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The purpose of this paper is to derive a measure for the performance of human resource shared service providers (HR SSPs) and then to develop a theoretical framework that conceptualises their performance.

This conceptual paper starts from the HR shared services argument and integrates this with the knowledge‐based view of the firm and the concept of intellectual capital.

The authors recommend measuring HR SSP performance as HR value, referring to the ratio between use value and exchange value, that together reflect both transactional and transformational HR value. They argue that transactional HR value directly flows from the organisational capital in HR SSPs, whereas human and social capitals enable them to leverage their organisational capital for HR value creation. The authors argue that the human capital of HR SSPs has a direct effect on transformational HR value creation, while their social and organisational capitals positively moderate this relationship.

The suggested measure paves the way for operationalising and measuring the performance of HR shared services providers. This paper offers testable propositions for the relationships between intellectual capital and the performance of HR shared service providers. These contributions could assist future research to move beyond the descriptive nature that characterises the existing literature.

The purpose of this paper is to derive a measure for the performance of human resource shared service providers (HR SSPs) and then to develop a theoretical framework that conceptualises their performance.

This conceptual paper starts from the HR shared services argument and integrates this with the knowledge‐based view of the firm and the concept of intellectual capital.

The authors recommend measuring HR SSP performance as HR value, referring to the ratio between use value and exchange value, that together reflect both transactional and transformational HR value. They argue that transactional HR value directly flows from the organisational capital in HR SSPs, whereas human and social capitals enable them to leverage their organisational capital for HR value creation. They argue that the human capital of HR SSPs has a direct effect on transformational HR value creation, while their social and organisational capitals positively moderate this relationship.

The suggested measure paves the way for operationalising and measuring the performance of HR shared services providers. The paper offers testable propositions for the relationships between intellectual capital and the performance of HR shared service providers. These contributions could assist future research to move beyond the descriptive nature that characterises the existing literature.

The purpose of this study is to explore the use of shared services by end-users and why this may conflict with the use as intended by the shared service center (SSC) management.

By applying structuration theory, this empirical study draws on qualitative data obtained from semi-structured interviews with managers and end-users of an SSC. This SSC is part of a Dutch subsidiary of a multinational corporation that produces professional electronics for the defense and security market.

We find two main types of shared services usage by end-users which were not intended by the SSC management: avoidance and window-dressing. These forms of unintended usage were the result of contradictions in social structures related to the centralization and decentralization models as appropriated by end-users and management.

Our findings show that the benefits of shared services depends on how well contradictions in managers’ and end-users’ interpretive schemes, resources, and norms associated with centralization and decentralization models are resolved.

A popular argument in existing studies is that the benefit of shared services follows from the design of the SSC’s organizational structure. These studies overlook the fact that shared services are not always used as their designers intended and, therefore, that success depends on how the SSC’s organizational structure is appropriated by end-users. As such, the originality of this study is our focus on the way shared services are used by their end-users in order to explain why SSCs succeed or fail in reaping their promised benefits.

The purpose of this study is to offer an integrated literature review of shared services’ organizational structures by specifically focusing on centralization, specialization, control, and formalization mechanisms.

A sample consisting of 103 empirical and conceptual articles, identified in a structured literature search in Science Direct and Scopus, was analyzed. The focus was on exploring the structural dimensions of shared services in various fields: Supply Chains, Finance, Human Resource Management, and Information Technologies. Findings from the selected articles were codified alongside the structural dimensions drawn from contingency theory.

Most of the papers identified were concerned with the Human Resource function or with Accounting and Finance in the private sector. Purchasing was only mentioned in a few general articles and Marketing not represented at all, even though the literature suggests that shared services do exist in this field. This uneven distribution across fields, as well as the reality that many articles fail to make clear divisions between disciplines, is hardly conducive to identifying trends for individual disciplines, and only general trends for each dimension could be identified. Although centralization was one of the most discussed dimensions, there was no consensus as to whether shared services should be centralized or decentralized. Standardization and formalization were both found to be highly important, although a need for customization was also emphasized.

Future research should be oriented toward the structural dimensions of shared services in a broader range of fields as current findings are dominated by the Human Resource function. Another implication of our findings is that scholars could usefully test empirically the dimensions, especially those where opinions differed the most: centralization and specialization.

Earlier conceptualizations noted that the mixed shared service outcomes stem from the diversity in governance and several contingency factors. This work continues the exploration of the contingency factors and mechanisms that, through integration, allow shared services to respond to the environmental uncertainty. The value of this chapter is in examining the structures of different functional types of shared services that are reported as successful in the literature, thus offering an overview of best practices in organizing shared services.

