An integrative literature review and empirical validation of motives for introducing shared services in government organizations

Exploring the contextual factors affecting financial shared service implementation and firm performance

Purpose

Although the financial shared service (FSS) mode has become a well-established organizational arrangement, current information system (IS) research remains limited and mixed. The purpose of this study is to narrow research gaps in the literature on shared services from an FSS practice perspective. The following research questions guide this study: (1) what are the important antecedents of FSS implementation? (2) what is the impact of FSS implementation on firm performance?

Design/methodology/approach

Drawing on the technology–organization–environment (TOE) framework and previous innovation studies, this study explores the impact of FSS implementation on firm performance. A questionnaire survey was conducted on Chinese firms using partial least squares (PLS) for data analysis.

Findings

The authors find technological, organizational and environmental factors affect the extent and depth of FSS implementation. The empirical results show that relative advantage, compatibility, top management support, managerial obstacles and competitive pressure significantly affect FSS implementation, but bandwagon pressure does not have a direct impact on it. Top management support is the most important factor, and managerial obstacles and compatibility are controllable and manageable factors for firms. The study confirms that FSS improves the financial and non-financial performance of firms significantly, and the degree of improvement in non-financial is greater than that in financial performance.

Practical implications

A comprehension of the key factors influencing FSS implementation will help companies predict weaknesses in their implementation plan and design suitable strategies to handle deployment to achieve these benefits. Managers can make a comprehensive decision regarding the long-term development of combining FSS and the suitability of companies.

Originality/value

The findings contribute to the shared services implementation theory by identifying a set of theoretical factors that shape a firm's shared service implementation. This study provides empirical support to gauge the impact of FSS implementation on firm performance and provides new evidence for a shared-service payoff study. Moreover, the study extends the applicability of the TOE framework and the balanced scorecard (BSC) viewpoint to the FSS implementation field.

How finance shared services affect profitability: an IT business value perspective

Shared services have become an important IT-enabled organizational form for providing support business functions to internal users. The information systems that implement and deliver shared services are part of the organizational IT infrastructure that has a twofold effect on firm financial performance. On the one hand, with the shared services model, the IT infrastructure consolidates so that the costs are lowered for providing the common functions firm-wide. On the other hand, the systems delivering the shared services embody the workflow and business functions so that the value of shared services can be gained from improvements in the function performance at the process level. We perceive finance shared services as IT-enabled services for corporate finance and accounting functions, and propose that finance shared services improve firm profitability via cost savings at firm level and via increased working capital efficiency at the process level. We test our hypotheses with data on Chinese public firms from 2008 to 2019. Data analysis results show both direct effect of finance shared services on profitability and mediating effect of working capital efficiency. This study expands our understandings about impacts of shared services, and contributes to empirical research in IT business value.

Exploring factors influencing service trade-offs in the higher education sector: evidence from Malaysia

Purpose

Trade-offs are unavoidable in a competitive and difficult economic environment, causing a challenge for those wanting to provide consistently high-quality service across all touchpoints in the service delivery ecosystem, included in which is the higher education (HE) sector. This study aims to explore the key factors influencing service trade-offs related to the efforts of academics in Malaysia’s HE sector.

Design/methodology/approach

A self-administered questionnaire was distributed to 400 full-time academics from several higher learning institutions in Malaysia. Data were analysed using the partial least squares-structural equation modelling (PLS-SEM) approach.

Findings

The results reveal that service trade-offs in the HE sector were heavily influenced by service priorities. Customisation of services, meeting individual student needs, working under immense pressure within tight timeframes and focusing on teaching and research jointly contribute to academics’ service trade-offs in the HE sector. Indeed, the nature of the job necessitates such trade-offs by default, as academics are unable to cancel or postpone classes due to scheduling constraints and the requirement to be physically present during class sessions.

Practical implications

HE administrators and managers should provide academics with adequate resources, effective work allocation and optimal timeframes for task completion, as service priorities are the key factors influencing service trade-offs in Malaysia’s HE sector. The satisfaction of these needs would enable academics’ service priorities and trade-offs to be better balanced, thereby contributing to better operational efficiency, boosting organisational performance and maintaining business sustainability.

