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

Peiyu Ou (School of Management, Xi'an Jiaotong University, Xi'an, China)
Chenxi Zhang (School of Management, Xi'an Jiaotong University, Xi'an, China)

Journal of Enterprise Information Management

ISSN: 1741-0398

Article publication date: 20 February 2023




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?


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.


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.


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.



This research is supported by Social Sciences Foundation Project of Shaanxi Province of China “Research on the mechanism and improvement path of Financial Shared Service implementation on the high-quality development of enterprises in Shaanxi Province” (2021R007).


Ou, P. and Zhang, C. (2023), "Exploring the contextual factors affecting financial shared service implementation and firm performance", Journal of Enterprise Information Management, Vol. ahead-of-print No. ahead-of-print.



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