Empirical Study Reveals Patterns and Effects of Management Consulting
By
surprisetalk
Looks the part, but the middle's still raw. Chew with caution.
Summary
This empirical study examines the management and strategy consulting industry using administrative business-to-business transaction data from Belgium (2002-2023). It reveals that consulting engagements are concentrated among large, high-productivity firms, with a U-shaped impact on total factor productivity (TFP) and profitability. The research provides insights into the opaque consulting industry and its effects on client firms.
Key quotes
· 3 pulledConsulting take-up is concentrated among large, high-labor-productivity firms.
For TFP and profitability, we find a U-shaped pattern: both high and low performers engage consultants.
This paper provides the first systematic and comprehensive empirical study of management and strategy consulting.
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