Management Research Review

Determinants of Perceived Success in Management Consulting - An empirical investigation from the

consultant perspective
Matias Bronnenmayer Bernd Wirtz Vincent Göttel
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Matias Bronnenmayer Bernd Wirtz Vincent Göttel , (2016),"Determinants of Perceived Success in Management Consulting -
An empirical investigation from the consultant perspective", Management Research Review, Vol. 39 Iss 6 pp. -
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 Perceived Success in Management Consulting

Introduction

Notwithstanding that today management consulting is not able to keep up with the two-digit

growth of the late 20th century, the development of the consulting industry is still character-

ized by a dynamic increase. This situation is not least caused by rising demands of particular-

ly medium and big companies which regard consultancies as essential part of their daily busi-
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ness (Kipping & Clark, 2012; Kubr, 2005).

The shift from a production focus to a knowledge-intense business world further explains the

need of companies for new innovative knowledge which can help them generate surplus in the

future (Anand et al., 2007). Consequently, the management consulting domain is still of grow-

ing relevance and – despite recent crises within global financial markets and the broader

economy – an important service industry to consider (feaco, 2013; Research, 2013).

Furthermore, management consulting projects usually involve the resolution of complicated

strategic problems at the top management level (e.g. Greiner & Metzger, 1983). Thus, since

most consulting projects are highly important for a client company, aim at ascertaining its

sustainable competitive advantage and include high financial investments, it is crucial to ob-

tain knowledge about the relevant success factors for both client and the commissioned con-

sultants.

In this regard, even though in the relevant academic literature there is a notably long tradition

regarding the subject (e.g. Anand et al., 2007; Miner, 1971; Miner, 1973), relatively little

quantitative research has been conducted so far. Indeed, there is a wealth of practical field

work (experience-based reports, case studies etc.) which however lacks the desired scientific

validity.

1
 Consequently, there are only few sound empirical studies and thus data about management

consulting (Appelbaum, 2004). Additionally, so far no predominant theoretical background

has been advanced for the scientific investigation of management consulting, most likely due

to the topic’s complex nature. Therefore, we identify a significant gap in the literature regard-

ing theoretical groundwork and empirical foundation (e.g. Alvesson & Johansson, 2002; Ap-

pelbaum, 2004; Gagnon, 1984). Most of the existing research concentrates on the consulting

sector’s particular roles as well as their interdependencies (e.g. McKinney Kellog, 1984;

Sewchurran & Barron, 2008), on management consulting’s different functions and the con-
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sulting process itself (e.g. McLarty & Robinson, 1998; Simon et al., 2010; Sturdy, 1997;

Tilles, 1961; Werr & Styhre, 2002).

Accordingly, there are many less investigated areas of research left, for example concerning

the important subject of management consulting’s success factors. In this domain, the existing

literature is mostly characterized by qualitative research. Quantitative studies largely include

only fragmented analyses as well as limitations regarding method and content (e.g. Gable,

1996; Liberatore & Luo, 2010). In addition, there is a lack of precise definitions of manage-

ment consulting success in the majority of the existing studies (e.g. Gable, 1996; Luo &

Liberatore, 2009).

Yet, one notable study about consulting projects’ success factors stems from Appelbaum

(2004). By using regression analysis, he investigates client employees’ view of projects which

include external consultants. However, at the same time Appelbaum's (2004) study does not

provide a theoretical framework.

Overall, given that so far only few studies cover management consulting’s relevant success

factors on a scientific level (e.g. Appelbaum, 2004; Kumar et al., 2000, Simon & Kumar,

2001; Simon et al., 2011), there is a need for additional research in this field (e.g. Glückler &

Armbrüster, 2003; Jang et al., 1997; Marr, 2005; Schweizer et al., 2009; Simon & Kumar,

2001). Therefore, this paper aims at generating deeper insight into the factors and dimensions
2
 of management consulting success, as perceived by consultants. Thus, as we illustrate in the

further course of the paper, we conceptualize the construct itself and theoretically derive the

success factors of management consulting.

To do so, we present the theoretical foundation of this study in the next section. Subsequently,

we develop hypotheses for our conceptual model which we empirically analyze based on a

survey of 348 management consultants. While we present this analysis within the upcoming

sections about the applied method and the study results, our discussion and conclusion offer

implications, limitations and directions for future research.

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Theoretical Foundation

As already mentioned in the introduction, it is hard to identify one single predominant theoret-

ical background for scientifically exploring management consulting. Thus, also due to the

complexity of the research problem investigated in this study, we follow an interdisciplinary

multi-theoretical approach. In this regard, to shed light on the subject from different angles,

the theoretical foundation for this study consists of principal-agent theory and the resource-

based view. We introduce their applicability for the study in the following subsections, and

against this background, subsequently identify antecedent variables for deriving success fac-

tors of management consulting. These efforts will provide even stronger arguments for includ-

ing the chosen approaches and thus illustrate the relation between theoretical foundation and

derived hypotheses. To enhance those illustrations, within the subsection on each success fac-

tor we additionally indicate the antecedent variables in the further course of the paper.

Principal-Agent Theory

Starting with principal-agent theory, it initially characterizes the supplier-customer relation-

ship as determined by asymmetric information (Bergen et al., 1992; Jensen & Meckling,

3
 1976; Ross, 1973). The notion of such a relationship includes that client companies, i.e. “[…]

the principal(s) engage another person (the agent) to perform some service on their behalf

which involves delegating some decision making authority to the agent“ (Jensen & Meckling,

1976, p. 308). To this effect, one postulate of the principal-agent theory includes the agents’

hidden intentions, actions or characteristics. Further, the theory considers potentially resulting

problems like hold-up, moral hazard and adverse selection as well as possible solutions

through monitoring, screening, self-selection and interest alignment (Laffont & Martimort,

2002). Finally, the accruing agency costs consist of three constituents, namely monitoring
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costs, bonding costs and residual loss (cf. Jensen & Meckling, 1976; Junker, 2005; Ross,

1973).

To prove the practical applicability of the principal-agent theory and thus its empirical validi-

ty, we can refer to many reciprocal relationships in society and business (Eisenhardt, 1989).

On the one hand, these include the borrower-lender, the tenant-landlord and the patient-doctor

relationship. On the other hand, the employer-employee and the owner-manager relationships

constitute more relevant examples for our business and management consulting context. As

Jensen & Meckling (1976) as well as Adam Smith (1776) earlier have suggested, especially

the relationship between owner and manager represents how problems between principal and

agent can emerge in the business world: “(…) being the managers rather of other people’s

money than of their own, it cannot well be expected, that they should watch over it with the

same anxious vigilance with which the partners in a private copartnery frequently watch over

their own.” (Smith 1776, p. 34)

Following up on this citation, we perceive the client-consultant relationship as a comparable

principal-agent relationship (Clark, 1993; Luo & Liberatore, 2009; Saam, 2012). Even though

the client as the principal hires the consulting firm as an agent to solve specific problems in

the organization, there is no guarantee that the commissioned consultants act in the client’s

best interest, considering that the particular consultants will mostly no longer deal with the
4
 client after concluding the project. This merely temporary involvement shows why the con-

cerned consultants may rather be interested in convincing the client of their short-term per-

formance than ensuring the client a long-term benefit. However, one should also consider that

– particularly regarding the service sector – bilateral principal-agent relationships can emerge

within the concept of integrating clients into service delivery. More clearly, both client and

consultants have only little information regarding their contractual partners which may enable

both to act opportunistically and use this situation for their own purpose.

