Frida Pemer

Organizing ecosystems for learning: How professional service firms seek knowledge beyond professional and organizational boundaries

Digitalization is causing incumbent firms to rethink their organizational forms, professional roles, and strategies to stay competitive. This development is particularly salient in professional service firms (PSF), as the professional knowledge and services they provide are challenged by new digital solutions and artificial intelligence (AI). To act on new opportunities and challenges, PSFs need to search for knowledge outside their domains of expertise and engage in ecosystems for learning. However, how this is organized in practice and how it affects their professional roles and boundaries is not well known. Following this, the project aims to explore how incumbent PSFs respond to digitalization by engaging in ecosystems for learning that reach beyond their organizational and professional boundaries. We do so by studying how incumbent PSFs in three different industries in Sweden create new ecosystems for learning. The project takes its starting point in a case study, based on action research, in a business law firm that is in the midst of creating a new ecosystem for developing new digital knowledge, outside the realm of their professional expertise. We then compare and contrast our findings by studying how PSFs within auditing and architecture shape new ecosystems for learning. The project contributes with new practical and theoretical knowledge by combining and building insights from the literature on digitalization in PSFs with research on boundary work.
Final report
The project’s purpose and development

Digitalization, and artificial intelligence (AI) in particular, is reshaping the conditions for professional service firms (PSFs), challenging established ways of working, business models, and professional identities. To remain competitive, these firms need to develop their knowledge of digitalization and actively engage in digital innovation. Against this backdrop, our project has examined how established PSFs manage ongoing digital transformation.

We find that these firms realize digital opportunities by creating new - or participating in existing - ecosystems for learning. These ecosystems extend across both organizational and professional boundaries. The project has aimed to develop theoretically and practically relevant knowledge about the emergence of ecosystems as a means for learning and digital innovation.
The project was guided by three research questions:

1. How do PSFs, who traditionally stand for perfection and precision, embrace the need for learning and innovation?

2. How are new forms for collaboration and co-creation, i.e., ecosystems, formed within and across organizational and professional boundaries in response to digitalization?

3. How does engaging in digital innovation contribute to the (re-)shaping the future of professional services and professional work?

These questions were addressed through three case studies of leading PSFs in different industries. The firms have been pseudonymized and are referred to as the Law Firm, the Architecture Firm, and the Auditing Firm. These studies, involving extensive data collection and feedback processes, were conducted over several years (2022–2026).


Implementation

The project began with a case study of the Law Firm, which had recently established an innovation lab. The lab aimed to create an ecosystem involving external actors beyond the firm’s core knowledge domain. This ecosystem included employees with diverse backgrounds (law, innovation, technology), an incubator for legal-tech startups, and a research network. The lab was expected to bridge knowledge domains, enable learning about digitalization and digital tools, and stimulate digital innovation.

This was followed by a case study of the Architecture Firm, which had also established an innovation lab to create an ecosystem with external actors such as prop-tech companies, researchers at technical universities, sustainability experts, and anthropologists. Similar to the Law Firm, the aim was to bridge knowledge domains and strengthen learning and digital innovation. However, unlike the Law Firm, this lab was organized as an integrated part of the firm’s operations, alongside an already existing “research lab.”

Finally, a case study was conducted at the Auditing Firm. To meet increasing demands from clients and competitors, the firm made substantial investments in digital innovation. Due to its size and international presence, it was able to create an internal ecosystem and did not rely on external collaborations to the same extent as the other firms. The firm also invested in digital training and adapted its recruitment practices to include technical competencies. Notably, the emergence of generative AI, such as ChatGPT, coincided with our interview study, which naturally influenced the research context.

A qualitative multiple-case study design was employed, consisting of interviews with employees in various roles to capture diverse perspectives. In total, 119 interviews were conducted (52 at the Law Firm, 19 at the Architecture Firm, and 48 at the Auditing Firm). At the Law Firm, observations were also conducted during two workshops and two training sessions.

Preliminary findings were presented at international conferences, and results were continuously fed back to participating organizations through interactive presentations and workshops.


The project’s three most important contributions

Previous research has shown that digitalization is reshaping professional service firms, but there have been relatively few empirical studies demonstrating how this transformation unfolds in practice. Existing studies have also often focused on a single industry. Our project contributes new insights, as it was designed to enable in-depth case studies and comparative analyses both across different firms and across industries. The project has resulted in a number of publications, with additional scientific articles currently under review.

Our research has generated several observations and conclusions. Drawing on the literature on organizational ambidexterity, we develop propositions regarding the factors that influence how PSFs organize structural and/or contextual ambidexterity, including professional context, workforce homogeneity, and the nature of the knowledge base. One key conclusion is a deepened understanding of how PSFs can organize ecosystems for learning, specifically in the form of innovation labs. This also influences perspectives on career paths and leadership, which we demonstrate, for example, using data from our interview study of the Auditing Firm. The need for new competencies, ways of working, and team configurations reshapes both established role structures and the organizational culture that has contributed to the firm’s identity. Drawing on the Law Firm case, we analyze how its innovation lab led to the emergence of new roles—both formal and informal—as well as a broader understanding of what it means to be a lawyer, shifting from a traditional expert role to that of a digitally innovative actor.

Taken together, our findings show that digitalization has contributed to a profound transformation of PSFs. As technological development progresses, theoretical frameworks must also evolve accordingly. Our articles highlight different perspectives that contribute to such a discussion.


New research questions

The project has generated numerous new research questions related to digital technologies and how they are understood and managed within PSFs. The results show that digitalization has far-reaching implications for career structures, leadership, and relationships within and between organizations. Since the project began, generative AI has gained widespread adoption, accelerating and scaling the digital transformation of these firms.

Against this background, we emphasize the importance of future research examining how advanced digital technologies are used (and can be used) in PSFs, and the implications for competence development, knowledge bases, and professional jurisdictions. Our findings suggest that established definitions and taxonomies of what constitutes a law firm, architecture firm, or auditing firm need to be reconsidered.

We also identify a need for longitudinal studies that follow these developments over time, as well as comparative studies across different types of PSFs. Finally, we highlight the need for more empirical research focusing on ecosystems for learning, including their governance, development, and role in facilitating knowledge exchange across domains of expertise.


Dissemination of project results

The project’s findings have been presented at leading international conferences, including the European Group for Organizational Studies (EGOS), DBOSI, the Human Relations Conference, and the Academy of Management Discovery Workshop. The research team also organized sub-themes at EGOS conferences in 2024 and 2025.

The project has contributed to public and professional debate through participation as organizers, speakers, and panelists at both academic and practitioner-oriented events, such as the Digital Summit in Copenhagen, Nordic Legal-Tech Summit, Almedalen Week, and events organized by the Swedish Bar Association, the Swedish National Audit Office, and the Swedish Inspectorate of Auditors.

The results have been integrated into teaching at the Stockholm School of Economics, Lund University, Stockholm University, and the University of Gothenburg. At the Stockholm School of Economics, the project led to the development of the course Digitalization and Knowledge-Intensive Work. The findings have also been disseminated through executive education programs, including SSE Executive Education and the SSE Executive MBA.

Results have been shared with participating organizations through presentations and workshops, enabling close collaboration with practitioners.

The project has also initiated a new research project funded by Handelsbankens Forskningsstiftelser: “Let’s have a chat about ChatGPT: a study of how private actors and chatbots are challenging the role of universities and (perhaps) influencing how we understand professional boundaries.”
Grant administrator
Institute for Research
Reference number
P21-0381
Amount
SEK 3,544,000
Funding
RJ Projects
Subject
Business Administration
Year
2021