Business Service Industries Research Articles

The impact of processes of long duration on the cultural potential for economic development in the peripheries of the European Union

The factors of cultural potential for economic development are: elite exclusion, management style, confidence, and conservatism. This study focuses on two research questions: (1) Do cultural factors affect economic development?; (2) Do cultural factors of significance to economic development derive from long-duration processes or from current adaptations within an international distribution of labour? The study compares countries where capitalism originated (United Kingdom, Netherlands) and historical manorial economies (Czech Republic, Poland, Slovakia, Hungary). A country’s position in the international distribution of labour is indicated by its business service sector, industry, and agriculture. Economic development is measured based on productivity and GDP per capita. The study is based on data from the European Social Survey (ESS Round 6–8), OECD, and Eurostat. Cultural factors correlate with economic development; a regression analysis demonstrates that in terms of development, history matters more for cultural potential than does the current position in the international distribution of labour. Survey results indicate that the core-periphery model is one-sided, overemphasising the influence the core has on the underdevelopment of the peripheries.

Study on the Reform of the Open Policy of Utilizing Foreign Investment in China's Leasing and Business Service Industry

Study on the Reform of the Open Policy of Utilizing Foreign Investment in China's Leasing and Business Service Industry

Can university-enterprise cooperative innovation promote total factor productivity? – Evidence from Chinese-listed firms

ABSTRACT Based on the patent data of university-enterprise cooperative innovation (UECI) from CNIPA and the financial data of Chinese listed companies from 2010 to 2022, we find that UECI can promote the total factor productivity (TFP) of enterprises and that the average application value of each UECI patent is 29.07 million yuan, and confirm the robustness of our conclusions using the instrumental variables method, system GMM and the Heckman two-step method. The results of the mediation analysis show that UECI promotes the TFP of enterprises through three channels: alleviating financing constraints, attracting more knowledge workers and increasing the innovation efficiency of the enterprise. UECI can build alumni linkages between universities and enterprises, expand financing channels and attract more university students to join the company after cooperation, thus increasing their workers’ overall education level. UECI can also enable the firm to emulate academics how to innovate more effectively. Heterogeneity analysis shows that UECI can lead to a higher TFP improvement for enterprises in the leasing and business service industry and scientific research and technology service industry, which are 97 and 3 times higher than the baseline regression, respectively.

A critical evaluation of Basics of New Industrial Policy 1991 on Foreign Direct Investment

In 1991, the financial policies of the Indian economy underwent a significant shift with the introduction of LPG (Liberalisation, Privatisation and Globalisation). On July 24, 1991, the government formulated a new economic policy and unveiled it. The goal of implementing this programme was to strengthen and expand the Indian economy. The nation had a serious financial crisis in 1990, which prompted the implementation of this legislation as a precautionary measure. The government of India established the "New Industrial Policy" (NIP) in 1991 with the goal of liberalising the Indian economy. The changes had a major impact on the business, manufacturing, and financial services industries, as well as on general economic growth.

Has China’s Free Trade Zone policy promoted the upgrading of service industry structure?: Based on the empirical test of 185 prefecture-level cities in China

As the pillar industry of China’s national economy, the service industry has always experienced a lag in structural upgrading. As an important measure of China’s institutional innovation, China’s Free Trade Zone (FTZ) policy is of great significance for promoting the development of the service industry. Based on the panel data of 185 prefecture-level cities in China from 2010 to 2019, this paper empirically tests the impact of the FTZ policy on the upgrading of service industry structure by using the progressive difference-in-differences model. The results show that the FTZ policy can promote the upgrading of service industry structure, and the effect is enhanced with the extension of time. The heterogeneity test shows that the impact of the FTZ policy on the structural upgrading of the service industry is mainly reflected in promoting the development of the information service industry as well as the leasing and business service industry. The transmission mechanism test shows that the FTZ policy can promote the structural upgrading of the service industry by improving the level of trade facilitation and investment facilitation.

