Shared Service Center Research Articles

Research on Optimization of Performance Evaluation Path of Blockchain Embedded Financial Shared Service Center

Research on Optimization of Performance Evaluation Path of Blockchain Embedded Financial Shared Service Center

Cross-functional integration between demand and supply processes: a case study about the role of digital technologies

PurposeThe objective of this article is to analyze the integration between the internal functions related to demand and supply processes. The studied object was an agribusiness company that uses digital technologies to operate its inbound logistics.Design/methodology/approachA case study was conducted in a global agribusiness company that went through a restructuring process with the implementation of a shared service center. In-depth interviews were conducted with employees from the demand and supply areas. The analysis involved description of cross-functional integration processes from the areas of demand and supply, the identification of technologies from Industry 4.0 present in the activities of those areas and their role in the integration process.FindingsThe analysis revealed the mediating role of technology in cross-functional integration, the presence of new integration factors and their impact on process performance. A framework was developed that describes the relationship between technology and integration factors, their impacts, and the implications for theory and practice.Practical implicationsRegarding this study, the focal company migrated its activities, which were previously isolated and dispersed across branches, to a centralized shared services unit. This research contributes by providing managers with elements to support their investment decisions in technologies that facilitate the integration process, mainly in the areas of planning and execution. It also contributes to the planning of processes, helping managers who are implementing or migrating activities and areas to new management structures.Originality/valueThis paper brings two new assumptions that may guide future investigations about cross-functional integration and its effects on demand and supply integration (DSI): (1) Digital technologies are able to support cross-functional integration in order to provide information integrity, team alignment, agile and assertive decision making within supply and demand processes; (2) Cross-functional integration, mediated by digital technologies, can generate agility and accuracy of information in the demand and supply processes. This accuracy and agility provide improvements in demand and supply process performance metrics, such as predictability, assertiveness, standardization, productivity and response time.

Financial Shared Service Centers and Corporate Misconduct: Evidence from China

Financial Shared Service Centers and Corporate Misconduct: Evidence from China

Intelligent automation of financial and accounting processes in business process outsourcing centers in Poland

Purpose: The aim of the article is to assess the degree of intelligent automation of financial and accounting processes in services centres that operate in the business process outsourcing (BPO) market in Poland and to identify future trends and prospects.Methodology/approach: The main research data comprise various reports on the modern business services sector in Poland for 2017–2023. The methods used in the research include a literature review, case study analysis, and deductive reasoning.Findings: The research results have shown that the financial and accounting process outsourcing market in Poland is changing. There has been a gradual advancement of services provided by BPO, shared services centres (SSC) and global business services (GBS) centres. An undoubted driver of the change is technology, which brings trans-formative potential. This technology is changing the nature of work – from repetitive work to work that requires in-depth analysis and complex problem-solving. There is an increasing tendency to implement intelligent process automation (IPA), which includes, among other things, robotic process automation (RPA) solutions using artificial intelligence (AI), in service centres. The increasing automation of repetitive financial and accounting processes is driven by the need to optimize costs, increase the speed of service and improve the quality of services provided by outsourcing centres.Research limitations/implications: The conclusions presented in the article are important for the development and improvement of financial and accounting processes. They are of cognitive value and can be analyzed by decision-makers at various management levels in service centres in Poland and worldwide.Originality/value: The article narrows the research gap in the field of intelligent automation of financial and accounting processes. The research is part of the trend to continuously improve business processes. The conclusions can be a starting point for future research conducted from a macroeconomic perspective, with a particular focus on qualitative research.

The Use of Shared Service Centers in the Audit Industry and the Impact on Financial Analyst Perceptions

ABSTRACT Audit firms are increasingly using shared service centers (SSCs). There are arguments suggesting an improvement or a deterioration in audit quality due to their use. We provide experimental evidence regarding the effects of SSCs on audit quality, as perceived by financial analysts. Based on survey responses from 205 financial analysts, we investigate whether using SSCs effects perceived audit quality and whether the SSC’s location and task complexity matter. We find that SSC involvement negatively impacts perceived audit quality, and the additional outsourcing of complex tasks exacerbates this effect. We demonstrate that the SSC’s location does not have a significant effect on perceived audit quality. Finally, when outsourcing additional high-complexity tasks, the interaction between location and task complexity leads to a significant negative impact on perceived audit quality.

Organisational Structures of Shared Services Centres (SSC): A Transaction Cost Economics Approach

Organisational Structures of Shared Services Centres (SSC): A Transaction Cost Economics Approach

Создание единой юридической функции в компании

The article describes prerequisites, targets, tasks, stages and tools of the project for creation of the legal shared services centre (SSC) — unifying the legal function into a vertically integrated specialised centre rendering in-house legal services to the company’s business divisions on the basis of uniform rules and standards and with reasonable expenses, efficiency and high quality.

