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Firm size and service diversification have been studied extensively regarding PSFs and other organizations.
As many studies have shown, service diversification increases specialization and decentralization (Mintzberg 1979: 380 430; Williamson 1975: 132 154).
The rise of IT- and management consulting as new entrepreneurial opportunities of the firm led to service diversification and further growth.
In fact, owing to the high degree of service diversification, a PSF employing this governance configuration is likely to offer services of varying degrees of commoditization.
Together, large firm size and strong service diversification point to several governance characteristics that distinguish the entrepreneurial configuration from the collegial configuration, such as a high degree of specialization, decentralization, and formalization.
The demands of global clients for integrated service providers, the declining profitability of the core audit services, and the competitive advantage of existing client relationships in auditing have been cited as reasons for service diversification (Aharoni 1999; Malhotra et al. 2006; Rose and Hinings 1999).
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Taken together, the three aspects of firm strategy (service commoditization, diversification, and size) specified in our contingency factors offer a consistent explanation for the governance characteristics of the managerial configuration.
These efforts would be most effective if supported by programs offering affordable credit facilities, strengthening extension services, promoting diversification of livelihoods and income sources, and enhancing livestock diversity and promoting species that are drought tolerant.
Decentralized availability of services and diversification of programmes offered according to local needs should be considered for PWID in Poland.
Although cost sensitivity remains important, Wolfgang Mayrhuber, who became CEO in 2003, allowed the firm to recover from the seemingly never-ending process of savings by shifting the focus toward more innovation, a service culture, and diversification.
This turns out to be a better play on global growth in financial services and earnings diversification.
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