TAX AUDIT TO ENSURE BUSINESS PROSPERITY: TRENDS AND PERSPECTIVES

The study identifies key trends impacting the business services industry in 2023, including the strong post-pandemic recovery of demand, increased demand for recruitment services, and increased funding for R&D. The research highlights the growing importance of tax audit in the business development process, as evidenced by the increasing share of advisory audit services and tax consulting in the global market. The study presents the global tax audit turnover, indicating its growth and popularity in the business services industry. The research examines the fastest-growing business services markets, with China being the fastest-growing market in terms of absolute and CAGR growth. The study discusses the dominance of accounting and audit companies in the top 10 list of leading companies in the business services industry, emphasizing the significance of audit, tax, and advisory services. The research emphasizes the need for tax audit services in the current business environment, where constant changes and increasing information turnover make it challenging for businesses to adapt. The research highlights the importance of tax audit in financial control for business owners and international companies operating in Ukraine, as well as its role in tax optimization and planning. The study identifies business trends that require auditors to be prepared to provide tax audit and tax optimization services, including the adoption of automation and artificial intelligence, personalized offers, and the adoption of value-based business models. The scientific novelty of the study lies in its comprehensive analysis of the current state and future trends in the business services industry, with a specific focus on tax audits. The study provides insights into the growing demand for tax audit services, the challenges and opportunities in the industry, and the potential for tax optimization and planning. It contributes to the existing literature by highlighting the significance of tax audits in ensuring business prosperity and offering recommendations for improving the organizational and methodological aspects of tax audits in the business services sector.

Digital transformation in HRM of the modern business service sector in Finland and Poland

Digital transformation in HRM of the modern business service sector in Finland and Poland

A contrast of the popularity and the interpretation of non‐GAAP earning disclosures in different industries

AbstractThis study examines non‐GAAP disclosures in two selected industries, the consumer nondurable goods industry and the business services industry, to address the question of whether non‐GAAP measures are applied and interpreted uniformly across industries, and more importantly, if the market reacts to non‐GAAP disclosures similarly across different industries. Industry membership potentially has an impact on the usage and interpretation of non‐GAAP disclosures; some industries issue their own policy trying to standardize the use of non‐GAAP measures in their industry. However, industry effects on non‐GAAP disclosures have not been thoroughly studied. This study fills in the gap. Using hand‐collected non‐GAAP measures disclosed in the 8‐K reports from 308 firms in the selected two industries, this study finds that: (1) the use of non‐GAAP measures is more popular than reported in previous studies, and non‐GAAP measures are not limited to performance measures; (2) there is weak evidence of industry preference as to which non‐GAAP measures are more popular in that industry; and (3) the market reacts differently to non‐GAAP disclosures in different industries. Combining the empirical findings, this study documents industry effects and market reactions in the interpretation of non‐GAAP disclosures. Considering that these effects have not been formally academically documented in previous studies, this study carries practical implications for investors and financial analysts.

Revamping Business Services: RPA Solutions Landscape

Abstract Robotic Process Automation became an increasingly invasive technology in outsourcing, since both of these industries have been developed based on the same business desiderata, such as increased efficiency, cost savings and improved accuracy. However, there is a gap in the existing literature regarding the concrete use of this technology in business tasks. Therefore, we set out to investigate the implementation of RPA in the business services industry by conducting a literature review mining within the Web of Science database. Our study focused on three research questions: 1) Which are the leading developers of RPA tools? 2) What are the most automated business services tasks using RPA according to the scientific literature? 3) What are the process workflow and performance improvements generated by RPA-automated tasks in each type of outsourcing center? The contributions of our article consist of an overview of the main RPA developers in the market, a synopsis of the business services categories for which the literature indicates RPA solutions’ implementations and an improved synthesis of business process workflows and performance recorded by integrating RPA tools in business services centers. The paper is broadening the understanding of the RPA-powered competitive advantages that could justify the redesign of business process mapping. Finally, our research highlights some milestones of the RPA-enhanced business services landscape and suggests future axes of research.