Shared service centers in the Central and Eastern Europe: Theoretical framework

Shared services centers (SSC) are widely used by multinational corporations as a part of their business strategies. The attention of researchers in international business has increased along with the growth of SSCs and this topic is currently being studied by a number of authors. In this article we focused on the Central and Eastern Europe (CEE) in order to construct a structured evaluation of the extremely dispersed literature on SSCs in this region. A meta-analysis of the relevant literature sources has been the fundamental technique employed in this paper based on the analysis of the WoS, Science Direct, Taylor & Francis, and Emerald Insights databases. The results show that Poland is the most researched country, with Central Europe being studied more thoroughly than Eastern Europe. Relevant literature study shows that the researchers systematically investigated the motivations of foreign companies to create SSCs in CEE and focused frequently on human resources management part of their activities. They use a variety of techniques in their articles, including both qualitative and quantitative techniques. Based on this study, the authors of this paper formulate the conclusions and outline possible future prospects of the research of this phenomenon.

Research on the Construction of Financial Shared Service Centers for Group Companies

With the rapid development of economic globalization and information technology, the number of global enterprises is growing rapidly, and the scale of enterprises is also constantly expanding. More and more enterprises are expanding their business overseas. The increasing complexity of business management is caused by the increase in business. The models of traditional financial management can no longer meet the development needs of modern enterprises. In order to strengthen internal control and improve market competitiveness, enterprises have begun to apply the financial shared service center model to solve problems in the development process. This article introduces the meaning, role, goals, and differences of financial shared service centers, and explores how to build a financial shared service center model. Finally, a summary is provided.

Risk management in diffused structures: Analysis for Shared Services Centers


 
 
 Research background: Shared Services Centers (SSCs) are often a spin-off of corporate services to separate all operational tasks from the corporate headquarters. The primary focus of the headquarters should be on leadership and corporate governance. However, many SSCs have also been given some corporate functions. Risk management is a significant part of governance and one of its principles. The effectiveness of risk management depends on its integration into the organization’s governance, including decision-making. The question is how a modern SSC manages this part of governance.
 Purpose: This study aims to present the conditions that prove the implementation of risk management in SSCs and to evaluate the most effective risk management model.
 Research methodology: Targeted literature review followed by surveys and a case study.
 Results: The risk management process consists of several stages that are repeated in many models (identification and risk assessment, risk management model selection, and monitoring). Thus, it is possible to use each model in the SSC concerning the migrated processes, considering the limitations of the strategic goals definition. However, not all methods will find a potential application in risk management in the SSC, considering the most effective risk assessment.
 Novelty: While the literature provides models that can be of use, a lack of specific guidelines has been recognized, especially regarding the risk management aspect in SSCs. In the last decade, the focus was on the expected benefits coming from standardization, ignoring the new risks in SSC processes.
 
 

The Application of Environmental, Social and Governance Standards in Operational Risk Management in SSC in Poland

Organizations are facing increasing pressure to be transparent about their performance and to accept responsibility for their impacts on both society and the environment. The role of ESG is essential from a reporting standpoint. New regulations are forcing organizations to focus more on cascading ESG risk management in order to ensure that the various ESG objectives are analyzed and monitored at the group and subsidiary levels. This article employed the results of an empirical study conducted on risk management concerning shared service centers in Poland. In addition, a case study was conducted based on their internal reports and financial statements. At this stage, SSCs are focusing solely on financial risks and are ignoring the broader perspective. Thus, the promotion of ESG practices in organizations currently represents the most critical factor. ESG-related activities should be cascaded to company subsidiaries, especially those that employ internally separated processes, operate globally and are responsible for end-to-end processes. Based on an analysis of financial statements, few entities currently even consider operational risks, including ESG-related risks. Companies should re-examine their internal governance approach so as to ensure the effective cascading of ESG objectives to the lower levels of the organizational structure.

Auditing during COVID-19: Evidence from Ghana and Norway

ABSTRACT This study investigates how auditing changed during the COVID-19 pandemic in two countries, Norway and Ghana. The two countries reflect different levels of digital infrastructure and of government support. We interviewed 23 audit partners and managers during the pandemic (February 2020 to May 2023). The analysis of the responses using the theory of adaptive governance reveals three key findings related to audit adaptation during the 39 months of the pandemic. First, we find an increase in auditors’ and clients’ willingness to work digitally. In Ghana, the digitalization may be done by scanning documents and uploading them to a shared drive or by using a Shared Service Center (SSC). Second, we find an increase in audit fees over time as inflation increased during the pandemic. Finally, as the pandemic progressed, a shortage of audit staff became a major concern in both countries as auditors left the profession for other jobs. Data Availability: Data are available from the authors upon request. JEL Classifications: M42.

