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Chartering New Territory: Legitimacy and Practice Area Creation in Professional Service Firms

Abstract:

Diversification into innovative domains through new practice area creation is a critical imperative for professional services firms. Using theories of organizational territoriality and corporate charters, we conceptualize professional firms as federations of distinct practice areas and argue that the chartering of a new practice is an inherently political act. New practice area founders need to engage in appropriate legitimacy-mobilizing efforts in order to sustain diversification efforts. Ou...

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Tim Morris More by this author
Heidi Gardner More by this author
Bharat N. Anand More by this author
Publication date:
2008-11-05
URN:
uuid:3ba9911a-83d5-43f5-8410-175fa1aaa4ab
Local pid:
oai:eureka.sbs.ox.ac.uk:2627

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