A Simulation of Mobile-Based Bank Teller Application for Managing Waiting Time of Customers

In business decision-making, the queuing system is one of the options employed to satisfy the demands of a particular service system for resource needs. The queuing theory has been used successfully by various business service industries. There are many types of queuing systems that can predict waiting times and queue lengths. The First In First Out (FIFO) algorithm works like the queue principle, where the first customer to arrive is served first. To mitigate the negative effects of waiting, service managers have implemented various solutions, such as informing customers of the wait length, reducing waiting time, and offering entertainment options like television during the wait. Service operations managers continually strive to reduce customer waiting times to enhance customer satisfaction, which can be achieved through real waiting time reduction or improvement in the customer waiting for the experience. This study presents a simulation of a mobile-based bank teller application for managing customer wait times. The application is built using back-end and cloud computing and is based on a FIFO algorithm. It has been shown that the proposed system is efficient and contributes to the real workflow process.

The digital humanism era triggered by individual creativity

Shifting from Industry 4.0 to Industry 5.0, the digital transformation (DT) has encouraged new debates on human skills as opposed to technologies. It has delivered positive and negative perspectives, focusing on the dilemma of how human skills can influence the DT. The present research explores human skills in the entrepreneurial world, considering its three main forms of creativity, innovation and entrepreneurial spirit in relation to the DT. This has mostly occurred in the knowledge-intensive business service (KIBS) industry in which humans have a predominant role. Under the lens of social cognitive theory, this study has examined a range of 370 KIBS companies across different sectors in Europe and the resulting individual creativity and innovation represent a (motivator) or a catalyst, which drives and nurtures DT. Theoretically, a new concept emerges, namely digital humanism, which involves emphasizing the relevance of human skills. Moreover, the study suggests that governments and policymakers encourage creative working activities by exploiting technologies to develop innovations. In this sense, technologies assume a positive connotation, leveraged by entrepreneurship knowledge-intensive business service; digital humanism; Creativity; Digital transformation; entrepreneurial spirit.

СОСТОЯНИЕ И ПРОБЛЕМЫ РАЗВИТИЯ СФЕРЫ ДЕЛОВЫХ УСЛУГ НА СОВРЕМЕННОМ ЭТАПЕ

The main approaches to the term “business service” are considered in the article. With the development of the quaternary economic sector, business services began to stand out from the huge variety of services, which attract more and more attention of various researchers and suggest the presence of the knowledge-intensive component. The aim of the paper is to analyze the current status and the development problems in business services in the Russian Federation. The object of the research is business services sphere, and the subject of the research is the foreign trade main parameters in business services. The status of the modern business services market is characterized by several main indicators, which include: the share in world export and import of services, the dynamics of export and import of services, private indicators in business services industry, and the business services share in GDP. The authors provide the main statistical indicators of foreign trade in business services according to the type of economic activity for 2020–2022, analyzing the status of the business services sector and factors hindering the activities of organizations in this economic sector.

The Effect of Covid-19 Pandemic on the Global Business Services Industry in Malaysia: Surviving the Business Onslaught

The Effect of Covid-19 Pandemic on the Global Business Services Industry in Malaysia: Surviving the Business Onslaught

The impact of telework on organisational performance, behaviour, and culture: evidence from business services industry based on employees’ perceptions

The future of work is being redesigned by the world’s largest telework experiment as a consequence of the global pandemic. The research objective was to analyse and debate actual organisational needs in terms of telework and its implications for organisational performance, behaviour, and culture within the context of digital technology. This article challenges the results of previous research on factors related to telework and its outcomes, contributing to the literature through an advanced analysis of employees’ perceptions, for the Business Services industry. Quantitative research is conducted based on a questionnaire. The research hypotheses were tested through Kruskal–Wallis test, Spearman’s correlations, and linear regression, complemented by robustness tests. Findings indicate that the business professionals with pre-pandemic telework experience assigned a higher importance to all organisational dimensions, as compared with the employees having pandemic telework experience, only. The results also show significant relationships between telework and the organisational dimensions, with positive impact for factors contributing to achieving goals while teleworking. The results are mixed in the case of negative factors affecting telework, with a positive impact on organisational performance, and a negative impact on organisational behaviour. Significant changes were found when the digital technology dimension was considered.