Referring to this, to complete a successful project from the consultant’s perspective applied in
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this study, the hired consultants as the agents should try to establish a reciprocal and healthy

relationship with the client company, i.e. the principal. As will be illustrated in more detail

within the paper’s further theoretical development, crucial factors for establishing such a rela-

tionship and thus success factors of management consulting – namely Common Vision, Inten-

sity of Collaboration and Trust – can be derived based on principal-agent theory.

The Resource-Based View

As a second constituent of the multi-theoretical approach in this study, we draw on the re-

source-based view. This view fundamentally rests upon the work of Selznick (1957) and Pen-

rose (1959) who – based on the sociological leadership model and especially growth theory –

have pointed out the significance of intra-corporate conditions and company-specific re-

sources. To this effect, the resource-based view offers the notion of companies as resource

bundles (Penrose, 1959).

In the the resource-based view, one understands the resource concept in a relatively broad

manner, namely as everything companies can access directly or indirectly (Amit & Schoe-

maker, 1993; Sanchez et al., 1996; Wernerfelt, 1984). Moreover, representatives of the re-

source-based view distinguish between tangible, intangible, financial and organizational re-

sources. However, these resources must fulfill certain criteria to empower companies in order
5
 to deliver valuable goods to the market and thus generate surplus and competitive advantage.

In more detail, resources must be strategically valuable as well as unique or at least rare. Ad-

ditionally, the resources must be imperfectly imitable and non-substitutable (Barney, 1991;

Barney, 1998; Barney, 2001; Barney, 2010; Wernerfelt, 1984).

Related to these characteristics, the resource-based view includes the following propositions.

First, it acts on the assumption of imperfect or inefficient factor markets in which one can

neither guarantee absolute market transparency, nor homogeneity and mobility of goods, nor

exchange relationships free of transaction costs (Mahoney & Pandian, 1992). Yet, according
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to the resource-based view, it is right in these imperfect markets where firms can generate

long-term competitive advantage and above-average return compared to the competition

(Barney, 1986; Barney, 1991; Dierickx & Cool, 1989; Peteraf, 1993). This is due to the belief

that in a perfect market the competition would immediately be able to catch up with every

attempt to achieve competitive advantage.

The second proposition concerns the heterogeneity of resources regarding different compa-

nies. More clearly, resources will always be unequally apportioned between existing compa-

nies in a market, simply because of the aforementioned limited imitability and substitutability.

Thus, the mentioned resource heterogeneity and the resulting idiosyncratic resource endow-

ment of each company determine the differences in those companies’ success (Amit &

Schoemaker, 1993; Barney, 1986; Barney, 1991; Dierickx & Cool, 1989; Lawless et al., 1988;

Peteraf, 1993; Wernerfelt, 1984; Wernerfelt, 1995).

Thirdly, the last proposition concerns a consistent uncertainty of companies through missing

market transparency. Due to the lack of information regarding competitors’ activities and the

missing ability to make reliable statements about their plans, companies can only make eco-

nomic decisions under a certain degree of uncertainty (Mahoney & Pandian, 1992). Thus, to

foster the success of a company, it is essential to possess and develop adequate own resources.

6
 Altogether, when considering the resource-based view more closely, a notable potential for

explaining business success becomes evident. This is the case since the approach illustrates

how specific companies can realize long-term profits and outperform their competition by

means of their idiosyncratic resources. In the context of our study, when companies decide to

engage a consulting service, it is mostly due to a lack of internal capacity and thus mainly

time- and competence-related resources (e.g. Greiner & Metzger, 1983; Kubr, 2005). Against

the background of the resource-based view, the focus in such a consultancy context shifts

from the company to the consulting project level (DeSarbo et al., 2006). Those projects again
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bundle particular sets of fundamental resources whereupon especially human and financial

resources play an important role. Since both consultants and client have to provide those re-

sources, different consulting projects include varying resources, making the particular ar-

rangements culminate in more or less satisfying results. Therefore, consulting projects’ suc-

cess heavily depends on the different resources immanent in the respective projects. Accord-

ingly, we focus on the resource Consultant Expertise, the client’s Provided Resources and the

resource Top Management Support as success factors derived from the resource-based view.

In this way, the resource-based view’s focus on the resource configuration of consulting pro-

jects helps to explain the respective outcomes and thus complements the rather interpersonal,

relation-oriented approach of the principal-agent theory.

Antecedent Variables of Principal-Agent Theory and the Resource-Based View

As suggested above, principal-agent theory postulates that both parties can exploit the discre-

tionary leeway resulting from information asymmetry through opportunistic behavior. Facing

this problematic situation also in the client-consultant relationship, an according solution may

be relevant for the corresponding perceived success of management consulting projects. Thus,

for our conceptual model, principal-agent theory offers potential success factors for resolving

information asymmetry and conflicts of interest. To identify such factors, we take our point of
7
 departure in the chronology of the consulting process. More specifically, we assume that with-

in the course of a consulting project differing asymmetry and conflict types can emerge. Ac-

cordingly, one must distinguish between varying project phases. To this effect, one plausible

approach seems to be the differentiation between the pre-contractual and post-contractual

phase. In this connection, the pre-contractual phase represents the time period before signing

any service level agreement, in which resolving information asymmetries and conflicts of

interest can minimize related agency costs in advance. In contrast, while minimizing asymme-

tries and conflicts in the post-contractual phase concern the time after the actual conclusion of
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a contract, the focus is rather on ensuring an effective implementation of the consulting pro-

ject. According to these two phases, we can analyze the mentioned different problem types

more purposively and subsequently find a remedy. Thus, this differentiation, which further

authors likewise stress when referring to principal-agent theory (e.g. Bergen et al., 1992; Jen-

sen & Meckling, 1976; Ross, 1973), provides the antecedent variables which we use for deriv-

ing the related success factors.

Next, we apply the resource-based view to the management consulting project level. Thus, the

next logical step is to precisely analyze the resources with which such projects are equipped.

In terms of identifying antecedent variables in this way, the differentiation between tangible,

intangible, financial and organizational resources is helpful (Barney, 1991; Barney, 1998;

Wernerfelt, 1984). However, for deriving success factors in the management consulting con-

text, we only concentrate on intangible and financial resources as antecedent variables. First,

we take this focus since management consulting is a knowledge-intensive service. According-

ly, intangible human resources at least partly determine the success of consulting projects

(Anand et al., 2007). Secondly, in terms of financial resources, money simply plays an im-

portant role in consulting. This is not least due to the high earnings of management consult-

ants and the usually high project expenses for the client. However, in deriving success factors

of management consulting we attach less importance to tangible or organizational resources.

8
 This consideration stands to reason, as for example, provision of premises for the consultants

by the client is not necessarily key to consulting projects’ success.

Conceptual Model

To develop our conceptual model, we supplement the above introduced theoretical foundation

by an extensive literature review and several expert interviews, which we illustrate in more

detail later in the article. In this regard, we derive three factors from principal-agent theory,

followed by three factors based on the resource-based view. Moreover, we consider the indi-
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vidual impact of the respective factors’ on perceived management consulting success. Before,

however, to be capable of identifying the relevant factors, we determine what actually consti-

tutes perceived management consulting success by conceptualizing the construct itself.

