“P2-Form” Strategic Management: Corporate Practices in Professional Partnerships

Abstract

Strategic management in complex organizations involves understanding the appropriate relationship between a corporate center and its principal business units. The reported study examined that relationship in an unusual form of organization, large professional partnerships. Because the distinctive characteristics of such organizations limit the relevance of presently available models, we present a more appropriate alternative called the P 2 -form. Using a blend of qualitative and quantitative methodologies and data from large accounting firms, we illustrate properties of the new model.