Probe - Accounting, Auditing and Taxation

Exploring the impact of deglobalisation on international professional service firms: A case study of the Big Four accounting firms in China

Kaiwen Zhang

School for Business and Society, University of York

DOI: https://doi.org/10.59429/paat.v7i2.10291

Keywords: Deglobalisation; Big four; china; Institutional theory; Resource dependency theory

---

Abstract

This paper explores the strategic implications of deglobalisation for international professional service firms (PSFs), focusing on a case study of the Big Four accounting firms—PwC, EY, Deloitte, and KPMG— in China. As geopolitical tensions rise and economic nationalism intensifies, China has introduced restrictive regulatory frameworks that challenge the autonomy and operations of foreign firms. Through the lenses of Institutional Theory and Resource Dependency Theory, the paper examines how the Big Four navigate institutional pressures, regulatory constraints, and power asymmetries in a highly politicised environment. It argues that localisation strategies, strategic partnerships, and hybrid governance models have emerged as key responses to mitigate risks and maintain market presence. Drawing on recent policy developments, industry reports, and academic literature, the study offers a critical analysis of how global firms recalibrate their strategies in response to China’s dual circulation model and evolving business ecosystem. The findings highlight broader implications for multinational PSFs operating in similarly protectionist markets and contribute to the literature on international business strategy and regulatory adaptation

---

References

[1]Scott, W. R. (2014). Crafting an analytic framework I: three pillars of institutions. Institutions and Organizations: Ideas, Interest and Identities, 55-74.

[2]Pfeffer, J. and Salancik, G. (2015). External control of organizations—Resource dependence perspective. In Organizational behavior 2 (pp. 355-370). Routledge.

[3]Srivastava, P. (2008). The shadow institutional framework: Towards a new institutional understanding of an emerging private school sector in India. Research Papers in Education, 23(4), 451-475.

[4]Costa Filho, A. C. D., & Oliveira, R. R. (2022). Analysis of the Institutional Pillars of a Code of Conduct in a Non-Governmental Organization from the Institutional and Appreciative Perspective. Administração Pública e Gestão Social, 14(3).

[5]Ebers, (2001). Interorganizational Relationships and Networks. International Encyclopedia of the Social & Behavioral Sciences, Pages 7855-7860.

[6]North, P. (2010). Eco-localisation as a progressive response to peak oil and climate change–a sympathetic critique. Geoforum, 41(4), pp.585-594.

[7]Macve, R. (2020). Perspectives from mainland China, Hong Kong and the UK on the development of China’s auditing firms: implications and a research agenda. Accounting and Business Research, 50(7), 641-692.

[8]Qian, W., & Chen, X. (2021). Corporate environmental disclosure and political connection in regulatory and leadership changes: The case of China. The British Accounting Review, 53(1), 100935.

[9]Lyons, M.S. (2007). Place-shaping: a shared ambition for the future of local government, final report. The Stationery Office.

[10]Contessi, N.P. (2016). Central Asia in Asia: Charting growing trans-regional linkages. Journal of Eurasian studies, 7(1), pp.3-13.