Dimensions of Perceived Management Consulting Success

When approaching an understanding of perceived management consulting success, a wealth

of heterogeneous perspectives exists. These perspectives differ according to the related object

of study and also their cognitive ambition (Schweizer et al., 2009). Based on the relevant lit-

erature and the conducted expert interviews, we conceptualize perceived management con-

sulting success as a multidimensional construct. As depicted in Figure 1, this construct con-

sists of four dimensions, namely Compliance with Budget and Schedule, Degree of Target

Achievement, Profitability as well as Expansion and Extension (Gable, 1996; Hartman & Ash-

rafi 2002; Jang et al. 1997; Kumar et al., 2000; Liberatore & Luo, 2010; Luo & Liberatore,

2009; McLachlin, 2000; Pinto & Prescott, 1990; Richter & Schmidt, 2006; Simon et al. 2011;

Simon & Kumar, 2001).

Please insert Figure 1 here

9
 Initially, similar studies frequently confirm the first two dimensions as crucial characteristics

of successful consulting projects (Gable, 1996; Jang et al. 1997; Hartman & Ashrafi 2002;

Liberatore & Luo, 2010; Pinto & Prescott, 1990; Richter & Schmidt, 2006; Simon et al. 2011;

Simon & Kumar, 2001). Further, we can approve this notion after having conducted several

expert interviews with academics and practitioners of the field. Accordingly, we adopt the

components Compliance with Budget and Schedule and Degree of Target Achievement for our

study.
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In an analogous manner, we identify constructs which are similar to Profitability as well as

Expansion and Extension in the literature (e.g. Kumar et al., 2000; Luo & Liberatore, 2009;

McLachlin, 2000; Simon et al. 2011). Also, we can validate both of the proposed success di-

mensions within the expert interviews. In the context of this study, the dimension Profitability

expresses how much profit the management consulting firm has generated within the con-

ducted consulting project. Since it is self-explanatory that consulting firms can only compete

in the market if they achieve profits through the day-to-day business, it stands to reason to

propose Profitability as one further dimension of perceived management consulting success.

Finally, the success dimension Expansion and Extension is about “Repeat Business” (Kumar

et al., 2000, p. 24; Simon et al., 2011, p. 1310), the possibility “[…] to secure future engage-

ments” (Liberatore & Luo 2010, p. 261) and formulated more broadly “Business Develop-

ment” (p. 260). This development includes on the one hand if the respective project helped to

acquire future consulting engagements (Expansion). On the other hand it deals with the de-

gree to which, the consulting firm has generated an increase in the project budget (Extension).

Based on the above observations, we suggest the following hypothesis (see Figure 1):

HYPOTHESIS 1 (H1): Perceived Management Consulting Success is a reflective, latent con-

struct of second order and captures the following four dimensions, Compliance with Budget

10
 and Schedule, Degree of Target Achievement, Profitability as well as Expansion and Exten-

sion.

Factors of Perceived Management Consulting Success

Based on the formerly introduced theoretical foundation, the respective antecedent variables

and the conceptualization of perceived management consulting success, we can now derive

relevant success factors and develop corresponding hypotheses. In the following subsections
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we give substance to the outlook presented in Figure 2.

Please insert Figure 2 here

Before, however, to provide a summarized demonstration of the previous illustrations, we

visualize our conceptual model’s incremental formulation, including the final derivation of

success factors, in Figure 3.

Please insert Figure 3 here

Common Vision.

Alluding to the indicated antecedent variables of principal-agent theory, adverse selection is a

problem of the pre-contractual phase. Since neither consultants nor clients can anticipate the

potential future performance, the actual goal and thus the respective parties’ hidden character-

istics, it is difficult for both to evaluate the outcome of the planned consulting project in ad-

vance. Additionally, the consulting sector’s nontransparent nature intensifies this uncertain

11
 situation and thus the risk of clients’ adverse selection before signing project contracts (Clark,

1993).

To obviate this risk, analogous to signaling in principal-agent theory, the consultants can as-

sure the client of their adequacy for solving the respective problem. In this vein, one wide-

spread tool in the management consulting literature is the development of a Common Vision

between consultants and client (Ford, 1974; McLachlin, 1999; O'Driscoll & Eubanks, 1993).

Overall, the factor Common Vision deals with the questions if and to what extent the eligible

consultants have understood the client’s expectations. This also echoes Simon & Kumar’s
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(2001) finding that negotiating and setting reasonable expectations together with consultants’

ability to listen to and comprehend the client (cf. Nikolova et al. 2008), represent notable stra-

tegic capabilities and thus success factors of management consulting. In this regard, the client

should accurately formulate clear and measurable objectives in a common discourse in ad-

vance (Appelbaum, 2004; Fullerton/West, 1996; Simon et al., 2011; Simon & Kumar, 2001).

Further, in order to adequately implement the vision developed by consultants and client, both

parties have to ensure the sufficient communication of formulated goals to all of the compa-

ny’s relevant stakeholders. Based on the above considerations we formulate the following

hypothesis:

HYPOTHESIS 2 (H2): The establishment of a Common Vision between client and consultant is

positively related to the perceived success of management consulting projects.

Intensity of Collaboration. As another important stimulus regarding management consult-

ing’s success factors in the context of principal-agent theory, we indicate the collaboration

between consultants and client. In more detail, according to our consideration of antecedent

variables, we perceive a high Intensity of Collaboration between both parties as important for

minimizing post-contractually existing information asymmetry and conflicts of interest. In

this regard, we suggest that collaboration contributes to the respective consulting projects’
12
 success since the client’s input is essential to accomplish an appropriate solution for the re-

spective problem and thus has to be integrated within the management consulting service

(Appelbaum, 2004; Fullerton & West, 1996; Simon & Kumar, 2001). Thus, as formulated in

earlier empirical studies about consulting success, the communication between client and con-

sultant is key (Hartman & Ashrafi, 2002; Mainiero, 1986; Simon et al., 2011; Simon & Ku-

mar, 2001). In more detail, it is helpful for the consultants to obtain information from various

members of the client company’s different departments. In this way, the consultants are able

to conduct comprehensive analyses of the client’s status quo without which a consulting pro-
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ject is not likely to be successful.

To this effect, several studies in the management consulting literature confirm the above con-

siderations and cover task sharing, the definition of responsibilities, knowledge sharing and in

more detail the consistent exchange of project related information (e.g. Appelbaum & Steed,

2005; Jang et al., 1997; Nitithamyong & Tan, 2007; Schaffer, 2002).

Altogether, derived from principal-agent theory, Intensity of Collaboration constitutes the

second factor of perceived management consulting success in this study. Accordingly, the

above considerations result in the following hypothesis:

HYPOTHESIS 3 (H3): A high degree of Intensity of Collaboration between client and consultant

is positively related to the perceived success of management consulting projects.

Trust. As a further factor for reducing asymmetric information, uncertainty and agency costs

in the relationship between client and consultant – i.e. principal and agent – we consider Trust

as necessary (Fullerton & West, 1996; Verlander, 2012). In terms of the related antecedent

variables, this stands especially to reason during the project initiation and thus pre-contractual

phase, given that at this point in time the potential asymmetries and conflicts are the most

threatening.

13
 Further, in management consulting one understands Trust generally as a “core construct with-

in these dyadic social exchange relationships” (Solomonson, 2012, p. 54) since it may help

reduce the complexity within the involved human interactions, if integrity and honesty of both

parties are maintained (Simon et al., 2011; Simon & Kumar, 2001).

