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This paper aims to explore management control structure change related to the development of a shared service centre (SSC).

The paper explores a transaction costs economics perspective (TCE‐perspective) on management control structure change related to the development of an SSC. Particularly, it explores and challenges the scope of such a perspective both in terms of contents (i.e. the nature of management control related to the dimensions of transactions) and process (i.e. the way change is effectuated). It does so by theorizing as well as empirically investigating management control structure change through a case study at PCM (a Dutch newspaper publisher).

The theoretical analysis broadens existing frameworks of management control structures by particularly pointing to the possibility of including governance structures for internal transactions and exit threats (connected to a market mechanism) in the management control structure of an organization. However, the paper's empirical investigations challenge the broader framework: the possibility of an exit threat was not explicitly considered by top management (“the designer” of management control). More profoundly, empirical investigations challenge the calculative approach of the change and show that the change in management control is to a large extent a drifting process.

An instrumental calculative approach towards SSC‐related management control change should be complemented with a relational perspective on such change, in order to further explore its drifting character.

A transaction costs economics approach to change in management control might provide practitioners with insights into the efficiency of specific management control structures.

The paper contributes to the extant knowledge by both exploring and challenging a TCE‐perspective on SSC‐related changes in management control.

The purpose of this paper is to examine how corporate headquarters control business units, the governing of which has emerged as a vital issue as business portfolios have grown increasingly complex due to diversification, globalization, and corporate group expansion via spinoffs and mergers and acquisitions.

This study utilized questionnaire survey data from 251 firms listed on the First Section of the Tokyo Stock Exchange. The authors approached the issue of business unit governance by measuring the degree of decentralization and the intensity of monitoring, and compared the governance of internal business units with that of subsidiaries, and analyzed the impact of corporate governance characteristics on business unit governance.

Comparing in‐house business units and subsidiaries, the authors found a significant difference in their governance. The degree of decentralization toward subsidiaries was higher for strategic and personnel decision‐making. However, the complementarity of decentralization and monitoring was not observed for subsidiaries, whereas it was for in‐house business units. Subsidiary monitoring corresponding to decentralization was inadequate. Examining the relationship between corporate governance and business unit governance, the paper found that firms with reformed boards of directors and under a greater degree of pressure from capital markets monitored their business units more strictly.

The paper shows how the business portfolios and governance arrangements of Japanese firms have changed since the 1990s, and analyzes business unit governance based on valuable data obtained from a questionnaire survey.

The purpose of this paper is to examine the disconnect that can develop between corporate goals and those of individual intra‐organisational business units arranged as an internal supply chain within a large vertically integrated agribusiness. It also aims to explore and discuss the development of a holistic performance metrics system that facilitates internal supply chain coordination and cohesion, while allowing synergies to develop across the company.

A case study approach involving a participative action research component was used to examine the disconnect between internal business unit (operational) goals and overall corporate (strategic) goals and to develop a conceptual performance assessment model addressing both operational and strategic contexts.

The findings show that appropriate performance indicators and measures can be created that relate directly to logical operational outcomes, thus encouraging a more tightly integrated internal supply chain, a stronger coherence among the components and a better aligned set of operational and corporate goals.

Only financial information and data obtained from a participative managerial decision‐making simulation were used to explore performance goal incongruence between operational and corporate managers, compared with the need for multiple contextual performance measurement metrics that the literature suggests provides a best practice system.

The rapidly developing corporate agribusiness sector provides a unique operating environment in that these companies deal primarily in self‐regenerating assets such as livestock. Additionally the development of performance metrics for improving the coordinated integration of autonomous business units is explored for the first time and the concept of “Integrated Autonomy” is suggested as a way to describe the resulting situation.

The major purpose of this paper is the development of a theoretical framework that can be used by corporate practitioners to understand the implicit parenting strategy of their company, assess its performance, and adjust it for improving the net corporate value creation.

In this paper, a three‐dimensional framework is developed that accounts for corporate‐to‐business and business‐to‐business interactions, value‐adding and value‐destroying activities, and strategic and operational levers. The framework is operationalized by assigning a broad set of individual activities to these levers.

The paper delivers a robust, systematic, and operational framework to assess the net benefits to a given business of being part of a corporate portfolio, and to identify and evaluate implicit parenting strategies in corporate practice. While previous studies mainly focused on broad parenting approaches with low granularity this framework now allows earlier observations to be substantiated, finer distinctions between the applied strategies to be drawn, and the core of superior value added approaches to be investigated.

The introduced framework can be used to analyze the origin and underlying drivers of conglomerate discounts and premia and thus enhance understanding of capital market valuation of multi‐business companies. The developed framework can also be the basis for the derivation of a typology of corporate parenting strategies. In this way, it can support practitioners in portfolio management – which was also the explicit motivation for the development of the original parenting advantage concept.

The outlined framework will facilitate the investigation of structural, strategic, and organizational roots of superior parenting strategies in corporate practice. It may be used to analyze performance differences of multi‐business companies that go beyond the degree of diversification and may finally contribute to solving the puzzle of the conglomerate discount.

The purpose of this paper is to make intelligible the rationalities and mechanisms through which markets have been proffered as alternatives or complements to traditional welfare‐based provision and the effect of this development on the subjectivity of workers.

The research involved collection of archival data, personal encounters and in‐depth interviews with managers, staff and elected representatives at a local authority in New Zealand. Michel Foucault's concept of governmentality is mobilised to interpret these data.

The paper finds that the mandatory changes required by legislation are associated with efforts to constitute local authority workers as business‐like subjects through disciplinary mechanisms and technologies of the self. While markets have permeated this local authority, with some managers and staff claiming to work in a business‐like manner and transact with each other as customers, these discourses have not vanquished the traditional concern of working for one organisation to serve the community.