Influence of the financial shared service center on the quality of accounting information

PurposeThis research endeavors to assess the influence of financial shared service centers (FSSCs) on the quality of accounting information within China’s A-share listed companies. Using a multi-period difference-in-differences (DID) model, the study aims to empirically examine the correlation between the adoption of FSSCs and the quality of accounting information.Design/methodology/approachThe study uses a robust methodology to evaluate the relationship between FSSCs and accounting information quality (AIQ). Leveraging the established FSSCs within China’s A-share listed companies as the treatment group, this research adopts a multi-period DID model. This approach enables a rigorous empirical examination of the influence exerted by FSSCs on the overall quality of accounting information.FindingsThe present study delves into the impact of FSSCs on AIQ and conducts empirical analysis using data from Chinese A-share listed companies between 2004 and 2021. The findings substantiate that: FSSCs significantly bolster the quality of accounting information, a conclusion retained even after robustness tests. Specifically, FSSCs exhibit a positive correlation with the comparability, timeliness and disclosure quality of accounting information while demonstrating no significant influence on relevance, robustness and reliability factors.Research limitations/implicationsFirst, the analysis primarily rests upon data from Chinese A-share listed companies between 2004 and 2021, potentially constraining the generalizability of findings across diverse contexts. Second, despite controlling for various factors, unobserved variables or external factors not encompassed in the model might influence the relationship between FSSCs and AIQ. Additionally, the study’s reliance solely on quantitative data confines exploration into qualitative aspects that might offer a more comprehensive understanding of FSSCs’ impact on AIQ.Practical implicationsThis paper establishes a nuanced connection between FSSC operations and AIQ, furnishing direct empirical evidence for their economic implications and propounding a novel avenue for augmenting AIQ. And, it furnishes guidance for forthcoming FSSC development, accentuating the necessity of harnessing information technology to enhance the relevance, reliability and robustness of accounting information.Originality/valueMajority of prior empirical studies assessing AIQ have focused on singular indicators, lacking a comprehensive depiction of its overall level. To address this gap, this paper pioneers the construction of a comprehensive index for AIQ, providing a holistic representation of its level. Furthermore, this study stands as the inaugural investigation into the relationship between China’s A-share listed firms’ FSSCs and the quality of accounting information.

Implementing shared service centres in Big 4 audit firms: an exploratory study guided by institutional theory

PurposeThis study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.Design/methodology/approachIn this qualitative study guided by the theoretical framework of institutional theory, the authors conducted 25 semi-structured interviews in seven European countries, including 16 interviews with audit partners from Big 4 firms, 6 with audit team members, 2 with interviewees from second-tier audit firms and 1 with a member of an oversight body.FindingsThe authors show that the central rationale for audit firms to implement SSCs is economic rather than external legitimacy. The authors find that SSC implementation has substantial effects on audit practices, particularly those related to standardisation, coordination and monitoring activities. The authors also highlight the potential impacts on audit quality.Originality/valueBy exploring the motivation for and effects of SSC implementation amongst audit firms, the authors offer insights into the best practices related to subsequent change processes and audit quality.

The impact of shared service centres on the financial position of companies in a turbulent environment

The impact of shared service centres on the financial position of companies in a turbulent environment

Exploring the Impact of Digital Shared Services in Finance on Corporate Treasurers’ Job Anxiety

Abstract It has become a trend for enterprises to establish financial shared service centers for digital financial transformation, but the emotional impact of this transformation on the original financial staff of enterprises has been neglected. In this paper, we collect relevant intranet texts of enterprises, mine the emotions of the collected texts through the LDA theme algorithm, use the improved LSTM model to classify and identify the emotions of the collected texts, and construct the LDA-BiLSTM sentiment analysis model to analyze the anxiety condition of the financial staff of enterprises. The efficiency of LDA can be improved by using the weighted median to deal with outliers. Two LSTM networks are combined to form a BiLSTM network to improve the problem of inaccurate judgment of sentiment indicators by a single LSTM. Finally, the model is used to empirically analyze the emotions of financial staff before and after the transformation of an enterprise’s financial digital service. Negative feelings that are linked to anxiety have an accuracy rate of 95.23%. The frequency of separation after the transition was as high as 0.5, and the frequency of dismissal was as high as 0.423. Overall sentiment scores were lower than 0.7. After the transition, the number of people worried about negative feelings related to anxiety rose from 32% to 64%. Finance professionals are experiencing a significant increase in anxiety due to the post-transition of the enterprise.