Referring to this, if consultants and client create a more trustful atmosphere by uncovering at

least some of the parties’ hidden characteristics in such an early phase of the project, these

measures result in the following situation. First, it renders redundant both parties’ screening to

obviate adverse selection, moral hazard and hold-up as well as secondly reduces otherwise
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accruing agency costs. Additionally, the consulting firm can try to actively build trust by en-

gaging in signaling activities such as becoming a member in an established consultant asso-

ciation. In this regard, several studies in the management consulting literature confirm Trust’s

positive impact on management consulting success (Glückler & Armbrüster, 2003;

Solomonson, 2011; Solomonson, 2012).

Accordingly, based on the above observations it is appropriate to include Trust as another

success factor of management consulting since it may contribute to the reduction of uncertain-

ty as well as the resulting problems and agency costs, especially in the beginning of a consult-

ing project (Verlander, 2012). Yet, also in the post-contractual phase – thus including both

antecedent variables – Trust may have a notable importance. We assume this due to the nature

of consulting which is mainly characterized by creative thinking processes, making it hard for

the client to tell which efforts the consultants actually take for the particular project.

Based on the above argumentation, we test the following hypothesis for the factor Trust:

HYPOTHESIS 4 (H4): The establishment of Trust between client and consultant is positively

related to the perceived success of management consulting projects.

Consultant Expertise. In terms of deriving success factors from the resource-based view and

the related antecedent variables, consulting projects vary mainly in terms of their financial
14
 and intangible resources. Reflecting on particular human resources which may play a role in

these projects, both expert interviews and earlier research regarding success factors emphasize

consultants’ expertise as a capability which can positively impact project performance (e.g.

Appelbaum & Steed, 2005, Gallessich, 1982; Greenwood et al., 2005; Hartman & Ashrafi,

2002; Jang et al., 1997; Nitithamyong & Tan, 2007; Richter & Schmidt, 2006; Stivers &

Campbell, 1995; Williams & Woodward, 1994; Wong, 2004).

However, an appropriate fit between the client’s needs and the expertise of the respective con-

sultants is a prerequisite to achieve a desirable outcome (Covin & Fisher, 1991), which shows
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the importance of the specific consultants’ qualifications and the fact that professionals with a

broad skill base are beneficial in the consulting context (Simon & Kumar, 2001; Simon et al.,

2011). This again shows that one important reason to engage management consultants is to

achieve additional capacity, especially in terms of individual, manpower-dependent profes-

sional competences and thus intangible resources.

Therefore, the factor Consultant Expertise in this study covers the consultants’ project experi-

ence, industry know-how, specialist knowledge, keen perception as well as the ability to stim-

ulate new ideas, regard issues from different angles and eventually foster mutual consent

(Appelbaum & Steed, 2005; Jang et al., 1997; Nitithamyong & Tan, 2007; Rynning, 1992). In

conclusion from the above considerations we expect Consultant Expertise to be beneficial for

management consulting projects and suggest the following hypothesis.

HYPOTHESIS 5 (H5): A high degree of Consultant Expertise is positively related to the per-

ceived success of management consulting projects.

Provided Resources. Contrary to the formerly illustrated factor, the client company also has

to offer a certain set of resources – i.e. the factor Provided Resources in our study – which is

necessary for consulting success (Hartman & Ashrafi, 2002; Turner, 1999). Out of the re-

source-based view’s classification and the introduced antecedent variables, intangible and
15
 financial resources are most relevant for management consulting success (Verlander, 2012).

Interviews with practitioners of both client and consulting companies as well as earlier scien-

tific research likewise confirm these resources as another critical success factor of manage-

ment consulting (Jha & Iyer, 2006; Hoegl et al., 2004; Pinto & Prescott, 1990).

However, concerning such resources provided by the client, not only their amount but also the

period of availability is crucial. In particular, regarding human resources it should be clear

that these resources – if claimed by the management consulting project – are no longer availa-

ble within the company’s original departments. Therefore, the client has to take care of the fit
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between resources provided and resources required by the consultants for ultimately solving

problems in the client company.

Overall, dependent on the provided resource bundle and its content, size, organizational sup-

port and temporal availability, the particular management consulting project will be more or

less successful (Verlander, 2012). Accordingly, we summarize the resources offered by the

client for the consulting project within the construct Provided Resources as a further success

factor of management consulting. This consideration results in the following hypothesis.

HYPOTHESIS 6 (H6): The fit between Provided Resources and resources required by the con-

sultants is positively related to the perceived success of management consulting projects.

Top Management Support. Since most management consulting projects are associated with

strategic organizational change which frequently includes staff reduction or at least a realloca-

tion of functions, consultants must expect resistance from the client’s employees (e.g. Morris

& Raben, 1995). To counteract this problem, we consider the commitment of a client’s top

management to the particular consulting project as well as the respective communication

thereof in the organization to be essential for project success. Hence, regarding the aforemen-

tioned antecedent variables, the last relevant intangible resource chosen for our study is Top

Management Support. In this regard, what we call Top Management Support has also already
16
 been proposed in earlier research on success factors of management consulting (e.g. Appel-

baum & Steed, 2005; Covin & Fisher, 1991; Jang et al., 1997; Mainiero, 1986; Nitithamyong

& Tan, 2007; Vanlommel & de Brabander, 1975; Wong, 2004; Wu et al., 2004;) as well as

expert interviews in both consulting and client firms.

Altogether, Top Management Support in this study comprises the top management’s efforts in

signaling their willingness to support the plan of the specific consulting project towards all

team members. Overall, we can formulate the following last hypothesis regarding success

factors of management consulting:

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HYPOTHESIS 7 (H7): A high degree of Top Management Support is positively related to the

perceived success of management consulting projects.

Method

We conduct an online survey with key informants to empirically investigate the proposed hy-

potheses. In the questionnaire we apply 7-Point-Likert scales within which the respondents

can make their indication regarding the particular items. Further, when examining research

models which include latent variables and their complex relations, researchers have found

structural equation modeling to be a suitable method achieving appropriate results in econom-

ic and social studies (Bollen, 1989; Hair et al., 2006; Kline, 2005; Steenkamp & Baumgartner,

2000). Therefore, we also apply this method for analyzing the data of this study.

Sampling Frame and Data Collection

The desirable population for investigating the hypotheses of the present study consists of the

totality of all management consultants employed in Germany. However, as a related statistic

does neither exist in Germany nor on a global scale, we cooperate with the Federal Associa-

17
 tion of German Management Consultants, representing the biggest management consulting

association in Europe (BDU, 2012a; BDU, 2012b).

In more detail, we have initially published the online survey link within the above mentioned

association’s newsletter, which comes out every two weeks and addresses 1,200 CEOs, own-

ers and managers of the association’s member companies. While in this way we have asked

the respective addressees both to participate and forward the survey to their employees and

consulting colleagues to ensure a sufficient number of responses, we have further contacted

all of the association’s member companies via personalized emails. Also, we have offered a
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summary of the research results as an incentive for participation, sent four weekly reminder

emails and guaranteed the participants’ anonymity. While these efforts have set the basis for

data collection, we have generated 348 utilizable responses from management consultants.

