Existing theories have recognised the importance of expert knowledge in the formation and survival of professional service 6rm.s (PSFs), such as accounting and consulting firms, but have not fully explained its role. We argue that knowledge is a key determinan t of the organisational structure and performance of PSFs. We examine forms of knowledge and knowledge management strategies within PSFs and develop a framework linking the firm’s knowledge base and organisational structure. Two contrasting case studies are presented to illustrate these arguments. The paper concludes with a set of propositions to guide further research.
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