Knowledge is the great fifth production factor in our economy, besides capital, labour, land, and entrepreneurship. Economists have tried to grasp the knowledge factor, measuring and assessing it in terms of the pools of R&D-expenditures, patented innovations, licences, and other forms of knowledge that can be documented.
The professionalization of business is related to the complexity of the business and to turbulence in the business environment. One key issue is the increasing use of external consultants. Growth of the consultancy industry has resulted in a vast pool of advanced knowledge, providing a flexible alternative to rigid, costly internal professional support departments. The work examines the conditions needed for efficient integration of external professional support and the internal knowledge base. The book contains an extensive case study of the management consultancy industry, the results of which are used to construct a framework for strategic management in the industry.