Unfortunately, we can hardly determine an explicit response rate since we cannot definitely

state how many of the mentioned 1200 newsletter addressees, their employees, colleagues and

thus the association members’ management consultants have actually been reached. However,

we can state that the notable return of 348 questionnaires is more than satisfying compared to

other management consulting studies (Appelbaum, 2004; Gable, 1996; Jang et al., 1997;

Hartman & Ashrafi, 2002; Liberatore & Luo, 2010; Luo & Liberatore, 2009; Nitithamyong &

Tan 2007; Patterson et al., 1997; Patterson & Spreng, 1997; Stivers & Campbell 1995; Wong,

2004).

To take key informant and common method biases into account (Kumar et al., 1993; Lindell

& Whitney, 2001; Malhotra et al., 2006; Podsakoff et al., 2003; Podsakoff & Organ, 1986),

we have cautiously developed the survey instrument regarding validity and reliability. More

specifically, we have passed through a multistage process including an extensive literature

research regarding existing item batteries, a pretest (n=22), an item-sorting test (n=23)

(Anderson & Gerbing, 1991) and 13 exploratory expert interviews with scientists and practi-

tioners (DeVellis, 2011).

18
 Regarding the conducted interviews, we have interrogated three scientific researchers with

additional practical management consulting experience and ten practitioners, i.e. active man-

agement consultants with extensive long-time professional experience. The semi-structured

interviews have largely been conducted face-to-face and lasted approximately one hour.

Guidelines and content of the interviews comprise several fundamental points. First, the re-

search problem has been introduced to ascertain via brainstorming if the theoretically derived

constructs of our model reflect the experiences of the interview partners. Secondly, the overall

research model has been the focal point of discussion. Hereby, the experts have been asked to
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discuss the relevance of the particular constructs, their relationships as well as the model’s

completeness. Lastly, aside from the conceptualization, the operationalization of the involved

constructs has been addressed.

As a main result, the experts’ assessment reflect both the derived success factors and dimen-

sions of the research model. In particular, based on the frequency of indication, the experts

evaluate the consultants’ competence and an intense collaboration between consultants and

client as most important success factors of management consulting projects. These statements

again are in line with the theoretically derived factors Consultant Expertise and Intensity of

Collaboration. Regarding the particular success dimensions, Degree of Target Achievement

proves to be of highest importance for the experts, whereas the dimension Compliance with

Budget and Schedule holds second place.

Concerning the further data collection procedure, to exclude identity problems and ensure the

survey participants’ representativeness, we have tested for the latter’s management consulting

experience. All in all, we identify a high level of experience and thus adequacy of the key

informants. Concerning the question which of the job titles Junior Consultant, Consultant,

Manager, Senior Manager, Partner or Miscellaneous would correspond to the respondents’

position the most, Figure 4 summarizes the respective percentages.

19
 Please insert Figure 4 here

Thus, we state that the main portion of the participating consultants has at least 2-3 years pro-

fessional experience and that almost 75% even hold positions as managers or higher with at

least 6 years of experience. Accordingly, we cannot detect a bias due to the position of the

participants (Groves, 2004).

We further base the test procedure on the respondents’ statements regarding the number of

consulting projects they have participated in during the last five years. Here, we classify the
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experience level in less than 5, 5 to 19, 20 to 49, and at least 50 projects. Again, we present

the according percentages in the following Figure 5.

Please insert Figure 5 here

In this regard, even the share of 12.64% one cannot evaluate as having insufficient experience

since it is common in management consulting to be in charge of a project for a notable time

period. Thus, all in all, we identify a high level of experience and hence adequacy of the key

informants.

Additionally, we have asked the participants for self-assessing their answering competences

regarding the posed questions. Concerning the relevant categorization, we present a detailed

record in Figure 6. According to the results, we summarize a prevailing good answering com-

petence.

Please insert Figure 6 here

20
 Finally, to further ensure the representativeness of the study sample, we use the main consult-

ing field of the surveyed consultants’ companies to verify the relationship between sample

and population. Suggesting the sample’s representativeness, the respective percentages are

close to the sector distribution of the current German management consulting market (see

Figure 7).

Please insert Figure 7 here

Additionally, the according χ2-homogeneity test results in a value of 1.34, thus showing no
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statistically significant difference between the German consulting market and the sample

(Dickson & Maclachlan, 1996).

For examining the presence of a common method bias, we conduct a Harman one-factor test

and compute the Guttman split-half value. We have initially carried out the Harman one-

factor test through an exploratory factor analysis with Varimax-rotation (Harman, 1967)

which reflects the expected factor structure. Furthermore, the Guttman split-half coefficient of

0.750 is high above the required value of 0.6 (Crocker & Algina, 2008). Overall, a common

method bias does not seem to be likely for this study. However, the most effective way for

analyzing the presence of a common method bias is the triangulation approach illustrated in

the next section.

Triangulation

After we have collected the main data set, we choose a triangulation approach by asking the

originally surveyed participants to forward an abbreviated questionnaire to a colleague who

has worked on the same project. In doing so, we assure that we can clearly assign both sur-

veys to each other, thereby ensuring an adequate triangulation of the initial dataset (Van

Bruggen et al., 2002). This approach represents a further crucial element for verifying the

21
 database and excluding a key informant or common method bias in this study (Homburg et

al., 2012). Overall, after sending out repeated reminders via email, we generate 33 secondary

key informants.

Subsequently, for looking more closely at the comparison between the initially collected data

and the second key informant data, there exist several types of analysis. Yet, altogether, there

is no predominantly preferred type in the literature (de Jong et al., 2004; Liao & Chuang,

2004; Li et al., 2008; Takeuchi et al., 2008). Thus, we decide for frequently applied consisten-

cy checks via the bivariate correlation and the intra-class correlation coefficients ICC 1 and
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ICC 2.

Concerning the bivariate correlation, we correlate responses of the first and second key in-

formants to identify the highest correlation coefficient (Podsakoff et al., 2003; Podsakoff &

Organ, 1986). In the context of our study, the results for the bivariate correlation are mostly

highly significant (1% or 5% level) and above the desired value of 0.5 (Cohen, 1988).

The intra-class correlation provides information about the degree of agreement between mul-

tiple informants. The ICC 1 is based on single values and indicates the reliability of single

informants through the share in variance referring to the affiliation of the investigated unit. In

contrast, the ICC 2 rests upon mean values and states how well these values, regarding the

respondents’ indication, measure the particular variables.

For the ICC 2 the values mostly lie above the threshold of 0.6, thereby being even partly in

line with the most stringent limit in the literature of 0.7. The results for the ICC 1 are even

better since here we reach the desired value of 0.1 in every case (Bartko, 1976; Bliese, 1998;

Bliese, 2000; James, 1982; Klein & Kozlowski, 2000; LeBreton & Senter, 2008; McGraw &

Wong, 1996; Shrout & Fleiss, 1979). Table 1 summarizes the triangulation results regarding

bivariate correlation, ICC 1 and ICC 2 for all of the 33 secondary key informants.

Please insert Table 1 here

22
 Results

We analyze the study’s research model by the following three steps. These include the as-

sessment of individual factor reliability and validity, the overall model’s reliability and validi-
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ty assessment as well as the assessment of the factors’ effect on perceived management con-

sulting success. We compute the related statistics by using the software packages SPSS 20.0

and EQS 6.1, applying the maximum-likelihood method (MLM) for the parameter estimates.

To evaluate the respective measurement models, we analyze the proposed six factors and four

dimensions of perceived management consulting success. While we calculate Cronbach’s

Alpha, item-to-total correlation, explained variance (exploratory), item reliability (confirmato-

ry), composite reliability as well as the average variance extracted, we apply the threshold

values suggested by Anderson & Gerbing (1982), Bagozzi & Yi (1988) and Phillips (1981).