Originality/value

The empirical results serve to clarify the key factors influencing service trade-offs in the HE sector, thus expanding the extant literature, which has mostly concentrated on describing the same phenomena in the manufacturing sector. The proposed service trade-offs model would serve as a guideline for operational efficiencies in the HE sector to prevent future recurrence and reduce the potential risk of service disruption, thus mitigating the risk of dissatisfaction.

Shared service implementation in multidivisional organizations: A meta-synthesis study

The purpose of this article is to explore shared service center (SSC) implementation. Shared service is a key concept by which corporations organize their resources. Research indicates that some organizations struggle with implementing SSC and sometimes entirely fail to implement them. Although prior research exploring the determinants of implementation success is relatively scarce, researchers have conducted several SSC implementation case studies. However, these valuable findings remain isolated in stand-alone case studies. We aggregated the results of these studies using a qualitative meta-synthesis to identify, extract, and synthesize variables, their interrelations, and their relationships to SSC success. The outcome is a theoretical model that describes which factors are important and how and why they are related to SSC success. Overall, we make important contributions to the growing SSC research by shedding theoretical light on SSC implementation. We also provide a set of propositions and make suggestions for future research.

Managerial challenges to realizing IT shared services in a public university

Purpose

Many governments and public organizations are turning to shared service arrangements to decrease costs while increasing service levels. This paper aims to elucidate the fine-grained challenges managers face as they adjust to working under a shared service arrangement.

Design/methodology/approach

A two-year longitudinal ethnographic field study followed the IT shared service transformation process at a large public university. Meeting observations, emails, documents and interviews were used in the qualitative analysis.

Findings

The research identifies 11 challenges faced by management undergoing a transition to shared services. The authors use a taxonomy of management challenges based on the organizational perspectives literature (Knol et al., 2014) to organize the challenges and relate them to prior literature.

Research limitations/implications

The novel findings include the importance of changing organizational culture, balancing dual interests of cost and customer focus, establishing a sense of urgency and achieving process standardization through practicing when adopting a shared service arrangement. The results from a single case study may not by generalizable to other organizations.

Originality/value

This study provides a nuanced and fine-grained understanding of the managerial challenges of adopting IT-shared services. This unique longitudinal data set describes in nuanced detail the challenges faced by frontline managers.

Public Sector Shared Services Move Out of the "Back-Office"

Shared service providers typically host routine and administrative business processes as a way to standardize company practices and increase efficiency. In the public sector, however, its application to functions critical to an organization"s central mission is moving shared services out of the "back-office." This research employs and extends Bergeron"s (2003) framework to case analysis of two public safety networks within the United States, and prompts the addition of two new characteristics for public sector shared services, Public Policy and Type of Service. In this sector, we find that legislative controls, i.e. policy, manage information and communications technology (ICT) investment to meet efficiency and especially effectiveness goals, while mission criticality serves to trump cost considerations. Recommendations resulting from this research should lead to improvements in the cost and performance of public-sector shared services and their role in ICT-supported, mission-critical, shared services.

Standardized but flexible information exchange for networked public administrations

Purpose

Governmental institutions must cooperate with other organizations across institutional boundaries to achieve high-quality service offerings. The required cooperation may lead to complex networks, including several of the thousands of public administrations in the many federal layers of a single country. This paper aims to address the key challenge of the proper management of the information exchange between networked actors, which is generally conducted by means of forms.

Design/methodology/approach

Following the design science research paradigm, this research develops a method that assists in the design and maintenance of forms in public administrations.

Findings

Discussions in the project’s focus groups add evidence to the researchers’ expectation that the method developed in this study improves the quality of forms while reducing the effort required for their design and maintenance.

Research limitations/implications

This paper includes an evaluation of the approach based on qualitative feedback from the project’s stakeholders, although the implementation of the workflows and procedures is subject to future work that evaluates the approach in a variety of practical settings.

Practical implications

The method developed in this paper allows public administrations and legislative authorities to design and manage forms in a cooperative way. Software developers can assume the existence of information structures. The approach extends the BOMOS standardization framework to the operational level.

Originality/value

The main contribution of this paper is the development of a novel method that will change how information exchange is managed in public administrations.