Telework Systematic Model Design for the Future of Work

The practice and popularity of telework has expanded significantly in the past few years, mostly due to the COVID-19 pandemic. As a critical factor contributing to business resilience, the new work model challenged companies to figure out innovative ways to address contemporary organizational and employee needs. To address this gap, this study approaches the telework concept from a broader perspective, integrating inputs, outputs and outcomes in an analytical framework. Drawing from data collected based on interviews and questionnaires addressed to professionals in the business service industry who experienced telework, frequency analysis, discourse analysis and chi-square test were used to synthesize the findings. Results show that resource availability and professional relationships represent the basic factors, while technology may be more than a facilitator. Moreover, knowledge exchange, work–life balance and professional isolation are critical factors emerging from the virtual environment that influence work goals achievement. This study contributes to research by proposing a Telework Systematic Model (TSM), which addresses the interaction of various organizational dynamics factors as a result of mixed working patterns. The discussions address the future of work by including the hybrid work model, platform innovation and new business opportunities to enhance organizational resilience for sustainable innovation and change through digital technology.

Understanding the Joint Impacts of Cognitive, Social, and Geographic Proximities on the Performance of Innovation Collaboration Between Knowledge-Intensive Business Services and the Manufacturing Industry: Empirical Evidence From China.

Most previous empirical studies just addressed the influence of geographical proximity on interactive learning regarding the collaboration between knowledge-intensive business service (KIBS) and manufacturing industries. Drawing upon the social cognitive and knowledge-based perspective, this study bridged the research gaps by investigating the joint effects of geographical proximity and two representative non-geographic-proximities (i.e., cognitive proximity and social proximity) in fostering manufacturing firms’ innovation performance. In terms of the empirical analysis, we applied a research sample that involves the data of various manufacturing industries in 260 cities of China from 2003 to 2014 to test the corresponding hypotheses. Additionally, the Spatial Durbin Model (SDM) was adopted and the research findings showed that: (i) the geographic and social proximity significantly promote the knowledge transfer from KIBS to manufacturing firms, which further improves the innovation performance of the latter. However, the effect of cognitive proximity presents insignificant; (ii) the interactive effect of geographic and social proximity was positively associated with the innovation collaboration between KIBS and manufacturing firms; (iii) although the individual effect of cognitive proximity was insignificant, when it interacted with geographic or social proximity, the joint effects were proved to promote the innovation performance of manufacturing firms. This study extends our understanding pertaining to the influencing mechanism of proximity for KIBS and the innovation process. The findings proved that geographic and social proximity are two imperative facilitators of knowledge-creating collaboration, highlighting their indispensable role in moderating and mediating the knowledge transfer of KIBS as well as the innovation performance of manufacturing firms. Notably, cognitive proximity is contingent upon geographic and social proximity on its positive effects on the innovation performance for KIBS and their clients’ collaboration.

Implementation of new technologies in accounting and financial processes: An effectiveness assessment