As a result, we had to eliminate some of the indicators due to the suggestion of purifying re-

flective measurement models in the literature (Anderson & Gerbing, 1988). The remaining

items, however, show strong reliability and validity (see Appendix).

Subsequently, where possible, we calculate all the global fit values, more precisely the nor-

malized chi-square value, degrees of freedom, GFI, AGFI, TLI and CFI, as well as the

RMSEA (Baumgartner & Homburg, 1996; Churchill, 1979; Hair et al., 2010; Hu & Bentler,

1999; Kline, 2005), with consistently good results.

To further evaluate the measurement models, we carry out exploratory factor analyses with

the remaining 25 items of the six success factors as well as the 15 items of the four success

dimensions. As a result, both analyses identify the suggested structures. Additionally, the
23
 conducted first-order confirmatory factor analysis proves the model’s proposed multidimen-

sionality and the assignment of the items to the different factors (Bagozzi & Yi, 1988).

Also, to test for discriminant and convergent validity, we compute the Fornell-Larcker criteri-

on (1981). Comparing the average variances extracted and the squared correlations (Fornell &

Larcker, 1981), all factors fulfill the criterion (see Table 2).

Please insert Table 2 here

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Also, the results of the conducted chi-square difference test (Hair et al., 2006; Kline, 2005),

support the operationalization of the model. We present the analysis results of the multidi-

mensional construct Perceived Management Consulting Success and its constituents in Table

3.

Please insert Table 3 here

Furthermore, we execute a second-order confirmatory factor analysis for the construct Per-

ceived Management Consulting Success to find out if the suggested dimensions actually are

constituents of this construct. In this regard, we approve the conceptualization of Perceived

Management Consulting Success as a second-order construct with four first-order dimensions

according to the significant factor loadings. Further, we state a good model fit based on the

adequate global criteria values (see Figure 8).

Please insert Figure 8 here

24
 Finally, by applying structural equation modeling, we analyze the particular factors’ impact

on Perceived Management Consulting Success by evaluating them according to their individ-

ual factor loadings. We illustrate the resulting structural equation model and the related fit

statistics regarding the factors’ effects on Perceived Management Consulting Success more

specifically in Figure 9.

Please insert Figure 9 here

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In summary, the values represent a good overall fit of the model. This again suggests the sig-

nificance and applicability of five factors and four dimensions of perceived management con-

sulting success. When regarding the success factors more closely, Intensity of Collaboration

has the strongest impact (0.30) on Perceived Management Consulting Success, directly fol-

lowed by Common Vision (0.27). Furthermore, Consultant Expertise (0.26), Top Management

Support (0.22) and Provided Resources (0.14) show significant positive effects. Only Trust

(0.05) is not significant. Overall, we can explain almost 30% of the variance regarding Per-

ceived Management Consulting Success through the success factors. This value is in line with

the demanded thresholds in the relevant methodical literature, in which for instance Chin

(1998) evaluates R²-values of 0.19 as rather weak, R²-values of 0.33 as moderate and R²-

values of 0.66 as substantial (Chin, 1998; cf. Hair et al., 2010).

Discussion and Conclusion

In this study we investigate the success factors of management consulting as well as the con-

ceptualization of management consulting success as perceived by consultants. Initially, we

develop the second-order construct Perceived Management Consulting Success, which con-

sists of the dimensions Compliance with Budget and Schedule, Degree of Target Achieve-

25
 ment, Profitability as well as Expansion and Extension. In addition, while choosing a multi-

theoretical approach including principal-agent theory and the resource-based view, we devel-

op a comprehensive understanding of management consulting’s success factors. As a result,

the proposed factors are Common Vision, Intensity of Collaboration, Trust, Consultant Exper-

tise, Provided Resources and Top Management Support.

Subsequently, within a comprehensive empirical analysis, we evaluate the above mentioned

factors and their individual impact on Perceived Management Consulting Success. While we

can confirm five out of six factors to have a significant positive effect, Intensity of Collabora-
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tion, Common Vision and Consultant Expertise show the strongest impact on Perceived Man-

agement Consulting Success. The detected high importance of Intensity of Collaboration and

Common Vision is understandable, since in management consulting projects different parties

with different interests work together to solve a specific problem. It is even more comprehen-

sible that to ensure the resolution of this existing problem and thus the consulting project’s

success, it is highly relevant for both client and consultants to align those different interests.

Further, the significance of Consultant Expertise also stands to reason since a client hires con-

sultants to overcome a particular problem in the organization by means of the consultants’

expertise. As this need of the client results from the fact that the problem cannot be solved

using the client’s own resources and the respective internal development would generally be

more expensive than to engage a management consulting firm, Consultant Expertise is crucial

for the client and thus one of its main reasons to seek consultancy.

Furthermore, the fact that we have to reject the hypothesis connected to Trust in the client-

consultant relationship initially shows the difficult relationship of the parties. Usually, em-

ployees of client companies are prejudiced against consultants whom they perceive as overly

self-confident and overpaid. In this vein, employees also frequently question the consultants’

intentions to ensure the client company’s well-being. Accordingly, even though desirable and

most likely beneficial to consulting projects, we interpret our empirical finding to mean that
26
 overcoming these prejudices and thus actually establishing trust between consultants and cli-

ent is simply hard to implement. In more detail, since we have surveyed consultants for this

study and thus consider their perspective, it seems that they have largely experienced that cli-

ents do not trust them and it is hard to establish a trustful relationship within the course of a

project. In addition, as also stressed in the conducted expert interviews, consultants generally

have a critical job-related attitude which may not be compatible with trusting the client right

from the project’s beginning. Yet, this professional critical perspective is necessary for identi-

fying optimization potential. Also, consultants are mostly involved in projects with clients for
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a time period of approximately four to eight weeks and thus short-term engagements. Hence,

it stands to reason that this period may simply be too short to actually build trust between con-

sultants and client.

Therefore, we assume that the proposed factor Trust is not realistic in most consultant-client

relationships. Yet, we do not state a universal insignificance of the factor or recommend to

disregard taking efforts for a trustful relationship right from the start of a consulting project.

We account for this consideration since we cannot generalize our result and the according

finding to the totality of all consulting projects. In particular, in the context of follow-up or-

ders, i.e. when the client company decides to work together with the consultants over two or

more subsequent projects, one can assume that the establishment of trust has indeed been ad-

juvant to this development. Thus, the factor trust seems to be rather relevant for the success of

long-term consulting engagements and more generally business relationships, which, above

all, have not been the focus in our investigation.

Overall, in terms of implications for the research field, the extant management consulting lit-

erature has largely been of narrative nature. In contrast, this study offers a value proposition

for both relevant success factors of management consulting and the multi-dimensional con-

ceptualization of Perceived Management Consulting Success. Accordingly, our approach is

one of the few to consider success factors and dimensions in management consulting services
27
 together from the consultant perspective. Thus, it can serve as a starting point for further con-

ceptual as well as empirical studies in the future. Regarding the relationship between theory

and practice in our study, we think that – based on our sound theoretical development – we

test a practically oriented research model, whose relevance and applicability we confirm

through convincing empirical results. We can justify this statement especially when thinking

about the fact that we have to reject only one of the proposed hypotheses. Correspondingly,

we consider the resource-based view’s project oriented contents of available and needed re-

sources as complementing well the relation-oriented approach of principal-agent theory in the

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context of management consulting’s success factors. Nevertheless, our results can only repre-

sent our survey respondents and thus their idiosyncratic professional experience. Yet, this lack

of transferability is due to the unfortunate fact that the appropriate target population and thus a

representative database for our study has simply been indeterminate. Therefore, we cannot

issue a generalizable statement about the single theories’ adequacy for deriving success fac-

tors in the context of management consulting. Moreover, based on our context-specific re-

sults, we cannot evaluate the theories’ broader significance in scientific research.

