Internationalisation of Professional Service Firms: Evidence from Chinese Law Firms

Abstract

The globalisation of professional service firms (PSFs) has garnered increasing attention in research and practice since accounting firms expanded internationally in the 1970s. PSFs from emerging markets (EPSFs) are a distinctive phenomenon, which have been rapidly growing but remain relatively under-explored in the International Business (IB) or PSF literature. Drawing upon well-established IB theoretical frameworks on MNEs from an emerging country (EMNEs) (e.g., springboard theory, Luo & Tung, 2007, 2018) as well as the paradox theory (Lewis & Smith, 2014; Smith & Lewis, 2011), this thesis seeks to answer the following questions: (1) what are the recurring themes and evolutionary trends in PSF internationalisation? (2) how do Chinese EPSFs address the national-international paradox, i.e., going global and maintaining the Chineseness, and (3) how do Chinese law firms, as a type of EPSFs, internationalise their services? The aim of this thesis is to investigate how EPSFs internationalise. To do so, this thesis is organised into three logically interconnected studies which address the above research questions. In particular, Study 1 answers the first question and presents a systematic review of 227 articles published on PSF internationalisation in the past fifty years (1970-2020). Focusing on the second and third research questions and based on the findings from Study 1, Study 2 investigates the internationalisation of EPSFs via qualitative interviews with partners and experienced lawyers from 20 internationalised Chinese law firms. Study 3 conducts a longitudinal case study of a rapidly internationalised Chinese law firm ? Dacheng. These two empirical studies address the research questions on how EPSFs internationalise as well as how they overcome the challenges in overseas markets. Overall, the thesis reveals the current challenges and innovative practices in PSF internationalisation, especially the internationalisation of EPSFs. It advances IB and PSF literature by offering novel insights on people management, knowledge learning & innovation and digitalisation adoption that support the rapid internationalisation of EPSFs.