1. Evidence from Chinese and Irish professional service firms
Exploring the mediating role of coordination in HPWS and firm performance link:
Evidence from Chinese and Irish professional service firms
Dr Na Fu
Prof. Qinhai Ma
Northeastern University China

2. Professional Service Firms
Definition
“those whose primary assets are a highly educated (professional) workforce and whose outputs are intangible services encoded with complex knowledge” (Greenwood, Li, Prakash, & Deephouse, 2005: 661).
Examples
Accounting, architecture, consulting, and law firms etc. (von Nordenflycht, 2007, 2010 )
Characteristics
Knowledge intensive
Customized solution
Depend on its people – highly HR dependent

3. Quality of communication
Relational coordination
Relationships shape the communication through which coordination occurs
Role relationships
Shared goals
Shared knowledge
Mutual respect
Quality of communication
Frequent communication
Timely communication
Accurate communication
Problem-solving communication

4. Why PSFs need RC? PSFs are knowledge intensive
Consultants – generate new knowledge/innovation to provide solutions
Project-team based – knowledge exchange
Good work relationships
Communication process
Challenges: time pressure, role ambiguity

5. Relational coordination
RC study in PSFs – model
HPWS
Relational coordination
Firm performance

6. Research method Study 1 (Chinese PSFs) Study 2 (Irish PSFs)
98 accounting firms based in Liaoning province in China (82%)
Single respondent
Cross-sectional
Study 2 (Irish PSFs)
120 accounting firms based in Ireland at Time 1
93 accounting firms based in Ireland at Time 2
Some firms have two respondents

7. Results in Study 1 (Chinese PSFs)

8. Results in Study 2 (Irish PSFs)

9. Findings The HPWS-RC-Performance model was fully supported
In more collective country, the link between RC and performance is stronger

10. Scholarly implication
Better understanding the indirect link between HPWS and firm performance
Extend Gittell et al.’s (2010) study to PSFs
Contribute to PSF research by introducing RC

11. Implications for managers
How do I motivating my people to achieve high performance?
-needs to have a system of high performance HRM practices
How do I know if we have high quality of communication?
-Check relational coordination: Frequent, timely, accurate, and problem-solving based communication?
Cross-cultural management or internationalization?
More collective countries needs more relational coordination
Managers

12. Limitations and future research
Single industry
More PSFs such as law firms
Only two countries
Need more countries’ samples
Cross-sectional or time-lagged design
Need longitudinal data

13. Thank You