In terms of practical or managerial implications, practitioners should regard the significant

success factors of this study and reflect if and how one can transfer them to the specific con-

sulting project at hand. In more detail, consultants can build on this study’s findings but have

to take the next step by successfully implementing the success factors within their own con-

sulting project contexts. Likewise, based on the confirmed success dimensions of this study,

consultants in practice should deliberate about whether these dimensions are also helpful for

measuring success in their specific case. Accordingly, as an important implication for practi-

tioners, both consultants and client should at least consider all of this study’s significant suc-

cess factors and dimensions at once, to ensure the greatest impact on the particular projects.

Further, based on our specific empirical results, consulting firms should especially make sure

that – out of their staff – they should choose those consultants with the right expertise re-
28
 quired for the specific consulting project. Additionally, they should train their consultants to

be open for pre-contractually developing a common vision and post-contractually pursuing an

intense collaboration with the respective clients. Also, even though we have only surveyed

consultants in this study, we ask which factors generally impact their perception of consulting

projects’ success. In more detail, we do not merely include their perception of how they them-

selves can determine management consulting success. Instead, their answers and the corre-

sponding results also point to the consideration how – according to their opinion – client

companies can contribute to the success of consulting projects. In this regard, of course it
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takes two parties to develop a common vision and an intense collaboration. This means that

also the client company must accordingly brief the employees provided for the project and try

to open them up for the upcoming teamwork. In addition, the client’s top management must

be committed to the consulting project, accept the consultants’ plan and communicate this

attitude to all concerned stakeholders in the company. Lastly, the client must ensure that suf-

ficient financial and especially human resources are available for the whole period of the pro-

ject, in fact regarding quantity and quality.

Limitations

Even though in this study we have cautiously conceptualized the respective success factors

and dimensions, almost every research faces certain limitations. Since our research takes a

comprehensive and broad approach, initially, we formulate the respective factors and dimen-

sions in a rather general manner, i.e. not tailored to one specific consulting sector or industry.

Also, we must consider the rejected hypothesis for the alleged success factor Trust to be a

limitation of our study. Lastly, for our study we have faced the challenge that the required

statistics listing all management consultants employed in Germany are simply not available.

Accordingly, we have been forced to approach our target population differently. Yet, in this

29
 way we have taken every effort to approach an adequate population and correspondingly iden-

tify our sample.

Directions for Future Research

Given the above limitations, future research can unfold in several directions. Initially, future

studies could deal with more individualized factors for specific consulting projects, e.g. in the

public sector. In addition, since the observed factor Trust does not have a significant impact
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on Perceived Management Consulting Success in our study, the client-consultant relationship

could be a further interesting topic to observe in the future. In more detail, as one potential

research avenue, it would be interesting to either support or refute this study’s finding that

establishing Trust is not an adequate factor for achieving successful projects between client

and consultants. Also, researchers should regard the role of trust in long-term consulting en-

gagements, in addition to this study’s focus on single projects. Moreover, future studies may

also try to find even better ways of resolving the above described issue of identifying the tar-

get population of management consultants in Germany. Finally, to generalize this study’s em-

pirical results and thus the investigated success factors’ applicability, further researchers

should carry out replication studies, whereupon one should also extend the scope of investiga-

tion from Germany to other countries. This applies for example since, due to cultural differ-

ences, consultants in other countries may have a different notion of management consulting’s

success dimensions and factors.

30
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Appendix

Reliability and Validity of the Single Factors and Dimensions

Factor/ Scales/Sources Items Item-to- Cronbach‘s Item Reliabil- Composite Average
Dimen- Total- Alpha ity (confirma- Reliability Variance
sion Correlation tory) Extracted
Common Appelbaum & Steed (2005); The project goals of our cli- 0.630 0.810 0.512 0.814 0.526
Vision Liberatore & Luo (2010); ents were clearly communi-
O'Driscoll & Eubanks, cated towards our project
(1993). team.
Our project goals were clear- 0.601 0.459
ly communicated towards our
clients.
In order to ensure our com- 0.677 0.621
mon vision as good as possi-
ble, the project goals of our
clients are very consistent
with our project goals.
Our clients agree with us 0.611 0.489
concerning the priorities of
the project goals to be
achieved.
Intensity Appelbaum & Steed, (2005); The client collaborates with 0.698 0.858 0.586 0.863 0.616
of Collab- Jang et al., (1997); the consultants and supports
oration Nitithamyong & Tan, (2007). them to find a solution for the
problems.
In order to foster the intensity 0.612 0.440
of the collaboration, per-
sons/parties affected by pro-
ject-related decisions are no-
tified immediately.

43
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Factor/ Scales/Sources Items Item-to- Cronbach‘s Item Reliabil- Composite Average

Dimen- Total- Alpha ity (confirma- Reliability Variance
sion Correlation tory) Extracted
There is a very active collab- 0.767 0.729
oration for knowledge shar-
ing between consultant and
client.
Overall, there is a high inten- 0.738 0.678
sity of collaboration between
consultant and client.
Trust Gefen, (2002); Larzelere & We trust our clients to be 0.662 0.882 0.492 0.889 0.674
Huston, (1980); Liberatore & very open in dealing with us.
Luo, (2010); Solomonson,
(2011).
We trust our clients to always 0.759 0.675
keep their promises.
We trust our clients to always 0.813 0.803
treat us fairly and justly.
Overall, we trust tour clients 0.762 0.673
to be honest.
Consult- Appelbaum & Steed, (2005); The consultants have excel- 0.660 0.859 0.517 0.860 0.607
ant Exper- Jang et al., (1997); lent specialized knowledge
tise Nitithamyong & Tan, (2007). and extensive industry and
project experience.
The consultants contribute 0.748 0.699
convincing solutions.
The consultants have a very 0.724 0.654
keen perception.
The consultants provide im- 0.686 0.559
petus for new ideas / perspec-
tives and consider issues
from different perspectives.