Workhorse or White Elephant? End User Acceptance of ERP System in a Shared Service Center

Businesses globally heavily invest in Enterprise Resource Planning (ERP) implementation to meet high customer demands and maintain competitiveness. Despite significant investments, underutilization hampers reaping the system's full benefits, leading to stagnant or adverse performance. Hence, this study aims to uncover reasons for the lack of end-user adoption of ERP systems. It focuses on the correlation between performance expectancy, effort expectancy, social influence, and organizational support in determining ERP system acceptance by end users. This study utilized a quantitative methodology. Data were collected from 392 respondents within a Malaysian shared service center. Multiple regression analysis was conducted employing the UTAUT model and perceived organizational support theory to evaluate and interpret the collected data. The study’s key findings include the significant positive association between performance expectancy and ERP system adoption, reinforcing the influence of effort expectancy on technology adoption. Despite its positive effects, social influence had little effect on end-user adoption. Additionally, it was observed that ERP system adoption was consistently facilitated by organizational support. This study confirms the essential factors that drive the adoption of ERP systems by end-users. It emphasizes the crucial role of leadership in prioritizing these elements for organizations to enhance user acceptance and ensure the successful implementation of ERP systems. Doi: 10.28991/HIJ-2023-04-04-013 Full Text: PDF

CTIVA: Censored time interval variable analysis.

Traditionally, datasets with multiple censored time-to-events have not been utilized in multivariate analysis because of their high level of complexity. In this paper, we propose the Censored Time Interval Analysis (CTIVA) method to address this issue. It estimates the joint probability distribution of actual event times in the censored dataset by implementing a statistical probability density estimation technique on the dataset. Based on the acquired event time, CTIVA investigates variables correlated with the interval time of events via statistical tests. The proposed method handles both categorical and continuous variables simultaneously-thus, it is suitable for application on real-world censored time-to-event datasets, which include both categorical and continuous variables. CTIVA outperforms traditional censored time-to-event data handling methods by 5% on simulation data. The average area under the curve (AUC) of the proposed method on the simulation dataset exceeds 0.9 under various conditions. Further, CTIVA yields novel results on National Sample Cohort Demo (NSCD) and proteasome inhibitor bortezomib dataset, a real-world censored time-to-event dataset of medical history of beneficiaries provided by the National Health Insurance Sharing Service (NHISS) and National Center for Biotechnology Information (NCBI). We believe that the development of CTIVA is a milestone in the investigation of variables correlated with interval time of events in presence of censoring.

Research on the Application of Financial Sharing Center Based on Value Chain Theory Take the Mengniu Company as an Example

The growing size of enterprise groups and the rapid development of information technology have given rise to financial shared services. They have brought about changes in the financial management model, improved the efficiency of accounting processes, and strengthened the control of molecular companies by reconstructing financial processes. However, there are some shortcomings in the current financial shared services, for example, the application of financial shared services is mainly focused on the operational level, concentrating on post-event processing, lagging behind the demand and facing difficulties. Therefore, this paper takes the financial shared service center of Mengniu Group as the research object and focuses on how to use new types of financial information technology to realize the digital transformation of the enterprise financial management process. The case is analyzed using relevant theories. The financial shared services model has improved the efficiency of modern enterprises' production and operations, expanded the analysis and decision support functions of finance, and facilitated the digital transformation of enterprise finance; at the same time, the value of data assets related to financial shared services has not been fully exploited, and the benefits of financial sharing are still limited to internal enterprises and have not been extended to other enterprises in the value chain. It is recommended that enterprises further improve their shared services and combine them with digital transformation based on data, process, and business specifications, and implement them more deeply in all dimensions of the value chain in the future to achieve value creation.

Blockchain Application in Financial Shared Service Centers for Multinational Enterprises

The flourishing digital economy in recent years urges the expanding multinational enterprises to transform financial management. To accomplish efficient operation and effective allocation of internal funds, many multinational enterprises worldwide have established a financial shared service center, shortened as FSSC. Based on the literature review, this thesis summarizes existing problems in FSSC of multinational enterprises, such as information asymmetry, data security that cannot be ensured, high labor cost, and low efficiency of accounting business processing. Then the author proposes the application of blockchain in solving these issues and takes Haier as an example to provide feasible methods of optimizing its financial shared service center with the advantages of blockchain.