KCEBSA

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.

Assessment of key airline selection indicators in a strategic decision model

Purpose

Fierce competition in the airline industry compels airline companies to offer various services. Yet, while companies strive to become preferable, customers confront numerous airline selection indicators, and as such causes vagueness in human thinking that needs to be systematically and normatively resolved. Accordingly, the purpose of this paper is initially to establish a strategic decision model that incorporates key selection indicators, among hundreds of criteria, through a systematic approach. Subsequently, it also aims to investigate the relative importance of these indicators for passengers.

Design/methodology/approach

This research first utilises a comprehensive literature review to uncover key indicators used in airline selection. Afterwards, the outcome obtained from the first phase initiated the phase of determining the prioritisation of these key selection indicators, through the analytic hierarchy process (AHP) method, based on passengers’ judgments.

Findings

The outcome of structuring a strategic decision model reveals 32 key selection indicators to be mainly considered by passengers and these indicators are grouped under five dimensions in this paper. Then, the prioritisation results given by the AHP indicate that “price-related factors” and “customer satisfaction-related factors”, respectively, are more important dimensions for passengers while selecting the best airline company.

Originality/value

The proposed approach provides a novel way to identify and prioritise key airline selection indicators for different passengers, through using the AHP, as a response to the need of adopting a systematic and comprehensive manner with the inclusion of general industry norms. Within this scope, the established model and the prioritisation results can be used as a reference by both airline passengers during their decision-making processes and airline companies which aim for becoming more competitive.