44
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Factor/ Scales/Sources Items Item-to- Cronbach‘s Item Reliabil- Composite Average

Dimen- Total- Alpha ity (confirma- Reliability Variance
sion Correlation tory) Extracted
Provided Hoegl et al., (2004); Jha & The number of project mem- 0.719 0.901 0.573 0.901 0.645
Resources Iyer, (2006); Pinto & bers provided by our client is
Prescott, (1990). more than adequate.
We receive more than suffi- 0.689 0.514
cient knowledge resources
with knowledge necessary
for the project (e.g. process-
know-how).
The project members provid- 0.725 0.591
ed by our client have more
than sufficient time for the
implementation and support
of the consulting project.
Overall, the provided re- 0.836 0.825
sources for the consulting
project are more than ade-
quate.
Overall, appropriate re- 0.805 0.756
sources are provided for the
consulting project.
Top Man- Appelbaum & Steed (2005); The top management encour- 0.751 0.909 0.626 0.909 0.715
agement Slevin & Pinto (1986); ages and motivates the pro-
Support Vanlommel & de Brabander ject members.
(1975).
The top management is ac- 0.752 0.594
tively engaged in the plan-
ning of the consulting pro-
ject.
The top management actively 0.799 0.743

45
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Factor/ Scales/Sources Items Item-to- Cronbach‘s Item Reliabil- Composite Average

Dimen- Total- Alpha ity (confirma- Reliability Variance
sion Correlation tory) Extracted
supports the consulting pro-
ject.
Overall, one can speak of a 0.884 0.928
very strong top management
support.
Compli- Gable, 1996; Jang et al. The project duration of the 0.813 0.920 0.734 0.921 0.745
ance with (1997); Liberatore & Luo, entire project meets the orig-
Budget (2010); Pinto & Prescott, inal estimate of the consult-
and (1990); Richter & Schmidt, ants.
Schedule (2006).
The consultancy project was 0.804 0.724
carried out within the pre-
scribed time limits, all dead-
lines were met.
Overall, the consulting pro- 0.893 0.920
ject was on schedule.
Overall, the consulting pro- 0.752 0.606
ject did not exceed the budg-
et.
Degree of Gable, 1996; Jang et al. All expectations/goals set for 0.793 0.892 0.730 0.897 0.689
Target (1997); Liberatore & Luo, the project have been met.
Achieve- (2010); Pinto & Prescott,
ment (1990); Richter & Schmidt,
(2006).
Concerning the degree of 0.705 0.662
target achievement, for all
defined project goals ade-
quate solutions were present-
ed.

46
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Factor/ Scales/Sources Items Item-to- Cronbach‘s Item Reliabil- Composite Average

Dimen- Total- Alpha ity (confirma- Reliability Variance
sion Correlation tory) Extracted
Concerning the degree of 0.715 0.684
target achievement, the con-
sulting project was a big suc-
cess.
Overall, the defined project 0.843 0.864
objectives have been met
fully and comprehensively,
or were even exceeded.
Profitabil- Kumar et al., (2000) and the The marginal return of the 0.907 0.959 0.873 0.959 0.886
ity conducted expert interviews. project was very high, thus
the project was very profita-
ble for our company.
Considering the profit of the 0.933 0.944
project in relation to the in-
vested capital (return on in-
vestment), the project was
very profitable for our com-
pany.
Considering the profit of the 0.895 0.841
project in relation to the sales
volume (ratio of profit and
sales), the project was very
profitable for our company.
Expansion Kumar et al., (2000); Luo & The project was very helpful 0.596 0.781 0.478 0.782 0.474
and Ex- Liberatore, (2009) and the for the acquisition of future
tension conducted expert interviews. consulting engagements (ex-
pansion).
The project was decisive for 0.566 0.426
a substantial expansion of our

47
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Factor/ Scales/Sources Items Item-to- Cronbach‘s Item Reliabil- Composite Average

Dimen- Total- Alpha ity (confirma- Reliability Variance
sion Correlation tory) Extracted
company’s network (expan-
sion).
As the client positively per- 0.546 0.416
ceived the project develop-
ment, we could generate pro-
ject extensions.
Overall, the chances for an 0.561 0.604
expansion and/or extension
were used extensively.

48
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49
 Table 1 Triangulation Results

Object of Analysis Bivariate Correlation ICC 1 ICC 2

Consulting Project 1 0.738* 0.439 0.610
Consulting Project 2 0.705* 0.501 0.668
Consulting Project 3 0.5545 0.355 0.524
5
Consulting Project 4 0.566 0.558 0.717
Consulting Project 5 0.510 0.489 0.657
Consulting Project 6 0.5925 0.592 0.743
5
Consulting Project 7 0.655 0.579 0.734
5
Consulting Project 8 0.548 0.468 0.638
5
Consulting Project 9 0.548 0.489 0.657
Consulting Project 10 0.716* 0.489 0.657
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Consulting Project 11 0.5805 0.494 0.661

5
Consulting Project 12 0.573 0.458 0.629
5
Consulting Project 13 0.565 0.493 0.660
5
Consulting Project 14 0.538 0.552 0.712
5
Consulting Project 15 0.534 0.479 0.647
5
Consulting Project 16 0.617 0.485 0.653
Consulting Project 17 0.684* 0.664 0.798
Consulting Project 18 0.741* 0.542 0.703
Consulting Project 19 0.5555 0.528 0.691
5
Consulting Project 20 0.600 0.498 0.665
5
Consulting Project 21 0.655 0.395 0.567
5
Consulting Project 22 0.611 0.545 0.705
5
Consulting Project 23 0.576 0.497 0.664
Consulting Project 24 0.669* 0.465 0.635
Consulting Project 25 0,039 0.103 0.229
Consulting Project 26 0.6115 0.516 0.680
5
Consulting Project 27 0.456 0.390 0.561
5
Consulting Project 28 0.632 0.522 0.686
Consulting Project 29 0,298 0.316 0.480
Consulting Project 30 0.6535 0.607 0.756
5
Consulting Project 31 0.539 0.475 0.644
5
Consulting Project 32 0.647 0.537 0.698
Consulting Project 33 0.826* 0.611 0.759
Significance: * = α ≤ 0.01; 5 = α ≤ 0.05; 1 = α ≤ 0.10
 Table 2 Fornell-Larcker Criterion

1 2 3 4 5 6
Common Vision (1) 0.526
Int. of Collaboration (2) 0.332 0.616
Trust (3) 0.153 0.144 0.674
Consultant Expertise (4) 0.277 0.277 0.046 0.607
Provided Resources (5) 0.147 0.174 0.075 0.040 0.645
Top Mgm. Support (6) 0.129 0.183 0.038 0.093 0.228 0.715
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 Table 3 Chi-Square Difference Test

Chi² df alpha
4-Factor Solution 194 62 0,0001
1-Factor Solution 217,493 65 0,0001
Nested Model Comparison 23,493 3 0,0001
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 Figure 1 Dimensions of Management Consulting Success

Compliance with
Budget and
Schedule

H1

Degree of Target
Achievement
Management H1
Consulting
Success H1
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Profitability
H1

Expansion &
Extension
 Figure 2 Derivation of Management Consulting’s Success Factors

Principal-Agent Theory

Common
Vision

Intensity of H2
Collaboration

H3

Trust
H4
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Management
Consulting
The Resource-Based View Success
H5

Consultant H6
Expertise

H7

Provided
Resources

Top
Management
Support
 Figure 3 Incremental Formulation of the Conceptual Model

Principal- The Resource- Literature/

Agent Theory Based View Expert Interviews

Management
Reduction of Consulting Success
Antecedent

Type of Resource
Variables

Information Asymmetry
Pre- Post- Compliance with Budget
Intangible Financial and Schedule
contractual contractual
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Degree of Target
Achievement
Top Management Support
Intensity of Collaboration

Consultant Expertise

Provided Resources
Common Vision
Success
Factors

Profitability
Trust

Expansion & Extension

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Figure 4
Position of the Respondents
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Figure 5
Number of Consulting Projects in the last 5 Years
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Figure 6
Self-Assessment of Answering Competence
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Figure 7
Main Consulting Field
 Figure 8 Second-Order Confirmatory Factor Analysis of the Four-Dimensional
Model for Management Consulting Success
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Figure 9
Structural Equation Model