While the results of this study are not generalisable to other contexts, they show how the introduction of New Public Management in a specific context is associated with a contest between the traditional discourses of community and public service, and the more recent ones of enterprise and customer. The paper illuminates the pathologies associated with these new technologies and how their implementation is often divergent from the rationalities in the name of which they are promoted.

The paper will contribute to ongoing debate on how best to deliver public goods and services and especially, the limits and potential of markets.

The paper's mobilisation of Foucault's governmentality framework in the study of a local authority case study in a contemporary setting is relatively unusual.

A successful business model creates a heuristic logic that connects technical potential with the realization of economic value. But this logic constrains the subsequent search for new, alternative models for other technologies later on. This logic gives rise to two behaviors that affect the implementation of Open Innovation inside organizations. The well-known Not-Invented-Here syndrome constrains the use of Outside-in Open Innovation, while a new syndrome we identify, the Fear of Looking Foolish, constrains the use of Inside-out Open Innovation. We focus particularly on the latter behavioral constraint in this chapter and present three mini-cases that demonstrate the constraints in action. We then sketch possible managerial solutions to overcome these behaviors.

This study aims to assess the relationship between internal control weakness and different types of auditor opinions in fraudulent and non-fraudulent firms. The study's main objective is to investigate fraud in business firms and analyze internal controls and types of proposed opinions by the auditor about his desired firm. The outbreak of fraud in firms is of utmost importance to a broad spectrum of society. Internal controls and the auditor's role in preventing and detecting frauds should not be taken for granted.

The present study's statistical population includes 179 listed firms on the Stock Exchange selected as the study sample using the systematic elimination method during 2012–2019. As the study's dependent variable (the type of auditor’s opinion), research hypotheses were analyzed using the Logit regression model.

The results show that the relationship between internal control weakness and opinion type is significantly different in fraudulent and non-fraudulent firms. Moreover, the relationship between internal control weakness and type of auditor opinion in fraudulent firms and the relationship between internal control weakness and type of auditor opinion in non-fraudulent firms are significant.

By assessing the related literature, the authors have found no study to directly assess the comparative relationship between internal control weakness and the type of auditor opinion, which can be named as the main objective of the study.

This study aims to explore how firms can design their government affairs (GAs) units in ways that improve their ability to monitor and influence legislative developments in their firms’ corporate political environments.

This conceptual work is informed by existing research into organizational design, brought to life with illustrative examples of firms’ political actions derived from interviews conducted with practitioners in the field.

In line with organizational design thinking, the authors find that high-performing GA units need to be designed and built using a blend of mutually reinforcing organizational mechanisms. GA units should be staffed by autonomous managers with mixed skills-sets. Moreover, they should not be constrained by formal rules, but instead given autonomy and support to create lateral relations with other business units.

This study provides a “recipe” that managers can follow to create opportunities for the exchange of political information within their firms and enable and motivate GAs practitioners to monitor and influence political developments more effectively.

This research exposes important, organizational antecedents of firms’ political strategies, which have not been systematically explored in the existing literature.

This chapter discusses the constitution of Shared Services and the value of a consensual agreement of a definition for academe and practice. It explores the operating principles and services, the concepts of internal customer and internal service, and their importance for the practitioner and research communities.

This chapter employed a broad review of the literature to examine Shared Services. The research team used NVivo as a tool to create a database of key articles and books to analyze the key concepts and topics.

There is a lack of consensus on the definition of Shared Services in the research and practitioner community. Additionally, the concept of internal customer requires greater exploration and understanding within the context of Shared Services. How Shared Services provides competitive advantage to organizations is also not well understood.

This discussion provides a challenge to the research community to focus on the contributions of shared services to business management theory. This requires a consensus that is currently nonexistent, to ensure the correct use of the terminology and model.

By establishing a clearer understanding of what is Shared Services, the academic and the practitioner community, in particular, will gain greater competencies on Shared Services to support change management programs during the implementation phases and minimize implementation costs by lowering organizational and people resistance. The variants in shared services terminology create confusion which is likely to result in ambiguity during implementation and have practical implications on governance, customers and service, benefits realization and performance.

This chapter addresses the lack of agreed definition of the term Shared Services and the role of the internal customer and consequent internal service delivery.

The study aims to add to the knowledge of governance and control aspects of intrafirm relationships by exploring a transaction costs economics perspective (TCE perspective) on governance and management control structure choices related to the development of a shared service center (SSC).

The notion of governance and control in SSC organizations is explored and a TCE model is developed to analyze management control structure choices for SSC governance. The nature of internal transactions is related to the dimensions of transactions. Then an example case study is used to illustrate the application of the theoretical model.

The theoretical analysis broadens existing frameworks of management control structures by particularly pointing to the possibility of including governance structures for internal transactions and exit threats (connected to a market mechanism) in the management control structure of an organization. Confrontation with the case example illustrates that the possibility of an exit threat was not explicitly considered by top management (“the designer” of management control). Although the TCE model may be a useful tool for analysis purposes, it has little explanatory power in this particular case. Organizational change processes toward SSCs are complex and can only partly be examined with conventional economics-based approaches such as TCE.

Governance and control of SSCs is conceptually theorized, using an instrumental economics approach. The case study is not generalizable but illustrates the use of the model in a particular situation. To understand governance and control change within SSC organizations, more longitudinal case studies are needed.

A TCE approach to governance and control choices regarding SSCs might provide practitioners with insights into the efficiency of specific management control structures.

This chapter contributes to the extant knowledge by both exploring and challenging a TCE perspective on SSC-related changes in management control.