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Even though a lot of publications focusing on shared service center (SSC) exist, there is no unique understanding of the term “SSC”. The aim of this paper is to obtain an overview of definitions of the term “SSC” and an overview of relevant literature. It also aims to derive a common understanding with the help of SSC characteristics frequently mentioned. Furthermore, it seeks to identify important differences in the definitions and show their implications for the SSC concept.

An extensive literature review was the basis for this research. An online database containing the most important journals had been scanned for SSC definitions. Furthermore, the most cited books had been analyzed.

There is no unique understanding of SSCs in science and practice. A standardized definition of SSCs is not established. The different definitions vary in many ways. Nevertheless, some characteristics that define the term SSC are mentioned in most publications, including consolidation of processes within the group, delivery of support processes, cost cutting as a major driver, focus on internal customers, alignment with external customers, separated organizational unit and operation like a business. Although there is a common understanding about SSC in parts, fundamental differences were identified, especially between SSC definitions for public and private sectors. These differences have several impacts on the understanding and application of the SSC concept.

The most relevant publications have been considered, but probably not all publications with definitions of the term “SSC”. Future research must include more publications as well as the perceptions of practitioners. Furthermore, the perception of SSC management and staff has not been analyzed.

Owing to the fact that many different definitions for SSC exist, people dealing with a SSC are confused about the meaning of the term – confusion which is likely to result in ambiguity concerning research interpretations. The differences in definitions should be known to understand practical implications like different requirements in governance or regulation.

Some research in the area of SSCs has already been conducted. Nevertheless, neither extensive literature overviews of existing definitions nor comparisons of these definitions for the term SSC exist. The discrepancies in definitions and their implications have not yet been considered.

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.

The chapter presents case evidence to argue that rather than comprising noncore, back-office business support services, shared service centers (SSCs), when viewed from a knowledge management perspective, can create both valuable and firm-specific resources and dynamic capabilities.

Literatures in strategic management, knowledge management, and business process sourcing are drawn on as a prelude to a longitudinal case study conducted by the authors in a large private sector utility company.

A knowledge management perspective demonstrates how the SSCs, as a hybrid organizational form, may help to redefine core versus noncore activities and thus, to play a role in the creation and protection of firm-specific resource and dynamic capabilities.

The SSC model is an emerging phenomenon and the field work is restricted to a single case study. Further field research is suggested.

The findings should be useful to those organizations embarking on the reconfiguration of back-office support services which might gain from further consideration of what activities might be seen as constituting core enterprise architecture. The case study demonstrates that when the traditional core activities of the organization become commoditized over time, a core competence becomes the management and administration of a bundle of technical projects premised on the processes and information systems of the SSC.

Shared services is an emerging phenomena and scholar literature is nascent. The chapter explores potential benefits of the SSC model beyond the headline agenda of cost reduction through efficiency savings and labor arbitrage.

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 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.

This 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.

In 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.

The 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.

By 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.

This paper aims to explore how a shared service centre (SSC) is mobilised in a power-dominant context of a Chinese state-owned enterprise (SOE). Specifically, it examines the mobilisation of SSC within this multi-divisional SOE, the role and dynamics of actors involved and the influence of changes in the integrated information system (IIS) during the mobilisation process.

The study follows a qualitative case study methodology. The authors draw on actor-network theory to examine the network and translation processes constructed in mobilising SSC in the chosen SOE. The data sources of this study were collected through semi-structured interviews, observations and documentary reviews.

The mobilisation of SSC is not a linear process but rather a “spiral” interplay through continuous interactions and compromises between human and non-human actors. Power gave the core actor as an orchestrator legitimacy and formality to reduce resistance and obstruction in translation for the mobilisation of SSC. The changes in IIS appear to facilitate the interaction between the heterogeneous actors.

This case study contributes towards understanding the mobilisation of SSC in a power-dominant context by highlighting the impact of changes in IIS and the details of the mobilisation of SSC in terms of the role played by both the individual actors and the technology.

This study provides a broader understanding of the interactions of the heterogeneous actors for mobilising SSC in a power-dominant context. More importantly, the study inspires future research into examining how SSC practices unfold and how the changes in IIS influence the mobilisation of SSC.

This study examines whether students graduating from SSC-VOC perform better in diploma engineering programs.

This study uses quantitative and qualitative methods to examine how secondary school certificate-vocational (SSC-VOC) graduates perform in their subsequent vocational programs.

Despite having vocational training orientation, this study finds that graduates from SSC-VOC receive lower grades than their public counterparts by 0.109 cumulative grade points average (CGPA).

Findings imply that policymakers should increase teachers' numbers, salaries and laboratory facilities. In addition, collaboration between SSC-VOC institutions and polytechnics would allow them to offer a quality engineering education. In such a way, technical and vocational education and training (TVET) programs prepare human resources to promote economic development and employment, expand production opportunities and improve employment quality.

This is the first piece of work conducted in Bangladesh that has examined the quality of VET graduates for furthering their studies. This study added value by providing some pragmatic suggestions for practical implications.

Scant research attention has been given to investigating shared service organizations and in particular their relationships. The aim of this research is to investigate the critical decisions and design choices regarding the design of a shared service center (SSC) and the relationship with its users.

Using a framework developed by Kern and Willcocks published in 2000, this paper investigates the case of a shared services arrangement and its relationships in the Municipality of Amsterdam using qualitative research.

There are many mutually interrelated factors that need to be taken into account during the decision and design process of shared service arrangements. Antecedent conditions provide the basis for setting the objectives that the SSC needs to meet and determine the way the SSC is operationalized and designed in terms of its service and financial model, organizational structure, and communication mechanisms. In addition, this research also found that in practice the level of trust, cooperation and satisfaction increased between collaborating parties in a shared service arrangement when strategic choices are made in a systematic, collaborative and structured way during the decision‐making process leading to the initiation of an SSC.

A single case study was investigated, which limits statistical generalization. Further research should generalize the findings and facilitate a better understanding of the benefits, decisions, relationships and operational aspects of shared service arrangements.

An essential part of any analysis and design of shared service arrangements is the relationship between the many users and the semi‐autonomous organization providing the services.

Shared services arrangements provide a solution for resource sharing among multiple users and are gaining importance in public administration as a means to innovate, reduce costs and increase service levels. There is hardly any research in the field of shared services arrangements and no research investigating the relationships among users and service providers in local government.