Objective: The aim of this paper is to explore accountants’ views on the usage of Robotic Process Automation technology (RPA) which brings efficiency increase. Research Design & Methods: An online survey has been addressed to over 500 respondents from international companies, where 160+ complete answers were received from the most important types of organizations in the business services industry. The non-parametric rho Spearman correlation coefficient and the non-parametric Kruskal-Wallis test and business case for the RPA implementation efficiency were used. Findings: Based on the research results obtained, it should be emphasized that robotization technologies which raise the efficiency of financial and accounting services make an important impact on the efficiency of modern business services sector. Application of RPA assumes replacing work of an existing employee with the use of dedicated software (software robots) to support activities, primarily repeated and uncomplicated, characterized by a low number of exceptions. Implications & Recommendations: RPA application is commonly used in modern business services, particularly in the areas of Finance, Accounting, IT and Human Resources Management. By utilizing RPA technology, the effectiveness of operations increases while reducing workload, minimizing possible errors in the process. The greatest efficiency resulting from the RPA implementation was observed in the Accounts Payable department, to a lesser extent in the General Ledger department and in the Tax section. The assessment of managers in terms of the effects of RPA implementation is unequal, while for Business, IT Process Outsourcing companies (BPO / ITO), Shared Service Centers (SSC), Consulting / Advisory companies and their customers no significant differences were found. Contribution & Value Added: The article presents an assessment of the effectiveness of the use of Robotic Process Automation in Process Outsourcing companies (BPO / ITO) and Shared Service Centers (SSC) operating in Poland. It is one of the first studies of this type for enterprises operating in Poland. The article uses a relatively large number of responses (160+) from the respondents. In the previous studies in the literature, the answers obtained came from a much smaller number of respondents and were conducted in the form of direct interviews. In the article, the group of respondents consists not only of managers of outsourcing companies, but also auditing companies and clients of outsourcing companies. The article also presents a financial simulation of the effectiveness of BPO / ITO and SSC using Robotic Process Automation, which additionally validates the responses obtained in the questionnaire.

The Challenges of Implementing Robotic Process Automation in Global Business Services

Organizations use a variety of automation tools to simplify their tasks. One of the tools is Robotic Process Automation (RPA). Recently the issues of the less-than-successful use of the system have been raised. To address this issue, the aim of this study is to understand the challenges of implementing RPA in Global Business Services (GBS) industry. The study is conducted using an in-depth case study approach and interviews at one of the world’s largest oil and gas organizations in the GBS industry. The result of the study showed that the organization is facing various challenges and issues during and after implementing the RPA technology in their organization. Amongst the challenges are the limitation of the task that can be automated, system failure, and safety and data privacy issues. The study suggested that good planning during the implementation of RPA and a strong security team are crucial in solving the challenges faced by the organization.

Growth, performance and projections — Micro, small, and medium enterprises (MSME\'s) in India: A discourse analysis

The micro, small, and medium-sized enterprise (MSME) sector is regarded as an economy's growth engine. During 2012-13, the Micro, Small and Medium Enterprises (MSME) sector, including that of the business services industry, contributed 37.54 percent to the nation's exports GDP, with 805.24 lakh people employed inside this sector. For the fiscal year 2014-15, the industry contributed 44.70 percent of India's overall exports. Income and wealth inequality are also widespread, particularly in emerging nations like India. We require a 'Inclusionary Growth' framework to handle these issues. Growth will not even be comprehensive until and unless the benefits of growth reach the other side of the pyramid. A continuous increase in per capita income cannot inevitably translate to a sustained gain in standard of life in a developing country like India, where disparity in wealth and economic activity is large.

Productivity dispersion in the Italian knowledge-intensive business services (KIBS) industry: a multilevel analysis

PurposeThis paper aims to provide an analysis of the productivity evolution of a sample of 18,459 knowledge-intensive business services (KIBS) firms operating in Italy over the period 2012–2018. The interaction between productivity heterogeneity firm localization and firm sector of business are also analyzed.Design/methodology/approachThe empirical setting is based on data envelopment analysis (DEA) to measure the multifactor productivity index (MPI) and on the multilevel models to investigate if the source of productivity heterogeneity among the Italian KIBS are due to the geographic location and/or to the specific business sectors in which firms operate. Data have been gathered from the AIDA database, which contains financial data of all Italian firms.FindingsThe empirical results show that MPI heterogeneity in the Italian KIBS firms' is sensitive to the regional context in which firms operate to the specific KIBS sector and above all at the interactions arising between region and sector.Originality/valueThe paper contributes to identify the source of productivity dispersion in the Italian KIBS.