The interplay between organizational capabilities and individual skills : Studies of technical and engineering consulting firms

Abstract: The number of professional service firms has increased rapidly in the recent decades. This thesis focuses on a type of professional service firm that has, thus far, been under-researched, namely the technical and engineering consulting (TEC) firm. TEC firms are important actors with regard to innovation, knowledge development, and the transfer of knowledge among problemsolving contexts. This thesis addresses the organization and development of engineering knowledge and the roles of the TEC firm and the technical consultants in the transfer of knowledge among assignments, projects, client organizations, and industries.This thesis consists of a compilation of four papers and an extended summary. It builds on four qualitative studies and takes a multilevel perspective by utilizing an embedded case-study design to examine both the organizational level and the individual level as well as the interaction between the two levels. The thesis draws upon interviews with managers, consultants, client representatives, and industry experts and analysts. Moreover, it presents findings from an in-depth study of a competence development program for technical consultants.This thesis contributes to the professional service firm literature by uncovering the knowledgebased advantages accrued by TEC firms through the organization and development of engineering knowledge. This thesis identifies two capabilities, swift transition and knowledge cycling, and argues that the link between these capabilities creates the foundation for the successful organization of engineering knowledge. The thesis demonstrates that the capabilities developed by TEC firms are formed through the interaction between the organizational level and the individual level. In addition, this thesis illustrates that capabilities differ among TEC firms. These differences stem from the organizational processes of the firm and the individual skills of the technical consultants. Based on these differences, the thesis identifies two ideal types of firms: resource-capitalizer and project-capitalizer. Furthermore, it develops the notion of knowledge cycling which demonstrates how the mobility inherent in the technical consultants’ work facilitates the transfer and development of knowledge within and among problem-solving contexts. This process highlights the roles of the individual consultant, the TEC firm, and the client organization in the transfer of knowledge within and among assignments, projects, client organizations, and industries. Finally, this thesis provides insight into how formal training can develop the consultants’ ability to transfer knowledge among problem-solving contexts by enhancing their liminality competence.