Innovating processes and processing innovation: strategic approach to innovation in accounting firms

Purpose This paper aimed to explore the main strategies and approaches to innovation in professional service firms (PSFs), with a specific focus on accounting firms. Design/methodology/approach The paper relied upon a systematic literature review of previous studies to identify and reconcile the different approaches to innovation processes in accounting firms and further advance a conceptual framework for their discussion. Findings The findings, based on the review of 38 papers, revealed four main strategies around two main dimensions: the focus on internal/external features of the firm and the main source of innovation (technology and knowledge). The strategies may enable PSFs finding new opportunities and improving organizational performance. Practical implications The paper provides a conceptual framework in the form of a “strategy-innovation” matrix where four strategies emerged to support PSFs identifying possible approaches to innovation for new opportunities and improving their performance and services. In doing so, the paper bridges the main sources of innovation, knowledge and technology with key organizational features, considering structural/organizational aspects, cultural aspects, HR practices, collaborative behaviors, professional autonomy, service diversification and the role of professional networks and external actors. Originality/value The paper contributes to the literature by deepening understanding of innovation processes in PSFs, suggesting the need to develop a strategic orientation to innovation in these firms. In doing so, the paper also provides useful practical implications for the management of PSFs, suggesting an “innovation/strategy” matrix that might support the positioning of PSFs with reference to its approach to innovation.