Psychological bonds and their impact on behavioral loyalty in auditor-client relationships

Purpose – The purpose of this paper is to examine the effect of the psychological bond on behavioral loyalty (word-of-mouth, continuance and non-audit services) to audit firms providing services to companies listed on the Polish Stock Exchange. Design/methodology/approach – A model is proposed and tested using structural equation modeling with LISREL. Data were collected from top executives of companies listed on the Warsaw Stock Exchange. Findings – The psychological bond has a positive effect on word-of-mouth, continuance and non-audit services. Research limitations/implications – The current research is limited to the investigation of the psychological bond as an antecedent of behavioral loyalty in Poland. Future research should identify and assess other antecedents and replicate these across different countries. A longitudinal survey across different points in time might reveal more useful information about auditor-client relationships. Practical implications – Auditors need to consider ways in which they can develop the psychological bond with their clients. This bond is the basis for the client believing the audit firm is superior to others, which has been found to lead to behavioral loyalty in this study. In particular, management of the auditor brand and reputation, personal experience of the audit firm and alumni relations are discussed as ways of enhancing the psychological bond among client executives. Originality/value – This study is the first to examine the impact of the psychological bond on behavioral loyalty in auditor-client relationships.

Habitus shock : a model for architect-client relationships on house projects based on sociological and psychological perspectives

The widening gap between architects and clients and the associated problems in the management of their relationship have long been recognised by practitioners and researchers alike. An emerging trend in recent studies is to develop descriptive models to describe behavioural characteristics of relationships based on observations of ' real world' practice, indicating the significance of understanding the complexities of the social environment in which the architect-client relationship is within. This research built upon the work of past descriptive models by exploring the architect-client relationship on house projects with a focus on the client's voice. It is an interdisciplinary study drawing theory from sociology to further understand this built environment industry problem. Sixty-nine percent of architects in Australia spend some of their work time on house projects and therefore improvements in this area can have significant impact on a considerably large portion of the profession. Habitus theory borrowed from sociology explains that the nature of architecture as a specialised activity places architects within an architectural habitus, distinguishing them from clients who are .not trained in the field. An underlying premise of thi s study is that a mismatch between the architect and client's habituses occurs as they enter into a relationship on the house project. This phenomenon is termed habitus shock, referring to the client 's experience of disorientation as they are confronted with an unfamiliar architectural habitus on the project. Culture shock theory is examined for its contribution to explain the process to which the client adjusts to the unfamiliar environment during habitus shock. The habitus shock model proposed in this paper suggests that the client may achieve learning during habitus shock and it is this client learning that can lead to successful relationships.

Client managment on house projects : faciliating client learning for successful architect-client relationships

This paper reports the findings of a study which examined architect-client relationships on house projects with a focus on the supportive role of architects in helping clients deal with project issues. Habitus theory explains that the nature of architecture as a specialised activity places architects within an architectural habitus, distinguishing them from clients who are not trained in the field, which is at the heart of the problematic architect-client relationship. An underlying premise was that habitus shock, that is, a mismatch between the architect and client's habituses Occurs as they enter into a relationship on the house project. Using the qualitative approach underpinned by the constructivist perspective for data collection and analysis, eight in-depth interviews were conducted across five case studies of successful architect-client relationships. The narrative inquiry approach was used to establish the extent to which habitus shock occurred and to describe the stages involved in the client's adjustment process during habitus shock. The findings indicate that habitus shock occurred on all five case studies, which resulted in client learning, enabling clients to function with competency in the unfamiliar environment. Client learning achieved during habitus shock was directly linked to the amount of difficulty experienced. This study has refined our understanding of the architect-client relationship on house projects by exploring more deeply client behaviour and the ways in which clients successfully deal with difficulties on house projects rather than simply identifying the uncertainties and conflicts that occur on projects. The findings demonstrate that client learning during habitus shock is a characteristic of successful relationships. One of the most significant outcomes of thi s study is that it demonstrated the potential to facilitate client learning during habitus shock to contribute to the development of successful architect-client relationships.

Dynamic client portfolios as sources of ambidexterity:exploration and exploitation within and across client relationships

This paper explains how dynamic client portfolios can be a source of ambidexterity (i.e., exploration and exploitation) for knowledge-intensive firms (KIFs). Drawing from a unique qualitative dataset of firms in the global reinsurance market, we show how different types of client relationships underpin a dynamic client portfolio and become a source of ambidexterity for a KIF. We develop a process model to show how KIFs attain knowledge by segmenting their client portfolios, use that knowledge to explore and exploit within and across their client relationships, and dynamically adjust their client portfolios over time. Our study contributes to the literature on external sources of ambidexterity and dynamic management of client knowledge within KIFs.

