Knowledge and Value Creation in Professional Service Firms: A Framework for Analysis

Abstract
This article presents a comprehensive framework for the analysis of value creation and knowledge development in general and, in particular, for professional service firms (PSFs). The framework integrates the relationship between the domain choice and the resource (or knowledge) base, and argues that the bridge between the two is best explained as value creation processes (VCPs) with two interrelated dimensions: direct value creation for the clients, and indirect value creation in terms of enhancing the knowledge base.