol. 3, No. 296, pp 11-20 .
26.
Lys, T., and Watts, R. L. (1995), 'Lawsuits Against Auditors' , Journal of Accounting Research, Vol. 32, No. 4, pp 65-93 .
27.
Mazur, L. (1994), 'Agents of Change: Management Consultants' , Marketing Business, Vol. 4, No. 34, pp 1-14 .
28.
McLarty, R., and Robinson T. (1998), 'The Practice of Consultancy and a Professional Development Strategy' , Leadership and Organisation Development Journal, Vol. 19, No. 5, pp 256-263 .
29.
McMahon, R. G. P. (1990), 'Expert Systems and Financial Decision Support in Small Businesses' , International Small Business Journal, Vol. 8, No. 2, pp 23-33 .
30.
Picot, G., and Dupuy, R. (1998), 'Job Creation by Company Size Class: The Magnitude, Concentration and Persistence ofJob Gains and Losses in Canada' , Small Business Economics, Vol. 10, No. 2, pp 117-139 .
31.
Pong, C., and Turley, S. (1997), 'Audit Firms and the Audit Market', in Sherer, M., and Turley, S. (eds.), Current Issues in Auditing, London, Paul Chapman .
32.
Ramsay, J. (1990), 'Disintegration - The Slow Birth of a Fad' , Work Study, Vol. 39, No. 6.
33.
Rathbone, C. L. H., 'A Question of Batteries: Four Roles for Management Consultants' , Management Accounting, Vol. 76, No. 8, pp 26-29 .
34.
Roberts, E. S. (1999), 'In Defence of the Survey Method: An Illustration from a Study of User Information Satisfaction' , Accounting and Finance, Vol. 39, No. 1, pp 53-78 .
35.
Rodwell, J., and Shadur, M. (1998), 'What's Size Got To Do With It? Implications for Contemporary Management Practices in IT Companies' , International Small Business Journal, Vol. 15, No. 2, pp 51-63 .
36.
Sanders, D. H. (1995), 'Analysis of Variance', Statistics (5th edition), New York, McGraw-Hill .
37.
Sengenberger, W., Loveman, G. W., and Priore, M.J. (1990), The Re-emergence of Small Enterprises: Industrial Restructuring in Industrial Countries, Geneva, Switzerland: International Institute of Labour Studies .
38.
Skillen, R. (1989), 'Survival Rate of the New Zealand Company' , Pacific Accounting Review, Vol. 2, No. 1, pp 103-111 .
39.
Szarka, J. (1990), 'Networking and Small Firms' , International Small Business Journal, Vol. 8, No. 2, pp 10-22 .
40.
Szymankiewicz, J. (1994), 'Contractracting Out or Selling Out? Survey Into the Current Issues Concerning the Outsourcing of Distribution' , Logistics Information Management, Vol. 7, No. 1, pp 28-35 .
41.
Von Brachel, J. (1996), 'Reinventing the CPA' , Journal of Accountancy, November, 1996, pp 49-51 .
42.
Wren, B. M., Simpson, J. T., and Paul, C. (1998), 'Marketing Channel Relationships Among Small Business' , International Small Business Journal, Vol. 16, No. 4, pp 64-78 .
43.
Zeff, S. A. (1992), 'The Decline of Professionalism', De Accountant (The Netherlands). Paper published in January, 1992, The Netherlands .
