Dislocated Versus Local Business Service Expertise and Knowledge : The Acquisition of External Management Consultancy Expertise by Small and Medium-Sized Enterprises in Norway

The effect of consultancy firms' locationontheir ability to procure clients in Norway is investigated through the casestudies of three client firms and their experiences using consultants. Amatched pairs methodology is implemented to determine the effect of thegeographical socio-economic setting on the relationship between the businessservice providers and their clients. Three types of client-consultantrelationships were identified: local knowledge, dislocated knowledge, anddistance insensitive knowledge. Results indicate that the social closeness between a client and its provideris vital for building trust, and to reduce transaction fees. Also, it wasdetermined that the goal of all enterprises should be to find the firm thatgives them the most expertise for what they can afford. It is concluded thatthe complex issue of distance between service providers and clients has bothadvantages and disadvantages, but the socio-economic structure of Norway favorslocal consultancies over their competitors. (SRY)