The purpose of this chapter is to introduce the capability map that addresses the potential of transactional Shared Service Centers (SSCs). The mapping approach represents a heuristic logic that provides means for analyzing SSC operation, connects SSCs capabilities with their value, and supports academics and practitioners in developing a transactional SSC that is of strategic importance.

This chapter reports on findings from a longitudinal case study within an organization that has implemented a transactional Human Resource (HR) SSC. Over a period of three years, several formal and informal meetings were attended, more than 20 interviews were conducted with SSC MT and customers, over 500 pages of project documentation and memos were studied, which allowed after integration for an in-depth analysis of how resources are bundled to build different types of capabilities.

We uncovered and mapped the operational and dynamic capabilities of a transactional SSC, their role in value creation, and their interdependencies. While the operational capabilities enable the HR SSC to provide day-to-day services to take care of individual end-users and support the business, the dynamic capabilities enable transformation of HR delivery throughout the organization and increase HR’s strategic contribution.

One limitation of this study is the extent to which the capabilities and their role in value creation are generalizable to transactional non-HR SSCs. SSCs providing services that cover other business functions might develop and deploy different capabilities. The use of a capability map is not limited to the capabilities uncovered in this study, however.

In the literature, the primary focus regarding transactional services is limited to cost savings and efficiency. This chapter addresses the potential of the transactional SSC and introduces the capability map as a tool to leverage its potential.

HR shared service centers (SSCs) have been claimed to innovate human resource management service delivery by centralizing resources and decentralizing control and, in doing so, create value for other business units. In response, to explain the value of HR shared services for the business units served, the purpose of this paper is to test hypotheses on the joint influence of HR SSC operational and dynamic capabilities and of control mechanism usage by the business units.

A survey methodology was applied to collect data among business unit representatives from 91 business units in 19 Dutch organizations. The data were analyzed using structural equation modeling in AMOS.

This study found that the use of formal control mechanisms (e.g. contracts, service-level agreements) relates negatively with HR shared service value, but that this relationship becomes positive once mediated by informal control mechanisms (e.g. trust and shared language) and operational HR capabilities. Furthermore, it shows that the dynamic capabilities of HR SSCs relate positively to HR shared service value for the business units, but only because of their effect on operational capabilities.

Whereas previous studies into HR SSCs have examined the two antecedents independently, this study shows how organizational control and capabilities interrelate in explaining the value of HR shared services.

While there is a growing body of research demonstrating that HR Shared Services can offer a value-creating structure for HRM within organizations, there remains considerable room for improving our understanding of it. The premise of this chapter is that the mixture of HR Shared Services outcomes leans on the diversity of the governance structures, which rest in turn on several contingency factors. This means that every HRM Shared Services Model (SSM) is unique in its structure, and thus the value proposition of every HRM SSM is unique. Therefore, instead of promoting a standard package of values expected from HR shared services, organizations should develop unique value propositions that are contingent on their unique governance structures.

Small councils may not have access to professional procurement resources – one potential solution is to create a procurement shared service with another council. The purpose of this paper is to focus on evidence of the emergence and existence of inter‐organisational procurement shared services and its benefits; a structural approach significantly different from the intra‐organisational centralised/decentralised organisational models and the use of consortia.

Case studies, making use of stakeholder, semi‐structured interviews, were used to probe the experience of six English procurement shared‐services covering 15 councils.

The findings demonstrate evidence of that some smaller councils are benefiting from collaborating in inter‐organisational procurement shared service. The collaborations were engaged in strategic procurement initiatives which would not have otherwise been possible through the use of consortia. However, there was an absence, within the cases, of formal business cases and strategy.

The paper provides evidence that procurement shared services can be inter‐organisational delivering the benefits of intra‐organisational “hard core/soft core” procurement structures and inter‐organisational consortia. The paper also suggests that the benefits gained from procurement shared services have more akin to inter‐organisational collaboration than intra‐organisational shared services. This research is limited in that it only relates to the experience of a purposive sample of small councils that had already decided to pursue a procurement shared service. The research limitations also include the absence of a political perspective.

A procurement shared service appears a viable structural option for smaller councils, whether they have, or have not currently, access to a procurement professional. The research highlights the need to adopt an incremental approach and also sets out suggestions for a strategic approach to shared services procurement strategy.

There is an absence of literature on delivering procurement as a shared service, and shared services in general – in that respect this paper represents research into a new emerging procurement structural model, not previously reported.