Over the past several decades, large law firms have experienced substantial growth. Recent theory grounded in economic models attributes exponential growth rates to the existence of tournaments in the large firm. Essentially the theory postulates an internal labor market in the large law firm where partners create appropriate incentives for associates through the organization of tournaments. Growth is seen as a consequence of the need to promote some junior members, and recruitment is seen as a consequence of the need to replace those who are and are not promoted. Thus, the ratio of associates to partners does not decrease over time, and a constant promotion rate is hypothesized. While there is evidence of this pattern in the United States, its generalizability must be examined in a broader context. An apt comparison to the U.S. case is the English experience. The large solicitors' firms in the United Kingdom have shown similar patterns of growth despite differences in legal practice and in the character and function of law. This study systematically analyzes the recent transformations of both American and English law firms in order to understand what has made them grow and change and how these developments affect the future of these firms and the legal system in which they are set. The project consists of three interrelated parts: (1) an account of the contemporary growth and transformation of one echelon of English solicitors' firms; (2) a theory that portrays this transformation as a manifestation of the underlying structure of the firm growing exponentially, and a test of the theory; and (3) a comparison of the transformation of the English firms with that of large American law firms. A data set will be constructed on the growth and hierarchical structure of approximately 100 English firms for a period of 75 years. The data will include analysis of archival materials and interviews with informants. Comparable American data has been obtained by the investigators in prior research. This study provides a unique opportunity to account for organizational development within contrasting legal settings. The research will have both practical and theoretical importance in setting forth issues arising from the kinds of services law firms are providing and the conflicts they are having with the business world. Analyzing the patterns of similarity and differences in the development of the law firm in the United States and England will illuminate the relationship between the structural characteristics of law firms and the changing consumption of legal services in a globalized economy.