Critical success factors for positioning Australian business talent in the global knowledge economy : a current research agenda

"Globalisation‟ and the "global knowledge economy‟ have become some of the most common "buzzwords‟ in Australian business, economic, and social sectors in the past decade. Further, knowledge service exports are a growing sector for Australia that utilise complex technical and creative capacities, increasingly rely on virtual work innovations, require new socio-technical systems to establish and maintain effective client relationships in global contexts; and – along with other innovations in the electronic age – may require novel coping abilities on the part of both managers and their employees to achieve desired outcomes (Bandura, 2002). Accordingly, this paper overviews such trends. The paper also includes a research agenda which is a "work-in-progress‟ with a major global company, Shell (Australia); it highlights both the objectives and proposed methodology of the study; it also outlines anticipated key benefits arising from the research.

The effect of bonds on loyalty towards auditors: the mediating role of commitment

The study examines the impact of knowledge and social bonds on commitment and behavioural loyalty in auditor-client relationships. A model is proposed and tested using data collected from stock exchange company executives in the UK. The results show the significant effects of the knowledge and social bonds on commitment. Commitment is shown to be a mediating variable, which influences word-of-mouth and continuance but not the purchase of non-audit services. In the light of these findings, suggestions are provided to auditors in developing relationship bonds and managing the relationship at the firm level.

L'obligation de non-concurrence dans les sociétés de professionnels : vers une théorie de liberté de choix contractuelle

"Mémoire présenté à la Faculté des études supérieures en vue de l'obtention du grade de Maître en droit (LL.M.)"

Maxims of Action in a Financial Co-operative: Epistemological and Theoretical Issues

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Attachments between directors and auditors: do they affect engagement tenure?

Auditors and directors may develop personal attachments over time based on trust and familiarity, and these personal ties seem important for the maintenance of long-term auditor-client relationships. This study examines the tenure of the audit engagement in the presence of these links, which is expected to be longer than auditor-client relationships not so linked. Results indicate director-auditor links are positively associated with auditor tenure and the retention of auditors beyond the critical four-year period identified by Levinthal and Fichman (1988).

Institutional entrepreneurship:a literature review and analysis of the maturing consulting field

With few exceptions (e.g. Fincham & Clark, 2002; Lounsbury, 2002, 2007; Montgomery & Oliver, 2007), we know little about how emerging professions, such as management consulting, professionalize and establish their services as a taken-for-granted element of social life. This is surprising given that professionals have long been recognized as “institutional agents” (DiMaggio & Powell, 1983; Scott, 2008) (see Chapter 17) and professionalization projects have been closely associated with institutionalization (DiMaggio, 1991). Therefore, in this chapter we take a closer look at a specific type of entrepreneurship in PSFs; drawing on the concept of “institutional entrepreneurship” (DiMaggio, 1988; Garud, Hardy, & Maguire, 2007; Hardy & Maguire, 2008) we describe some generic strategies by which proto-professions can enhance their “institutional capital” (Oliver, 1997), that is, their capacity to extract institutionally contingent resources such as legitimacy, reputation, or client relationships from their environment.

Servitization and enterprization in the construction industry:the case of a specialist subcontractor

The current economic climate and a continuing fall in output of the UK construction industry has led to falling prices and margins particularly affecting those lower down in the supply chain such as specialist subcontractors. Coen Ltd. is one such company based in the West Midlands. Faced with a need to up its game it has embarked on a business improvement programme concentrating on better operational efficiency, building stronger client relationships and delivering value added services. Lacking appropriate internal resources Coen has joined with Aston Business School in a 2 year ERDF sponsored project to fulfil the transformation programme. The paper will describe the evolution of product- service offerings in construction and link this with the work being carried out at Coen with Aston and outline the anticipated outcomes.

Beyond construction…..A cross-disciplinary approach to improved learning and teaching in built environment degrees

More than 3.4 million people die each year from water, sanitation and hygiene-related causes. Lack of access to clean water and sanitation kills those most vulnerable in the third world. Leadership in managing cross-disciplinary teams is required to present economical, viable community-based solutions. This project utilised the skills of undergraduates across different disciplines of construction, project management, engineering, design, and communication, to work alongside industry mentors in a team to design, build and present an innovative, sustainable water sanitation solution for a Bangladesh community. The semester-long project enabled undergraduate students to develop skills in client relationships, teamwork, and communication as well as discipline skills of project management and construction. The real-world problem necessitated a paradigm shift away from discipline-based knowledge transference towards skills for the future. The project utilised approaches such as negotiated curriculum and assessment; self-directed, flexible participation in learning; use of social media as a learning tool and cross-disciplinary teamwork. Results from student surveys and interviews indicate that this project directly enhanced students’ work-readiness skills and recognition of the importance of problem solving using cross-disciplinary understandings. Students reported greater self-confidence for tackling future workplace challenges. The results also illustrate strong levels of student satisfaction with the cross-disciplinary approach and the importance of skills in client relationships. The project and its outcomes have implications for how learning and teaching occurs in built environment disciplines and has the potential to create significant impact on the calibre of future built environment graduates.