Can economic growth be achieved in top management consulting using principles from the business federation? Findings from a Norwegian longitudinal study from 1984 until 1998

The purpose of this article is to illustrate how management consulting firms can achieve economic growth through operating locally within an international network using the business federation as a new organizational form. Within the business federation, a local office gains access to resources through an extreme form of delegation where top management does not delegate to local offices, but rather gives local offices the permission to deal with tasks, because it is most efficient. The auhor uses top management consulting firms operating in Norway as the empirical setting operationalizing the business federation through a building block system. The research shows support for the claim that firms move closer to the business federation as over time from 1982 until 1998. It is indicated that firms operating close to principles of the business federation achieve stronger economic growth. The research contradicts claims found in the academic literature that the partnership model supports economic growth.

Keywords: top management consulting, the business federation as a new organizational form, economic growth, Norwegian longitudinal study.
JEL Classification: L1